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Northern Cape Business 2019/20 edition

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.

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.

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NORTHERN CAPE<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN THE NORTHERN CAPE PROVINCE<br />

<strong><strong>20</strong>19</strong>/<strong>20</strong> EDITION<br />

RTHERN CAPE<br />

SINESS<br />

E TO BUSINESS AND INVESTMENT<br />

ORTHERN CAPE PROVINCE<br />

<strong>20</strong>17/18 EDITION<br />

JOIN US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBUSINESS.CO.ZA<br />

ONLINE<br />

WWW.NORTHERNCAPEBUSINESS.CO.ZA


Physical: Metlife Towers,<br />

13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309<br />

Postal: Private Bag X6108, Kimberley, 8300<br />

Tel: 053 839 4000 | Fax: 053 832 6805<br />

Web: http://economic.ncape.gov.za<br />

Email: dedat@ncpg.gov.za


CONTENTS<br />

CONTENTS<br />

<strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong> Edition<br />

Introduction<br />

Foreword4<br />

The <strong>Northern</strong> <strong>Cape</strong>’s unique guide to business and investment.<br />

Special features<br />

Regional overview 6<br />

Major infrastructure is under construction in the <strong>Northern</strong><br />

<strong>Cape</strong> – or it will be soon – as the province prepares to move<br />

its economy into top gear.<br />

A competitive destination 10<br />

A trade and foreign direct investment (FDI) profile for the<br />

<strong>Northern</strong> <strong>Cape</strong>.<br />

Investment projects 12<br />

A wide range of investment opportunities are available for<br />

potential investors in the province.<br />

Upington Special Economic Zone 26<br />

More than 500 hectares of prime land is availible for investors.<br />

Tourism sector boom 28<br />

Adventure tourism continues to grow, and investors are sought<br />

for a steam train revival.<br />

Education creating opportunity 30<br />

Sol Plaatje University is reaching for the stars as the world’s<br />

biggest telescope project ramps up in the <strong>Northern</strong> <strong>Cape</strong>.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

2


Economic sectors<br />

CONTENTS<br />

Agriculture40<br />

Agri-processing is set to drive economic growth.<br />

Grapes and wine 44<br />

Record harvests are being recorded.<br />

Mining48<br />

A huge zinc project near Pofadder could lead to the <strong>Northern</strong><br />

<strong>Cape</strong> acquiring a smelter and a refinery.<br />

Water56<br />

Water projects are stimulating economic growth.<br />

Renewable energy 58<br />

Technical innovation comes to the <strong>Northern</strong> <strong>Cape</strong>.<br />

Banking and finance 60<br />

New banks are targeting niche markets.<br />

Development finance and SMME support 61<br />

An industrial park at Kathu will boost SMMEs.<br />

References<br />

Key sector contents 38<br />

Index64<br />

ABOUT THE COVER:<br />

Credit: NRF|SARAO. The MeerKAT radio telescope in the Karoo<br />

region of South Africa comprises 64 antennas and is currently<br />

the largest radio telescope in the world. MeerKAT is the precursor<br />

to the giant international project, the Square Kilometre Array<br />

(SKA) radio telescope. When the prototype Karoo Array Telescope<br />

(KAT) was expanded, the name for the expanded telescope was<br />

adopted to reflect the fact that more receptors were to be built<br />

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

that roams the Karoo.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOREWORD<br />

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director: Robert Arendse<br />

Editor: John Young<br />

Online editor: Christoff Scholtz<br />

Art director: Brent Meder<br />

Design: Tyra Martin<br />

Production: Lizel Olivier<br />

Ad sales: Shiko Diala, Sandile Koni,<br />

Gavin van der Merwe, Sam Oliver,<br />

Gabriel Venter, Vanessa Wallace,<br />

Jeremy Petersen and Reginald<br />

Motsoahae<br />

Managing director: Clive During<br />

Administration & accounts:<br />

Charlene Steynberg and<br />

Natalie Koopman<br />

Distribution & circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

<strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong><br />

A unique guide to business and investment in the<br />

<strong>Northern</strong> <strong>Cape</strong>.<br />

The <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>edition</strong> of <strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong> is the ninth<br />

issue of this highly successful publication that has, since its<br />

launch in <strong>20</strong>09, established itself as the premier business<br />

and investment guide for the <strong>Northern</strong> <strong>Cape</strong> Province.<br />

Officially supported and used by the <strong>Northern</strong> <strong>Cape</strong> Department<br />

of Economic Development and Tourism, <strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong> is<br />

unique as a business and investment guide that focuses exclusively<br />

on the province. In addition to comprehensive overviews of sectors<br />

of the economy, this publication has a particular focus on specific,<br />

packaged investment opportunities<br />

The massive potential represented by the Square Kilometre Array<br />

radio telescope project and the rapid progress being made by Sol<br />

Plaatje University are also highlighted in this <strong>edition</strong>.<br />

To complement the extensive local, national and international<br />

distribution of the print <strong>edition</strong>, the full content can also be viewed<br />

online at www.globalafricanetwork.com under e-books. Updated<br />

information on the <strong>Northern</strong> <strong>Cape</strong> is also available through our monthly<br />

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

addition to our complementary business-to-business titles that cover<br />

all nine provinces as well as our flagship South African <strong>Business</strong> title.<br />

Chris Whales<br />

Publisher, Global Africa Network Media<br />

Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions, through trade and investment<br />

agencies; to foreign offices in South Africa’s main trading partners<br />

around the world; at top national and international events;<br />

through the offices of foreign representatives in South Africa;<br />

as well as nationally and regionally via chambers of commerce,<br />

tourism offices, trade and investment agencies, provincial government<br />

departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: <strong>20</strong>04/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6<strong>20</strong>0 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

ISSN <strong>20</strong>74-0654<br />

COPYRIGHT | <strong>Northern</strong> <strong>Cape</strong> <strong>Business</strong> is an independent publication<br />

published by Global Africa Network Media (Pty) Ltd. Full copyright to<br />

the publication vests with Global Africa Network Media (Pty) Ltd. No part<br />

of the publication may be reproduced in any form without the written<br />

permission of Global Africa Network Media (Pty) Ltd.<br />

PHOTO CREDITS | Pictures supplied by: Abengoa Solar; Aurecon;<br />

Flicker/SA Tourism; Industrial Development Corporation; iStock; Kumba<br />

Iron Ore; Murray and Dickson Construction; Noblesfontien Wind Farm;<br />

NRF|SARAO; Kevin Wright and Vedanta Zinc International; Robertson<br />

Ventilation Industries (RVI); Savage + Dodd architects; Sedibeng Water.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 4<br />

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has<br />

used all reasonable efforts to ensure that the information contained in <strong>Northern</strong><br />

<strong>Cape</strong> <strong>Business</strong> is accurate and up-to-date, the publishers make no representations<br />

as to the accuracy, quality, timeliness, or completeness of the information.<br />

Global Africa Network will not accept responsibility for any loss or damage<br />

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


The Black Management Forum<br />

The BMF is a thought leadership organisation founded in<br />

1976, with the main purpose of influencing socio-economic<br />

transformation of our country, in pursuit of socio-economic<br />

justice, fairness and equity.<br />

The organisation stands for the development and<br />

empowerment of managerial leadership amongst black people<br />

within organisations and the creation of managerial structures<br />

and processes, which reflect the demographics, and<br />

value of the wider society.<br />

For detailed information on how to become a member, please contact<br />

Thulisile Simelane. Email: thulisile@bmfonline.co.za<br />

www.bmfonline.co.za BMFNational@ BMFNational @BMFNational


SPECIAL FEATURE<br />

A REGIONAL OVERVIEW OF THE<br />

NORTHERN<br />

CAPE PROVINCE<br />

By John Young<br />

Major infrastructure is under construction in the <strong>Northern</strong> <strong>Cape</strong> —or it will be soon<br />

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

economic development zone, a railways logistics hub, a Special Economic Zone at<br />

Upington Airport, a new harbour and a new university are among the infrastructure<br />

projects underway or under consideration in South Africa’s largest province.<br />

The planned Special Economic Zone<br />

(linked to the Upington International<br />

Airport) is intended as a site for solarrelated<br />

manufacturing. The Industrial<br />

Development Corporation has spent R11.4-<br />

billion of its commitment to renewable energy<br />

so far in the <strong>Northern</strong> <strong>Cape</strong>. Part of the IDC’s<br />

role has been to take up a <strong>20</strong>% stake in projects<br />

on behalf of local communities.<br />

Provincial assets<br />

The <strong>Northern</strong> <strong>Cape</strong> is South Africa’s<br />

largest province at 372 889km², covering<br />

30% of the country’s landmass on the dry<br />

western side of the country bordering the<br />

Atlantic Ocean, Namibia and Botswana.<br />

The Sishen-Saldanha ore export railway<br />

line is one of the mechanical wonders of<br />

the world. The line extends 860km and the<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

6


SPECIAL FEATURE<br />

trains sometimes extend beyond 3 500 metres<br />

and carry a load exceeding 41 000 tons.<br />

The <strong>Northern</strong> <strong>Cape</strong> produces more than 84%<br />

of South Africa’s iron ore. Kumba Iron Ore is the<br />

country’s biggest iron-ore miner with two large<br />

two mines (Sishen and Kolomela) in the province.<br />

The Kalahari Basin contains 80% of the<br />

world’s manganese reserve, but only 15% of<br />

global production comes from this area so there<br />

is enormous scope for development. Several new<br />

black-owned manganese projects are underway.<br />

The world receives 7% of its diamonds from the<br />

<strong>Northern</strong> <strong>Cape</strong>, and exports of zinc and lead<br />

from the province account for 13% of global<br />

demand.<br />

Vedanta Zinc International started work in<br />

<strong>20</strong>15 on its huge new Gamsberg Zinc project.<br />

The new mine is near to Vedanta’s existing Black<br />

Mountain mine and is the biggest current new<br />

project underway The flotation area of the mine<br />

is shown here in a photograph by Kevin Wright.<br />

The province also has copper, lead, zinc,<br />

mineral sands, gypsum, granite, asbestos,<br />

fluorspar, semi-precious stones and marble.<br />

The <strong>Northern</strong> <strong>Cape</strong> is a big contributor to<br />

the national basket of exports in minerals and<br />

in agricultural products such as table grapes<br />

and raisins. About 45 000 people are employed<br />

in agriculture, which represents approximately<br />

16% of employment. The province supports<br />

livestock farming (mainly goats and sheep<br />

with cattle in the north), table grapes, dates,<br />

cotton and cereal crops and vineyards along<br />

the banks of the Orange River, large varieties of<br />

crops including cotton, groundnuts, wheat and<br />

maize on irrigated lands. Pecan nuts are a major<br />

new crop. Thoroughbred horses are bred in the<br />

south-eastern parts of the province, especially<br />

around Colesberg.<br />

The <strong>Northern</strong> <strong>Cape</strong> is home to six national parks<br />

and five provincial parks and nature reserves. The<br />

Richtersveld Cultural and Botanical Landscape is<br />

a World Heritage Site and the Namaqualand spring<br />

flower display draws many visitors.<br />

Most of the province falls into the category<br />

of semi-arid (apart from the coastal strip) and it<br />

receives relatively little rainfall. Summers are hot<br />

and winters are cold.<br />

District municipalities<br />

Frances Baard District Municipality<br />

Towns: Kimberley, Barkly West, Warrenton,<br />

Hartswater, Jan Kempdorp.<br />

This district accounts for 40.3% of the province’s<br />

economic activity. It is the smallest but with a population<br />

of approximately 325 500, it is the most<br />

densely populated. Although Kimberley is historically<br />

7<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


SPECIAL FEATURE<br />

renowned for diamond mining, its economy is now<br />

driven by its role as the administrative headquarters<br />

of the province. Strategically located and with good<br />

infrastructure, Kimberley is the leading centre in<br />

the province for retail, financial services, education,<br />

commerce and light industry.<br />

The Mittah Seperepere Convention Centre and<br />

the Sol Plaatje University are in Kimberley. Mining<br />

and agriculture are found in rural municipalities.<br />

Agriculture in the region comprises crop cultivation<br />

and stock and game farming. The Vaalharts Water<br />

Scheme is the largest irrigation project of its kind<br />

in the southern hemisphere.<br />

Investment opportunities:<br />

• Sol Plaatje University<br />

• Kimberley International Diamond and<br />

Jewellery Academy (KIDJA)<br />

• Mining: diamonds and precious stones<br />

• Manufacturing: textiles, agri-processing.<br />

John Taolo Gaetsewe District Municipality<br />

Towns: Kuruman, Kathu, Hotazel.<br />

Kuruman is the headquarters of local government<br />

in this region and contributes 19.7% to the<br />

province’s economy. The local spring produces<br />

<strong>20</strong>-million litres of water every day.<br />

Most of the district is situated on the Ghaap<br />

Plateau, over 1 000 metres above sea-level and<br />

can experience extreme temperatures. Most<br />

agricultural activity is limited to grazing and<br />

boer goats are a popular breed among farmers,<br />

although game hunting is growing.<br />

Kathu has a well-developed CBD with shopping<br />

malls that arose when iron demand was high.<br />

The Sishen iron ore mine outside Kathu is a vast<br />

undertaking, providing employment for thousands<br />

of people. Samancor’s Mamatwan and Wessels<br />

manganese mines and plants are situated at Hotazel.<br />

Investment opportunities:<br />

• Kathu Industrial Park (IDC involvement)<br />

• Eco-tourism and hunting<br />

• Boesmansput diving resort<br />

• Gamagara Mining Corridor (housing,<br />

infrastructure)<br />

• Goat commercialisation<br />

• Agri-processing: olives, grains, pecan<br />

nuts, medicinal plants.<br />

Namakwa District Municipality<br />

Towns: Springbok, Calvinia, Niewoudtville,<br />

Garies, Williston, Fraserburg, Sutherland,<br />

Pofadder, Okiep, Port Nolloth, Alexander Bay.<br />

The Namakwa District stretches from the northwestern<br />

corner of the province, and the country,<br />

bordering Namibia and the Atlantic Ocean to<br />

the southern border of the province with the<br />

Western <strong>Cape</strong> Province. It includes the famous<br />

star-gazing town of Sutherland on its southern<br />

edge. The district is sparsely populated, and<br />

predominantly rural. It contributes 11.1% to<br />

economic activity in the province.<br />

A major new investment has been undertaken<br />

in zinc at the Gamsberg project.<br />

The mining and agricultural sectors provide<br />

most employment, while tourism and small-scale<br />

manufacturing are also present. There are plans<br />

to upgrade the harbour at Port Nolloth.<br />

The region’s economy gets a great boost<br />

every spring when tourists flock to see the veld<br />

in bloom. The climate and soil support certain<br />

niche crops, and the sites and sights are unique<br />

to the region, offering opportunities in agriculture<br />

and tourism. Niewoudtville is the site of a rooibos<br />

tea factory.<br />

The /Ai/Ais/Richtersveld Transfrontier Park,<br />

the Namakwa National Park and the Tankwa<br />

Karoo National Park have the potential to grow<br />

as travel destinations, as does the western<br />

coastline.<br />

Investment opportunities:<br />

• Development of Port Nolloth and smaller<br />

harbours<br />

• Hondeklip Fish Factories<br />

• Abalone and hake<br />

• Kelp processing and export<br />

• Game and nature reserve infrastructure<br />

• Rooibos tea<br />

• Calvinia: sheep and goat processing.<br />

Pixley Ka Seme District Municipality<br />

Towns: De Aar, Hanover, Carnarvon, Douglas,<br />

Marydale, Prieska, Hopetown, Richmond,<br />

Noupoort, Norvalspont, Colesberg.<br />

The district covers 102 000 square kilometres<br />

in the central Karoo and contributes 11.3% of<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

8


SPECIAL FEATURE<br />

the economic activity of the province. It has four<br />

national roads passing through it. De Aar, the<br />

site of the municipal headquarters, has national<br />

significance as a railway junction. The provincial<br />

government has published plans to create a<br />

logistics hub at De Aar.<br />

Star-gazing is Carnarvon’s great claim to<br />

fame, and it will now host the Square Kilometre<br />

Array (SKA) radio telescope.<br />

The district is home to three of South Africa’s<br />

major dams. Agricultural production includes<br />

wheat, maize, peanuts, grapes, beans, potatoes,<br />

nuts and sheep farming. Pixley Ka Seme is the<br />

largest wool-producing district in South Africa,<br />

but most of what is produced is processed in<br />

the Eastern <strong>Cape</strong>, so opportunities exist for the<br />

establishment of a cotton mill, a tannery and a<br />

facility to add value to semi-precious stones.<br />

Horse breeding is a valuable contributor to the<br />

regional economy.<br />

Investment opportunities:<br />

• De Aar rail cargo hub and workshops<br />

• SKA engineering, science, logistics<br />

support and education<br />

• Douglas holiday resort<br />

• Booktown Richmond festivals<br />

• Wool, pistachio nuts and venison<br />

processing<br />

• Water tourism activities on dams.<br />

ZF Mgcawu District Municipality<br />

Towns: Upington, Kakamas, Kenhardt,<br />

Groblershoop, Postmasberg.<br />

The Orange River supports a thriving<br />

agricultural sector and a growing tourism<br />

sector. The investment climate is ripe for<br />

tourism along the Orange River and around<br />

unique physical attractions such as the<br />

Augrabies Falls.<br />

Upington is already a busy town with<br />

processing facilities for agricultural products.<br />

The planned development of a Special<br />

Economic Zone (SEZ) in the town and next<br />

to Upington International Airport will boost<br />

manufacturing. The main targeted sectors at<br />

this stage are in the renewable energy sector,<br />

for example, solar panels.<br />

Most of the population of the //Khara Hais<br />

Local Municipality lives in Upington. Agriculture<br />

is a prominent feature of the local economy,<br />

as well as wholesale and retail services in<br />

and around the town. Various kinds of highspeed<br />

car racing and testing takes place on<br />

the roads, tracks and airport runway in or near<br />

the town.<br />

The processing of wine and dried fruit is<br />

one of the biggest manufacturing activities in<br />

the province. Mining activities take place in<br />

Kgatelopele, where diamonds and lime are<br />

found. Together with sheep and cattle farming,<br />

mining provides most of the employment to<br />

be found in Siyanda. The diamond mine at<br />

Finsch is Petra Diamonds’ newest and largest<br />

acquisition.<br />

Investment opportunities:<br />

• Upington Special Economic Zone<br />

• Upington Cargo and Electronics hub: SKA,<br />

renewable energy and aircraft storage<br />

• Upington International Airport<br />

• Orange River Smallholder Farmer<br />

Settlement and Development Programme<br />

• Tourism: wine tours, adventure and hunting<br />

• Upington vehicle testing site<br />

• <strong>Business</strong> Process Outsourcing (BPO).<br />

9 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


SPECIAL FEATURE<br />

A competitive destination<br />

A trade and foreign direct investment (FDI) profile for the <strong>Northern</strong> <strong>Cape</strong>.<br />

SPECIAL FEATURE<br />

A competitive destination<br />

A trade and foreign direct investment (FDI) profile for the <strong>Northern</strong> <strong>Cape</strong><br />

Between January <strong>20</strong>11 and March <strong>20</strong>16, a total of 486 FDI projects were recorded. These projects<br />

represent a total capital investment of ZAR365.63 which is an average investment of ZAR752.23<br />

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

Aggregate Annual Figures<br />

Between January <strong>20</strong>11 and<br />

March <strong>20</strong>16, a total of 486 FDI<br />

projects were recorded. These<br />

projects represent a total capital<br />

investment of ZAR365.63-billion<br />

which is an average investment of<br />

ZAR752.23m per project. During<br />

the period, a total of 68 533 jobs<br />

were created.<br />

Year Projects <strong>Cape</strong>x Avg <strong>Cape</strong>x Jobs Created Avg Jobs Companies<br />

<strong>20</strong>16 15 31 689.9 2112.6 4 062 270 15<br />

<strong>20</strong>15 80 53 080.6 663.2 11 <strong>20</strong>9 140 73<br />

<strong>20</strong>14 73 37 979.7 5<strong>20</strong>.2 6 747 92 70<br />

<strong>20</strong>13 100 74 883.7 748.7 12 981 129 87<br />

<strong>20</strong>12 101 46 718.2 462.8 13 328 131 93<br />

<strong>20</strong>11 117 121 273.9 1037.0 <strong>20</strong> <strong>20</strong>6 172 103<br />

Total 486 365 626.0 752.2 68 533 141 397<br />

Notes:<br />

1) © fDi Intelligence, from the Financial Times Ltd <strong>20</strong>16. Data subject to terms and conditions of use<br />

2) All <strong>Cape</strong>x figures shown in the table are in ZAR - South Africa Rand millions<br />

3) <strong>Cape</strong>x data includes estimated values Financial Times Ltd takes no responsibility for the accuracy or otherwise of this data.<br />

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

Top 10 Export Countries: <strong>20</strong>17<br />

Country<br />

Export value (R)<br />

Aggregate Annual Figures Botswana 6,890,685,954<br />

China 2,221,952,600<br />

Projects Created Avg Destination State <strong>Cape</strong>x Avg <strong>Cape</strong>x Jobs Jobs Companies<br />

India<br />

129<br />

1,069,547,234<br />

Gauteng 197 113 130.5 574.1 28 142 190<br />

Western <strong>Cape</strong> 86 26 092.7 303.5 7 154 83 84<br />

KwaZulu-Natal<br />

Japan<br />

49 27 887.8 569.4 5 694<br />

715,242,337<br />

116 40<br />

Eastern <strong>Cape</strong> 28 28 097.5 1003.0 7 043 251 25<br />

<strong>Northern</strong> <strong>Cape</strong> South Korea 27 82 577.1 3058.2 4 314 696,539,853 159 17<br />

Mpumalanga 9 5 586.7 621.0 1 471 163 9<br />

Limpopo Hong Kong 6 7 938.3 1322.9 499599,381,645<br />

83 4<br />

Free State 5 18 979.3 3796.3 2 676 535 5<br />

North West Spain 4 1 160.0 290.6 569528,724,330<br />

142 4<br />

Not Specified 75 54 177.3 722.9 10 984 146 71<br />

Total Netherlands 486 365 626.0 752.2 68 533 468,907,925 141 397<br />

Notes:<br />

Russia 444,756,156<br />

1) © fDi Intelligence, from the Financial Times Ltd <strong>20</strong>16. Data subject to terms and conditions of use<br />

Namibia<br />

the table are<br />

380,498,692<br />

2) All <strong>Cape</strong>x figures shown in in ZAR - South Africa Rand millions<br />

3) <strong>Cape</strong>x data includes estimated values Financial Times Ltd takes no responsibility for the accuracy or otherwise of this data.<br />

Source: IHS Markit Regional eXplorer version 1570<br />

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

Between January <strong>20</strong>11 and March <strong>20</strong>16 a total of 27 FDI projects were recorded in the <strong>Northern</strong><br />

Top 10 Export Countries: <strong>20</strong>17<br />

Top 10 Export Products: <strong>20</strong>17<br />

<strong>Cape</strong>. These projects represent a total capital investment of ZAR82.57 which is an average<br />

Country<br />

Export value (R)<br />

Product<br />

Export value (R)<br />

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

Botswana 6,890,685,954<br />

Other mining and quarrying 6,868,457,598<br />

China 2,221,952,600<br />

India 1,069,547,234<br />

Japan 715,242,337<br />

South Korea 696,539,853<br />

Hong Kong 599,381,645<br />

Spain 528,724,330<br />

Netherlands 468,907,925<br />

Russia 444,756,156<br />

Namibia 380,498,692<br />

Source: IHS Markit Regional eXplorer version 1570<br />

Mining of metal ores 6,774,758,037<br />

Agriculture and hunting 2,662,038,128<br />

Furniture and other items NEC and recycling 435,389,857<br />

Metal products, machinery and household appliances 312,717,558<br />

Food, beverages and tobacco products 235,931,643<br />

Transport equipment 170,557,<strong>20</strong>6<br />

Fuel, petroleum, chemical and rubber products 54,817,748<br />

Electrical machinery and apparatus 53,095,740<br />

Wood and wood products 34,282,962<br />

Source: IHS Markit Regional eXplorer version 1570<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

Top 10 Export Products: <strong>20</strong>17<br />

Product<br />

Export value (R)<br />

10<br />

Other mining and quarrying 6,868,457,598<br />

Mining of metal ores 6,774,758,037


All FDI into <strong>Northern</strong> <strong>Cape</strong>, South Africa<br />

Data for companies from source countries investing in <strong>Northern</strong> <strong>Cape</strong> in activities between January <strong>20</strong>11 and March <strong>20</strong>16<br />

Project Date Investing<br />

NO<br />

Company<br />

Mar-15 Enel Green<br />

1<br />

Power<br />

Jan-15 ACWA Power<br />

2<br />

International<br />

3<br />

Jan-15 Engie (GDF SUEZ)<br />

(Gaz de France<br />

Parent<br />

Company<br />

Source<br />

Country<br />

Source City Capital<br />

Investment<br />

Sub-Sector<br />

Enel Italy Rome 2557.833087 Solar electric<br />

power<br />

ACWA Saudi Arabia Riyadh 14060.46589 Solar electric<br />

Power<br />

power<br />

International<br />

Engie (GDF France Paris 2557.833087 Solar electric<br />

SUEZ) (Gaz<br />

power<br />

de France<br />

Industry<br />

Activity<br />

Electricity<br />

Electricity<br />

Electricity<br />

Jan-15 Sonnedix Solar Sonnedix Netherlands Amsterdam 2568.378436 Solar electric Electricity<br />

4<br />

Solar<br />

power<br />

Nov-14 Sesa Sterlite Vendanta UK London 7381.744593 Copper,<br />

Electricity<br />

5<br />

Resources<br />

lead,nickel,zinc<br />

Nov-13 Sunpower Total France Paris 2343.410982 Solar electric Electricity<br />

6<br />

power<br />

Oct-13 Mainstream Mainstream Ireland Dublin 2568.378436 Wind electric Electricity<br />

7<br />

Renewable Renewable<br />

power<br />

Power<br />

Power<br />

Oct-13 Mainstream<br />

8<br />

Renewable<br />

Power<br />

Oct-13 Mainstream<br />

9<br />

Renewable<br />

Power<br />

Mainstream<br />

Renewable<br />

Power<br />

Mainstream<br />

Renewable<br />

Power<br />

Ireland Dublin 2568.378436 Wind electric<br />

power<br />

Ireland Dublin 2568.378436 Wind electric<br />

power<br />

Electricity<br />

Electricity<br />

Sep-13 Acciona Acciona Spain Alcobendas 2441.834243 Solar electric Electricity<br />

10<br />

power<br />

Sep-13 ACWA Power ACWA Saudi Arabia Riyadh 6151.453828 Solar electric Electricity<br />

11<br />

International Power<br />

power<br />

International<br />

May-13 Scatec Solar Scatec AS Norway Oslo 2348.449316 Solar electric Electricity<br />

12<br />

power<br />

Feb-13 Globeleq<br />

Globeleq South East UK London 2568.378436 Solar electric Electricity<br />

13<br />

Generation Generation<br />

power<br />

Nov-14 Mainstream 17 Mainstream<br />

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

14<br />

Renewable Renewable Renewable Renewable Energy<br />

8 power<br />

g<br />

Power<br />

Power Energy<br />

Nov-12 Mainstream Mainstream Ireland Dublin 82.01938437 Solar electric Electricity<br />

15 18 Jan-12 Powerway Powerway<br />

China Foshan 0.23434109 Other<br />

Manufacturin<br />

Renewable Renewable<br />

power<br />

Renewable Renewable Energy<br />

8<br />

fabricated g<br />

Power<br />

Power<br />

Energy<br />

metal pro<br />

Jan-12 Powerway<br />

Powerway China Foshan 0.234341098 Other<br />

Education &<br />

16<br />

Renewable 19 Renewable<br />

Jan-12 Powerway Powerway<br />

China Foshan 0.23434109 fabricated Coating, Training heat Manufacturin<br />

Energy<br />

Energy Renewable Renewable Energy<br />

8 metal prds treating ,etc g<br />

Jan-12 Powerway<br />

Powerway Energy China Foshan 0.234341098 Steel products Manufacturing<br />

17<br />

Renewable Renewable<br />

Energy<br />

No Energy Projec Investing<br />

Parent Company Source Source City Capital Sub-Sector Industry<br />

Jan-12 Powerway<br />

Powerway<br />

t Date Company China Foshan Country 0.234341098 Investment Other<br />

Manufacturing Activity<br />

18<br />

Renewable Renewable<br />

fabricated<br />

Energy<br />

<strong>20</strong> Energy Dec-11 Abengoa Abengoa Spain Seville 2283.65400 metal pro Solar electric Electricity<br />

2<br />

power<br />

Jan-12 Powerway<br />

Powerway China Foshan 0.234341098 Coating, heat Manufacturing<br />

19<br />

Renewable Renewable<br />

treating ,etc<br />

21 Dec-11 Abengoa Abengoa Spain Seville 2283.65400 Solar electric Electricity<br />

Energy<br />

Energy<br />

2<br />

power<br />

Dec-11 Abengoa Abengoa Spain Seville 2283.654002 Solar electric Electricity<br />

<strong>20</strong><br />

22 Dec-11 Anglo American Anglo American UK London 11717.0549 power Iron ore mining Extraction<br />

Dec-11 Abengoa Abengoa Spain Seville 2283.654002 1 Solar electric Electricity<br />

21<br />

power<br />

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

electric Electricity<br />

22<br />

American<br />

7 mining power<br />

Dec-11 Scatec Solar Scatec AS Norway Oslo 3091.310597 Solar electric Electricity<br />

23<br />

24 Dec-11 Solar Reserve Solar Reserve United Santa 2568.37843 power Solar electric Electricity<br />

States Monica 6<br />

power<br />

Dec-11 Solar Reserve Solar<br />

United States Santa Monica 2568.378436 Solar electric Electricity<br />

24<br />

Reserve<br />

power<br />

25 Jul-11 David Brown Clyde Blowers UK East 58.5852745 General Maintenance<br />

Jul-11 David Brown Clyde<br />

UK East Kilbridge 58.58527455 General<br />

Maintenance<br />

25 Group<br />

Kilbridge 5<br />

purpose & Service<br />

Group<br />

Blowers<br />

purpose machinery & Service<br />

machinery<br />

May-11 Diana Group 26 Diana May- Group Diana France Group Diana Not Group specified France 326.905832 Not<br />

326.905832 Paints, Paints, Manufacturing<br />

26<br />

Manufacturin<br />

(Groupe Diana) (Groupe 11 (Groupe Diana) (Groupe Diana)<br />

specified coatings& coatings& g<br />

Diana)<br />

adhesive adhesive<br />

May-11 Diana Group Diana Group France Not specified 326.905832 Paints,<br />

Manufacturing<br />

26<br />

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

Diana)<br />

2 adhesive mineral mining<br />

Feb-11 Jupiter Mines Jupiter Australia Perth 2343.410982 Nonmetallic Extraction<br />

27<br />

Mines<br />

mineral mining<br />

Source: Investment South Africa (ISA) the dti


FOCUS<br />

Investment<br />

Opportunities<br />

<strong>Northern</strong> <strong>Cape</strong> economic potential and investment.<br />

Several locations within the <strong>Northern</strong><br />

<strong>Cape</strong> are being developed to be catalysts<br />

for investment into the province.<br />

These include the Upington Special<br />

Economic Zone, the Kathu Industrial Park,<br />

the De Aar Logistics Hub and the Boegoebaai<br />

Port Project.<br />

Other sites attracting different kinds of investment<br />

include the Square Kilometre Array radio<br />

telescope project near Carnarvon and the Sol<br />

Plaatje University in Kimberley.<br />

The competitive and comparative advantages<br />

of the <strong>Northern</strong> <strong>Cape</strong> can be summarised as<br />

follows:<br />

• mineral resources<br />

• climate<br />

• open spaces and distances<br />

• astronomy<br />

• air quality<br />

• coastline.<br />

To realise the socio-economic priorities of the<br />

<strong>Northern</strong> <strong>Cape</strong> Province, there is a focus on the<br />

following key economic sectors:<br />

• agriculture and agro-processing<br />

• fishing and aquaculture<br />

• mining and mineral processing<br />

• manufacturing<br />

• tourism<br />

• knowledge economy<br />

• energy sector.<br />

The following investment opportunities are<br />

described in detail in the pages that follow:<br />

Investment opportunity Sectors Location Value<br />

Kathu Industrial Park<br />

Upington SEZ Agri-hub<br />

Aviation Aircraft<br />

Development<br />

Maintenance repair and<br />

operations (MRO)<br />

Mining, renewable energy,<br />

service, logistics<br />

manufacturing<br />

Kathu<br />

R530-million (1st phase)<br />

Agricultural processing and Upington<br />

R570-million<br />

logistics<br />

Aeronautical Upington SEZ R340-million<br />

Aeronautical Upington SEZ R800-million<br />

<strong>Northern</strong> <strong>Cape</strong> Renewable<br />

Renewable energy,<br />

Upington<br />

R23-million, R240-million or<br />

Energy Incubator<br />

manufacturing<br />

R500-million (options)<br />

Solar Farm, power for SEZ Renewable energy Upington SEZ R270-million<br />

Fibre Optics Manufacturing ICT broadband Upington SEZ R228-million<br />

Nyaniso Healthcare<br />

Latex condom<br />

Colesberg<br />

R150-million<br />

manufacturing<br />

Versa Chemicals, Paint and<br />

Detergent Manufacturing<br />

Manufacturing Kimberley R100-million<br />

Promethean Waterfront Tourism and heritage Barkly West R800-million<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

12


Fibre Optics<br />

Manufacturing<br />

Broadband services.<br />

Project location<br />

The project’s physical address is 24 Schroeder<br />

Street, Upington, in the ZF Mgcawu District.<br />

Targeted sectors<br />

ICT broadband.<br />

FOCUS<br />

Project description<br />

The investor is a fibre optic manufacturing and<br />

broadband solutions company. It is a black<br />

and female-owned company managed and<br />

supported by a team of experts in engineering,<br />

marketing and financial disciplines. The<br />

company intends to contribute to the<br />

infrastructural broadband development in<br />

South Africa and other African countries.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist,<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email:<br />

bmbobo@upington-sez.co.za<br />

Mr E Ntoba, Dawid Kruiper Local Municipality<br />

Tel: +27 54 338 5000<br />

Email: entoba@dkm.gov.za<br />

Project background<br />

The investor is a fibre optic ICT broadband<br />

organisation that specialises in infrastructure<br />

services, facilitating all light infrastructure<br />

needs for cloud computing and data centres.<br />

It distributes passive fibre optic materials.<br />

Key facts<br />

Investment value: R228-million<br />

Job creation: 169 jobs<br />

Mr T Klassen, Department of Trade and<br />

Industry<br />

Tel: +27 12 394 1482<br />

Finance<br />

The project will be financed by the investor<br />

with the government providing enabling<br />

infrastructure.<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

13<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Kathu Industrial Park (KIP)<br />

A catalyst for economic growth.<br />

Targeted sectors<br />

The KIP targets all economic sectors requiring<br />

serviced industrial space in the region,<br />

but with the major portion of the initial tenant<br />

makeup (study phase) primarily serving the<br />

established mining sector, by virtue of the<br />

KIP’s central proximity to the Postmasburg-<br />

Hotazel iron-ore/manganese belt. The KIP is<br />

also well positioned to serve the emerging<br />

REIPPPP sector in the region. In addition to<br />

the ongoing development of business opportunities<br />

within the tenant supply chains,<br />

it will be the role of the KIP business incubator<br />

to expand coverage of the KIP into<br />

other sectors.<br />

Study phase tenant engagement and<br />

commitment to the project has been concluded<br />

on a “first come, first served” basis<br />

and has covered all possible prospective<br />

tenants, regardless of size or level of development.<br />

The KIP development caters for all<br />

nature of tenant facilities, from large customised<br />

facilities through to smaller, economically<br />

efficient mini-factories.<br />

Project location<br />

Farm Sekgame, 461 Kuruman Road, Gamagara<br />

Local Municipality, Kathu. GPS coordinates:<br />

S27° 42’ 52.5” E23° 02’ 33.8”<br />

Job creation<br />

During development: 1 300 (direct), 805<br />

(indirect) and 2 273 (induced).<br />

During operations: 2 240 (direct), 3 137<br />

(indirect) and 3 446 (induced).<br />

Project description<br />

The KIP development comprises the following:<br />

• Central hub: This will comprise various<br />

facilities and the associated infrastructure<br />

network supporting KIP management<br />

structures. The scope of facilities<br />

is envisaged to include: central administration<br />

offices; conferencing facilities;<br />

an auditorium; a security office; a restaurant;<br />

and other social facilities. These<br />

are to be located in a hub within the park<br />

in a centrally located single-level building,<br />

with visitor parking and appropriate<br />

landscaping.<br />

• A central logistics facility.<br />

• A <strong>Business</strong> Incubation Centre and<br />

Training Centre.<br />

• Customised warehouses and industrial<br />

buildings and (standard specification)<br />

mini-factories.<br />

• Security fencing and lighting.<br />

• Additional infrastructure envisaged for<br />

the functionality of the KIP includes:<br />

internal roads (tarred and paved), a<br />

storm-water system and an internal<br />

water reticulation system.<br />

Project status<br />

Feasibility Study, Project Development Plan,<br />

<strong>Business</strong> Plan and Environmental Impact<br />

Assessment Study completed. Currently in<br />

the process of finalising KIP Shareholders<br />

Agreement, with involvement in the project<br />

currently secured from: IDC, Kumba, SIOC-<br />

CDT, Assmang and with engagement still<br />

underway with South32. Partnerships are in<br />

place with the private sector, the Industrial<br />

Development Corporation, provincial<br />

government and local government.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

14


FOCUS<br />

Finance<br />

KIP is a strategic Social Economic<br />

Development (SED) project with extensive<br />

short- and long-term benefits which also provides<br />

a key point of integration supporting<br />

the <strong>Northern</strong> <strong>Cape</strong> Share Value Initiative (a<br />

strategic initiative recently launched by the<br />

<strong>Northern</strong> <strong>Cape</strong> Mining Leadership Forum).<br />

Government commitment: bulk<br />

infrastructure contribution. ​<br />

Private sector investment required: Phase<br />

1 estimated R152-million (to crowd out<br />

Project Summary<br />

Industrial Development Corporation equity<br />

1. Kathu Industrial Park<br />

contribution).<br />

Project Location<br />

District:Gamagara Local Municipality<br />

Physical address: Farm Sekgame, 461 Kuruman Road<br />

Key facts<br />

GPS Coordinates: S27° 42’ 52.5” E23° 02’ 33.8”<br />

Project Name and background<br />

City/Town: Kathu<br />

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

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

park to stimulate sustainable long-term economic development for the <strong>Northern</strong> <strong>Cape</strong> region. The<br />

estimate)<br />

envisaged development will attract all nature of tenants delivering industrial goods and services, to<br />

an environment leveraging economy of scale from centralized facilities and complemented by a<br />

business incubation and training complex. With the mining industry being the largest real economic<br />

sector in the <strong>Northern</strong> <strong>Cape</strong> economy (based on contribution to GDP), the town of Kathu - located in<br />

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

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

To discuss this opportunity, contact<br />

Mr Stuart Dangerfield, Project Lead, Anglo<br />

American<br />

Tel: +27 11 679 2181 ​​​​​<br />

Mobile: 083 455 2862<br />

Email:<br />

stuart.dangerfield@angloamerican.com ​<br />

Mr Mehmood Ahmed, KIP Director<br />

Tel: +27 53 807 1050 ​​​​​<br />

Mobile: 078 801 4081<br />

Email: Mehmooda@idc.co.za<br />

Project background<br />

Sishen Iron Ore Company (Pty) Ltd (SIOC)<br />

and the Industrial Development Corporation<br />

(IDC) have funded various studies to assess<br />

the feasibility of developing an industrial park<br />

to stimulate sustainable long-term economic<br />

development for the <strong>Northern</strong> <strong>Cape</strong> region.<br />

The envisaged development will attract varied<br />

tenants delivering industrial goods and<br />

services to an environment leveraging economies<br />

of scale from centralised facilities and<br />

complemented by a business incubation and<br />

training complex.<br />

With the mining industry being the largest<br />

real economic sector in the <strong>Northern</strong><br />

<strong>Cape</strong> economy, the town of Kathu is the<br />

preferred location due to its central proximity<br />

to the Postmasburg-Hotazel iron-ore/<br />

manganese belt and various established and<br />

pending Renewable Energy Power Producer<br />

Procurement Programme (REIPPPP) projects.<br />

It is envisaged that the KIP serve as a<br />

catalyst for accelerated growth of other economic<br />

sectors. The feasibility study has not<br />

only confirmed extensive interest from businesses<br />

with a vested interest in the <strong>Northern</strong><br />

<strong>Cape</strong> region (ie potential tenants) but has<br />

also confirmed the support of various key<br />

stakeholders as well as the commitment of a<br />

number of investors. There has been interest<br />

from financial institutions.<br />

This development, located on the R380,<br />

is easily accessible from the N14 highway, a<br />

major service route between Johannesburg,<br />

the West Coast of South Africa and Botswana,<br />

and the Kathu airport. The study process has<br />

included an assessment of infrastructural<br />

requirements and has confirmed integration<br />

with Gamagara Local Municipality planning.<br />

15 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Aircraft Development<br />

Aviation potential.<br />

Project location<br />

The project’s physical address is 24 Schroeder<br />

Street, Upington, in the ZF Mgcawu District. The<br />

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

Project description<br />

The investor intends to develop a new aircraft<br />

and to initiate a bone-yard recycling operation<br />

in Upington for other aircraft types.<br />

Targeted sectors<br />

Aeronautical.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist.<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email:<br />

bmbobo@upington-sez.co.za<br />

Mr E Ntoba, Dawid Kruiper Local Municipality<br />

Tel: +27 54 338 5000<br />

Email: entoba@dkm.gov.za<br />

Mr T Klassen, Department of Trade and<br />

Industry<br />

Tel: +27 12 3941482<br />

Finance<br />

The project will be financed by the private<br />

sector with the government providing<br />

enabling infrastructure.<br />

Project background<br />

The investor is poised to initiate the<br />

development of a local aircraft development<br />

group with a specific focus on helicopter<br />

manufacturing, bone-yard recycling<br />

operations and a new training academy for<br />

commercial pilots, technicians and engineers.<br />

The aim is to manufacture a new-age aircraft<br />

with lighter frames, a green end-to-end eco<br />

system, with energy and fuel efficiency and<br />

the ability to migrate to electric engines or<br />

hybrid technologies.<br />

Key facts<br />

Investment value: R340-million<br />

Job creation: 3 538 jobs<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 16


Maintenance Repair<br />

and Operations<br />

Aviation park for MRO.<br />

FOCUS<br />

Project location<br />

The project’s physical address is 24 Schroeder<br />

Street, Upington, in the ZF Mgcawu District.<br />

Targeted sectors<br />

Aeronautics.<br />

Project description<br />

The investor intends to develop an aviation park<br />

to accommodate Maintenance, Repairs and<br />

Overhaul (MRO) of aircraft and research and<br />

development. Activities will also include airline<br />

storage, dismantling, scrapping, painting, and<br />

internal refurbishment.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist.<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email: bmbobo@upington-sez.co.za<br />

Mr E Ntoba, Dawid Kruiper Local Municipality<br />

Tel: +27 54 338 5000<br />

Email: entoba@dkm.gov.za<br />

Mr T Klassen, Department of Trade and<br />

Industry<br />

Tel: +27 12 3941482<br />

Finance<br />

The project will be financed by the investor<br />

with the government providing enabling<br />

infrastructure. Partnerships will be pursued<br />

with the private sector, provincial government,<br />

local government and the <strong>Northern</strong> <strong>Cape</strong><br />

Development Agency.<br />

Key facts<br />

Investment value: R800-million<br />

Job creation: 400 jobs<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

17 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>


FOCUS<br />

<strong>Northern</strong> <strong>Cape</strong> Renewable Energy<br />

Incubator<br />

Renewable energy hub.<br />

Project location<br />

The incubator will be located within the town of<br />

Upington in the ZF Mgcawu District.<br />

Targeted sectors<br />

Primary: renewable energy (utilities).<br />

Secondary: manufacturing, construction,<br />

transport, services, trade and ICT.<br />

Investment value<br />

Three options: R23-million, R240-million and<br />

R500-million.<br />

Project description<br />

South Africa’s Renewable Energy Independent<br />

Power Producer Procurement Programme<br />

(REIPPPP) has been successful in attracting<br />

billions of rands in investment. The <strong>Northern</strong><br />

<strong>Cape</strong> has been the leading solar power<br />

province and intends to further leverage its<br />

many advantages in this field. The renewable<br />

energy sector has the potential to unlock<br />

other sectors such as manufacturing and<br />

construction. The Renewable Energy Incubator<br />

will provide local SMMEs opportunities to<br />

participate in the localisation programme.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist,<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email: bmbobo@upington-sez.co.za<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic<br />

Development and Tourism<br />

Mr Riaan Warie, Senior Manager<br />

Tel: +27 53 830 4058<br />

Mobile: 079 877 2828<br />

Email: rwarie@ncpg.gov.za<br />

Finance<br />

Funding for top structure and three years of<br />

operations through government incentives<br />

and contributions from IPPs.<br />

Key facts<br />

Incubator staff jobs: 15-25<br />

SMME jobs: 150-250<br />

Construction jobs: about 500<br />

Project status<br />

<strong>Business</strong> plan and implementation plan<br />

completed. Partnerships are envisaged<br />

with national government departments (dti<br />

and Small <strong>Business</strong> Development), provincial<br />

government and IPPs.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 18


Solar Farm<br />

Solar energy for SEZ.<br />

Project description<br />

The main focus for the investor will be the<br />

construction of a solar farm. There are<br />

possibilities for other opportunities such as<br />

the manufacture of solar panels and a silicon<br />

smelter.<br />

Targeted sectors<br />

Renewable energy.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist,<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email: bmbobo@upington-sez.co.za<br />

FOCUS<br />

Project location<br />

The project’s physical address is 24 Schroeder<br />

Street, Upington in the ZF Mgcawu District in<br />

Upington.<br />

Project background<br />

The investor intends to establish a solar farm<br />

on 75ha of land to supply power to tenants of<br />

the Upington Special Economic Zone (SEZ).<br />

The anticipated power to be harnessed will be<br />

23MW-50MW depending on the technology.<br />

Mr E Ntoba, Dawid Kruiper Local Municipality<br />

Tel: +27 54 338 5000<br />

Email: entoba@dkm.gov.za<br />

Mr T Klassen, Department of Trade and<br />

Industry<br />

Tel: +27 12 3941482<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic<br />

Development and Tourism<br />

Mr Riaan Warie, Senior Manager<br />

Tel: +27 53 830 4058<br />

Mobile: 079 877 2828<br />

Email: rwarie@ncpg.gov.za<br />

Finance<br />

The project will be financed by the investor<br />

with the government providing enabling<br />

infrastructure.<br />

Key facts<br />

Investment value: R270-million<br />

Job creation: 1 000 part-time and 30 fulltime<br />

jobs<br />

Project status<br />

The business case and feasibility studies<br />

have been completed. The Environmental<br />

Impact Assessment and the Geotechnical<br />

Study Investigation are complete.<br />

19 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Nyaniso<br />

Healthcare<br />

Latex condom manufacturing.<br />

Project location<br />

The project is situated at the old Colesberg<br />

Hospital in the Pixley Ka Seme District in<br />

Colesberg.<br />

Targeted sectors<br />

Medical and health sector.<br />

To discuss this opportunity, contact<br />

Mr Choaro Timothy, Project Promoter,<br />

Nyaniso Healthcare (Pty) Ltd<br />

Tel: 064 070 9534<br />

Email: choaro.timothy@gmail.com<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic<br />

Development and Tourism<br />

Mr Riaan Warie, Senior Manager<br />

Tel: +27 53 830 4058<br />

Mobile: 079 877 2828<br />

Email: rwarie@ncpg.gov.za<br />

Project description<br />

Nyaniso Healthcare will produce male latex<br />

condoms using German technology from the<br />

technical partner, CPR GmBH. The plant in<br />

Colesberg will produce 60-million condoms<br />

annually. The plan is also to later produce<br />

latex gloves, and thus create meaningful<br />

employment for the local community. The<br />

condoms produced will be sold to government,<br />

private markets and for export markets in Africa<br />

and globally.<br />

Project background<br />

The project name is Nyaniso Healthcare<br />

Male Latex Condoms & Latex Gloves<br />

Manufacturing. The founder and CEO of<br />

Nyaniso Healthcare first thought of starting<br />

a condom manufacturing plant in <strong>20</strong>07<br />

when the country was producing only 5%<br />

of the condoms used in South Africa. The<br />

HIV/Aids pandemic and the high infection<br />

rate influenced the decision to assist the<br />

government in reducing the infection rate<br />

and promoting safe sex among youth.<br />

Key facts<br />

Investment value: R150-million<br />

Job creation: 100 direct jobs<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

Finance<br />

The project will be financed by private investor/s<br />

with the government providing enabling infrastructure<br />

and various incentives as part of the<br />

project support. Partnerships will be pursued<br />

with the private sector, provincial government<br />

and local government.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>20</strong>


Promethean<br />

Waterfront<br />

A tourism node for Barkly West.<br />

Project location<br />

The project is located on the banks of the Vaal<br />

River in the town of Barkly West in the Dikgatlong<br />

Local Municipality.<br />

Project background<br />

Barkly West has been earmarked for a<br />

multifaceted development project with<br />

the potential to bolster the local economy.<br />

Promethean Property, a local investment<br />

company, in conjunction with SIZA Architects<br />

& Project Managers, has teamed up as<br />

the developers of the project. Dikgatlong<br />

Municipality will be engaged through the<br />

multi-year lease for the land.<br />

FOCUS<br />

Project description<br />

An entertainment resort that compromises:<br />

waterpark; arcade games and fun rides; food<br />

court; wave pool; chalets; upmarket selfcatering<br />

riverside accommodation; people’s<br />

park (outdoor events with permanent stage);<br />

picnic/braai area; lifestyle centre; retail and<br />

commercial outlets; regional mall; middleincome<br />

housing; government subsidised<br />

housing; residential estate; apartments; hotel<br />

and conference centre; casino (depending on<br />

legislation) and office park.<br />

To discuss this opportunity, contact<br />

Thabo Makweya, Director, Promethean<br />

Property<br />

Tel: +27 53 831 2336<br />

Mobile: +27 81 337 8492<br />

Email: makweyat@me.com<br />

Richard Poulton, Project Director<br />

Tel: +27 53 831 2336<br />

Mobile: +27 81 446 5297<br />

Email: richard@prometheangroup.co.za<br />

Finance<br />

The project is being developed in terms of<br />

the Public-Private-Partnership Project Cycle<br />

in terms of the Treasury Regulation 16 of<br />

the Public Finance Management Act, Act<br />

1 of 1999.<br />

Targeted sectors<br />

Tourism and heritage.<br />

Key facts<br />

Investment value: Overall R2.5-billion,<br />

including bulk infrastructure. Phase 1<br />

(Waterpark and chalets): R800-million<br />

Job creation: 6 743 jobs<br />

Project status<br />

The project is at the start of the feasibility and<br />

business case phase. A detailed feasibility<br />

study will cost about R12-million.<br />

21<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Versa Chemicals<br />

Paint and detergent manufacturing.<br />

Project location<br />

The project is situated in the Pixley Ka Seme<br />

District Municipality in Kimberley.<br />

Targeted sectors<br />

Paint; protective<br />

coatings; household<br />

detergents; industrial<br />

cleaning chemicals.<br />

Project description<br />

The paint plant will produce water-based and<br />

solvent-based paints or coatings serving<br />

various markets across South Africa and Sub-<br />

Saharan Africa. The focus of the products will<br />

be on architectural or decorative coatings and<br />

on protective and industrial paints. The factory<br />

will run three shifts, five days a week. Versa<br />

has a partnership agreement with a leading<br />

French road-marking paint manufacturer; SAR<br />

France, to distribute their products and later<br />

manufacture these products.<br />

To discuss this opportunity, contact<br />

Mr Choaro Timothy, Project Promoter,<br />

Versa Chemicals (Pty) Ltd<br />

Tel: 064 070 9534<br />

Email: choaro.timothy@gmail.com<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic<br />

Development and Tourism:<br />

Mr Riaan Warie, Senior Manager​<br />

Tel: +27 53 830 4058<br />

Mobile: 079 877 2828​<br />

Email: rwarie@ncpg.gov.za<br />

Project background<br />

The name of the project is Versa Chemicals,<br />

Paint and Detergent Manufacturing. The idea<br />

is to create a sustainable paint and chemicals<br />

company that can compete with multinational<br />

companies in the chemical sector.<br />

Key facts<br />

Investment value: R100-million<br />

Job creation: 100 direct jobs<br />

Finance<br />

The project will be financed by a private<br />

investor/s with the government providing<br />

enabling infrastructure and various incentives.<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 22


Upington SEZ<br />

Agri-Hub<br />

Agricultural processing and logistics.<br />

Project location<br />

The project’s physical address is 24 Schroeder<br />

Street, Upington, in the ZF Mgcawu District. The<br />

GPS coordinates are: S28°25’51.96”; E21°14’04.71”.<br />

Targeted sectors<br />

Agriculture.<br />

FOCUS<br />

Project description<br />

The Agri-Hub will consist of various facilities:<br />

Retail, Mechanisation, Packaging, Quality<br />

Control, Agri-Processing, Training Centre,<br />

Research and Development, Logistics and<br />

Transport, Agricultural Inputs and Distribution,<br />

Silos, Abattoir, Feedstock, Aquaculture and<br />

Agri-Tourism and Greenhouse.<br />

To discuss this opportunity, contact<br />

Ms Babalwa Mbobo, Sector Specialist,<br />

Upington SEZ<br />

Tel: +27 54 333 1136<br />

Mobile: 071 016 5813<br />

Email: bmbobo@upington-sez.co.za<br />

Mr E Ntoba, Dawid Kruiper Local Municipality<br />

Tel: +27 54 338 5000<br />

Email: entoba@dkm.gov.za<br />

Mr T Klassen, Department of Trade and<br />

Industry<br />

Tel: +27 12 3941482<br />

Finance<br />

The main financing for the project will be<br />

provided by the private sector. The SEZ and<br />

municipality will provide incentives.<br />

Investment value<br />

Three options: R23-million, R240-million and<br />

R500-million.<br />

Key facts<br />

Investment value: R570-million<br />

Job creation: 1 <strong>20</strong>0 jobs<br />

Project status<br />

The business case and feasibility studies<br />

have been completed.<br />

23<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


Key stakeholders<br />

Transaction advisor<br />

Technical consultants<br />

Boegoebaai<br />

Port, Rail and Infrastructure Development Project.<br />

Project location<br />

Boegoebaai is approximately 60km<br />

north of Port Nolloth and <strong>20</strong>km south<br />

of othe border between Namibia and<br />

South o Africa in the Richtersveld Local<br />

o Services base for oil, gas and offshore mining<br />

Municipality area.<br />

Project background<br />

The Reducing <strong>Northern</strong> cost <strong>Cape</strong> of moving Province cargo has the<br />

<br />

volumes of commodities to warrant a<br />

system<br />

deep-sea Stimulating commercial regional socio-economic port, specifically<br />

development<br />

as a<br />

Securing<br />

result<br />

a competitive<br />

of mining<br />

advantage<br />

and agricultural<br />

regionally for SA<br />

ports<br />

activities. The Boegoebaai site has<br />

all the advantages for the potential<br />

Volume<br />

development of a deep-sea (mtpa) port,<br />

namely: the <strong>20</strong>-metre contour is 250m<br />

offshore and it is a greenfield site owned<br />

by the people of the Richtersveld, the<br />

Community Property Association (CPA).<br />

Key facts<br />

Transnet, National Department of Transport, Department of Public Enterprises, Treasury<br />

TM and Nelutha Consulting JV (TM)<br />

PRDW, PSP Logistics, NAKO ILISO<br />

Project status The project is in FEL2 phase. Finalisation of FEL2 is planned for December <strong>20</strong>18.<br />

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

Estimated jobs to be created<br />

3 000 permanent and 18 000 indirect jobs<br />

Project status PPP Feasibility study at FEL 2 level to be completed end of April <strong><strong>20</strong>19</strong><br />

PROJECT DESCRIPTION<br />

A greenfield, deep water port. Two berths; one dry bulk export<br />

berth and one break bulk berth supported by a rail line (550<br />

kilometers). The port has the potential to accommodate<br />

<strong>Cape</strong>size vessels.<br />

Primary drivers for the development include:<br />

Capitalizes on new economy, including:<br />

o Iron ore from junior miners, creates a catalyst for<br />

junior / development miners currently constrained<br />

by high transportation costs and exclusion from<br />

larger logistic solutions i.e. Sishen-Saldanha line<br />

Provides a more efficient logistic manganese route<br />

Strategically positioned to capitalize on gas fields<br />

industry<br />

o Potential of an Oil Refinery to be constructed close<br />

to the port<br />

Economic catalyst for the <strong>Northern</strong> <strong>Cape</strong> Province and<br />

specifically the Richtersveld Community<br />

Optimizing the cargo distribution within the SA port<br />

PROJECT COMMODITY MIX<br />

Commodity<br />

Dry bulk – iron ore 5-10 New volume from junior miners<br />

Dry bulk – manganese 2-5 Lower cost logistic solution<br />

Dry bulk – lead and zinc 1-2 Closest port to mines<br />

Comment<br />

Break bulk 0.5 Multi-purpose commodities, agricultural, mining and low container volumes<br />

FUNDING MODEL<br />

Project description<br />

Deep-water port development comprising two berths: one<br />

dry bulk export berth and one breakbulk berth, supported<br />

by a 550km railway line, bulk services and associated social<br />

infrastructure.<br />

Finance<br />

The project is being developed in terms of the PPP Project<br />

Cycle in terms of the Treasury Regulation 16 of the Public<br />

Finance Management Act, 1999. The development of a<br />

<strong>Northern</strong> <strong>Cape</strong> Provincial SEZ Establishment Framework will<br />

Targeted sectors<br />

Finance be used for a Special Economic Zone as economic growth<br />

Exporting bulk commodities, breakbulk and development instrument to attract new local and foreign<br />

The project is being developed in terms of the PPP Project Cycle in terms of the Treasury<br />

and container staging. Oil refinery. Ship investment.<br />

recycling.<br />

Regulation 16 of the Public Finance Management Act, 1999. The development of a <strong>Northern</strong><br />

<strong>Cape</strong> Provincial SEZ Establishment Framework will be used for a Special Economic Zone as<br />

economic growth and development instrument to attract new local and foreign investment.<br />

Project status<br />

Project status Finalisation of phase FEL2 is planned for 31 May <strong><strong>20</strong>19</strong>. <strong>Business</strong><br />

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

Finalisation of phase FEL2 is planned for 31 May <strong><strong>20</strong>19</strong>. <strong>Business</strong> case and feasibility<br />

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

be at completed end of the and May submitted <strong><strong>20</strong>19</strong>. at Several end of the relevant May <strong><strong>20</strong>19</strong>. studies Several relevant are available studies are<br />

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<br />

expected to be created.<br />

competitor analysis.<br />

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

a port competitor analysis.<br />

Nolloth and <strong>20</strong>km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area.<br />

The figure below shows the position of Boegoebaai.<br />

Project contacts Person Tel Mobile email<br />

Dept of Transport,<br />

Safety and Liaison<br />

Dept of Transport,<br />

Safety and Liaison<br />

National Dept of<br />

Transport<br />

Transnet Ports<br />

Authority<br />

TM Nelutha<br />

Consultants<br />

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

Mr P Mguza, Project +27 53 807 4812 079 694 3254<br />

PMguza@ncpg.gov.za<br />

Promoter<br />

Mr Clement<br />

Manyungwana<br />

+27 12 309 3408 083 679 9662 manyungc@dot.gov.za<br />

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

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


De Aar Logistics Hub<br />

PROJECT INFORMATION<br />

Project<br />

CAPEX<br />

<br />

Project Estimated project description<br />

De Aar Logistics Hub<br />

The Estimated development Vehicle jobs Storage be created Yard. of a Logistics<br />

Project<br />

Hub<br />

statusin<br />

the<br />

PROJECT<br />

town<br />

DESCRIPTION<br />

of De Aar that will offer CAPEX the following<br />

<br />

infrastructure to identified Estimated tenants: project<br />

freight/products by small miners and farmers<br />

• the following Container infrastructure Terminal to identified which tenants: will act<br />

<strong>Northern</strong> <strong>Cape</strong><br />

as a Trans-Shipment Inland (Dry)<br />

Revitalize the rail line to and from De Aar<br />

Port Influence as well economic as development consolidation point<br />

Ensure creation of jobs in the area.<br />

for<br />

Vehicle<br />

freight<br />

Storage Yard.<br />

<br />

Further to the above, the Inland Dry Port will:<br />

• Agricultural Warehouse and<br />

Facilitate road to rail migration <br />

Storage Facilities<br />

<br />

Port(s) of Export<br />

• Vehicle Storage Yard.<br />

The objectives for the development <br />

specifically Influence the economic Pixley ka Seme development<br />

District Community<br />

include but are not limited to:<br />

Reducing Ensure the creation cost of moving of jobs cargo in the area. <br />

• <br />

<br />

Provide a sustainable transport<br />

Stimulating regional socio-economic development <br />

Further to the above, the Inland Dry Port will:<br />

network for the transportation of<br />

Facilitate road to rail migration<br />

freight/products by small miners<br />

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

<br />

<br />

• Provide relief from road-based <br />

PROJECT COMMODITY MIX<br />

<br />

freight Energy market transportation segment Volume in the<br />

Commodity<br />

<br />

(mtpa)<br />

<strong>Northern</strong> <strong>Cape</strong><br />

<br />

Container Terminal<br />

400 000<br />

• Agricultural Revitalise Commodities<br />

Reducing the cost rail of line 100 moving 000 to cargo and from<br />

Break-Bulk<br />

7 000<br />

<br />

<br />

Vehicles De Aar<br />

<br />

<br />

• Influence economic development <br />

<br />

• Ensure creation of jobs in the area.<br />

Project Sheet<br />

21 June <strong>20</strong>18<br />

Centrally located hub will reduce costs.<br />

Project Sheet<br />

21 June <strong>20</strong>18<br />

Owner<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Transport, Safety and Liaison (NCDTSL)<br />

Key stakeholders<br />

Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial<br />

Treasury<br />

Transaction PROJECT INFORMATION<br />

advisor<br />

TM and Nelutha Consulting JV (TM)<br />

Technical Project consultants<br />

PSP Logistics, De Aar Fasken, Logistics Aurecon Hub and NAKO ILISO<br />

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

Project Owner status<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Transport, Safety and Liaison Project (NCDTSL) Sheet<br />

Roadshow. Issue an RFQ in November <strong>20</strong>18<br />

21 June <strong>20</strong>18<br />

CAPEX<br />

Logistics<br />

Transnet,<br />

Hub = ~R2.5<br />

National<br />

billion<br />

Department of Transport, Department of Public Enterprises, National and Provincial<br />

Key stakeholders<br />

Treasury<br />

Estimated project<br />

Financial close and award estimated to be in March <strong>20</strong><strong>20</strong><br />

development Transaction start advisor date<br />

TM and Nelutha Consulting JV (TM)<br />

PROJECT INFORMATION<br />

Estimated Technical jobs consultants to be created 2 500 permanent PSP and 15 000 indirect jobs<br />

Project Logistics, Fasken, Aurecon and De Aar NAKO Logistics ILISO Hub<br />

Funding PROJECT model DESCRIPTION Public<br />

The<br />

Private<br />

project<br />

Partnership<br />

status is<br />

to<br />

at<br />

be<br />

Feasibility<br />

adopted.<br />

Study<br />

Multi-tiered<br />

Stage.<br />

sub<br />

The<br />

concessions<br />

Project status<br />

Owner<br />

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

The development of a Logistics Hub in the Roadshow. town of De Issue Aar that an will RFQ offer in November Transnet, <strong>20</strong>18 National Department of Transport, Department of Public Enterprises, National and Provincial<br />

the following infrastructure to identified tenants: Key stakeholders<br />

Logistics Hub = ~R2.5 billion Treasury<br />

Container Terminal which will act as a Trans- Shipment Inland<br />

Transaction advisor<br />

TM and Nelutha Consulting JV (TM)<br />

(Dry) Port as well as consolidation point for Freight<br />

Financial close and award estimated to be in March <strong>20</strong><strong>20</strong><br />

development Agricultural start Warehouse date and Storage Technical Facilities consultants<br />

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

2 500 permanent and 15 000 indirect jobs<br />

The objectives for the development include but are not limited to:<br />

Provide a sustainable transport network for the transportation<br />

The development of a Logistics Hub in the town of De Aar that will offer<br />

development start date<br />

Provide relief from road-based freight Estimated transportation jobs to be in created the<br />

Container Terminal which will act as a Trans- Shipment Inland<br />

(Dry) Port as well as consolidation PROJECT point DESCRIPTION for Freight<br />

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

the following infrastructure to identified tenants:<br />

Container Terminal which will act as a Trans- Shipment Inland<br />

(Dry) Port as well as consolidation point for Freight<br />

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

Provide Provide a more a sustainable efficient logistics transport route for network manganese Vehicle for Storage the the transportation<br />

Yard.<br />

freight/products by small miners and farmers<br />

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

freight facility for the development include but are not limited to:<br />

transportation in the<br />

Serving <strong>Northern</strong> transport <strong>Cape</strong> and logistics needs of the Provide Renewable a sustainable transport network for the transportation<br />

Energy market segment<br />

freight/products by small miners and farmers<br />

Revitalize the rail line to and from De Aar<br />

Economic catalyst for the <strong>Northern</strong> <strong>Cape</strong> Province Provide and relief from road-based freight transportation in the<br />

<strong>Northern</strong> <strong>Cape</strong><br />

Revitalize the rail line to and from De Aar<br />

Optimizing the cargo distribution to the SA port Influence systemeconomic development<br />

Ensure creation of jobs in the area.<br />

The Inland<br />

PSP Logistics,<br />

Dry<br />

Fasken,<br />

Port<br />

Aurecon<br />

will:<br />

and NAKO ILISO<br />

• Facilitate road-to-rail migration<br />

Roadshow. Issue an RFQ in November <strong>20</strong>18<br />

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

Financial the close Port(s) and award of Export estimated to be in March <strong>20</strong><strong>20</strong><br />

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

• Serving the transport and logistics needs of the Renewable<br />

• Energy market segment<br />

• Economic catalyst for the <strong>Northern</strong> <strong>Cape</strong> Province and<br />

specifically the Pixley ka Seme District community<br />

• Reducing the cost of moving cargo<br />

• Optimising the cargo distribution to the SA port system<br />

• Stimulating regional socio-economic development<br />

• Securing a competitive advantage regionally for SA ports.<br />

The envisaged impact on the economy in year one of operation<br />

is estimated to be a minimum of R1.7-billion.<br />

Securing a competitive advantage regionally for SA ports.<br />

Further to the above, the Inland Dry Port will:<br />

Provide a more efficient logistics route<br />

The envisaged impact on the economy in Year 1 of Operation<br />

Facilitate for manganese to the<br />

is estimated<br />

road to rail migration<br />

Provide a more efficient logistics route for manganese to the<br />

Potential of a Fuel, Oil and Gas storage Port(s) facility of Export<br />

Potential of a Fuel, Oil and Gas storage facility<br />

Serving the transport and logistics needs of the Renewable<br />

Serving the transport and logistics needs of the Renewable<br />

Energy market segment<br />

Comment<br />

Economic catalyst for the <strong>Northern</strong> Economic <strong>Cape</strong> Province catalyst and for the <strong>Northern</strong> <strong>Cape</strong> Province and<br />

specifically the Pixley ka Seme District specifically Community the Pixley ka Seme District Community<br />

Reducing the cost of moving cargo<br />

Optimizing the cargo distribution to<br />

Optimizing<br />

the SA port<br />

the<br />

system<br />

cargo distribution to the SA port system<br />

8 500 Vehicles Stimulating per annum regional (Base socio-economic data: <strong>20</strong>15) development<br />

Stimulating regional socio-economic development<br />

Securing a competitive advantage regionally for SA ports.<br />

Securing a competitive advantage regionally for SA ports.<br />

The envisaged impact on the economy in Year 1 of Operation is estimated<br />

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

to be a minimum of R1.7 billion.<br />

PROJECT COMMODITY MIX<br />

Volume<br />

PROJECT COMMODITY MIX Commodity<br />

(mtpa)<br />

Volume Container Terminal<br />

400 000<br />

Commodity<br />

Comment<br />

(mtpa) Agricultural Commodities 100 000<br />

Break-Bulk<br />

7 000<br />

Container Terminal<br />

400 000<br />

Vehicles<br />

8 500 Vehicles per annum (Base data: <strong>20</strong>15)<br />

Agricultural Commodities 100 000<br />

Break-Bulk<br />

7 000<br />

Vehicles<br />

8 500 Vehicles per annum (Base data: <strong>20</strong>15)<br />

Comment<br />

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

Email: mdichaba@ncpg.gov.za


SPECIAL FEATURE<br />

Upington Special<br />

Economic Zone<br />

More than 500 hectares of prime land is available for investors.<br />

Upington, the second-biggest town in the <strong>Northern</strong><br />

<strong>Cape</strong>, is located along the banks of the Orange<br />

River and is a popular tourist destination<br />

with warm weather and long sunny days. The<br />

<strong>Northern</strong> <strong>Cape</strong> is ideally situated to serve the following<br />

industries: solar energy, mining, agricultural, aviation and<br />

other industries. The Upington SEZ has a geographically<br />

designated area set aside for specifically targeted economic<br />

activities to accelerate industrial development.<br />

In the heart of the Green Kalahari, right next to<br />

Upington International Airport, there is more than<br />

500ha of prime land available to be utilised by investors<br />

(440ha for the Industrial Park and 85ha for the<br />

Aviation Park).<br />

Upington is situated 130km from the Namibian<br />

border post and about 350km from the border post<br />

to Botswana. Upington also has good access roads<br />

such as the N10 and the N14, effectively linking up<br />

Namibia and Botswana.<br />

KEY CONTACTS<br />

Mr Thobela Dikeni, Chief Executive Officer, NCEDA<br />

Tel: +27 53 833 1503 and 060 997 7<strong>20</strong>2<br />

Babalwa Mbobo, Sector Specialist, Upington SEZ<br />

Tel: +27 54 333 1136 and 071 016 5813<br />

Email: bmbobo@upington-sez.co.za<br />

Dr Mphulane Ramorena, Project Executive<br />

Tel: 076 442 4437<br />

Email: mramorena@upington-sez.co.za<br />

Physical address: 24 Schroder Street,<br />

Upington 8801<br />

The Upington International Airport has a 5km-long<br />

runway, the longest civilian runway in the southern<br />

hemisphere. The airport’s location and the dry,<br />

arid climate add to making the location particularly<br />

favourable for the establishment of an Aviation Park to<br />

serve the global markets.<br />

The Dawid Kruiper Local Municipality (DKLM) has<br />

made the land available for the development of the<br />

Upington SEZ. The development will be divided into<br />

seven phases. The ZF Mgcawu District has a welldeveloped<br />

economy and active business community<br />

supported by government and government parastatals.<br />

Industrial hub<br />

The main objective for the proposed Upington SEZ in the<br />

<strong>Northern</strong> <strong>Cape</strong> Province is to establish a world-class industrial<br />

hub to service the Southern African Development<br />

Community (SADC) region in the following sectors:<br />

• Renewable energy with the focus on solar<br />

component manufacturing<br />

• Aeronautics through the development of an<br />

Aviation Park<br />

• Mineral beneficiation<br />

• Agro-processing<br />

• Astronomy exploration<br />

• High-value micro technology.<br />

Together with our partners, the <strong>Northern</strong> <strong>Cape</strong><br />

Economic Development Trade and Investment Agency<br />

(NCEDA), the <strong>Northern</strong> <strong>Cape</strong> Department of Economic<br />

Development and Tourism, the National Department<br />

of Trade and Industry (dti) and the Airports Company<br />

South Africa (ACSA), we invite all interested investors<br />

to contact us.<br />

NCEDA: 6 Monridge Office Park, Cnr Kekewich and<br />

Memorial Street, Kimberley 8301<br />

Tel: +27 53 833 1503<br />

Fax: +27 53 833 1390<br />

Website: www.nceda.co.za<br />

NORTHERN CAPE BUSINESS <strong>20</strong>13 <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

26


The Upington SEZ<br />

boasts several<br />

advantages<br />

INTERVIEW<br />

Thobela Dikeni, CEO of the Upington SEZ, explains how<br />

climate and location enhance the value proposition.<br />

Thobela Dikeni<br />

BIOGRAPHY<br />

Thobela Dikeni has held various<br />

managerial positions in the<br />

private sector, including senior<br />

positions at Standard Bank and<br />

FNB (where he was Director Public<br />

Sector Banking). He was Director<br />

<strong>Business</strong> Development and Africa<br />

for Naspers’ subsidiary Paarl<br />

Media. He has studied Economics<br />

and Management and attended<br />

several executive development<br />

programmes at international<br />

institutions. He is currently studying<br />

for a Master’s degree in Information<br />

and Knowledge Management. He<br />

has served on private and public<br />

sector boards.<br />

What sectors are you hoping to attract to the SEZ?<br />

In the first phase, renewable energy and aviation. These sectors are the<br />

focus of the Economic Development sector of the <strong>Northern</strong> <strong>Cape</strong> and<br />

in line with the Provincial Growth and Development Strategy (PGDS).<br />

How does the location of the SEZ support the business<br />

case for investing?<br />

Renewable energy: Upington is an area with warm weather and long<br />

sunny days for solar energy generation. The increasing and sustained<br />

demand for photovoltaic (PV) and concentrated solar power (CSP)<br />

systems will produce a number of assembly opportunities for PV<br />

panels and inverters as well as CSP in-field mirrors, structures and backward<br />

integration of manufacturing facilities. European and Chinese<br />

companies continue to express interest in establishing solar energy<br />

component manufacturing and assembly plants. About 440ha of land<br />

is set aside for the development of a solar farm with a complete EIA<br />

for industrial development.<br />

Aviation: An arid climate which is not susceptible to accelerated<br />

corrosion and deterioration and the availability of relatively low-cost<br />

open land are positive factors. Upington is close to the northern border<br />

of South Africa which makes it convenient and strategic from the<br />

African continental perspective and its relative remoteness enhances<br />

security considerations.<br />

How important is the airport?<br />

Successful SEZs are attached to ports, whether airport or sea port.<br />

Therefore, the proximity to an airport will assist the value proposition<br />

and logistics connectivity of the SEZ. Upington Airport has an unusually<br />

long runway (5km) that serves as a designated African landing site for<br />

the shuttles of National Aeronautics and Space Administration (NASA).<br />

What progress has been made in getting the SEZ off<br />

the ground?<br />

Positive feasibility studies have been conducted. Environmental Impact<br />

Assessments have been completed. A Record of Decision has been<br />

received. The application for designation was submitted in May <strong>20</strong>18.<br />

27<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Tourism sector boom<br />

Adventure tourism continues to grow and investors are sought for a<br />

steam train revival.<br />

Assets unique to the <strong>Northern</strong> <strong>Cape</strong><br />

include wonderful spring flower displays,<br />

spectacular arid areas and brilliantly<br />

clear night skies for star-gazers.<br />

Heritage tourism is another important niche.<br />

SteamNet <strong>20</strong>00 and the Railway Museum at<br />

Kimberley Station maintain and protect fascinating<br />

rail assets. A <strong>Northern</strong> <strong>Cape</strong> Steam Rail<br />

tourism route might be an attractive opportunity<br />

for the right investor.<br />

There are no fewer than six national parks<br />

and five provincial reserves in the province, each<br />

showing off distinct geographical and biological<br />

features. Most of the province lies in the Nama-<br />

Karoo Biome and the annual display of spring<br />

flowers is spectacular.<br />

The north-western portion of the province is<br />

known as the Green Kalahari, much of which<br />

is taken up by national parks. The Kgalagadi<br />

Transfrontier Park (with Botswana) encompasses<br />

3.7-million hectares, making it one of<br />

the biggest conservation areas in the world.<br />

The Kalahari Red Dune Route is a network of<br />

guesthouses, reserves and farms to guide the<br />

visitor to the great park. The rushing waters of<br />

the Augrabies Falls National Park provide another<br />

popular attraction.<br />

The Kalahari in the north-east is home to<br />

many of the province’s biggest mines, but also<br />

to great numbers of raptors, vultures and owls.<br />

A specialist raptor route has been developed.<br />

Birders can look out for 50 species, including<br />

the Booted Eagle, the Pygmy Falcon and the<br />

Bateleur. Tours of the area’s vast open-cast<br />

mining operations can be arranged.<br />

A new route under development in the region<br />

is the Heritage Route tracing the footprints of<br />

the early missionaries to Southern Africa and<br />

will include Kimberley and surrounds, Kuruman<br />

and surrounds and the Robert Moffat Mission.<br />

Hunting is a lucrative subsection of the<br />

tourism sector that is proving extremely popular<br />

in this region and brings valuable economic<br />

development to these rural communities.<br />

The Diamond Fields region contains the<br />

spectacular Big Hole, the Mokala National<br />

Park and portions of the famed South African<br />

War or Battlefields Route. The Magersfontein<br />

War Memorial is an iconic attraction on this<br />

route where you can visit the graves, Burgher<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

28


SPECIAL FEATURE<br />

the two major towns in this huge district, which is<br />

also the only <strong>Northern</strong> <strong>Cape</strong> region with a coastline<br />

and soon to be the home of a new small harbour.<br />

The decision by UNESCO to inscribe the<br />

Richtersveld Cultural and Botanical Landscape<br />

as a World Heritage Site has great significance<br />

for the tourism industry in the <strong>Northern</strong> <strong>Cape</strong>, and<br />

for the prospects for ecotourism in general. This<br />

160 000-hectare landscape lies on the border<br />

between South Africa and Namibia. The park<br />

achieved another a major international accolade<br />

when it was included in the Rough Guide’s Top<br />

10 for <strong>20</strong>16.<br />

Investment opportunities<br />

monument and Boer trenches. The town of<br />

Kimberley is itself an extremely popular attraction<br />

and offers fine examples of Victorian<br />

architecture and the world-class McGregor<br />

Museum, Sol Plaatje Museum and the famed<br />

William Humphrey Art Gallery.<br />

The Karoo region encompasses the southeastern<br />

portion of the province. While most of<br />

the region is dry, the Vanderkloof Dam is a major<br />

tourism asset. Many of the region’s small towns<br />

are geared to cater to tourists drawn to the magic<br />

of the Karoo’s open spaces and features famous<br />

Karoo towns such as De Aar, Britstown,<br />

Hanover, Victoria West and Carnarvon. The latter<br />

is especially of importance as home to the<br />

SKA. Other tourist attractions are the unique<br />

Karoo architecture, South African War sites, rock<br />

art, ancient Paleo surfaces, farm stays and the<br />

famous Karoo lamb.<br />

The Namakwa region is famous for its flowers,<br />

but it also hosts the South African Astronomical<br />

Observatory, several historic mission settlements,<br />

the Namaqua National Park (on the<br />

West Coast) and the awe-inspiring Richtersveld<br />

Transfrontier Park. Springbok and Calvinia are<br />

General opportunities for investors in the tourism<br />

sector include:<br />

• nature and game reserves<br />

• adventure tourism<br />

• ​upgrading of accommodation facilities<br />

• ​new attractions and entertainment features<br />

(theme parks)<br />

• ​improve air transport networks.<br />

Adventure sports at Kimberley: the possible<br />

establishment of an adventure sports resort in the<br />

Big Hole Precinct, Kimberley.<br />

Steam train: reviving steam train tourism (“Gems<br />

on Track” is the working title) could be done along<br />

a variety of routes including routes out of Kimberley<br />

to Belmont and from De Aar to Victoria West.<br />

Eco-resort at Boesmansput: development of<br />

a diver training facility would form part of the plan<br />

at this popular fresh-water cave diving site. An<br />

eco-lodge is envisaged and a conference facility.<br />

Wildebeest Rock Art Centre: more than 400<br />

pieces of rock art would form the cornerstone<br />

(together with the nearby Nooitgedacht Glacial<br />

Paving) of a world-class heritage and archaeological<br />

site. Developments would include the creation<br />

of a performance arena (for the depiction of San<br />

Bushman culture) and facilities for game viewing<br />

and photographic safaris.<br />

29 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


nternational consortiums are using the latest photovoltaic and conentrated<br />

solar power (CSP) methods. CSP has the benefit of being<br />

ble to store energy.<br />

The rise of the renewable energy sector has given the <strong>Northern</strong> <strong>Cape</strong><br />

chance to break its dependence on the mining sector, subject as it is<br />

SPECIAL FEATURE<br />

o global price fluctuations. The Provincial Government of the <strong>Northern</strong><br />

ape has plans to further diversify the economy. It has identified three key<br />

lusters: mineral beneficiation; agri-processing; energy and technology.<br />

The planned Special Economic Zone (linked to the Upington<br />

nternational Airport) is intended as a site for solar-related manufacuring.<br />

The Industrial Development Corporation has spent R11.4-billion exceeding 41 000 tons.<br />

3 500 metres and carry a load<br />

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

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

ehalf of local communities.<br />

iron ore. Kumba Iron Ore is the<br />

Education creating trains opportunity<br />

sometimes extend beyond<br />

One day in the future, a graduate of Kimberley’s Sol<br />

Plaatje University will write her or his doctoral thesis on<br />

some aspect of a far-away star yet to be discovered.<br />

The information will come from the Square<br />

NORTHERN Kilometre CAPE BUSINESS Array <strong>20</strong>18/19 (SKA) Telescope, currently 8 under construction in<br />

the Karoo. Unimaginable amounts of data are set to be collected<br />

in this transformative radio telescope project that is centred on<br />

Carnarvon but has global reach.<br />

The data that the SKA will collect in a day would take twomillion<br />

years to play back on an iPod. The radio telescope’s<br />

image-resolution quality will exceed that of the Hubble Space<br />

Telescope by a factor of 50.<br />

The SKA will be the world’s largest radio telescope, made up<br />

of thousands of antennae throughout Australia and Africa. SKA<br />

will be tackling the big questions: What is dark matter? When did<br />

life begin? How are galaxies created?<br />

In March <strong><strong>20</strong>19</strong>, 15 countries involved in the SKA Project<br />

gathered in Rome for the signing of the international treaty<br />

establishing the intergovernmental organisation that will oversee<br />

the delivery of the world’s largest radio telescope. This is the<br />

Square Kilometre Array Observatory (SKAO), which is tasked with<br />

delivering and operating the SKA.<br />

the country’s landmass on the<br />

dry western side of the country<br />

bordering the Atlantic Ocean,<br />

Namibia and Botswana.<br />

The Sishen-Saldanha ore<br />

export railway line is one of the<br />

mechanical wonders of the world.<br />

The line extends 860km and the<br />

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

designworkshop; construction: Murray and Dickson Construction; structural and civils design: Aurecon.<br />

That inquisitive future<br />

student will be a graduate of<br />

the Data Sciences Programme<br />

of Sol Plaatje University<br />

(SPU), South Africa’s newest<br />

tertiary institution. Having a<br />

technological marvel such as<br />

the SKA within the province will<br />

boost scientific curiosity and<br />

provide many opportunities<br />

for researchers and academics.<br />

At community level, an SPU<br />

Knowledge Hub for Rural<br />

Development is in the pipeline<br />

for locals near the town of<br />

Carnarvon.<br />

The SPU’s first vicechancellor,<br />

Dr Yunus Ballim,<br />

holds a doctorate in civil<br />

engineering and is rated by the<br />

National Research Foundation.<br />

The first intake of students at<br />

the Kimberley campus in <strong>20</strong>14<br />

was 124. There are now more<br />

than 1 000 students enrolled in<br />

a range of degree and diploma<br />

courses. Approximately 60%<br />

of the students are enrolled in<br />

teacher training courses.<br />

The university has set itself<br />

a goal of catering to specific<br />

niches, such as heritage<br />

studies. The McGregor<br />

Museum in Kimberley is one of<br />

the most respected museums<br />

in the South Africa and heritage<br />

tourism is seen as a growth<br />

market, so university students<br />

concentrating on this area will<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

30


SPECIAL FEATURE<br />

have good support and good prospects. SPU’s first postgraduate<br />

students will include students specialising in agricultural sciences<br />

and a new course in Creative Writing in African Languages.<br />

The academic programme is housed in four schools:<br />

Education; Humanities; Natural and Applied Sciences; Economic<br />

and Management Sciences. Bachelor’s degrees are offered in<br />

education, science, science in data, commerce and arts. A diploma<br />

in retail business management (three years) and a one-year higher<br />

certificate in heritage studies completes the prospectus.<br />

Another striking building,<br />

designed by Savage + Dodd,<br />

was “highly commended” at<br />

the World Architecture Festival<br />

in <strong>20</strong>17 in the Higher Education<br />

and Research category and won<br />

“Best Use of Colour”. The multipurpose<br />

building encompasses<br />

a residence, offices, meeting<br />

spaces and retail space on the<br />

ground floor.<br />

External and internal images<br />

on this page show the details of<br />

the design. The colourful, winddriven<br />

louvres which act as<br />

sun shading were designed by<br />

Savage + Dodd Architects and<br />

executed by RVI Architectural<br />

Solutions. The project was a<br />

finalist in the Southern African<br />

Institute of Steel Construction<br />

(SAISC) awards.<br />

The key to education<br />

More than one philosopher has noted the link between beautiful<br />

surroundings and a good educational experience, so when the<br />

decision to create a new university in Kimberley was made, it was<br />

also decided that every effort would be made to build fine buildings<br />

that would enhance the experience of lecturers and students.<br />

A competition was held to choose the architects to work on<br />

the new university. From a total of 59 entries, nine firms were<br />

selected in <strong>20</strong>13 to enter the second round of the competition.<br />

Ultimately, five firms were chosen as winners, and they would<br />

be tasked with completing work on the campus over the three<br />

years to <strong>20</strong>16: Activate Architecture; Savage + Dodd Architects;<br />

designworkshop:sa; Comrie Wilkinson <strong>Cape</strong> and Urban Studio JV;<br />

Wilkinson Architects in Joint Venture with Mashilo Lampbrechts<br />

Architects and GXY Architects.<br />

Sol Plaatje University Library and Student Resources Building,<br />

designed by designworkshop: sa, won the <strong>20</strong>17 Fulton Concrete<br />

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

construction work was done by Murray and Dickson and Aurecon<br />

provided structural, civil, electrical, fire and wet services design<br />

for the project.<br />

31 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


INTERVIEW<br />

Developing local<br />

intellectual capacity<br />

Prof Yunus Ballim, Vice-Chancellor and Principal, Sol Plaatje<br />

University, outlines the way forward.<br />

Yunus Ballim<br />

What are your goals as VC and Principal?<br />

Our intentions in these early years has been to develop and consolidate a<br />

good foundation in the essential areas to sustain a university in the long term:<br />

• Academic activities: qualifications to be offered, research,<br />

learning and teaching, academic staff<br />

• Institutional capacity: governance structures and administrative<br />

support arrangements<br />

• Infrastructure: properly constructed buildings with sufficient<br />

space to accommodate growth plans. We have also focused on<br />

developing partnerships with social and government institutions<br />

in the city and the province.<br />

BIOGRAPHY<br />

Yunus Ballim holds BSc,<br />

MSc and PhD degrees in<br />

civil engineering, a National<br />

Research Foundation rating<br />

and a personal professorship<br />

in Civil Engineering at the<br />

University of Witwatersrand.<br />

At Wits he served as Head<br />

of the School of Civil and<br />

Environmental Engineering,<br />

Deputy Vice-Chancellor<br />

(Academic) and Vice-Principal.<br />

He was awarded the Bram<br />

Fisher-Oxford Fellowship in<br />

<strong>20</strong>00 and has been Chair of<br />

the Higher Education Quality<br />

Council. Yunus chairs the<br />

Transformation Strategy Group<br />

of Universities South Africa.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

What is it like to work in award-winning buildings?<br />

We have worked hard to ensure we have structures and buildings that<br />

are conducive to working and learning and this seems to have been<br />

successful to date. Our idea of using our infrastructure development<br />

project to also reflect the future ambitions of the city of Kimberley has<br />

been well reflected in the architecture and artwork on our buildings,<br />

giving a strong sense of place in Kimberley and the <strong>Northern</strong> <strong>Cape</strong>. It<br />

is exciting to be in these buildings.<br />

With the landmark passed of SPU’s first BEd graduates, what<br />

lies ahead?<br />

We also produced the first BSc, BA, BCom and BSc (Data Science)<br />

graduates in <strong>20</strong>18 as other important academic landmarks. The next<br />

landmarks will be our first postgraduate students, particularly those<br />

from our planned programme in Creative Writing in African Languages<br />

and academic qualifications in agricultural sciences.<br />

What links does SPU have with the SKA project?<br />

Our Data Science programmes were specifically started to develop the<br />

local intellectual capacity to contribute to the collection and analysis<br />

of large data sets such as that to be generated at the SKA. Our<br />

hope is that, when the SKA is fully functional in <strong>20</strong>25, some of our<br />

graduates will hold doctoral degrees and be contributing to the SKA<br />

activities. Furthermore, we are in discussion with provincial government<br />

to establish the SPU Knowledge Hub for Rural Development near<br />

Carnarvon. This will bring a stronger community link to the general<br />

scientific and knowledge development activities in the area.<br />

32


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advancements, as well as training and<br />

development of staff, have been key pillars<br />

in achieving the bank’s objectives.<br />

Since <strong>20</strong>12 Nedbank has launched several first-tomarket<br />

innovations, such as the award-winning<br />

Nedbank App Suite, the home loans online<br />

digital channel and Market Edge, as well as the<br />

‘Branch of the Future’ concept in communities<br />

This is a unique service for clients, with financial<br />

fitness training a key aspect of the offering. Our<br />

wide range of products and services include the<br />

Nedbank Ke Yona Plus transactional account,<br />

which comprises funeral cover, a personal loan<br />

facility, the JustSave Account and the Send-iMali<br />

money transfer solution, enabling clients to transact,<br />

borrow, save and take out cover.<br />

To encourage the youth to save and build their<br />

financial fitness from an early age the Nedbank 4me<br />

offering enables the youth to transact and save with<br />

the benefit of earning preferential interest. Nedbank<br />

4me comprises a full transactional banking account<br />

with no monthly fees, free initial transactions and<br />

thereafter reduced pay-as-you-use pricing, free<br />

eNotes and self-service banking.<br />

Should you be interested in learning more about<br />

how Nedbank can assist you to grow your wealth<br />

and see money differently, for more information call<br />

+27 (0)51 400 5813 or visit www.nedbank.co.za.


ADVERTORIAL<br />

Nedbank’s new brand promise<br />

ADVERTORIAL<br />

focuses on client engagement that<br />

Making it easier to do business with<br />

will create a better understanding<br />

Nedbank Whole-view <strong>Business</strong><br />

Kevin de Beer, Nedbank Provincial General Manager in the<br />

Banking <br />

Free State and <strong>Northern</strong> <strong>Cape</strong>, explains how Nedbank<br />

works Gary Long, with Nedbank communities Provincial to deliver BB Manager banking solutions. in the Free<br />

State and <strong>Northern</strong> <strong>Cape</strong>, explains how Nedbank can help<br />

business owners in the <strong>Northern</strong> <strong>Cape</strong>.<br />

At the core of Nedbank’s offering in the <strong>Northern</strong><br />

<strong>Cape</strong> is a relationship-based model with a business<br />

manager dedicated to your business as the key entry<br />

point into the bank.<br />

‘We encourage you to see money differently with<br />

Whole-view <strong>Business</strong> Banking, explains Long.<br />

What does this mean to the client?<br />

It is an additional benefit of banking with Nedbank<br />

<strong>Business</strong> Banking and means that your business and<br />

your personal financial needs are managed in one<br />

place.<br />

There is good news for <strong>Northern</strong> <strong>Cape</strong><br />

business owners and entrepreneurs seeking<br />

a unique banking experience: Nedbank<br />

<strong>Business</strong> Banking has 27 business managers<br />

located across the province specialising<br />

in commercial industries as well as the<br />

agricultural sector. They are ready to assist<br />

you with professional advice, industryspecific<br />

solutions and a comprehensive<br />

range of financial products and services.<br />

‘At Nedbank <strong>Business</strong> Banking we believe that you<br />

need a financial partner who not only understands<br />

your circumstances and aspirations, but also provides<br />

you with relevant solutions and a banking experience<br />

that is hassle-free. This allows you to concentrate on<br />

what’s most important to you – running your business,’<br />

says Long.<br />

‘Because business owners and their businesses are<br />

very often financially dependent on each other,<br />

our client service teams now also offer individual<br />

banking solutions to you and your staff because<br />

we already know and understand your needs,’<br />

says Long.<br />

With this in mind, Nedbank has seamless offerings<br />

for you, your employees and your household.<br />

Nedbank provides several communities, including<br />

individual and business clients, with access to<br />

products and services through Nedbank’s workplace<br />

banking offering through a dedicated banker.<br />

Should you be interested in taking your business to<br />

its next level and improving staff engagement, and<br />

for more information about Nedbank’s specialised<br />

service offering please call the <strong>Business</strong> Banking<br />

team on +27 (0)51 400 5700 or visit<br />

www.nedbank.co.za.


ADVERTORIAL<br />

Nedbank’s new brand promise<br />

ADVERTORIAL<br />

focuses on client engagement that<br />

will<br />

Expertise<br />

create<br />

in<br />

a<br />

small<br />

better<br />

business<br />

understanding<br />

aimed<br />

at stimulating growth<br />

Kevin de Beer, Nedbank Provincial General Manager in the<br />

Free Nedbank’s State and Regional <strong>Northern</strong> Manager <strong>Cape</strong>, of explains Small <strong>Business</strong> how Nedbank Services, Kim<br />

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

with businesses for growth.<br />

The initiative calls on everyone to make a conscious<br />

decision to vote for small businesses through their<br />

hearts, feet and wallets; not only on Small <strong>Business</strong><br />

Friday, but every day.<br />

‘Small businesses are the mainstay of the<br />

economy. Nedbank has, over the years,<br />

instituted various interventions aimed at<br />

giving support to the small-business sector.<br />

Over and above our small-business services<br />

solutions, we provide small-business owners<br />

with support that goes beyond banking,<br />

freeing up their time to truly focus on<br />

running their businesses,’ says Lawrence.<br />

Nedbank has built a solid reputation as a bank for<br />

small businesses through initiatives such as<br />

Small <strong>Business</strong> Friday, free small-business seminars<br />

and the SimplyBiz.co.za platform – all geared<br />

to support the small- and medium-sized enterprises<br />

sector. For example, the Small <strong>Business</strong> Friday initiative,<br />

in association with the National Small <strong>Business</strong><br />

Chamber, seeks to encourage everyone in South<br />

Africa to rally behind and support small businesses.<br />

Nedbank has recently launched its <strong>Business</strong><br />

Bundle, a game changer for small enterprises,<br />

comparatively offering the best value for money<br />

when set against rivals, with exclusive benefits<br />

and personalised services for entrepreneurs. With<br />

the country’s challenging economic environment,<br />

the Nedbank <strong>Business</strong> Bundle not only offers you<br />

personalised banking services, but also critical<br />

tools to save – with up to 40% savings on monthly<br />

banking fees, contributing directly to the bottom<br />

line at a time when every cent counts.<br />

In line with Nedbank’s new brand proposition ‘see<br />

money differently’, the <strong>Business</strong> Bundle resonates<br />

with the bank’s commitment to using expertise for<br />

good in promoting small business enterprises.<br />

SimplyBiz.co.za is a free-to-join value networking<br />

portal designed especially for small businesses. The<br />

online portal helps small businesses improve their<br />

business administration skills, keep up with the latest<br />

trends, network with other small businesses and<br />

share ideas.<br />

Should you wish to tap into our small business<br />

expertise to help your business goals, why not get<br />

in touch with Nedbank’s Small <strong>Business</strong> Services,<br />

call Kim Lawrence +27 (0)51 400 5700 or send an<br />

email to kiml@nedbank.co.za.


ADVERTORIAL<br />

Nedbank’s new brand promise<br />

ADVERTORIAL<br />

focuses on client engagement that<br />

will New create brand a proposition better understanding<br />

encourages<br />

clients to ‘see money differently’<br />

Kevin de Beer, Nedbank Provincial General Manager in the<br />

Free Lorraine State McAnda, and <strong>Northern</strong> Nedbank <strong>Cape</strong>, Free State explains and how <strong>Northern</strong> Nedbank <strong>Cape</strong><br />

works Regional with Manager, communities <strong>Business</strong> to Banking, deliver banking explains how solutions. the new<br />

brand values build on the expertise of the bank to benefit clients.<br />

almost two years of research and client<br />

engagement that revealed that people want to<br />

work with purpose-driven institutions they can<br />

trust. They want a professional financial partner that<br />

balances expertise with a genuine commitment to<br />

do good.<br />

The public will see a number of changes in the<br />

next few months as the bank evolves its corporate<br />

identity, advertising and communication campaigns,<br />

as well as its products, services and channels. All<br />

these changes are designed to inspire clients and<br />

society to see money differently and partner with<br />

the bank to achieve their goals.<br />

Nedbank officially launched its new<br />

brand repositioning during the first day<br />

of the world’s largest design festival – the<br />

<strong>20</strong>17 Design Indaba on March 1. The<br />

bank’s new tagline challenges clients and<br />

society to ‘see money differently’.<br />

One of the solutions from Nedbank is<br />

Whole-view <strong>Business</strong> Banking, which provides<br />

a bird’s-eye view of clients’ businesses. It is aimed<br />

at business owners who believe that they need the<br />

best-of-breed of financial institutions.<br />

The new brand positioning is built on Nedbank’s<br />

purpose: to use financial expertise to enable<br />

individuals, families, businesses and society to do<br />

good. Our new brand proposition was born after<br />

Our new brand proposition is not just a<br />

marketing initiative but a reflection of the<br />

continuing business evolution at Nedbank.<br />

As a bank we want to ensure that our clients<br />

experience our brand in a way that is aligned with<br />

our brand promise.<br />

It is common knowledge that we live in a volatile<br />

socioeconomic environment, so it is even more<br />

important for us to intensify our commitment to<br />

improve on our skill in enabling clients to navigate<br />

challenges and meet their goals.<br />

If you would like to explore further how<br />

<strong>Business</strong> Banking can help take your firm to the next<br />

level, and for more information about Nedbank<br />

<strong>Business</strong> Banking Services call Lorraine McAnda<br />

on +27 (0)51 400 5745 or send an email to<br />

LorraineMc@nedbank.co.za.<br />

see money differently<br />

Nedbank Ltd Reg No 1951/000009/06. Authorised financial<br />

services and registered credit provider (NCRCP16).<br />

SPONGE 5556


CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)<br />

KEY SECTORS<br />

Overviews of the main economic<br />

sectors of the <strong>Northern</strong> <strong>Cape</strong><br />

Agriculture 340<br />

Grapes and wine 38 44<br />

Mining 42 48<br />

Water 50 56<br />

Tourism Renewable energy 52 58<br />

Banking and financial services 58 60<br />

Development finance<br />

and SMME support 6061<br />

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


Agriculture<br />

Agri-processing is set to drive economic growth.<br />

Compared to other types of manufacturing, agriprocessing<br />

can be scaled up relatively quickly with<br />

good financial rewards. It can also be labour-intensive.<br />

As such, agri-processing is a key plank in the growth<br />

plans of the <strong>Northern</strong> <strong>Cape</strong>.<br />

Work has already been done in providing manufacturing facilities<br />

for the speciality tea, rooibos, at Niewoudtville and investments<br />

have been made in fisheries and new vineyard development for<br />

groups of people who previously had not had exposure to the<br />

grape and wine sector.<br />

The <strong>Northern</strong> <strong>Cape</strong> Department of Agriculture, Land Reform and<br />

Rural Development (DALRRD) was behind the rooibos tea factory,<br />

which now trades as Bokkeveld Rooibos. The factory takes tea<br />

from 85 local farmers with the goal of helping to integrate these<br />

farmers into the agricultural and agri-processing business chain.<br />

Two particular areas of interest to assist small-scale farmers<br />

are being explored with regard to hemp and crops that can<br />

produce liquor. The dry interior of the <strong>Northern</strong> <strong>Cape</strong> is suitable<br />

SECTOR INSIGHT<br />

Hemp and liquor hold enormous<br />

potential.<br />

• A commercial goat kid<br />

project has expanded into<br />

Namibia.<br />

for the growing of Agave that<br />

provides the source material<br />

for tequila and there are<br />

several other opportunities.<br />

The rapidly changing legislative<br />

environment for hemp and<br />

marijuana holds potential in<br />

textiles and medicine.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

40


OVERVIEW<br />

Long-term thinking underpins the adoption by the<br />

provincial government of the <strong>Northern</strong> <strong>Cape</strong> Climate Change<br />

Adaptation Response Strategy. This allows for a framework<br />

to tackle drought and other climate change issues.<br />

Occupying 36-million hectares, the <strong>Northern</strong> <strong>Cape</strong> is the<br />

largest province in the country, almost a third of South Africa’s<br />

total land area. Although the province is a predominantly<br />

semi-arid region, agriculture is a major component of the<br />

economy of the regional economy and the province’s farmers<br />

contribute 6.8% to South African agriculture.<br />

The agricultural sector also plays a vital role in the broader<br />

economy of the <strong>Northern</strong> <strong>Cape</strong>, employing as it does about<br />

45 000 people. This represents about 16% of employment,<br />

a much higher figure than the national figure of 5.5%.<br />

Agricultural development takes place along defined<br />

corridors within the province:<br />

In the Orange River Valley, especially at Upington, Kakamas<br />

and Keimoes, grapes and fruit are cultivated intensively. Highvalue<br />

horticultural products such as table grapes, sultanas<br />

and wine grapes, dates, nuts, cotton, fodder and cereal crops<br />

are grown along the Orange River.<br />

Wheat, fruit, groundnuts, maize and cotton are grown in<br />

the Vaalharts Irrigation Scheme in the vicinity of Hartswater<br />

and Jan Kempdorp. The Vaalharts Irrigation Scheme is one<br />

of the biggest systems of its kind in the world. Ranging over<br />

more than 30 000ha, it has transformed a semi-desert zone<br />

into a productive area that sustains cotton, wheat, maize,<br />

lucerne, citrus, peanuts, fruit, grapes, olives and pecan nuts.<br />

Vegetables and cereal crops are farmed at the confluence<br />

of the Vaal River and the Orange River in the vicinity of<br />

Douglas. Of the nearly 40-million 10kg bags of onions<br />

produced in South Africa (outside of linked production chains<br />

set up by supermarkets), about 10-million 10kg bags come<br />

from the <strong>Northern</strong> <strong>Cape</strong>.<br />

Wool, mohair, karakul, Karoo lamb, venison, ostrich meat<br />

and leather are farmed throughout most of the province. The<br />

province is second only to the Eastern <strong>Cape</strong> in terms of the<br />

number of sheep farmed and it is the fourth-largest woolproducing<br />

province based on annual sale of producer lots.<br />

The Beefmaster abattoir in Kimberley is one of three abattoirs<br />

in South Africa to export frozen beef to China. The company<br />

processes and packages about 30 000 tons at the abattoir.<br />

The karakul-pelt industry is one of the most important<br />

in the Gordonia district of Upington. Agri-company KLK<br />

is the only organisation that handles these pelts in South<br />

Africa, which are sorted in Windhoek before being sent to<br />

Copenhagen for auction.<br />

Companies<br />

KLK is based in Upington and<br />

does much more than karakul<br />

pelts. The company’s interests<br />

include 19 retail outlets, 12<br />

petrol stations, four Build it<br />

franchises and a strong auction<br />

division.<br />

KLK runs three abattoirs<br />

in Calvinia, Carnarvon and<br />

Upington that slaughter lamb<br />

and beef carcasses. SA Dorper<br />

manages the production and<br />

export of dorper skins and the<br />

production of cattle hides.<br />

GWK is another company<br />

with its headquarters in the<br />

<strong>Northern</strong> <strong>Cape</strong>, in this case<br />

the town of Douglas. In <strong>20</strong>16<br />

GWK invested R400-million in<br />

a wheat mill, pasta plant and<br />

biscuit factory in Modder River.<br />

GWK Farm Foods’ new plant<br />

has a capacity of 25t/h for<br />

wheat flour, 1.3t/h for biscuits<br />

and 1t/h for pasta. R60-million<br />

was spent on increasing silo<br />

capacity to feed the plant. The<br />

company reported turnover in<br />

<strong>20</strong>16 of R8.3-billion.<br />

Senwes is one of the<br />

country’s biggest agricompanies<br />

and its <strong>Northern</strong><br />

<strong>Cape</strong> area of operation is<br />

mostly around the Vaalharts<br />

irrigation area, which is fairly<br />

close to the headquarters just<br />

over the provincial border in<br />

North West, at Klerksdorp.<br />

Storage and handling of grains<br />

and oilseeds are the speciality<br />

of Senwes.<br />

OVK controls the large<br />

Gariep abattoir at Strydenburg,<br />

which has a daily capacity of<br />

41<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

1 300 sheep, 100 cattle and either 250 ostriches or 750 small<br />

game animals. OVK also has trade branches, vehicle dealerships,<br />

a finance division and manufacturing facilities for maize meal and<br />

wheat meal.<br />

Kaap Agri is a Western <strong>Cape</strong> company with a presence in the<br />

<strong>Northern</strong> <strong>Cape</strong> and Namibia.<br />

Rooibos tea<br />

Health trends around the world are helping the sales of rooibos<br />

tea, most of which is farmed and processed in the Western <strong>Cape</strong><br />

and <strong>Northern</strong> <strong>Cape</strong> provinces.<br />

Recent studies proving that rooibos tea increases antioxidant<br />

capacity in human blood are further proof of the beverage’s<br />

healthy qualities. The unique climate and soil of the western part<br />

of the province support this niche crop. About 6 000 tons of tea<br />

is exported to more than 30 countries and domestic consumption<br />

is about 8 000 tons.<br />

In several coffee shops in London, Red Espresso has replaced<br />

the traditional double-shot of pure coffee, and a more recent use<br />

of the tea is to spruce up cocktails. The Rooibos Council states<br />

that more than 5 000 people are employed in the rooibos industry.<br />

Only the leaves of the Aspalathus linearis (a legume that is<br />

part of the fynbos family) are used in making rooibos (Afrikaans<br />

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

dry and ferment in the sun after being cut up. Naturally high in<br />

a range of vitamins and potassium, zinc and iron, its low tannin<br />

content makes it an excellent alternative as a hot drink. Fair <strong>Cape</strong><br />

Dairies has a product called Rooiboost.<br />

Plans<br />

Consulting firm Aurecon was involved in doing a feasibility study<br />

and compiling a business plan for the rehabilitation and upgrading<br />

of the irrigation scheme and agribusiness development in the<br />

Vaalharts and Taung areas, a<br />

major concern of the DALRRD.<br />

The aim is to anchor the project<br />

in Ganspan. Another goal is<br />

to establish black pecan nut<br />

farmers in the area.<br />

Another new area where the<br />

DALRRD is involved is in issuing<br />

permits and licences for trout<br />

production at the Vanderkloof<br />

Dam. This aims to create new<br />

stream of food production,<br />

reduce anxiety related to food<br />

security and create jobs.<br />

Other priority projects to<br />

support the rollout of agriprocessing<br />

include:<br />

• Namaqua irrigation<br />

development<br />

• Rooibos development<br />

• Vanderkloof fisheries<br />

• Vaalharts revitalisation<br />

• Vineyard development<br />

scheme.<br />

The Agri-parks initiative is<br />

designed to promote inclusivity<br />

in agriculture and to grow<br />

agri-processing, particularly<br />

closer to where farmers farm.<br />

The concept brings together<br />

farmers, traders and agriprocessors<br />

(such as abattoirs)<br />

in convenient sites within each<br />

district municipality. Within<br />

these parks, support for rural<br />

smallholders will be available<br />

in terms of equipment hire<br />

from a central source, storage<br />

facilities, packaging of produce<br />

and getting products to market.<br />

The Agri-park intends to<br />

provide a network for farmers<br />

and manufacturers. There will<br />

also be training available.<br />

The provincial department<br />

has a programme to place<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

42


unemployed agricultural graduates at land-reform farms in the<br />

province to make sure that the farms are run well, at the same<br />

time giving the graduates hands-on experience.<br />

The commercialisation of the goat project which has been<br />

running in the <strong>Northern</strong> <strong>Cape</strong> for some time has been expanded<br />

into Namibia. Emerging farmers in Namibia are being exposed<br />

to the benefits of the programme.<br />

Aquaculture and mariculture<br />

The <strong>Northern</strong> <strong>Cape</strong>’s 313km-long coastline means that the<br />

province is well placed to take advantage of growing global<br />

demand for abalone.<br />

The aquaculture consultancy Sustainable Environmental<br />

Aquaculture Services (SEAS) helped create an abalone farm at<br />

Kleinzee which will produce <strong>20</strong>0 tons of product per year when<br />

it is at full capacity. The Western <strong>Cape</strong> company Tuna Marine<br />

is contracted to buy abalone from the Kleinzee facility, which<br />

is owned by Ponahalo Holdings (the empowerment partners of<br />

De Beers Consolidated Mining South Africa).<br />

With food security an important consideration, the provincial<br />

government has committed to supporting small-scale fishers.<br />

Forty farmers have signed up for a Catfish Project in the Vaalharts<br />

area. The scheme lies in the Phokwane Local Muncipality, north of<br />

Kimberley, which falls under the Frances Baard District Municipality.<br />

A joint venture by the National Department of Science and<br />

Technology (DST) and HIK Abalone is running an abalone project in<br />

Hondeklip Bay with the intention of producing 1<strong>20</strong> tons of abalone<br />

for sale. This seaside town is very well known for its kelp. The<br />

coastline of the <strong>Northern</strong> <strong>Cape</strong> has 2 000 hectares of kelp beds.<br />

There is a growing domestic and international demand for kelp.<br />

The old John Ovenstone factory in Port Nolloth is now the site<br />

of small-scale hatcheries for abalone and oysters. Premier Fishing<br />

has a lobster-processing plant in Port Nolloth.<br />

ONLINE RESOURCES<br />

Agri SA: www.agrisa.co.za<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Agriculture, Land Reform and Rural<br />

Development: www.agrinc.gov.za<br />

<strong>Northern</strong> <strong>Cape</strong> Economic Development Trade and Investment<br />

Promotion Agency: www.nceda.co.za<br />

Niewoudtville: www.niewoudtville.com<br />

Rooibos Council: www.sarooibos.co.za<br />

South African Pecan Nut Producers Association:<br />

www.sappa.za.org<br />

Nuts<br />

OVERVIEW<br />

Nuts-in-shell pecan nuts are<br />

popular in China. South African<br />

producers are able to supply<br />

fresh nuts for the Chinese New<br />

Year when demand for the<br />

snack is high.<br />

Some analysts believe<br />

that the <strong>Northern</strong> <strong>Cape</strong> could<br />

become a global centre<br />

for pecan nut production.<br />

Figures released by the South<br />

African Pecan Nut Producers<br />

Association (SAPPA) suggest<br />

that huge increases in<br />

production and the extent of<br />

land planted to nuts is already<br />

underway.<br />

Production of pecan nuts<br />

grew from 5 000 tons in <strong>20</strong>10<br />

to 10 500 tons in <strong>20</strong>15, and<br />

the figure continues to rise as<br />

world markets react positively<br />

to the South African product.<br />

At one time it was thought that<br />

pecan nuts were better suited<br />

to tropical and subtropical<br />

climates, but the consensus is<br />

now that the <strong>Northern</strong> <strong>Cape</strong> is<br />

ideal for the cultivation of the<br />

versatile and healthy nut.<br />

Hot summers and short,<br />

cold winters are perfect,<br />

together with the dry air which<br />

has made areas like Prieska,<br />

Upington, the Orania district<br />

and the Vaalharts area the<br />

site of many new groves.<br />

SAPPA says that 90% of the<br />

new plantings in South Africa<br />

are happening in the drier,<br />

western parts of the country.<br />

Farmers have to be patient<br />

because the nut takes a long<br />

time to grow.<br />

43 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Grapes and wine<br />

Record harvests are being recorded.<br />

The Orange River region produced a record grape harvest<br />

in <strong>20</strong>16/17, going above <strong>20</strong>-million 4.5kg equivalent cartons<br />

for the first time. Despite what were described as ideal<br />

conditions, berry sizes were smaller in the <strong>20</strong>17/18 season<br />

and production was down by 7%. However, with new, more hardy<br />

varietals being developed and planted, the outlook for the grape<br />

industry in the <strong>Northern</strong> <strong>Cape</strong> is good.<br />

A variety of seedless grapes dominate plantings, with Thompson<br />

Seedless, Prime, Sugraone, Grapaes and Crispy Flame Seedless<br />

among the most popular. The South African Table Grape Industry<br />

(SATI) reports that the Orange River region has 1 975 permanent<br />

employees and 16 926 seasonal employees.<br />

If ambitious plans to create a Special Economic Zone at Upington<br />

come to fruition, the grape, raisin and wine traders of the <strong>Northern</strong><br />

<strong>Cape</strong> could be among the beneficiaries, providing logistical support<br />

for getting their products to international markets more rapidly than<br />

is currently the case.<br />

On a provincial level, there are plans to add 40 000 tons of<br />

grapes for wine, juice and raisins to the <strong>Northern</strong> <strong>Cape</strong>’s capacity.<br />

A draft six-year plan has been developed for the <strong>Northern</strong> <strong>Cape</strong><br />

Vineyard Development Scheme which will be implemented by the<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Agriculture, Land Reform and Rural<br />

Development (DALRRD), the National Agricultural Marketing Council,<br />

the Land Bank, Distell, Winetech and Orange River Wine Cellars.<br />

Almost a third of South Africa’s table grape crop is produced<br />

in the fertile Orange River region of the <strong>Northern</strong> <strong>Cape</strong>. The South<br />

African table grape industry has been investing in some new<br />

varietals which produce a better yield.<br />

Seventy percent of the Sultana grapes grown in the Lower<br />

Orange River Region are used for vine-fruit products. There are<br />

1 250 Sultana grape growers in the province, producing three<br />

SECTOR INSIGHT<br />

A Special Economic Zone could<br />

boost exports.<br />

Sultana-type grapes which rank<br />

among the best in the world: the<br />

Sultana Clone H5, a new hybrid<br />

called Merbein Seedless, which<br />

has proved resistant to splitting<br />

after rain, and the most popular<br />

type, the 143B.<br />

The following vine-fruit<br />

products are produced in<br />

the <strong>Northern</strong> <strong>Cape</strong>: Sundried<br />

Thompson Seedless Raisins;<br />

Dipped Orange River Sultanas;<br />

Golden Sultanas; Muscat<br />

Raisins; and Monuca Raisins.<br />

An example of successful<br />

Sultana-grape production in<br />

the province is SAD Vine Fruit<br />

(Pty) Ltd, which owns the largest<br />

dried-vine fruit processing<br />

and packaging plant in South<br />

Africa. The Upington-based firm<br />

employs more than 350 people<br />

when in full production. As<br />

much as 80% of vine fruit grown<br />

in South Africa is exported,<br />

primarily to Europe.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

44


OVERVIEW<br />

Diversified agri-company KLK recently purchased a half share<br />

in Carpe Diem Raisins, an exporter of high-quality raisins. The<br />

raisin factory has a production capacity of 12 000 tons and the<br />

company packages and sells about 22% of South African raisin<br />

production. All of the products in the Carpe Diem Group, including<br />

table grapes and pecan nuts, are certified organic. With about<br />

135ha under production, the farm lies 10km east of Upington.<br />

Wine<br />

According to SA Wine Industry Statistics, the Orange River region<br />

has about 5% of the total hectares under wine grapes in South<br />

Africa, and just over 3% of the total number of vines. New vineyards<br />

are being planted.<br />

Warm to hot conditions, coupled with the nutrient-rich land on<br />

the banks of the Orange River and sharply contrasting temperatures<br />

at times, combine to produce consistently excellent wines. Average<br />

annual rainfall in the area is 150mm, but the eastern part of the<br />

region from Kanoneiland to Groblershoop have been receiving<br />

more than their due in recent seasons.<br />

The <strong>Northern</strong> <strong>Cape</strong>’s Orange River wine region accounts for<br />

25.6% of South Africa’s Colombard vines and 10% of Chenin<br />

Blanc. The focus is on Colombard and Hanepoot grapes.<br />

Orange River Wine Cellars (ORC) is a large co-operative<br />

with six wineries. Grapes are collected from 749 farmers. OWC<br />

has a winery at its head office in Upington and at Keimoes,<br />

Groblershoop, Kakamas and Grootdrink.<br />

ONLINE RESOURCES<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Agriculture, Land Reform and Rural<br />

Development: www.agrinc.gov.za<br />

Orange River Wine Cellars: www.orangeriverwines.com<br />

SA Wine Industry Information & Systems: www.sawis.co.za<br />

South African Table Grape Industry: www.satgi.co.za<br />

South African Wine and Brandy Company: www.sawb.co.za<br />

Orange River Concentrate<br />

Producers (part of the ORC<br />

group) produces about 7.5-million<br />

litres of white grape juice<br />

concentrate, a percentage of<br />

which is exported to Japan where<br />

the Itochu Corporation uses it in<br />

soft drinks and food.<br />

ORC supplies wine to Tops<br />

at Spar which has more than<br />

700 stores across the country<br />

and makes Tops’ private label<br />

“Carnival”. ORC has also been<br />

selling wine in China, the USA<br />

and Europe for a number of<br />

years through its Norweco<br />

division. Unique labelling aims<br />

to capture local markets, so ORC<br />

wines are called “Star Tree” in the<br />

US and “Goddess” in Denmark.<br />

The Douglas Wine Cellar<br />

produces about 6 000 cases<br />

per year. Together with the<br />

Landzicht cellar (just over the<br />

border in the Free State), the<br />

Douglas Wine Cellars is a GWK<br />

company. The Douglas cellar<br />

crushes 7 000 tons of grapes<br />

every year and produces<br />

5.6-million litres of wine.<br />

Hartswater Wine Cellar is a<br />

part of the region’s other big<br />

agricultural company, Senwes.<br />

Two wine brands (Overvaal and<br />

Elements) are produced in the<br />

Hartswater irrigation area north<br />

of Kimberley.<br />

45 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

South African Table<br />

Grape Industry<br />

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

jobs. Several downstream industries<br />

are also supported. The harvesting<br />

of table grapes in this region takes<br />

place from about early November<br />

until early February.<br />

SATI represents growers in key government and industry initiatives<br />

aimed at creating more opportunities in the sector, from ownership<br />

to accessing new markets in a sustainable way.<br />

SATI assists growers with crucial industry information, transformation,<br />

statistics, research, technology and technical transfer as well as<br />

training and education with the aim of establishing South Africa as<br />

the Preferred Country of Origin for the world’s best-tasting grapes.<br />

There are five major table grape-growing regions in South Africa.<br />

The difference in soil and climate enables growers to supply the markets<br />

from November to May. The early season is dominated by varieties from<br />

the <strong>Northern</strong> Provinces and the valleys of the Orange and Olifants River.<br />

The <strong>Northern</strong> <strong>Cape</strong> has one of the biggest table grape-growing<br />

regions, known as the Orange River region, represented by the Orange<br />

River Producer Alliance (ORPA), chaired by Willie du Plessis. This table<br />

grape region, with more than 5 688 hectares of vines planted, stretches<br />

from Upington to Kakamas, Augrabies and Blouputs. The table grape<br />

industry is a key industry in the <strong>Northern</strong> Province, contributing to direct<br />

employment in the order of 1 415 permanent and 12 415 seasonal<br />

CONTACT INFO<br />

Manager: Communications: Clayton Swart<br />

Email: clayton@satgi.co.za<br />

Chairperson ORPA: Willie du Plessis<br />

Email: willie@omdraai.co.za<br />

Physical address: 63 Main Street, Paarl 7624<br />

Tel: +27 21 863 0366 | Fax: +27 21 863 3039<br />

Email: info@satgi.co.za<br />

Website: www.satgi.co.za<br />

Mission<br />

SATI delivers service excellence to<br />

create a progressive, equitable and<br />

sustainable industry.<br />

Vision<br />

South Africa is the Preferred Country<br />

of Origin for table grapes and will<br />

provide every table grape producer<br />

as wide a choice as possible with<br />

profitable markets.<br />

SATI’s key areas of<br />

intervention<br />

• Technical market access<br />

• Research and technology transfer<br />

• Information and knowledge<br />

management<br />

• Transformation<br />

• Communication and stakeholder<br />

engagement<br />

• Human capacity and skills<br />

development<br />

• Technical support.<br />

These interventions are aimed at<br />

assisting producers to Gain, Retain<br />

and Optimise (GRO) market access.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

46


OVERVIEW<br />

Mining<br />

A huge zinc project near Pofadder could lead to the <strong>Northern</strong> <strong>Cape</strong><br />

acquiring a smelter and a refinery.<br />

When phase three is reached, the biggest new<br />

mining project in South Africa will deliver<br />

600 000 tons of zinc for Vedanta Zinc<br />

International.<br />

Located about 60km from the small <strong>Northern</strong> <strong>Cape</strong><br />

town of Pofadder, the Gamsberg zinc project (pictured)<br />

has so far attracted $400-million in investment from the<br />

company and started trucking product to the Port of<br />

Saldanha in <strong>20</strong>18. Phase one of the open-pit operation<br />

will deliver an annual load of 250 000 tons of zinc. If it<br />

proceeds to phase three, it would likely go underground.<br />

Anil Agarwal, chairman of Vedanta Resources Limited,<br />

was quoted by the Sunday Times in <strong><strong>20</strong>19</strong> saying that<br />

another $400-million might well be committed by the<br />

company as it strives to ramp up production volumes.<br />

South African President Cyril Ramaphosa, a former<br />

mine union official, was the guest of honour when the<br />

Gamsberg project was officially opened. He made a plea<br />

for South Africa to create more value from its mineral<br />

products. He said, “We must therefore move away from<br />

the ‘pit to port approach’ where resources mined here<br />

are transported out of the country as raw as they are from<br />

along the Sishen-Saldanha route.”<br />

Ramaphosa was referring to the 861km railway line<br />

that carries iron ore from the northern parts of the<br />

<strong>Northern</strong> <strong>Cape</strong> Province to the Port of Saldanha on the<br />

west coast. The line has a capacity of 60-million tonsper-year<br />

but a truck colliding with a bridge in November<br />

<strong>20</strong>18 led to the closure of the line and reduced capacity.<br />

The line was quickly repaired in record time and services<br />

returned to normal.<br />

The president’s wishes might well be answered by<br />

Vedanta who have expressed an interest in building a<br />

refinery and a smelter. The fact that South Africa’s power<br />

grid has been experiencing shutdowns is less of a problem<br />

when one considers that Vedanta is the world’s largest<br />

single independent power producer. In India it uses coal<br />

SECTOR INSIGHT<br />

Ekapa Mining paid R300-million to<br />

buy out Petra Diamonds from a JV.<br />

• Assmang will spend R2.7-billion at<br />

its Gloria manganese mine.<br />

and renewable resources to generate<br />

10 000MW.<br />

At the same time, the <strong>Northern</strong> <strong>Cape</strong><br />

Province is continuing with planning<br />

towards developing a deep harbour at<br />

Boegoebaai. Part of the strategy involves<br />

the creation of a commodities corridor<br />

linking the Upington Special Economic<br />

Zone (SEZ) with the port. The Gamsberg<br />

Mine and related industrial investment<br />

along the corridor would increase the<br />

sustainability of the project.<br />

Ramaphosa made specific pledges<br />

from government’s side to fast-track<br />

development around the zinc project.<br />

He announced the establishment of an<br />

intergovernmental task team led by the<br />

Department of Trade and Industry to<br />

explore the possibility of establishing<br />

a Special Economic Zone to unlock<br />

further investment in sulphuric acid<br />

and fertiliser. The aim is to develop<br />

infrastructure, accelerate skills<br />

development and empowerment, and<br />

consolidate economic development in<br />

the <strong>Northern</strong> <strong>Cape</strong>.<br />

The president praised Vedanta<br />

for spending R44-million on skills<br />

development, health, enterprise<br />

development and municipal<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

48


infrastructure support in <strong>20</strong>18 with a further R77.5-million spent<br />

on local businesses. Ramaphosa also noted the significance of<br />

the Gamsberg Mine being considered one of the most digitally<br />

advanced mines in South Africa.<br />

Other news in the zinc sector is that Australian miner Orion<br />

is putting considerable resources into investigating the possible<br />

revival of the Prieska Zinc-Copper Project. A maiden mineral<br />

resource estimate was published in February <strong>20</strong>18 and 14 drill<br />

rigs are at work looking into the site’s prospects.<br />

Small-scale mining has been problematic in recent years. It is<br />

hoped that the recent issuing of small-scale mining permits will<br />

allow individuals access mineral resources in a way that reduces<br />

risk. The Office of the Premier, in partnership with the National<br />

Department of Mineral Resources, has held a workshop for artisanal<br />

mine workers on how to conduct legal mining operations. The<br />

Swedish International Housing Company is another partner in<br />

identifying possible land on which artisanal miners can legally start<br />

sustainable mining operations. Land owned by municipalities at<br />

Prieska, Niekerkshoop, Marydale and Griekwastad is the focus<br />

of these initiatives.<br />

The National Youth Development Agency (NYDA), the provincial<br />

government and Mintek are collaborating on the Prieska Loxion<br />

Hub (PLH), which beneficiates tiger’s eye for jewellery and stonecutting<br />

products.<br />

Mining sector employment rose somewhat in <strong>20</strong>17/18, reaching<br />

a total of 27 000.<br />

Mining assets in the <strong>Northern</strong> <strong>Cape</strong><br />

• 95% of South Africa’s diamond output<br />

• 97.6% of alluvial diamond mining<br />

• 13.4% of world lead exports<br />

• 80% of the world’s manganese resource<br />

• 25% of the manganese used in the world<br />

• 100% of South Africa’s tiger’s eye<br />

• largest national production of sugilite (a semi-precious<br />

stone).<br />

Rare earth elements<br />

Rare earth elements (REE) are a very modern mineral, in that large<br />

parts of the modern economy rely on them. Super-conductors,<br />

X-ray machines, nuclear batteries and PET-scan detectors are<br />

just some of the technologies that rely on rare earth elements<br />

such as promethium, thulium and holmium. China controls<br />

95% of the world’s supply of REEs and the search is on for<br />

OVERVIEW<br />

alternative sources. Two sites<br />

in western South Africa have<br />

attracted investors attention:<br />

Zandkopsdrift (<strong>Northern</strong> <strong>Cape</strong>)<br />

and, close by but in the adjoining<br />

province of the Western <strong>Cape</strong>,<br />

Steenkampskraal.<br />

Diamonds<br />

Another change took place in the<br />

diamond ownership environment<br />

in <strong>20</strong>18 when Ekapa Mining paid<br />

R300-million to buy out Petra<br />

Diamonds from its Kimberley<br />

Ekapa Mining Joint Venture (KEM<br />

JV). Petra held 75.9% of the old<br />

De Beers assets that include<br />

Kimberley Underground Mines,<br />

various dumps around the town<br />

and underground resources<br />

at Bultfontein, Dutoitspan and<br />

Wesselton. Ekapa’s plans to keep<br />

the mines and tailings in profit entail<br />

the use of modern technology.<br />

This includes an automated pan<br />

plant in support of an upgraded<br />

Combined Treatment Plant.<br />

Rockwell Diamonds, which is<br />

listed on the TSX and JSE, has<br />

several assets in the <strong>Northern</strong><br />

<strong>Cape</strong>. They lie between Prieska<br />

and Douglas, south-west<br />

of Kimberley: Wouterspan,<br />

Nieuwejaarskraal, Remhoogte<br />

and Saxendrift.<br />

Away from the underground<br />

kimberlite pipes and fissures,<br />

river and coastal deposits<br />

are also present. Diamonds<br />

have been recovered along<br />

the Orange, Buffels, Spoeg,<br />

Horees, Doom and Swart rivers<br />

in the province, while coastal<br />

deposits have been found from<br />

the mouth of the Orange River<br />

to Lamberts Bay.<br />

49 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

In <strong>20</strong>18, Trans Hex sold two mines to LOR Diamonds, a blackowned<br />

company led by women, but will continue to mine the<br />

property as an independent contractor.<br />

The Kimberley International Diamond and Jewellery Academy<br />

continues to provide training with a total of 406 graduates having<br />

so far passed through the academy. In a recent development, De<br />

Beers Sightholder Sales South Africa awarded KIDJA an amount<br />

of R500 000 for bursary students. Ten diamond processing<br />

bursaries will also be supported by Alexkor for local Richtersveld<br />

communities.<br />

Quartz<br />

Quartz is used in the manufacture of semiconductors, fibre-optic<br />

cables and ceramics. Fused quartz improves the efficiency of solar<br />

powered devices and quartz glass is used in the manufacture of<br />

photovoltaic cell manufacturing. Positive tests have been done<br />

at Riemvasmaak where the silica content is 99.98% in some<br />

places. Difeme, a black start-up, will mine the quartz with technical<br />

help from Mintek. Investors are sought for the development of<br />

processing and beneficiation plant for high-purity quartz.<br />

Iron ore and manganese<br />

In <strong><strong>20</strong>19</strong>, Sitatunga Resources purchased the East Manganese<br />

project on the Hotazel-Kalahari ore belt from Southern Ambition.<br />

Menar Holdings, which controls a majority share in Sitatunga, is<br />

mostly invested in coal.<br />

Afrimat, a listed construction materials supplier and industrial<br />

minerals group, has added open-pit mining to its portfolio with<br />

the R322-million acquisition of the Diro mine, which had been in<br />

business rescue. The Diro mine has proven run-of-mine reserves<br />

of 10-million tons.<br />

The overwhelming majority of the world’s manganese comes from<br />

the Postmasburg and Kalahari regions of the <strong>Northern</strong> <strong>Cape</strong>. Assmang<br />

has two manganese mines in the province: Nchwaning and Gloria.<br />

ONLINE RESOURCES<br />

Minerals Council of South Africa: www.mineralscouncil.org.za<br />

Mining Qualifications Authority: www.mqa.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic Development and<br />

Tourism: www.economic.ncape.gov.za<br />

South African Mining Development Association:<br />

www.samda.co.za<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

50<br />

The <strong>Northern</strong> <strong>Cape</strong><br />

produces more than 84% of<br />

South Africa’s iron ore. The<br />

province has two major iron<br />

belts, from Postmasburg to<br />

Hotazel, and running through<br />

Sishen and Kathu. Sishen is<br />

the most important iron-ore<br />

mine in South Africa, where<br />

operations include extraction<br />

and four beneficiation plants.<br />

The availability of natural<br />

resources, labour and<br />

infrastructure (including the<br />

Sishen-Saldanha railway<br />

line), make Sishen the ideal<br />

location.<br />

Kumba Iron Ore has the<br />

huge Sishen facility at Kathu<br />

and Kolomela. Assmang,<br />

a joint venture comprising<br />

African Rainbow Minerals and<br />

Assore, mines at Khumani.<br />

The company will spend<br />

R2.7-billion on upgrading its<br />

Gloria mine.<br />

South32 is very active<br />

in the <strong>Northern</strong> <strong>Cape</strong>. The<br />

Hotazel Manganese Mines<br />

is made up of two mines,<br />

Wessels (underground) and<br />

Mamatwan (open cut), and<br />

the Metalloys manganese<br />

smelter. The company has<br />

30% of the product from<br />

its mines processed at the<br />

smelter where a managese<br />

alloy is made.<br />

Hotazel is also the site of<br />

a relatively new manganese<br />

mine, Tshipi é Borwa. Tshipi e<br />

Ntle Manganese Mining (Tshipi)<br />

is a joint venture between<br />

Pallinghurst Co-Investors (led<br />

by Brian Gilbertson) and a<br />

black empowerment company<br />

representing several groups<br />

called Ntsimbintle Mining.


Working smart to<br />

unlock more value<br />

INTERVIEW<br />

Deshnee Naidoo, CEO Vedanta Zinc International (VZI),<br />

expands on plans for the company’s new Gamsberg Mine.<br />

Deshnee Naidoo<br />

How is Gamsberg Mine digitally advanced?<br />

For VZI, the digital transformation is not something that is planned in years<br />

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

integration of systems to enable our teams to make data-driven decisions<br />

to find efficiencies, improve planning, lower risk, create safer working<br />

environments and unlock more value from our resources.<br />

When do you expect to be operating at full capacity?<br />

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

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

from its concentrator plant. By March <strong><strong>20</strong>19</strong>, we achieved a mining<br />

rate of over five-million tons of ore and waste combined. Concentrate<br />

volumes are in the process of ramp-up as the Gamsberg plant reaches<br />

full steady state by mid-<strong><strong>20</strong>19</strong>.<br />

BIOGRAPHY<br />

After a <strong>20</strong>-year career at Anglo<br />

American in various roles,<br />

including CFO of Anglo Thermal<br />

Coal, Deshnee Naidoo was<br />

appointed CEO of Vedanta<br />

Zinc International in <strong>20</strong>14. Her<br />

responsibility covers operations<br />

in South Africa and Namibia,<br />

the now closed Lisheen Mine<br />

in Ireland and Copper Mines of<br />

Tasmania in Australia. In May<br />

<strong>20</strong>18, Deshnee was appointed<br />

to the board of the Minerals<br />

Council of South Africa, a first<br />

for a woman in South African<br />

mining.<br />

Do you have plans to build a smelter and a refinery?<br />

In parallel with the Phase 2 mine and plant, we are looking at developing<br />

a modular smelter/refinery beneficiation complex, which would represent<br />

an estimated direct capital investment of USD-800 million. The complex<br />

would be the first integrated zinc manufacturing facility in South Africa<br />

and the largest in Africa. External factors that will make a critical difference<br />

include power security, competitive power tariff, an offtake for the 1 000<br />

tons of sulfuric acid the complex will produce every day and an efficient<br />

freight transport solution. This will have to be supported by an aggressive<br />

spatial development plan for the region.<br />

When will a decision be taken on investing further?<br />

Vedanta has already committed that Phase 2 of Gamsberg will get<br />

underway as soon as is economically and logistically feasible. Phase 1<br />

was executed with a much larger project in mind. We estimate that up<br />

to 12 000 direct and indirect jobs will be created in Phase 2.<br />

How does Vedanta view its responsibility to the people of<br />

the surrounding area?<br />

Vedanta has always viewed the communities surrounding our mines<br />

as partners and stakeholders. Making sure you contribute to improving<br />

the lives of the communities around your operations is simply the right<br />

thing to do.<br />

51<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


THE STORY OF GAMSBERG –<br />

HOW VEDANTA IS WORKING TOWARDS<br />

“FULFILLING DREAMS”<br />

IN THE NORTHERN CAPE<br />

Vedanta Zinc International (VZI),<br />

headquartered in Johannesburg, is a<br />

grouping of zinc assets located in South<br />

Africa, Namibia and Ireland, owned by<br />

India-based Vedanta Limited, a listed<br />

subsidiary of Vedanta Resources Limited.<br />

As a globally diversified natural resources<br />

major, Vedanta has interests in zinc, lead,<br />

silver, copper, iron ore, aluminium, power,<br />

and oil and gas.<br />

GAMSBERG TIMELINE<br />

1972<br />

1998<br />

<strong>20</strong>09-<strong>20</strong>10<br />

<strong>20</strong>11<br />

<strong>20</strong>14<br />

<strong>20</strong>15<br />

Gamsberg<br />

zinc deposit<br />

discovered by<br />

Okiep Copper<br />

Company (OCC)<br />

Anglo American<br />

acquired 100%<br />

interest in<br />

Gamsberg<br />

Anglo American<br />

pre-feasibility<br />

study, additional<br />

drilling in open<br />

pit area<br />

Vedanta acquired<br />

Black Mountain<br />

and Gamsberg<br />

mines from Anglo<br />

American<br />

Gamsberg<br />

feasibility study<br />

completed and<br />

Phase 1 of project<br />

is approved<br />

Gamsberg project<br />

site breaks<br />

ground


Head office<br />

NAMIBIA<br />

Skorpion<br />

Zinc<br />

Black Mountain Mining<br />

Gamsberg project<br />

SOUTH AFRICA<br />

A major focus on VZI’s growth front is Gamsberg –<br />

a new zinc mine and its associated infrastructure,<br />

Phase 1 of which is now fully operational. VZI’s vision<br />

is to create an integrated world-class regional zinc<br />

complex comprising Black Mountain Mining<br />

(including Gamsberg) and the Skorpion Zinc mining<br />

and refining operations.<br />

Gamsberg is one of the largest zinc deposits in the<br />

world. Although discovered more than 40 years ago,<br />

it was held undeveloped by its various owners before<br />

Vedanta acquired it from Anglo American in <strong>20</strong>11.<br />

It has a reserve and resource of more than 214Mt and<br />

an estimated life of mine (LoM) of 30+ years.<br />

Vedanta knew that Gamsberg’s impressive scale would<br />

contribute to its our overall global position in zinc.<br />

Vedanta committed to our South African stakeholders<br />

that the mine would be developed within fi ve years.<br />

Despite being at the height of the global economic<br />

downturn in <strong>20</strong>14, Vedanta still took the decision to<br />

go ahead with the project.<br />

<strong>20</strong>16<br />

<strong>20</strong>17<br />

<strong>20</strong>18<br />

<strong><strong>20</strong>19</strong><br />

<strong>20</strong>25<br />

Engineering,<br />

procurement and<br />

construction services<br />

contracted awarded<br />

to ELB Engineering<br />

Services Proprietary<br />

Limited<br />

Gamsberg Phase 1<br />

LOM extension<br />

Gamsberg Phase 2<br />

feasibility<br />

Gamsberg officially<br />

opened by President<br />

Cyril Ramaphosa and<br />

Vedanta Chairman<br />

Anil Agarwal<br />

Gamsberg Phase 3


Gamsberg was offi cially inaugurated by<br />

President Cyril Ramaphosa and Vedanta<br />

Chairman Mr Anil Agarwal on 28 February <strong><strong>20</strong>19</strong>.<br />

Vedanta anticipates that Phase 1 of Gamsberg<br />

will be at full production by mid-<strong><strong>20</strong>19</strong>.<br />

Gamsberg’s development forms part of<br />

Vedanta’s long-term commitment to the<br />

development of the <strong>Northern</strong> <strong>Cape</strong>. Vedanta is<br />

one of the largest private sector employers in the<br />

province and the construction of Gamsberg has<br />

had a meaningful impact on the local economy.<br />

WHAT WE ARE WORKING TOWARDS<br />

Now that Phase 1 of Gamsberg – representing an<br />

investment by Vedanta in South Africa of US$400 million –<br />

is officially opened, and is working towards full production,<br />

Vedanta is focusing on Phase 2, and the potential for a<br />

smelter-refi nery complex. Phase 2 would see a larger pit<br />

and a second plant stream, increasing ore production to<br />

8 million tons and concentrate to 450 000 tons per annum.<br />

It would represent a further investment of around<br />

US$350 million.<br />

Vedanta is currently assessing the feasibility of developing<br />

a smelter-refi nery benefi ciation complex – which would<br />

be a direct capital investment of US$800 million. This<br />

benefi ciation complex will have a wider regional and even<br />

national impact, creating industrialisation and employment<br />

(estimates suggest construction will create around<br />

4 000 jobs). The complex would be the fi rst integrated<br />

zinc manufacturing facility in South Africa, and the largest<br />

on the continent.<br />

Vedanta is looking at a range of options to make<br />

the complex a reality. These include:<br />

• Building the complex at Gamsberg in the <strong>Northern</strong><br />

<strong>Cape</strong> – this would have a signifi cant spillover and<br />

multiplier effect – a fertiliser industry, the potential to<br />

accelerate the region’s agricultural activities, a possible<br />

agro-processing industry, and the need (and potential)<br />

for both solar and wind power. Vedanta is working with<br />

government to create a Special Economic Zone which<br />

would support and stimulate this vision.<br />

• Building the complex at a port – Port Nolloth,<br />

Saldanha Bay or Richards Bay – this would signifi cantly<br />

decrease logistics costs, unlock wider economic<br />

opportunities, and position the complex as one of the<br />

top port-based smelters in the world.<br />

The development of Gamsberg Phase 2 will create benefi ts<br />

for communities and for South Africa as a whole. Vedanta’s<br />

estimates suggest that the project phase will generate a


• 3 000 people employed during<br />

construction; 750 people employed<br />

for operations to date<br />

• 34% women employees<br />

• 500 – 1 000 youth in development<br />

programs<br />

• Improved education facilities<br />

for 3 000 learners, 23 students<br />

awarded tertiary bursaries<br />

(<strong>20</strong>17/18)<br />

• 45 black-owned businesses<br />

supported<br />

• 12 local businesses created –tripled<br />

in value since creation in <strong>20</strong>15<br />

once-off contribution to GDP of around R4.3 billion.<br />

Once operational, it should generate around<br />

R6.4 billion per annum – excluding the tax revenue<br />

it will generate. Estimates also indicate that around<br />

12 000 direct and indirect jobs will be created.<br />

Critical success factors<br />

For all of this to happen, Vedanta is dependent on<br />

a number of key external factors, including power<br />

security at competitive tariffs, an offtake for the<br />

approximately 1 000 tons of sulphuric acid the<br />

complex will produce every day and an effi cient<br />

freight transport solution. All of this will have to be<br />

supported by and aggressive spatial development<br />

plan for the region which will allow for the<br />

development of housing and towns closest to the<br />

complex to enable a thriving community.<br />

Our communities are critical stakeholders and partners<br />

in our work. We get our social licence to mine from<br />

them, and Vedanta’s commitment has always been that<br />

we will deliver value to all our stakeholders.<br />

Corporate Social Responsibility plays a critical role in VZI’s<br />

relationships with its communities and employees. The<br />

concept of ‘<strong>Business</strong> with Purpose’ is one which we take<br />

very seriously. We are obliged to deliver returns for all<br />

stakeholders, not just to shareholders. VZI can extract value<br />

from this vision for our shareholders but more importantly<br />

facilitate value for the communities in which we operate.<br />

CSR spend for BMM<br />

overall sits at over<br />

R17.5 million so far,<br />

with over R8 million<br />

committed.


OVERVIEW<br />

Water<br />

Department of Scientific Services<br />

Water projects are stimulating economic growth.<br />

From providing water for an attempt on a world land speed<br />

record to laying on bulk water facilities for small rural<br />

municipalities — national, provincial and local authorities<br />

have a wide range of challenges to overcome in ensuring<br />

that life is sustained, and economic activity can thrive.<br />

The dry area around Hakskeenpan is ideally suited to driving<br />

vehicles fast but the world record land speed attempt is going to<br />

attract big crowds (and large technical support teams) and so a<br />

special effort has been made to provide infrastructure that will<br />

make sure that a reliable water supply is on tap. This investment<br />

will also secure the venue as a future site of similar open-air events<br />

or competitions.<br />

Six municipalities have been identified for the eradication of<br />

informal settlements. A major obstacle in the municipalities of Sol<br />

Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and<br />

Ga-Segonyana is the lack of bulk water and sanitation facilities.<br />

Ring-fenced funding in terms of the Division of Revenue Act has<br />

been approved.<br />

Two projects being run by the Provincial Government of the<br />

<strong>Northern</strong> <strong>Cape</strong> in conjunction with national government departments<br />

relate to water. Solar water heaters are being provided to residents<br />

of the Sol Plaatje Municipality and training for maintenance and<br />

repair is also being offered by the National Department of Energy.<br />

The National Department of Public Works is running a Shared<br />

SECTOR INSIGHT<br />

“Sustaining the source and flow of life forever”<br />

Sedibeng Water has opened<br />

a laboratory in the <strong>Northern</strong><br />

<strong>Cape</strong>.<br />

• Twenty-two villages will<br />

benefit from the Vaal<br />

Gamagara project.<br />

Water Efficiency Programme<br />

on 30 <strong>Northern</strong> <strong>Cape</strong> provincial<br />

government properties. The<br />

provincial government has<br />

adopted a Climate Change<br />

Adaptation Response Strategy.<br />

Assets<br />

Two of South Africa’s great<br />

rivers meet in the <strong>Northern</strong><br />

<strong>Cape</strong> at a point south-west of<br />

Kimberley. After absorbing the<br />

Vaal River, the Orange River<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

56


OVERVIEW<br />

continues westwards to the Atlantic Ocean and provides the<br />

basis for agriculture all along its path.<br />

North of Kimberley, the confluence of the Vaal and the Harts<br />

rivers encompasses one of South Africa’s most intensely irrigated<br />

areas. The Vaal-Harts irrigation system is one of the most productive<br />

in the country, covering about 38 000 hectares with a variety of<br />

crops. Various water users’ associations (WUAs) representing<br />

particular areas (such as the Vaal-Harts) are recognised by the<br />

national water authority.<br />

Two of South Africa’s biggest dams, the Gariep and Vanderkloof,<br />

also provide water for irrigation and hydro-electric power.<br />

But many parts of the province are dry with sections of the north<br />

and north-west classified as semi-arid and arid. The southern<br />

Kalahari Desert receives rain (sometimes a lot of rain in a very short<br />

space of time) but the fact that mining is a primary economic activity<br />

in the dry regions of the province presents many challenges. The<br />

town of Kuruman is an exception in that it has a natural and prolific<br />

spring, the Eye of Kuruman.<br />

The National Department of Water and Sanitation is consolidating<br />

the country’s water boards into nine regional water utilities. Some<br />

boards have merged to create new entities while others have<br />

extended their area of supply. Sedibeng Water now offers water<br />

supply services across three provinces, including most of the<br />

<strong>Northern</strong> <strong>Cape</strong>.<br />

Sedibeng Water’s Central Laboratory, based at Balkfontein<br />

near Bothaville, is a SANAS-accredited facility. A new laboratory<br />

has been built to monitor the quality of water at the revamped<br />

Vaal Gamagara scheme. The laboratory’s four sections cover<br />

Instrumentation, Wet Chemistry, Sewage and Microbiology. When<br />

the laboratory gains SANAS accreditation, it will be the first in the<br />

province to have such a rating. The water laboratory image is<br />

supplied by Sedibeng Water.<br />

Projects<br />

The Vaal Gamagara and Namakwa bulk water supply projects hold<br />

the key to boosting the mining sector and laying the foundation<br />

for expansion in outlying districts. The projects will give additional<br />

security to mines, businesses and households in the target areas.<br />

ONLINE RESOURCES<br />

National Department of Water and Sanitation: www.dwa.gov.za<br />

South African Association of Water Utilities: www.saawu.org.za<br />

Water Institute of South Africa: www.wisa.org.za<br />

Water Research Commission: www.wrc.org.za<br />

Engineering group ELB<br />

Group has been appointed by<br />

Vedanta Zinc International to<br />

do a wide range of jobs at its<br />

new Gamsberg project. This<br />

includes laying a water pipe from<br />

the Orange River to the mining<br />

company’s processing plant.<br />

The town of Springbok has<br />

been plagued by water supply<br />

problems for several years, with<br />

pipes failing on a regular basis.<br />

The copper mining company<br />

that used to see to water delivery<br />

operations in the area has closed<br />

down. The Namakwa water<br />

project will deliver water to about<br />

11 000 households. Twenty-two<br />

villages in six municipalities will<br />

benefit from the Vaal Gamagara<br />

Refurbishment and Upgrading<br />

Project.<br />

The existing scheme, run<br />

by Sedibeng Water, supplies<br />

about 22-million m³ of water<br />

to industry, mines, agricultural<br />

enterprises and domestic<br />

users, but demand is growing.<br />

Existing manganese and<br />

iron ore mines near Hotazel<br />

and Kathu are heavy water<br />

users and if any new mines<br />

are to be considered in the<br />

area, a reliable water supply<br />

is needed. The cost of the<br />

project, which falls under the<br />

National Department of Water<br />

and Sanitation, is R18-billion.<br />

Sedibeng Water has been<br />

selected as the implementing<br />

agent for the project and it will<br />

work with the Kgalagadi Joint<br />

Venture. Once the project<br />

is complete, the scheme<br />

will be able to deliver water<br />

to neighbouring country,<br />

Botswana.<br />

57 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Renewable energy<br />

Technical innovation comes to the <strong>Northern</strong> <strong>Cape</strong>.<br />

SECTOR INSIGHT<br />

The tower at Khi Solar One is<br />

one of South Africa’s tallest<br />

structures.<br />

The renewable energy revolution is speeding up. In recent<br />

months, landmarks such as the start of commercial<br />

operations by the 100MW Kathu Solar Park and the<br />

reaching of financial closure of the 147MW Roggeveld<br />

Wind Farm mark what can be described as the first phase of the<br />

coming of renewable energy to South Africa.<br />

In less than a decade, an entirely new sector has been created<br />

through legislation that invited local and foreign investors to bid<br />

for and then build renewable energy generation plants. South<br />

Africa’s National Development Plan (NDP) requires <strong>20</strong> 000MW of<br />

renewable energy by <strong>20</strong>30. That will be achieved mainly through<br />

the Renewable Energy Independent Power Producer Procurement<br />

Programme (REIPPPP).<br />

The wind and solar parks now spreading over the vast spaces<br />

of the <strong>Northern</strong> <strong>Cape</strong> indicate that renewable energy has well<br />

and truly arrived.<br />

Projects such as Kathu Solar Park, a concentrating solar power<br />

(CSP) project, and the Roggeveld Wind Farm are indicative of the<br />

large scale of most of the energy generation that is being rolled<br />

out, but at Black Rock Mine solar power is being put to use on<br />

a smaller, but no less important scale. To light the intersections<br />

leading to the mine, BEKA Schréder has installed solar-powered<br />

street lights.<br />

The <strong>20</strong>18 signing ceremony by new Energy Minister Jeff Rabebe<br />

restarted the REIPPPP when he signed off on projects totalling<br />

R56-billion that will add 2 300MW to the national grid. There had<br />

been a long delay in the process as national utility Eskom argued<br />

against accepting more power<br />

purchase agreements while they<br />

had a surplus. Most of South<br />

Africa’s electricity comes from<br />

coal and Eskom is building two<br />

huge coal-fired power stations.<br />

When a group of dignitaries<br />

gathered a month after that<br />

important signing ceremony<br />

to inaugurate a solar plant that<br />

covers 300ha in the <strong>Northern</strong><br />

<strong>Cape</strong>, there was therefore a lot<br />

of optimism in the air. National<br />

government’s confirmation of its<br />

commitment to the REIPPPP is<br />

vital for growth. Approximately<br />

60% of the projects so far<br />

allocated have been in the<br />

nation’s sunniest province.<br />

Xina Solar One is located at<br />

Pofadder on the N14 between<br />

Upington and Springbok. The<br />

R9.4-billion project is a joint<br />

venture between Spanish<br />

energy firm Abengoa Solar,<br />

the Industrial Development<br />

Corporation (IDC), the Public<br />

Investment Corporation (PIC) and<br />

a community trust representing<br />

the local population. The plant is<br />

Abengoa’s third in the <strong>Northern</strong><br />

<strong>Cape</strong>. Kaxu Solar One is also<br />

near Pofadder but Khi Solar One<br />

is closer to Upington. All three<br />

use concentrated solar power<br />

which reflects the sun’s rays<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

58


OVERVIEW<br />

during the day in to a molten salt storage system. The energy<br />

is then slowly released during the night. The <strong>20</strong>5m tower that<br />

collects the rays at the Khi Solar One site is one of the tallest<br />

structures in South Africa. The image across two pages that<br />

introduces the sector overviews (pages 38 and 39) shows the<br />

tower at Khi Solar One.<br />

The <strong>Northern</strong> <strong>Cape</strong> is the natural home for the generation of<br />

solar power. Long-term annual direct normal irradiance (DNI)<br />

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

Stellenbosch University by Slovakian company GeoModal Solar.<br />

South Africa’s national average is among the best in the world.<br />

Stellenbosch University’s Solar Thermal Energy Research Group<br />

has six sites monitoring irradiation levels.<br />

The small towns of Postmasburg and Groblershoop lie between<br />

Upington and Kimberley. They are modest settlements which<br />

have ticked along in support of surrounding farmers with some<br />

diamond mining and wine cultivation. They are now the centre<br />

of some of the world’s most advanced technological innovation<br />

in concentrated solar power.<br />

Saudi Arabian electricity group ACWA Power has won approval<br />

for the 100MW Redstone project near Postmasburg and the<br />

50MW Bokpoort CSP plant near Groblershoop is in operation.<br />

Large wind projects are also winning approval in the <strong>Northern</strong><br />

<strong>Cape</strong>. The commissioning of the 100MW De Aar Wind Power<br />

Project brings together Mulilo Renewable Energy and the China<br />

Longyuan Power Group Corporation.<br />

Commercial operations have begun on Khobab Wind Farm<br />

and Loeriesfontein Wind Farm, collectively providing 280MW via<br />

61 wind turbines. The projects were developed by Lekela Power,<br />

a joint venture between Actis and Mainstream Renewable Power.<br />

Noblesfontein (main picture) was one of the earliest wind farms to<br />

be constructed in the <strong>Northern</strong> <strong>Cape</strong>, about 40km from Victoria<br />

West. Spanish company Gestamp Wind was an early investor.<br />

The 147MW Roggeveld Wind Farm, which has 47 Nordex wind<br />

ONLINE RESOURCES<br />

IPP projects: www.ipp-projects.co.za<br />

National Energy Regulator of South Africa: www.nersa.org.za<br />

South African Photovoltaic Industry Association:<br />

www.sapvia.co.za<br />

South African Renewable Energy Council: www.sarec.org.za<br />

South African Wind Energy Association: www.sawea.org.za<br />

ACWA Power’s Bokpoort<br />

CSP project uses innovative<br />

technology. (Image: Abengoa).<br />

turbines and was developed by G7<br />

and then taken over by Building<br />

Energy, will operate commercially<br />

in the first quarter of <strong>20</strong>21.<br />

The support of two of South<br />

Africa’s biggest institutional<br />

investors, the Industrial<br />

Development Corporation (IDC) and<br />

the Public Investment Corporation<br />

(PIC), has been crucial in getting<br />

the renewable energy sector off the<br />

ground. They have also played a role<br />

in helping communities fund their<br />

participation in community trusts.<br />

According to <strong>Business</strong> Day, the PIC<br />

has so far invested in 16 unlisted<br />

projects and its total investment<br />

stands at R11-billion. The IDC’s 24<br />

projects are valued at R14-billion<br />

and will contribute 1 100MW to the<br />

national power grid.<br />

59 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Banking and finance<br />

New banks are targeting niche markets.<br />

News in <strong>20</strong>18 that a mutual bank in Limpopo had been<br />

hollowed out by corrupt activities put the spotlight on<br />

banking practice in South Africa. Mutual banks do not<br />

offer full-service banking but focus rather on encouraging<br />

savings and providing benefits to their depositors.<br />

Despite the experience in Limpopo, the appetite for mutual<br />

banks is strong, given the nature of the South African market. The<br />

Young Women in <strong>Business</strong> Network (YWBN) intends applying for a<br />

mutual bank licence in <strong><strong>20</strong>19</strong>. Bank Zero will use the mutual model<br />

while other new entrants such as Timebank (free transactional<br />

accounts) and Discovery Bank (which will apply the behavioural<br />

model it uses in its health business to reward good financial<br />

behaviour) are introducing innovations.<br />

South Africa’s four big retail banks (Nedbank, Absa, Standard<br />

Bank and First National Bank) have a solid presence in the major<br />

towns in the province. Capitec is rapidly moving towards being part<br />

of a Big Five and it announced in <strong>20</strong>18 that it would partner with<br />

Centriq Life to enter the insurance market.<br />

The established banks have specialists in the province and<br />

dedicated units such as Nedbank Agribusiness. Focus areas for<br />

this unit are agronomy (grain, oil seeds, sugar and cotton), livestock<br />

(including game farming), horticulture (fruit and vegetables, for<br />

example), and secondary agriculture which covers agricultural<br />

processing and storage.<br />

With the renewable energy sector booming in South Africa, a<br />

whole new sector in need of project funding has opened up for<br />

banks. The <strong>Northern</strong> <strong>Cape</strong> has attracted a high percentage of<br />

independent power producers which have won the right to build<br />

power plants, especially in the solar power sector.<br />

The other new sector is astronomy as represented by the<br />

Square Kilometre Array project. This will attract investments, one<br />

of the first of which is in education by Absa Bank. The bank has<br />

ONLINE RESOURCES<br />

Association for Savings and Investment South Africa:<br />

www.asisa.org.za<br />

Chartered Institute for Government Finance, Audit and Risk<br />

Officers: www.cigfaro.co.za<br />

Financial Services Board: www.fsb.co.za<br />

SECTOR INSIGHT<br />

Sol Plaatje University has<br />

received R4.5-million from<br />

Absa Bank for Data Science.<br />

given R4.5-million to Sol Plaatje<br />

University to develop the field of<br />

Data Science.<br />

The Land and Agricultural<br />

Development Bank of South<br />

Africa (Land Bank) is a major<br />

participant in the <strong>Northern</strong><br />

<strong>Cape</strong> financial sector and<br />

the Industrial Development<br />

Corporation (IDC), as an equity<br />

investor in several businesses<br />

in strategic sectors, is another<br />

important player.<br />

Most agricultural companies<br />

in the <strong>Northern</strong> <strong>Cape</strong> have<br />

financing and services<br />

divisions, as one would expect<br />

in a province with a strong and<br />

varied agricultural sector which<br />

exports much of its produce.<br />

GWK has six units within its<br />

Corporate Services division and<br />

these mostly relate to finance:<br />

Finance, Financing, Risk<br />

Management, and Financial<br />

Agricultural Advice.<br />

In <strong>20</strong>17 Senwes and its<br />

holding company Senwesbel<br />

became the first new stocks to<br />

be listed on the country’s new<br />

stock exchange, the ZAR X.<br />

Upington-based KLK Landbou<br />

offers insurance and medical<br />

cover while OVK has insurance<br />

and financing options.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

60


Development finance and<br />

SMME support<br />

An industrial park at Kathu will boost SMMEs.<br />

An opportunity to move materials and do production drilling<br />

for Kumba Iron Ore has not only spurred Kele Mining<br />

Solutions, a <strong>Northern</strong> <strong>Cape</strong> SMME, to hire 150 people,<br />

it has led to the establishment of a subsidiary logistics<br />

company. Kefilwe and Jomo Khomo (pictured with some of their<br />

staff) experienced a huge increase in turnover when they teamed<br />

up with minerals giant Kumba, which has set aside R1-billion<br />

specifically for local procurement and supplier development. The<br />

company’s supplier development programme also gives advice<br />

on business practices and marketing. With a head office in Kathu,<br />

Kele is expanding to the platinum sector in Rustenburg and looking<br />

for business in Botswana. The Khomos are also doing their bit for<br />

SMME development by contracting other local businesses when<br />

they can.<br />

SMMEs will be catered for in the planned Kathu Industrial Park<br />

which is being supported by the Industrial Development Corporation<br />

(IDC) and companies in the mining sector. The focus of the park will<br />

be metals. The park’s infrastructure will enable smaller companies<br />

to be in a position to tender for supply contracts to mines.<br />

The Industrial Development Corporation is one of the biggest<br />

funders of projects in the <strong>Northern</strong> <strong>Cape</strong>. Through the IDC’s<br />

Transformation and Entrepreneurial Scheme, a black economic<br />

empowerment project is underway at Kakamas, where emerging<br />

farmers are planting citrus.<br />

A <strong>20</strong>18 conference on renewable energy laid out opportunities<br />

in this growing sector for interested SMMEs. The theme of the<br />

conference was “Driving economic growth and transformation<br />

through renewable energy”.<br />

A provincial local economic development (LED) forum was held<br />

with a focus on finance and commercial banking. The opportunities<br />

for small, medium and micro-enterprises (SMMEs) were explained<br />

ONLINE RESOURCES<br />

Industrial Development Corporation: www.idc.co.za<br />

Small Enterprise Development Agency: www.seda.org.za<br />

Small Enterprise Finance Agency: www.sefa.org.za<br />

SECTOR INSIGHT<br />

OVERVIEW<br />

Kumba will spend R1-billion on<br />

local suppliers and procurement.<br />

and various supplier development<br />

and training programmes were<br />

detailed.<br />

The provincial government<br />

supports small enterprises, rural<br />

enterprises and co-operatives<br />

through business and financial<br />

management training and<br />

procurement of goods from<br />

SMMEs. In partnership with the<br />

Small Enterprise Development<br />

Agency (Seda), cadets receive<br />

training before receiving work<br />

places at various municipalities.<br />

There is a plan to create a<br />

Provincial Incubation Strategy<br />

and planners are also looking into<br />

creating a specialist Renewable<br />

Energy Incubator to support<br />

smaller entrants into that growing<br />

sector. Many programmes focus<br />

on agricultural production and<br />

food security.<br />

61 NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

<strong>Northern</strong> <strong>Cape</strong> Chamber<br />

of Commerce and Industry<br />

Your ultimate business connection.<br />

Our heritage in brief<br />

NOCCI was established on 22 February <strong>20</strong>00<br />

when the Chamber of <strong>Business</strong> and the Kimberley<br />

Afrikaanse Sakekamer amalgamated. At the time,<br />

these two organisations had served the business<br />

community of Kimberley for 1<strong>20</strong> years.<br />

Membership advantages<br />

A Chamber assesses and evaluates the needs of<br />

the local business community, especially regarding<br />

the need for services to small business at a<br />

reasonable cost:<br />

• Monitors developments at the local level<br />

• Mobilises business opinion on local issues<br />

• Exerts a positive influence on the environment in<br />

which business operates and helps prospective<br />

members grow their business<br />

• Promotes and encourages the pursuit of a high<br />

standard of business ethics<br />

From left: Hannes van Niekerk, Riaan Vorster, Marie Parsons<br />

(NOCCI President), Innes Joubert, Jan van Vuuren, Tasneem<br />

Motlekar, Charlene Zondagh, Pieter Serfontein and Jaime<br />

Goncalves. Absent: Mr Gerrie Cloete, Mr Harry Hurndall<br />

and Ms Nicola Smith<br />

• Disseminates information that is useful to the<br />

business fraternity<br />

• Creates opportunities for improving business skills<br />

• Extends business contacts locally, regionally and<br />

nationally, and allows individual businesspeople<br />

to share in the provincial and national business<br />

decision-making processes<br />

• Upholds the market economy and private<br />

enterprise system<br />

• Has committees which are ideal places for<br />

members of diverse interests to consolidate<br />

and unify their thinking as they work together –<br />

committees accurately sense the environment,<br />

process information and provide valuable<br />

guidance to the member<br />

• Holds functions and special events, allowing members<br />

to network and learn about interesting topics<br />

Through affiliation with national organised business<br />

structures, the “Voice of <strong>Business</strong>” is representative<br />

as memberships grows. The “Voice of <strong>Business</strong>” is a<br />

binding force combining the skills and influences of<br />

men and women engaged in all forms and sectors<br />

of business.<br />

Can you afford not to belong?<br />

The increasingly complex business and social environment<br />

requires a comprehensive support structure<br />

to ensure the most favourable climate for the<br />

continued viable existence of individual businesses<br />

in a system of free enterprise. At the same time,<br />

the Chamber movement facilitates adjustment by<br />

business to those realities that cannot be altered.<br />

Involvement in the Chamber movement bears<br />

abundant fruit for the well-being of each business.<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

62


EXPO AND TRADE FAIR<br />

Hosted by NOCCI in association with OFM<br />

KIMBERLEY: 1 - 3 AUGUST <strong><strong>20</strong>19</strong><br />

MITTAH SEPEREPERE<br />

CONVENTION CENTRE<br />

PROFILE<br />

NOCCI staff: Cornel Snyman - PA, Sharon Steyn - CEO and<br />

Beverley Deke - Members Manager<br />

Thousands of successful businesspeople can testify<br />

to the enrichment of their own skills and the development<br />

of a network base through active participation<br />

in the Chamber affairs. If you are a businessperson<br />

with vision, you cannot afford not to join the Chamber<br />

movement.<br />

Executive Committee of NOCCI<br />

President: Marie Parsons (Parsons Home Appliances)<br />

1st Vice-Chairperson: Riaan Vorster (GW Rugby Union)<br />

2nd Vice-Chairperson: Charlene Zondagh (Halsted)<br />

Treasurer: Jan van Vuuren (Bishops Lodge)<br />

Executive members: Hannes van Niekerk (Super<br />

Armature Winding), Innes Joubert (GWK), Tasneem<br />

Motlekar (Engelsman Magabane), Pieter Serfontein<br />

(Hancor Dairy), Jaime Goncalves (KEW), Harry Hurndall<br />

(Roburn Construction)<br />

Staff: Sharon Steyn (CEO), Cornel Snyman (PA to CEO),<br />

Beverley Deke (Members Manager).<br />

CONTACT INFO<br />

CEO NOCCI: Kimberley: Sharon Steyn<br />

Tel: +27 53 831 1081 | Fax: +27 53 831 1082<br />

Cell: 083 457 8148 | Email: Sharon@nocci.co.za<br />

Website: www.nocci.co.za<br />

Face -to-face interaction is the best way to build<br />

business relationships with suppliers and peers.<br />

Who will attend?<br />

Corporate managers, engineers, sales<br />

managers, plant managers, the public, research/<br />

development and purchasers.<br />

What NOCCI Expo and Trade Fair offers<br />

NOCCI offers you the keys to gaining a competitive<br />

edge. In a single trip, you can visit all<br />

your vendors. You have a chance to source new<br />

suppliers, get ideas from other industries and<br />

pursue professional development.<br />

No other show in the <strong>Northern</strong> <strong>Cape</strong> offers so<br />

much.<br />

Stands<br />

The Expo has grown from 62 stands. In<br />

<strong>20</strong>18, a total of 176 stands were sold.<br />

Stands are located in the auditorium of the<br />

convention centre. Seize this amazing opportunity<br />

and BOOK YOUR STAND NOW.<br />

NOCCI Members: R7 000<br />

Non-members: R8 600<br />

Contact Beeda on 083 279 2929<br />

Stalls now open for <strong><strong>20</strong>19</strong><br />

63<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


INDEX<br />

INDEX<br />

Black Management Forum (BMF) ..................................................................................................................... 5<br />

Nedbank........................................................................................................................................................... 34-37<br />

<strong>Northern</strong> <strong>Cape</strong> Chamber of Commerce and Industry (NOCCI) ............................................................62<br />

<strong>Northern</strong> <strong>Cape</strong> Department of Economic Development and Tourism ................... IFC, 10-25, OBC<br />

SA Airlink............................................................................................................................................................... IBC<br />

Sol Plaatje University ...........................................................................................................................................32<br />

South African Table Grape Industry (SATI) ..................................................................................................46<br />

Upington Special Economic Zone (SEZ).......................................................................................................26<br />

Vedanta Zinc International ................................................................................................................. 51, 52-55<br />

NORTHERN CAPE BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

64


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Promotion of Economic Growth and Economic<br />

Development in the <strong>Northern</strong> <strong>Cape</strong> Province<br />

Physical: Metlife Towers,<br />

13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309<br />

Postal: Private Bag X6108, Kimberley, 8300<br />

Tel: 053 839 4000 | Fax: 053 832 6805<br />

Web: http://economic.ncape.gov.za<br />

Email: dedat@ncpg.gov.za

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