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Limpopo Business 2019-20 edition

The 2019/20 edition of Limpopo Business is the 11th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province. Limpopo has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on various Special Economic Zones (SEZs) which aim to drive industrialization in the province and the initiatives which are further enhancing the tourism offering in Limpopo. News related to mining, agriculture, transport and logistics, education and development finance is carried in overviews of the main economic sectors in the province. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com Updated information on the Limpopo is also available through our monthly e-newsletter, which you can subscribe to at https://www.globalafricanetwork.com/subscribe/, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business.

The 2019/20 edition of Limpopo Business is the 11th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province.

Limpopo has several investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on various Special Economic Zones (SEZs) which aim to drive industrialization in the province and the initiatives which are further enhancing the tourism offering in Limpopo.

News related to mining, agriculture, transport and logistics, education and development finance is carried in overviews of the main economic sectors in the province.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com Updated information on the Limpopo is also available through our monthly e-newsletter, which you can subscribe to at https://www.globalafricanetwork.com/subscribe/, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business.

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LIMPOPO<br />

BUSINESS<br />

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

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN LIMPOPO PROVINCE<br />

JOIN US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.LIMPOPOBUSINESS.CO.ZA


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Introduction<br />

CONTENTS<br />

CONTENTS<br />

<strong>Limpopo</strong> <strong>Business</strong> <strong><strong>20</strong>19</strong>/<strong>20</strong> Edition<br />

Foreword4<br />

A unique guide to business and investment in <strong>Limpopo</strong>.<br />

Infrastructure is a key driver in job-creation and<br />

development6<br />

A message from the Premier of <strong>Limpopo</strong>, the Honourable<br />

Chupu Stanley Mathabatha.<br />

Creating a conducive climate for investment 8<br />

A message from the Interim CEO of the <strong>Limpopo</strong> Economic<br />

Development Agency, Dr Matata Mokoela.<br />

Special features<br />

Regional overview of <strong>Limpopo</strong> 10<br />

New mining projects, investments in Special Economic Zones<br />

and superb tourism assets are expected to underpin economic<br />

growth in <strong>Limpopo</strong>.<br />

Boosting economic growth 14<br />

Sector-specific industrial zones are set to transform <strong>Limpopo</strong>’s<br />

economy.<br />

Marula Industrial Hub 22<br />

Plans are in place to boost the use of a super fruit.<br />

Destination <strong>Limpopo</strong> 24<br />

Biodiversity holds great potential for growth in the tourism<br />

industry.<br />

<br />

Economic sectors<br />

Agriculture40<br />

Five Agricultural Development Zones have been declared.<br />

Mining44<br />

Eight new investments are bringing jobs to <strong>Limpopo</strong>.<br />

Construction and property 58<br />

Infrastructure and state housing are potential markets for<br />

builders.<br />

1<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


CONTENTS<br />

Energy59<br />

Large energy users are going off-grid.<br />

Transport and logistics 60<br />

The new Musina Intermodal Terminal is operating.<br />

Banking and financial services 70<br />

Banking choices are expanding very quickly.<br />

Development finance and SMME support 74<br />

Big companies are using their supply chains to support<br />

small business.<br />

Education and training 86<br />

Training is a key provincial priority.<br />

References<br />

Key sector contents 38<br />

Overviews of the main economic sectors of <strong>Limpopo</strong>.<br />

Index88<br />

Maps<br />

<strong>Limpopo</strong> locator map<br />

13<br />

ABOUT THE COVER:<br />

Credit: Des Jacobs for Implats. Marula Mine, which is 73% owned<br />

by Implats, comprises two decline shafts and a concentrator<br />

plant. In FY<strong>20</strong>18 the operation produced 85 100 ounces of<br />

platinum in concentrate.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

2


Terms and Conditions apply. Handles/usernames are illustrative only. Any similarity to any other handle/username on any platform,<br />

or otherwise, is coincidental.


FOREWORD<br />

<strong>Limpopo</strong> <strong>Business</strong><br />

A unique guide to business and investment in <strong>Limpopo</strong>.<br />

The <strong><strong>20</strong>19</strong>/<strong>20</strong> <strong>edition</strong> of <strong>Limpopo</strong> <strong>Business</strong> is the 11th issue of this<br />

highly successful publication that, since its launch in <strong>20</strong>07, has<br />

established itself as the premier business and investment guide<br />

for the <strong>Limpopo</strong> Province.<br />

<strong>Limpopo</strong> has several investment and business opportunities. In addition<br />

to the regular articles providing insight into each of the key economic sectors<br />

of the province, there are special features on various Special Economic Zones<br />

(SEZs) which aim to drive industrialisation in the province and the initiatives<br />

which are further enhancing the tourism offering in <strong>Limpopo</strong>.<br />

News related to mining, agriculture, transport and logistics, education<br />

and development finance is carried in overviews of the main economic<br />

sectors in the province.<br />

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

of the print <strong>edition</strong>, the full content can also be viewed online at www.<br />

globalafricanetwork.com Updated information on the <strong>Limpopo</strong> is also<br />

available through our monthly e-newsletter, which you can subscribe to<br />

online, in addition to our complementary business-to-business titles that<br />

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

Chris Whales<br />

Publisher, Global Africa Network Media<br />

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

CREDITS<br />

Publisher: Chris Whales<br />

Publishing director:<br />

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 />

<strong>Business</strong> development manager:<br />

Shiko Diala<br />

Ad sales: Gavin van der Merwe,<br />

Sandile Koni, Sam Oliver, Gabriel<br />

Venter, Vanessa Wallace, Jeremy<br />

Petersen.<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 />

DISTRIBUTION<br />

<strong>Limpopo</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

and incoming trade missions; to foreign offices in South<br />

Africa’s main trading partners; at top national and international<br />

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

South Africa; as well as nationally and regionally via chambers<br />

of commerce, tourism offices, trade and investment agencies,<br />

provincial government departments, municipalities, airport<br />

lounges and companies.<br />

Member of the Audit Bureau 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 1993-0119<br />

COPYRIGHT | <strong>Limpopo</strong> <strong>Business</strong> is an independent publication published<br />

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

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 | Des Jacobs for Implats, Amplats, De Beers Group,<br />

flickr/SA Tourism, iStock, Palabora Mining Company, Photoflurry<br />

Productions Photography, Roads Agency <strong>Limpopo</strong>, Thaba Moshate<br />

Casino, Hotel and Conference Centre, Thavani Mall, University of<br />

<strong>Limpopo</strong>, SAB Foundation.<br />

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

Ltd, has used all reasonable efforts to ensure that the information contained<br />

in <strong>Limpopo</strong> <strong>Business</strong> is accurate and up-to-date, the publishers<br />

make no representations as to the accuracy, quality, timeliness, or completeness<br />

of the information. Global Africa Network will not accept<br />

responsibility for any loss or damage suffered as a result of the use of or<br />

any reliance placed on such information.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

4


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MESSAGE<br />

Infrastructure is a key<br />

driver in job creation and<br />

development<br />

<strong>Limpopo</strong> Premier Chupu Stanley Mathabatha outlines his administration’s<br />

priorities in welcoming potential investors to the varied economy that is<br />

already receiving interest from China and elsewhere.<br />

We are fresh into<br />

the 6th Provincial<br />

Administration<br />

after our most<br />

successful national and provincial<br />

general election. This was an<br />

election which was fought on the<br />

Chupu Stanley Mathabatha,<br />

Premier of <strong>Limpopo</strong><br />

promise of growth and development of the economy for jobs and<br />

a decent quality of life. This is a promise which we intend to keep,<br />

working in partnership with all our social partners and stakeholders.<br />

Our collective focus is on the creation of jobs, the need to end<br />

poverty and the urgency of building a better life for all. This requires<br />

greater focus and determination, and our set targets and objectives<br />

can only be realised through working together as government,<br />

business, organised labour and other groups and organisations.<br />

As we prepare to implement the manifesto priorities of the<br />

ruling party, we move from a premise that over the past 25 years<br />

the lives of the people of South Africa have changed for the better.<br />

Millions of people have houses, electricity and access to clean<br />

drinking water. Children from poor communities have access to<br />

free education. In the past five years the number of HIV-positive<br />

people on antiretroviral treatment has doubled while the overall<br />

rate of new infections is decreasing. Over 17.5-million of our most<br />

vulnerable citizens receive social grants. We advanced the cause and<br />

rights of workers to organise, collectively bargain, refuse dangerous<br />

work, and to strike.<br />

Our work is guided by the conviction that without ignoring our<br />

collective achievements, so much more can and must still be done.<br />

Infrastructure<br />

One of the key drivers of employment creation in the province is the<br />

government’s deliberate investment in infrastructure projects. By the<br />

end of the <strong>20</strong>18/19 financial year, provincial infrastructure expenditure<br />

stood at above R5.5-billion. We look forward to spending more of<br />

the province’s infrastructure grants on capital infrastructure projects<br />

which will help to stimulate the economy and create jobs for the<br />

people of <strong>Limpopo</strong>.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

6


MESSAGE<br />

Several new mining projects are in the pipeline that will boost the <strong>Limpopo</strong> economy, Image: Des Jacobs<br />

Significant progress has been recorded with regard to the delivery<br />

of certain key projects in this province, which we can be proud of.<br />

The Musina-Makhado Special Economic Zone (SEZ) programme is<br />

beginning to take shape. This SEZ initiative is expected to revitalise<br />

<strong>Limpopo</strong>’s industrial economy by utilising our local mineral resources<br />

and integrating the industrial chains of both the upstream and<br />

downstream activities. Several plants will be constructed under this<br />

SEZ project. These include a coal washery, a coal-fired power plant,<br />

a coking plant, a stainless-steel plant, a high-carbon ferrochrome<br />

plant and a silico-manganese facility. Supporting administrative<br />

services such as houses, hotels, shopping malls, healthcare facilities<br />

and schools will also be constructed.<br />

This project is expected to create no fewer than <strong>20</strong> 000<br />

jobs for the people of this province. The recent mission which<br />

I led to the People’s Republic of China has given even more<br />

impetus to our Musina-Makhado SEZ programme. Through this<br />

mission, <strong>Limpopo</strong> Province was able to attract a total investment<br />

commitment of R100-billion, which will go a long way to<br />

creating much-needed jobs and other economic opportunities,<br />

especially for the youth.<br />

Mining and tourism are dynamic sectors<br />

Mining is the biggest contributor towards the Provincial Gross<br />

Domestic Product (PGDP) at 24.5%. Jobs in this sector increased from<br />

71 000 in <strong>20</strong>13 to 103 000 in <strong>20</strong>17/18. With new mining projects in the<br />

pipeline, these figures are expected to increase by a further 3 000.<br />

Mining in <strong>Limpopo</strong> yields significant quantities of coal, copper,<br />

diamonds, gold, iron ore, nickel, platinum group metals, rare earth<br />

minerals and tin to South Africa’s mineral industry. <strong>Limpopo</strong> has 147<br />

mining projects that are currently operational, and we envisage a<br />

further eight new projects in the<br />

Capricorn and Sekhukhune Districts.<br />

These projects are expected to<br />

attract investments worth R2.5-<br />

billion and create around 3 000 jobs.<br />

We are also excited about the<br />

new investments in the Ivanhoe<br />

Mine in Mokopane. The current<br />

investment in this mine is at R4.5-<br />

billion. We are looking forward to<br />

the mine going into full operation<br />

by <strong>20</strong>24. This mine is expected to<br />

create well over 25 000 jobs.<br />

The other job driver in the<br />

province is the tourism sector. The<br />

good news is that our domestic<br />

tourism sector has also been doing<br />

well over a sustained period of time.<br />

According to the latest available<br />

figures from StatsSA, <strong>Limpopo</strong> has<br />

since <strong>20</strong>14 received over 27. 5-million<br />

domestic travellers. During the<br />

same period, our province was able<br />

to attract 7.8-million international<br />

tourists. We intend to build on these<br />

figures as we position our tourism<br />

sector to become a major job<br />

creator in the province.<br />

Together, let’s grow <strong>Limpopo</strong><br />

and bring to life the dream of a<br />

better life for all.<br />

7 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


MESSAGE<br />

Creating a conducive climate<br />

for investment<br />

The Interim CEO of the <strong>Limpopo</strong> Economic Development Agency, Dr Matata<br />

Mokoele, explains how LEDA is building infrastructure and supporting<br />

initiatives to attract investors.<br />

Dr Matata Mokoele, CEO<br />

The <strong>Limpopo</strong> Province<br />

investment climate is<br />

characterised by highvalue<br />

sectors that drive<br />

world economies in many ways.<br />

Agriculture, tourism and mining<br />

continue to define the future<br />

economic growth trajectory for the<br />

province. Traditionally, these sectors<br />

boosted gross domestic product<br />

through their primary activities. As<br />

the world evolves and new opportunities emerge in the industrial value<br />

chains, these sectors are increasingly becoming key to economic growth<br />

through the transformation and industrialisation of the province.<br />

<strong>Limpopo</strong> Province, whose employment is largely driven by the<br />

government sector, adopted the <strong>Limpopo</strong> Development Plan five<br />

years ago as a socio-economic transformation blueprint. It outlined<br />

how the government in collaboration with civil society institutions<br />

could unlock economic growth through appropriate policy. For<br />

instance, mining and agriculture were identified as the linchpin for<br />

industrialisation through the beneficiation of these resources.<br />

The province continues to see steady growth in hunting which can<br />

be a springboard in the tourism sector for growth and transformation.<br />

The province continues to lead the country in terms of arrivals from<br />

the African continent and the tourism sector’s contribution to job<br />

creation is significant.<br />

These developments and future economic growth are driven<br />

through institutions such as the <strong>Limpopo</strong> Economic Development<br />

Agency (LEDA) which develops and promotes SMMEs and cooperatives,<br />

investment promotion, business funding and caters for<br />

the provision of industrial parks. These industrial parks, situated across<br />

the five districts of the province, stimulate manufacturing in line with<br />

the <strong>Limpopo</strong> Development Plan and National Development Plan.<br />

LEDA is collaborating with National Department of Trade and Industry<br />

(dti) in refurbishing industrial parks in Seshego and Nkowankowa. The<br />

goal is to revitalise rural and township economies.<br />

The <strong>Limpopo</strong> Development Plan, which is due for revision for the<br />

next five years, has laid a very good foundation for the MTF period.<br />

Local and international investors have many avenues for exploring<br />

collaboration with local emerging enterprises.<br />

SMMES and co-operatives<br />

Support for SMMEs and co-operatives in the province is well<br />

documented. LEDA has created and implemented a business incubation<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

8


MESSAGE<br />

strategy for emerging and existing enterprises which<br />

focuses on registrations and formalisation, training,<br />

business planning, access to funding and finance,<br />

and access to markets. The programme has registered<br />

success for most participating businesses. In the <strong>20</strong>18<br />

financial year, 294 enterprises were assisted in various<br />

programmes and were able to sustain 1 343 jobs.<br />

LEDA entered into an MoU with the Companies<br />

Improving and Intellectual the lives Property of the Commission citizens of <strong>Limpopo</strong> (CIPC) where is<br />

all the business overarching registration aim of services the <strong>Limpopo</strong> will be Development<br />

offices Plan. The at lower economic cost. To levers date, 26 that 399 can enterprises bring<br />

delivered at<br />

LEDA<br />

were that improvement assisted with services about present ranging investment from registrations, opportunities,<br />

amendments particularly and annual in the returns. sectors The that turnaround have been on<br />

identified business registrations as key drivers is of less growth: than mining, five working tourism days,<br />

and improvement agriculture. that ensures that entrepreneurs are<br />

able The to <strong>Limpopo</strong> access business Development opportunities Plan (LDP) at is the targeting<br />

time three possible. broad areas for improvement and develop-<br />

earliest<br />

ment: socio-economic, infrastructural and institutional.<br />

Every department of the <strong>Limpopo</strong> Provincial<br />

Industrial parks<br />

Government has targets within the LDP which<br />

are LEDA’s translated industrial into parks actionable are host programmes to enterprises to in be the<br />

implemented manufacturing within and time-frames.<br />

services sectors across the five<br />

districts Development of the province. is defined In line as with broad-based promoting improvements<br />

investment in these standard industrial and parks, quality the of agency life for is<br />

more<br />

the collaborating people living with throughout the dti the on province, a programme to which to<br />

all increase institutions lettable (including space for government, rentals. This strategy business, aims<br />

labour to increase and citizens) manufacturing contribute. across Increased the value job creation,<br />

and higher make connections incomes, better between access industrial to good public players,<br />

chain<br />

services emerging and enterprises sound environmental and the management Black Industrialists are<br />

the Programme. measures of Phase the development 1 of the revitalisation plan. in both<br />

Seshego The plan, and Nkowankowa currently in is its complete. implementation This included<br />

phase, security is features further supported to the entire by area a spatial and investment<br />

afoot to framework commence in with public phase and 2. private The plans sector<br />

have<br />

plans are<br />

industrial parks in Vhembe are also well underway.<br />

<strong>Limpopo</strong> Development Plan<br />

Improving lives, and creating a conducive environment for investment.<br />

LIMPOPO BUSINESS <strong>20</strong>17/18<br />

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

Broadband<br />

The province is rolling out broadband in the province<br />

to support the socio-economic development<br />

imperatives set out by the National Development Plan<br />

and <strong>Limpopo</strong> Development Plan. The stimulation of<br />

economic development is embedded in cost-effective<br />

communication technologies that are available,<br />

accessible, reliable and affordable. The Broadband Act<br />

calls for connectivity to society at large to ensure that<br />

costs of doing business are reduced and the country is<br />

transformed towards a knowledge economy that can<br />

infrastructure, transact with an integrated the world public with ease. transport To date policy the Data<br />

and Centre, land policies. which is the nerve centre of the network, the<br />

This Call Centre article focusses and the on Network the economic Operating aspects Centre are<br />

and completed. the potential Forty-four of the (44) LDP sites for private have been investors connected<br />

to participate. to the network, offering free Wifi services to students<br />

Key at Library elements Gardens of the and <strong>Limpopo</strong> to the Development broader community Plan at<br />

the Polokwane Civic Centre.<br />

are: industrialisation (beneficiation of mining and<br />

agricultural products and produce); mining (local<br />

suppliers, improved training and access to sector<br />

Community services<br />

for entrepreneurs); infrastructure development;<br />

agri-processing; Through its subsidiary SMME promotion; Great North and ICT Transport, and the LEDA<br />

knowledge provides economy essential services (establish in a transporting WAN footprint). commuters<br />

Mining and passengers is currently to various the most destinations important on part a daily of basis.<br />

the Transport provincial is economy, the backbone contributing of the economy nearly 30% and through to<br />

GDPR. this Many subsidised platinum service, mining it developments provides households on the with<br />

eastern discounted limb of fares, the Bushveld enabling Complex commuters have to spurred get to work<br />

growth and to in go that about region. their One business. of the goals of the LDP<br />

is to see Risima more Housing beneficiation Corporation from the Finance mining sector, breaks new<br />

which ground will annually support through the goal various of further housing industrialising<br />

schemes the province’s to residents economy. throughout Related the to province. this is an Risima is<br />

development<br />

emphasis equally on active the in manufacturing providing products sector. and services in the<br />

In housing response, sector the in rural two areas, Special townships Economic and Zones cities. In the<br />

(SEZs) year at ahead, Musina Risima and Tubatse will endeavour promote to increase manufacturing.<br />

of Specific products manufacturing and services as value-chains a contribution are to transforming<br />

identi-<br />

its portfolio<br />

fied <strong>Limpopo</strong> for each area, Province, based traditionally the base a rural mineral province, being to an<br />

industrial powerhouse in terms of mining, agriculture<br />

and tourism.<br />

We invite all investors to join us in our journey<br />

towards a prosperous future.<br />

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

9<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


A REGIONAL OVERVIEW OF THE<br />

LIMPOPO<br />

PROVINCE


New mining projects, investments in Special Economic Zones and superb<br />

tourism assets are expected to underpin economic growth in <strong>Limpopo</strong>.<br />

By John Young<br />

With R150-billion in committed<br />

investments so far, <strong>Limpopo</strong>’s<br />

newest major project, the<br />

Musina-Makhado Special<br />

Economic Zone (SEZ), has every chance of being<br />

a real game-changer.<br />

The SEZ takes advantage of one of <strong>Limpopo</strong>’s<br />

greatest strategic advantages, namely its location.<br />

With a stated aim of benefitting the economies<br />

of the region, including neighbours Botswana,<br />

Zimbabwe and Mozambique, the SEZ is expected<br />

to create more than <strong>20</strong> 000 jobs in a range of<br />

sectors. The largest projects will be in minerals,<br />

mineral beneficiation, energy and logistics.<br />

Another SEZ at Tubatse in eastern <strong>Limpopo</strong>,<br />

together with an industrial park designed to<br />

promote and enhance opportunities along<br />

the value chain that the marula fruit can bring,<br />

and the revitalisation of industrial parks at<br />

Seshego and Nkowankowa point to the fact<br />

that parks are a central plank of provincial<br />

economic planning.<br />

Mining continues to be biggest contributor<br />

to provincial Gross Domestic Product (GDP)<br />

at 24.5%. The number of jobs in this sector<br />

reached more than 100 000 in <strong>20</strong>18, up from<br />

just over 70 000 in <strong>20</strong>13. With several big new<br />

projects underway, a significant number of<br />

new jobs will be created in the short term.<br />

Tourism is seen as one of the biggest potential<br />

earners (and employers) with almost limitless<br />

potential. The sector within tourism that is<br />

receiving the most attention from authorities at<br />

the moment is biodiversity but there are equally<br />

unrivalled opportunities in adventure tourism,<br />

culture and heritage, birding, golf and the list goes<br />

on. Nearly eight million international tourists have<br />

visited the province since <strong>20</strong>14 and more than<br />

27-million South Africans have visited some part<br />

of <strong>Limpopo</strong> in the same period. The combined<br />

land area of <strong>Limpopo</strong>’s national, provincial and<br />

private game and nature reserves is 3.6-million<br />

hectares. According to the Premier’s office, the<br />

tourism sector employs about 22 400 people.<br />

<strong>Limpopo</strong> covers about 10% of South Africa’s land<br />

mass and is home to about 10% of the country’s<br />

population. The <strong>20</strong>11 census recorded 5.4-million<br />

residents. The main languages of the people of<br />

<strong>Limpopo</strong> are Sesotho, Xitsonga and Tshivenda but<br />

English is widely used in business and government.<br />

The <strong>Limpopo</strong> Province’s 125 754km² covers<br />

a remarkably diverse geographical and cultural<br />

landscape that is also rich in minerals and<br />

agricultural products.<br />

The N1 highway (“Great North Road”) is a key<br />

reason for the province’s important role in the<br />

nation’s logistics sector. It passes through <strong>Limpopo</strong><br />

from the south to the border town of Musina and<br />

on to Zimbabwe and its neighbours in the Southern<br />

African Development Community (SADC). The busy<br />

N11 highway links the province to Botswana to the<br />

west and Mpumalanga Province to the east.<br />

Most of South Africa’s logistics operators<br />

have a presence in the provincial capital city of<br />

Polokwane and freight logistics hubs have been<br />

established in that city and in Musina.<br />

Transport within the city of Polokwane is<br />

being transformed by the introduction of a bus<br />

rapid transport system, Leeto la Polokwane. In<br />

the province as a whole, 22.6% of households in<br />

<strong>Limpopo</strong> use bus transport and 45.8% use taxis.<br />

Great North Transport falls under the<br />

<strong>Limpopo</strong> Economic Development Agency. The<br />

company has more than 500 buses, covers about<br />

36-million kilometres every year on 279 routes,<br />

employs more than 1 <strong>20</strong>0 people and transports<br />

37.6-million passengers.<br />

The Polokwane International Airport (PIA) is<br />

wholly owned by the provincial government<br />

and run by the Gateway Airports Authority Ltd<br />

(GAAL), an agency of the <strong>Limpopo</strong> Department<br />

of Transport. It has the potential to be an


SPECIAL FEATURE<br />

important regional cargo airport. SA Airlink offers<br />

21 flights to Johannesburg six days a week. The<br />

airline also provides links between Phalaborwa<br />

and Johannesburg, and between Hoedspruit and<br />

Johannesburg and Cape Town.<br />

The province has a sophisticated rail network<br />

which Transnet Freight Rail aims to further expand,<br />

primarily to haul the province’s vast reserves of coal<br />

away to the coast at Richards Bay.<br />

Growth plans<br />

The Provincial Government of <strong>Limpopo</strong> has<br />

committed itself to the <strong>Limpopo</strong> Economic Growth<br />

and Development Plan (LEGDP), which aims to build<br />

a stronger, more industrialised economy and to create<br />

jobs and reduce social inequality.<br />

Existing manufacturing in the province is centred<br />

on mining areas (smelters and refineries), agricultural<br />

estates (juices and concentrates) and Polokwane<br />

(food and beverages). Agri-processing is strong,<br />

with Pioneer Foods, McCain, Granor Passi, Kanhym,<br />

Westfalia and Enterprise Foods prominent, but this<br />

sector still has potential to grow.<br />

When it comes to exports <strong>Limpopo</strong> punches<br />

above its weight because of the abundance of<br />

mineral wealth under the ground, and the superb<br />

fruit and vegetables that the province’s farmers<br />

cultivate. Potatoes are grown, together with 75%<br />

South Africa’s mangoes and tomatoes; papayas<br />

(65%); tea (36%); citrus, bananas and litchis (25%)<br />

and 60% of the country’s avocadoes. ZZ2 is one of<br />

the country’s largest agricultural enterprises. ZZ2<br />

is most famous for the large quantity of tomatoes<br />

and avocadoes produced but its product range is<br />

also large: mangoes, onions, dates, cherries, apples,<br />

pears, stone fruit, almonds and blueberries.<br />

The best-performing subsector of South African<br />

exports in recent years has been fruit and nuts. <strong>Limpopo</strong><br />

has been a major contributor to the country’s excellent<br />

export record: fruit and nuts from the province’s eastern<br />

regions are hugely popular in international markets and<br />

<strong>Limpopo</strong>’s commercial farmers are extremely efficient.<br />

The province has huge reserves of coal, platinum,<br />

chromium, uranium clay, nickel, cobalt, vanadium,<br />

limestone and tin. Demand will always fluctuate, and<br />

the commodities cycle has recently been very volatile,<br />

but the world will always need minerals.<br />

<strong>Limpopo</strong> assets include the largest diamond mine in<br />

South Africa, the biggest copper mine in South Africa,<br />

the biggest open-pit platinum mine in the country and<br />

the biggest vermiculite mine in the world. The province<br />

has 41% of South Africa’s platinum group metals<br />

(PGMs), 90% of South Africa’s red-granite resources<br />

and approximately 50% of the country’s coal reserves.<br />

Antimony, a highly strategic mineral found in large<br />

quantities in China, is another of <strong>Limpopo</strong>’s major assets.<br />

The Provincial Government of <strong>Limpopo</strong> has<br />

committed to allocating <strong>20</strong>% of state procurement to<br />

enterprises owned by both women and young people.<br />

This is line with placing “young people at the centre of<br />

our economic development programme”, in the words<br />

of Premier Mathabatha.<br />

<strong>Limpopo</strong>’s regions and major cities<br />

<strong>Limpopo</strong>’s dry, cattle-rearing, western areas contrast<br />

with the subtropical regions of the east where forestry<br />

thrives and the central regions where vast plantations<br />

produce 60% of the country’s tomatoes. The area<br />

north of the Soutpansberg Mountains is semi-arid. The<br />

Waterberg mountains stretch over 5 000km². There are<br />

five district municipalities in <strong>Limpopo</strong> and the capital<br />

city is Polokwane (population 629 000).<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

12


SPECIAL FEATURE<br />

Polokwane<br />

The centrally situated city of Polokwane is the capital of<br />

<strong>Limpopo</strong> Province. Located on the Great North Road<br />

(N1 highway) and almost equidistant from the highdensity<br />

population of greater Johannesburg and the<br />

neighbouring countries of Botswana, Zambia, Zimbabwe<br />

and Mozambique, Polokwane’s upgraded international<br />

airport plays an increasingly important regional role.<br />

Polokwane is the province’s main centre for industry,<br />

commerce, education and medical services. The city is<br />

close to big concentrations of mineral deposits and to<br />

fertile agricultural lands. Its industries reflect this diversity.<br />

Large industrial concerns such as Silicon Smelters (one<br />

of the biggest of its kind in the world) and a big brewery<br />

run alongside at least 600 industrial enterprises of a<br />

smaller scale. The range is broad: soft drink and fruit<br />

juice manufacture, confectionery, bricks, clothing, meatprocessing,<br />

packaging and jewellery.<br />

Polokwane has excellent hotel and conferencing<br />

facilities. It is a good starting point for tourism trips into<br />

the province and beyond. Unusually, the city has its own<br />

game reserve on 3 <strong>20</strong>0 hectares of semi-bushveld land.<br />

Several annual festivals are held in Polokwane, including<br />

the Mapungubwe Arts Festival. Nearby Moria attracts up<br />

to a million people every year, when the Zion Christian<br />

Church celebrates Easter.<br />

www.polokwane.gov.za<br />

Tzaneen<br />

while one of the major road links between Gauteng<br />

and the Kruger National Park also passes through the<br />

area, providing excellent logistical links for tourism<br />

and business.<br />

www.greatertzaneen.gov.za<br />

Phalaborwa<br />

Known as the Gateway to the Kruger National Park,<br />

Phalaborwa is situated in such a moderate climatic<br />

belt that it is also sometimes known as the town of<br />

Two Summers, so similar are the summer and winter<br />

temperatures.<br />

Phalaborwa has a good airport and the town’s<br />

proximity to the Kruger National Park makes it a<br />

tourism hub. The town has several attractions of its<br />

own. Cruises on the Olifants River are popular and<br />

the highly regarded Hans Merensky Country Club golf<br />

course hosts national tournaments. The prospect of<br />

meeting wildlife on the fairway adds spice to the golf<br />

experience. Palaborwa Mining Company (PMC) is the<br />

major economic driving force in the area. Copper has<br />

been mined in the region for many centuries, with<br />

evidence from as far back as 400AD having been found.<br />

The popular Marula Festival is held in Phalaborwa<br />

in February every year. This not only promotes the<br />

iconic fruit (and its associated foods and beverages)<br />

but is a celebration of local arts and crafts and music.<br />

Sports events such as golf and soccer tournaments and<br />

half-marathons are held to coincide with the festival.<br />

www.phalaborwa.org.za<br />

A subtropical climate and fertile soils combine to make<br />

greater Tzaneen one of South Africa’s most productive<br />

areas in fruit and vegetables. Steep valleys and gently<br />

sloping mountains provide ample opportunities for<br />

tourism of all sorts.<br />

The Letaba Valley produces a large proportion of<br />

South Africa’s mangoes, avocadoes and tomatoes.<br />

Citrus fruits also thrive, as do macadamia nuts, litchis,<br />

paw-paws and bananas. Forty sawmills operate in the<br />

area, drawing on the heavily forested hills around the<br />

city. Tzaneen is the economic hub of the region, with<br />

a population of 80 000.<br />

The Phalaborwa Spatial Development Initiative<br />

passes through the Greater Tzaneen Municipal Area,<br />

13 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


SPECIAL FEATURE<br />

Boosting economic growth<br />

Sector-specific industrial zones are set<br />

to transform <strong>Limpopo</strong>’s economy.<br />

Mineral beneficiation is a vital part of <strong>Limpopo</strong>’s economy. Photo: Impala Platinum.<br />

In July <strong>20</strong>16 the national cabinet approved the<br />

Musina-Makhado Special Economic Zone (SEZ).<br />

Located in the far north of <strong>Limpopo</strong> in the<br />

Vhembe region, Musina-Makhado is strategically<br />

located near the border of Zimbabwe and on the<br />

Great North Road which links South Africa to the<br />

broader Southern African region.<br />

The location of the Musina-Makhado SEZ, with<br />

links to Zimbabwe, Botswana and Mozambique,<br />

promotes the Trans-<strong>Limpopo</strong> Spatial Development<br />

Initiative. Logistics will be one of the key focus areas<br />

of the SEZ. Soon after the announcement of the<br />

designation of the SEZ, the National Department<br />

of Trade and Industry (dti) said that a consortium<br />

of Chinese investors, Sino, has agreed to put R40-<br />

billion into the Musina-Makhado SEZ where they<br />

will operate the mineral beneficiation operations.<br />

The initiative has already attracted investors in<br />

the form of the Eco-Industrial Solutions (EIS), the<br />

private sector investor behind the <strong>Limpopo</strong> Eco-<br />

Industrial Park (LEIP). LEIP aims to be an integrated<br />

industrial development comprising five major<br />

industrial components that sets new standards<br />

in sustainability. Set on 6 400ha of land, the LEIP<br />

will include a nature reserve, two residential<br />

estates and schools. The <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA) is working with EIS<br />

to establish a petrochemical cluster within the<br />

Musina-Makhado SEZ.<br />

LEDA is the key driver of the provincial<br />

government’s drive to boost the economy<br />

through investment. LEDA is an agency of the<br />

<strong>Limpopo</strong> Department of Economic Development,<br />

Environment and Tourism (LEDET). LEDA’s brief<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

14


SPECIAL FEATURE<br />

is to contribute to accelerated industrialisation<br />

in <strong>Limpopo</strong> by stimulating and diversifying the<br />

industrial base of the regional economy. The focus<br />

is on high-impact projects that will spark growth<br />

in a variety of sectors and create employment<br />

opportunities.<br />

Two key areas of focus relate to Special<br />

Economic Zones and Corridor Development and<br />

to land, property and infrastructure development<br />

(including business parks and industrial parks).<br />

As these targeted areas grow, the infrastructure<br />

and associated industries will act as a magnet for<br />

other businesses and industries in the same sector,<br />

together with service industries.<br />

A Musina-Makhado Skills Development Plan has<br />

been approved by the provincial government.<br />

A second application for an SEZ at Tubatse is<br />

pending. Tubatse is in the Sekhukhune District<br />

Municipality and hosts a number of mining<br />

operations.<br />

The SEZ in Tubatse will focus on the beneficiation<br />

of platinum group metals (PGM) and mining-related<br />

manufacturing. The province of Bashkortostan in<br />

Russia has also expressed an interest in the SEZs<br />

of <strong>Limpopo</strong>.<br />

Phase one of the SEZ project would see a 280ha<br />

site developed to accommodate a mining suppliers<br />

park, light manufacturing, heavy manufacturing,<br />

logistics, a solar energy cluster and a PGM<br />

beneficiation cluster.<br />

sector infrastructure, an integrated public transport<br />

policy and policies on land development.<br />

Key elements of the <strong>Limpopo</strong> Development<br />

Plan are: industrialisation (beneficiation of mining<br />

and agricultural products and produce); mining<br />

(local suppliers, improved training and access to<br />

sector value chains for entrepreneurs); infrastructure<br />

development; agri-processing; SMME promotion<br />

and ICT and the knowledge economy (establish a<br />

WAN footprint).<br />

Mining is currently the most important part of<br />

the provincial economy. Recent platinum mining<br />

developments on the eastern limb of the Bushveld<br />

Complex have increased this effect but global<br />

commodity prices have been uncertain in recent<br />

years. One of the goals of the LDP is to see more<br />

beneficiation from the mining sector, which will<br />

support the goal of further industrialising the<br />

province’s economy. Related to this is an emphasis<br />

on the manufacturing that needs to grow, and this<br />

is where the SEZs’ role becomes critical.<br />

While the <strong>Limpopo</strong> Development Plan is aligned<br />

with the broader National Development Plan, there<br />

are also several national Strategic Infrastructure<br />

Projects (SIPs) which affect <strong>Limpopo</strong>.<br />

Three in particular are expected to make a big<br />

impact, namely SIP 1 (Unlocking the Northern<br />

Mineral Belt with Waterberg as the Catalyst), SIP 6<br />

(Integrated Municipal Infrastructure Project) and<br />

SIP 7 (Integrated Urban Space and Public Transport<br />

Programme).<br />

SPECIAL FEATURE<br />

Other national SIPs of relevance relate to green<br />

<strong>Limpopo</strong> Development Plan<br />

energy, agri-logistics and rural infrastructure,<br />

The Great North Road<br />

regional integration and water and sanitation<br />

The SEZ and industrial<br />

passes through<br />

parks being<br />

<strong>Limpopo</strong><br />

promoted in infrastructure.<br />

from the south to the border<br />

town of Musina and on<br />

the province fall within a broader framework. The<br />

<strong>Limpopo</strong> Development<br />

to Zimbabwe<br />

Plan<br />

and<br />

(LDP)<br />

its neighbours<br />

improvement in the Southern and African development:<br />

targets three<br />

broad areas for<br />

socio-economic, Development infrastructural Community. and institutional.<br />

Every department The busy of the N11 <strong>Limpopo</strong> highway links Provincial<br />

Government has the targets province within to Botswana the LDP to which<br />

are translated into the actionable west and Mpumalanga<br />

programmes to be<br />

implemented within<br />

Province<br />

time-frames.<br />

to the east.<br />

Most of South Africa's logistics<br />

operators have a pres-<br />

The plan is supported by strategies relating to a<br />

spatial investment<br />

ence<br />

framework<br />

in the provincial<br />

in public<br />

capital<br />

and private<br />

city of Polokwane and freight<br />

logistics hubs have been<br />

established at that city and<br />

at Musina.<br />

15 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

<strong>Limpopo</strong> covers about 10% of South Africa's The province also has a sophisticated rail net-


INTERVIEW<br />

Promoting a<br />

symbiotic relationship<br />

between people,<br />

planet and profit<br />

Webster Mfebe, Chair of the<br />

<strong>Limpopo</strong> Eco-Industrial Park<br />

Board Chair Webster Mfebe outlines the steps to be taken<br />

by Eco-Industrial Solutions to create the ground-breaking<br />

<strong>Limpopo</strong> Eco-Industrial Park.<br />

BIOGRAPHY<br />

Webster Mfebe, Chair of the<br />

<strong>Limpopo</strong> Eco-Industrial Park,<br />

has won several awards in<br />

construction and leadership. He<br />

is the CEO of the South African<br />

Forum of Civil Engineering<br />

Contractors (SAFCEC) and has<br />

accumulated a wealth of senior<br />

leadership and management<br />

expertise during nearly 40 years<br />

in the mining, construction<br />

and engineering industries,<br />

broadcasting and politics.<br />

Webster has addressed<br />

international conferences<br />

on political and economic<br />

issues and has contributed to<br />

business intelligence articles in<br />

some publications.<br />

What does your company do?<br />

Eco-Industrial Solutions (Pty) Ltd (EIS) is committed to integrated and<br />

sustainable industrial property development. Its slogan is “Industry<br />

Nurturing Nature”. EIS is developing the <strong>Limpopo</strong> Eco-Industrial Park<br />

(LEIP) project, powered by renewable energy and municipal waste<br />

syngas, to be the world’s first zero solid-waste, carbon neutral heavy<br />

and light-industrial park integrated with a 2 <strong>20</strong>0-hectare nature park.<br />

This development recognises and promotes a symbiotic relationship<br />

between people, planet and profit.<br />

The LEIP is a multi-billion-rand project that will significantly<br />

contribute to growing an inclusive economy and creating new<br />

jobs, particularly in the <strong>Limpopo</strong> Province. The LEIP project provides<br />

a fully serviced and secure platform for heavy and light industrial<br />

tenants as well as incubating and supporting Small, Medium<br />

and Micro Enterprises (SMMEs). The LEIP Master Plan is based on<br />

principles derived from the field of industrial ecology to create a<br />

closed loop or circular economy, which benefits local communities<br />

whilst integrating and preserving the environment. No flaring of<br />

emissions will be necessary, as all waste gases and solid waste will<br />

be gasified at extremely high temperatures without interrupting or<br />

requiring process changes to tenants’ business models.<br />

How was the company formed?<br />

EIS was formed by founding members who share the vision and<br />

passion to create job opportunities through environmentally friendly<br />

industrialisation and shared benefits to local communities.<br />

In response to some of the major challenges facing humanity<br />

today such as ecological collapse followed by social uprising,<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

16


INTERVIEW<br />

due to rapidly increasing climate change and<br />

environmental degradation of the life support<br />

systems, EIS was specifically formed in <strong>20</strong>11 to<br />

address these problems by implementing technoeconomically<br />

viable and sustainable industrial<br />

development projects.<br />

What is the ownership structure of the<br />

company?<br />

The project development company, EIS, is 89%<br />

black-owned and 57% black women-owned,<br />

while the LEIP project is 65% black-owned with<br />

90% board control. Local <strong>Limpopo</strong> Vhembe<br />

District citizens have been allocated 10% of<br />

the ownership of the LEIP with Musina Local<br />

Municipality as the proxy shareholder. Funds<br />

and dividends are to be used for developmental<br />

activities identified by the communities<br />

themselves, including bursaries and other<br />

communal co-operative activities such as<br />

farming and agro-processing.<br />

Why have you chosen northern <strong>Limpopo</strong><br />

as the location for the park?<br />

EIS recognised the future growth potential of<br />

the Musina Municipality, considering its location<br />

adjacent to the Beitbridge border post as a<br />

gateway for doing business in Southern Africa.<br />

After a rigorous site-selection process, the<br />

site in Musina was deemed ideal based on its<br />

accessibility as well as its strategic location. The<br />

national N1 highway and Transnet’s north-south<br />

rail line traverses the site, providing major links<br />

to the rest of South Africa and superior access to<br />

neighbouring countries to the north.<br />

Please explain what is unique about the<br />

LEIP. Why is it a game-changer?<br />

The LEIP demonstrates that ongoing industrial<br />

pollution can be stopped through the<br />

application of existing, technically proven<br />

and commercially available technologies,<br />

for example, plasma waste gasification and<br />

the combination of viable renewable energy<br />

options. The LEIP’s design incorporates these<br />

essential technologies through creative<br />

application and funding. Worldwide, people<br />

are panicking about the state of the environment<br />

and the fate of future generations. With increased<br />

awareness and more developed consciousness<br />

coupled with technological advancements, the<br />

LEIP pioneers the transition required in terms of<br />

altering humanity’s development pathway to a<br />

sustainable one.<br />

As a mega-industrial and residential growth<br />

point and an infrastructure CAPEX in excess<br />

of R10.7 billion, the LEIP will be a catalyst for<br />

transforming Musina into a mega-city. Musina<br />

will become South Africa’s most sustainable and<br />

desirable fully integrated industrial-residential<br />

growth point, facilitating socio-economic<br />

transformation and inter-regional trade, to the<br />

lasting benefit and well-being of all South Africans<br />

and SADC.<br />

Musina’s growth into a mega-city will be<br />

underpinned by beneficiation of local and<br />

regional resources, manufacturing of industrial<br />

chemicals and information technology<br />

components, as well as agro-processing and<br />

superior logistics services that enable improved<br />

inter-regional trade.<br />

The layout of the park was dictated by<br />

consulting ecologists and heritage specialists who<br />

used sensitivity maps to indicate areas suitable for<br />

development and areas that should be preserved<br />

as part of a nature reserve. Typically, ecologists<br />

and heritage specialists are involved during the<br />

environmental authorisation process, which is too<br />

far down the line in terms of the broader project<br />

development process, at which point impacts are<br />

mitigated rather than avoided by protecting the<br />

environment from the outset.<br />

The LEIP is committed to transformation<br />

and to replicating its transformation blueprint,<br />

where applicable, in all its future eco-industrial<br />

developmental initiatives. All contractors and<br />

services providers will be made aware to comply<br />

with the contractually obligated transformation<br />

requirements.<br />

How many people will be employed at<br />

the park?<br />

Total LEIP: Direct jobs: 58 967. Total including indirect<br />

and induced jobs: 289 251.<br />

17 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

Eco-Industrial Solutions<br />

The <strong>Limpopo</strong> Eco-Industrial Park will set new standards in<br />

ecologically sound industrial development.<br />

Eco-Industrial Solutions (Pty) Ltd (EIS)<br />

was established to create an innovative<br />

industrial park combined with a nature<br />

park in the northern area of <strong>Limpopo</strong>.<br />

The <strong>Limpopo</strong> Eco-Industrial Park (LEIP) will be<br />

Africa’s first zero solid-waste eco-industrial park.<br />

Municipal waste and renewable energy will be<br />

utilised to provide syngas and power for industrial<br />

enterprises within the park. Waste from the park<br />

will be contained and disposed of within the park<br />

through the application of plasma gasification<br />

technology and a closed-loop water management<br />

system.<br />

Background<br />

In South Africa air pollution kills an estimated<br />

<strong>20</strong> 000 people per year, 780 000 people in Africa<br />

and worldwide nine-million people per year.<br />

Coupled with the plight of unemployment in Africa<br />

and more specifically in South Africa, the expertise<br />

of the founding members covers heavy industrial<br />

development in various countries globally,<br />

experience in implementing environmental<br />

protection as well as the realisation of institutional<br />

mega-projects.The Musina, Vhembe, region is<br />

blessed with an abundance of natural resources,<br />

accessible labour and existing major infrastructure.<br />

The LEIP concept has been successfully integrated<br />

into the Integrated Development Plan (IDP) and<br />

Spatial Development Framework (SDF) of the<br />

Musina Local Municipality.<br />

Furthermore, the LEIP concept is in tune with<br />

the spirit encapsulated in South African President<br />

Cyril Ramaphosa’s vision of a “New Dawn”,<br />

predicated on the twin pillars of “Renewal and<br />

Rebuilding”.<br />

Vision<br />

To find techno-economically viable solutions<br />

to the challenges facing humanity. To promote<br />

industrialisation in a way that is beneficial to local<br />

communities as well as the environment.<br />

Motto<br />

Industry nurturing nature.<br />

The concept<br />

The world’s first zero solid-waste eco-industrial and<br />

integrated nature park. The <strong>Limpopo</strong> Eco-Industrial<br />

Park will illustrate the symbiotic relationship between<br />

people, planet and profit by demonstrating their<br />

mutually beneficial co-existence, thereby preserving<br />

Mother Earth for future generations.<br />

Location<br />

Musina, northern <strong>Limpopo</strong>. Near Beitbridge border<br />

post and part of the Musina-Makhado Special<br />

Economic Zone.<br />

LEIP components<br />

1. 450MW PV Solar Power for agro-processing,<br />

buildings and water heating and supply excess<br />

to the Eskom grid.<br />

2. Two approved off-channel dams with<br />

<strong>20</strong> million cubic metres water storage capacity.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

18


PROFILE<br />

STRATEGIES TO MITIGATE RISK AND<br />

PROMOTE THE CIRCULAR ECONOMY<br />

• Ensure that all toxic materials, other<br />

waste and gases are disposed of within<br />

the LEIP.<br />

• Reduce food waste and recycle key<br />

nutrients (N, P) through their recovery<br />

from food waste and waste water.<br />

• Generate power through solar PV and<br />

municipal waste syngas and export<br />

excess power to the grid. Use Eskom<br />

power for construction only.<br />

• Capture heat and gas emissions to<br />

supplement electricity supply.<br />

• Protect and integrate sensitive areas<br />

throughout the LEIP.<br />

• Responsibly manage the value chain<br />

of waste materials such as metals,<br />

plastics and wood.<br />

• Waste concrete and bricks will be<br />

crushed and mixed with local hard rock<br />

into a uniform and usable construction<br />

material.<br />

3. Blue Drop status drinking water and<br />

environmentally friendly waste-water<br />

treatment facilities.<br />

4. A Nature Reserve comprising 2 286 hectares of<br />

environmentally sensitive tourism area.<br />

5. 80 chalets in the integrated nature reserve.<br />

6. Two residential eco-estates: Musina Eco-<br />

Housing Estate (3 797 units) and Singelele<br />

Equestrian Estate (903 units).<br />

7. Waste gasification plants for residential and<br />

industrial waste.<br />

Game-changer<br />

Plasma waste gasifiers will be used extensively. This<br />

technology has been used elsewhere to transform<br />

waste to energy, but the LEIP aims to take this a step<br />

further by ensuring that no waste leaves the site. The<br />

target is for the industrial park to be a self-contained<br />

unit with a zero-waste impact on the surrounding<br />

countryside and communities.<br />

Timeline<br />

<strong><strong>20</strong>19</strong>/<strong>20</strong>: Bankable project studies to be finalised.<br />

Infrastructure construction proceeds (including LEIP<br />

East basic infrastructure, Transnet Intermodal Terminal<br />

Facility and bulk water and sewage treatment facilities).<br />

Musina Eco-Housing Estate construction begins.<br />

<strong>20</strong>21: Construct truck stop and warehousing, agroprocessing<br />

facility, PV solar farm 1 000ha, plasma<br />

gasification facilities, ITC development centre.<br />

<strong>20</strong>22: Establish a balanced renewable energy system<br />

that is integrated with waste gasification and syngas<br />

generated power. Construct copper processing plant.<br />

Establish nature park, including 80 chalets. Establish<br />

Industrial Ecology Research Centre.<br />

<strong>20</strong>23: LEIP East Operations commence with<br />

commissioning of utilities, infrastructure and<br />

financial management systems. Commission SEZ<br />

operations. Construct LEIP West basic infrastructure,<br />

to accommodate a chemical plant complex including<br />

ammonia-urea, methanol and resin, by utilising carbon<br />

engineering technology to generate the required<br />

feedstock hydrogen (H2) and carbon monoxide (CO),<br />

the basic building blocks for these plants.<br />

Impact<br />

• GDP impact <strong><strong>20</strong>19</strong>: R744 million<br />

• GDP impact <strong>20</strong>25: R17.2 billion<br />

• GDP impact (direct and induced) from <strong><strong>20</strong>19</strong> to<br />

<strong>20</strong>25: R61.3 billion.<br />

CONTACT DETAILS<br />

Head Office<br />

Eco-Industrial Solutions (Pty) Ltd, Modimolle<br />

0510, <strong>Limpopo</strong>, South Africa<br />

Phone: +27 87 702 6065<br />

Email: ceo@eco-industrialsolutions.org<br />

Website: www.limpopoecoindustrialpark.com<br />

19 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Building skills and creating<br />

jobs through partnerships<br />

The <strong>Limpopo</strong> Eco-Industrial Park is set<br />

to make a huge economic impact.<br />

The <strong>Limpopo</strong> Eco-Industrial Park (LEIP) is<br />

an integrated and sustainable industrial<br />

development that is aligned with and in<br />

support of South African government<br />

goals articulated in the National Development Plan<br />

and the Industrial Policy Action Plans.<br />

The LEIP is a private-sector initiative driven by<br />

Eco-Industrial Solutions (EIS), but the development<br />

incorporates significant partnerships at local,<br />

provincial and national level illustrating the inclusive<br />

philosophy of the developers.<br />

The park, through its various industrial<br />

components, will create tens of thousands of direct<br />

and indirect jobs over the first five years, provide<br />

about 4 900 permanent housing opportunities in<br />

the town of Musina and add more than R15-billion<br />

to the revenue of the provincial government. It will<br />

also provide a boost to the national tax base.<br />

Among the projects to which the LEIP initiative<br />

will contribute via partnerships are the National<br />

Development Plan, the Green Economy Plan, and<br />

the achievement of South Africa’s Transformation<br />

and Sustainable Development Goals.<br />

In January <strong><strong>20</strong>19</strong>, South African President Cyril<br />

Ramaphosa attended a <strong>Business</strong> Economic<br />

Indaba organised by <strong>Business</strong> Unity South<br />

Africa (BUSA), on the sidelines of which the<br />

Public Private Growth Initiative (PPGI) made a<br />

presentation on 18 projects from 19 economic<br />

sectors, representative of opportunities for<br />

South Africa’s private and public sectors to work<br />

together to combat unemployment and stimulate<br />

the economy. The LEIP is project number 17 on<br />

the list of 18 PPGI projects which were promised<br />

full government support, while engagements<br />

within the PPGI platform will take place with the<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

<strong>20</strong>


FOCUS<br />

Presidency over the next five to 10 years, with a view<br />

to implementing sectoral plans.<br />

Partnerships<br />

Several key partnerships with EIS involve NECSA,<br />

SAFCEC, Lepelle Northern Water, Transnet Freight Rail,<br />

Musina Local Municipality and LEDA.<br />

SAFCEC will be responsible for quality monitoring<br />

of their construction members.<br />

The Nuclear Energy Corporation of South Africa<br />

has signed an agreement with EIS and LEIP to jointly<br />

develop and implement plasma gasification of<br />

municipal and gaseous waste on a localised scale,<br />

thereby minimising the adverse impacts of longerdistance<br />

logistics.<br />

The Lepelle water utility has signed up to be<br />

the LEIP’s water service provider. Plans for a Special<br />

Economic Zone (SEZ) in the Musina area have been<br />

aligned with Transnet’s requirements.<br />

Transnet Freight Rail intends to operate its new<br />

intermodal terminal facility within the LEIP as a dry port<br />

extension of a seaport. It is expected to have an initial<br />

storage capacity of 50 000 units. A train ferry is intended<br />

that will be able to carry roughly 1 000 vehicles per day<br />

across the Beitbridge-Zimbabwe border.<br />

The Musina Local Municipality has approved the<br />

land development application for the LEIP and will at<br />

financial close become an equity partner in the project,<br />

holding a 10% share on behalf of the local communities.<br />

LEIP is the first part of a broader initiative, the Musina to<br />

Africa Strategic Hub Initiative (MUTASHI), of which the<br />

Musina-Makhado SEZ is the other major component.<br />

The <strong>Limpopo</strong> Economic Development Agency<br />

(LEDA) has signed an agreement to work with EIS to<br />

establish the LEIP as the Musina SEZ Operator within<br />

the Musina-Makhado SEZ.<br />

Economic and social benefits<br />

The LEIP has been designed to ensure that local women,<br />

youth and disabled people benefit from the project.<br />

The housing developments are designed as integrated<br />

communities with the natural environment and with<br />

amenities such as five schools, a children’s hospital<br />

as well as local churches, shopping and community<br />

centres. The following innovations are aimed at<br />

benefitting local communities:<br />

• Establish a Research and Development<br />

Industrial Ecology Faculty within the LEIP<br />

in collaboration with local universities<br />

(University of Venda and University of<br />

<strong>Limpopo</strong>). The LEIP aims to support<br />

innovation, research and development,<br />

community engagement and literacy and<br />

numeracy.<br />

• A Skills Development Centre and Trade Test<br />

Centre is to be built and fully equipped in<br />

consultation with the Department of Higher<br />

Education and Training (DHET), which will<br />

invite the participation of the various Sector<br />

Education and Training Authorities (SETAs).<br />

The goal is for the skills centre to also be<br />

available for use by learners from the SADC<br />

region.<br />

Transformation<br />

The transformation imperatives of the LEIP project<br />

as a private development are mainly aimed at<br />

contributing towards the empowerment of the<br />

following targeted groups of South African citizens:<br />

• Youth (in support of the Youth Empowerment<br />

Service YES programme)<br />

• Women<br />

• People with disabilities<br />

• Military veterans<br />

• Rural and township communities.<br />

• Only construction companies rated no less<br />

than Level 2 BEE status will be contracted<br />

to do work at the LEIP, and such companies<br />

will be vetted to assess their state of<br />

competence and readiness to undertake<br />

quality construction services. In special cases,<br />

for technical reasons, contractors and service<br />

providers with less than Level 2 BEE status will<br />

be allowed if they form SMME partnerships<br />

with locals, who will jointly carry out the work<br />

on site.<br />

21 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


SPECIAL FEATURE<br />

Marula<br />

Industrial Hub<br />

Plans are in place to boost the use of<br />

a super fruit.<br />

The Marula Festival has become a popular<br />

annual event. When the 15th annual<br />

Marula Festival comes around in <strong>20</strong><strong>20</strong>,<br />

there will be additional reasons to celebrate<br />

as that is the anticipated launch date of the<br />

Marula Industrial Hub.<br />

The Marula Festival attracts more than 30 000<br />

people over two weekends in February and serves<br />

to highlight the marula fruit and its uses. At the<br />

moment, these are mostly confined to making<br />

traditional beer and supplying the raw product for<br />

the manufacture of the famous Amarula Cream<br />

Liqueur. Outgrowers, mostly small-scale women<br />

farmers, supply Distell with the fruit.<br />

The theme for the festival for the next few<br />

years will be “Discover the Wealth of Marula”,<br />

in line with the idea of expanding the fruit’s<br />

usefulness. But the festival itself is not just about<br />

beer – although there is a lot of beer! The <strong>20</strong>18<br />

festival programme included a marathon, a<br />

career expo, a dance challenge, performances<br />

of gospel and jazz bands, a golf day and a trade<br />

exhibition. The economic benefit to the local<br />

economies of Ba-Phalaborwa and the Mopani<br />

District economies is about R45-million annually.<br />

The Marula Industrial Hub will provide a platform<br />

to further exploit the tasty marula fruit, which has a<br />

high vitamin C content and is much loved by elephants.<br />

The <strong>Limpopo</strong> Department of Economic Development<br />

and Tourism (LEDET) wants to see the University of<br />

<strong>Limpopo</strong> doing more research on the possible uses for<br />

the fruit, including jams and cosmetics.<br />

Facilities at the hub will include a centre for research<br />

and processing facilities to create more value from the<br />

raw product. Advisors will be available to help small-scale<br />

farmers and SMMEs enter the formal economy.<br />

The marula tree is a protected species that is<br />

protected by environmental laws. The tree and its fruit<br />

are also part of the cultural heritage of the region. The<br />

Festival of The First Fruit, “Ku LumaNguva/Go Loma<br />

Morula”, is a ceremony performed by traditional leaders<br />

at the marula season’s beginning. Only at the conclusion<br />

of the ceremony can drinking begin.<br />

The Marula initiative is consistent with the<br />

broader agricultural sector plans for <strong>Limpopo</strong>. The<br />

provincial government has identified five Agricultural<br />

Development Zones (ADZs) across the province,<br />

including the Mopani District within which the<br />

Marula Industrial Hub is located. Programmes to<br />

increase productivity have been presented to smallscale<br />

farmers. In the year <strong>20</strong>17/18 more than 50 000<br />

small-scale producers received support in the form of<br />

irrigation infrastructure, livestock infrastructure and<br />

other production inputs.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

22


MADE<br />

FROM<br />

AFRICA<br />

DRINK RESPONSIBLY.<br />

AMARULA.COM<br />

MADE FROM MARULA FRUIT


Destination <strong>Limpopo</strong><br />

Biodiversity holds great potential for<br />

growth in the tourism industry<br />

Transforming the wildlife sector and creating<br />

opportunities for communities<br />

and small businesses in tourism sector<br />

are priorities for national and provincial<br />

authorities.<br />

Supporting local businessmen and women<br />

to enter the formal tourism market is part of the<br />

Industrial Development Corporation’s brief. The IDC<br />

backed local entrepreneur Mofasi Lekota in his hotel<br />

venture in the provincial capital, Park Inn by Radisson<br />

Polokwane. The development finance institution is<br />

also getting behind projects in Magoebaskloof and<br />

Thohoyandou.<br />

Almost 70% of South Africa’s number one tourist<br />

attraction, the Kruger National Park, falls in <strong>Limpopo</strong>,<br />

and yet relatively few local communities benefit<br />

materially from the park, beyond wage earning.<br />

In <strong>20</strong>18 the celebration of the International<br />

Day of Tourist Guides was hosted by the <strong>Limpopo</strong><br />

Department of Economic Development and<br />

Tourism (LEDET) at the Mopani rest camp in the<br />

Kruger National Park. At this gathering, the National<br />

Department of Tourism announced a new approach<br />

to supporting small, micro and medium enterprises<br />

(SMMEs). Incentives and market support are to be<br />

offered in order to compete in the global market.<br />

Tour guiding is seen as an area with strong growth<br />

potential. The National Registrar of Tourist Guides<br />

works within the department.<br />

Wildlife farming and hunting generates enormous<br />

amounts of money but South Africans who were<br />

previously excluded by law still have very little access<br />

to this sector. According to calculations done by a<br />

Professor in Tourism at the University of the North<br />

West, Peet van der Merwe, trophy and biltong hunters<br />

contributed a combined R13.6-billion to the South<br />

African economy in the <strong>20</strong>16/17 season. The number<br />

of direct jobs created in this period in <strong>Limpopo</strong> was<br />

17 806 (The Conversation). In <strong>20</strong>18, the formal wildlife<br />

auction turnover for the whole of South Africa was<br />

R750-million, as reported by Yolande Groenewald<br />

in the Mail & Guardian. A buffalo bull was sold in<br />

<strong>20</strong>16 for R178-million. LEDET aims to create wider<br />

opportunities within these sectors via its Wildlife<br />

Transformation Policy.<br />

When President Ramaphosa visited <strong>Limpopo</strong><br />

in <strong>20</strong>17, it was to launch the National Biodiversity<br />

Economy Programme. Planners believe that the<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

24


SPECIAL FEATURE<br />

Tour guiding can boost local employment.<br />

biodiversity economy can achieve an average<br />

annualised GDP growth rate of 10%. <strong>Limpopo</strong> is rich<br />

in natural resources and heritage.<br />

Between <strong>20</strong>14 and <strong>20</strong>18, <strong>Limpopo</strong> received more<br />

than 27. 5-million domestic travellers and 8-million<br />

international tourists. As more infrastructure is<br />

rolled out and partnerships created between the<br />

public and private sectors, more investment and job<br />

opportunities will result.<br />

According to the <strong>Limpopo</strong> Premier’s office, the<br />

tourism sector employs about 22 414 people.<br />

The 5-in-5 strategy aims to increase visitor<br />

numbers to five-million in five years.<br />

A new event on <strong>Limpopo</strong>’s calendar caused<br />

great excitement in <strong>20</strong>18 with the first riding of the<br />

Tour de <strong>Limpopo</strong>, a four-day UCI Africa Tour 2.2<br />

stage race which started and finished in Polokwane,<br />

with a stopover in Tzaneen. A range of sponsors<br />

enthusiastically endorsed the race, promoted by the<br />

<strong>Limpopo</strong> Tourism Agency (LTA). Hotel@Tzaneen and<br />

Europcar South Africa were sponsors and race officials<br />

were provided with cars by Audi Centre Polokwane.<br />

Regular events are holding their own as well:<br />

the annual <strong>Limpopo</strong> Marula Festival in Phalaborwa<br />

attracts more than 30 000 participants and is<br />

estimated to inject upwards of R45-million into the<br />

provincial economy. Several neighbouring countries<br />

are well represented in the attendees and 13 cooperatives<br />

operating under the Mukumbi Industries<br />

brand normally brew about 12 000 litres of marula<br />

beverages for the thirsty crowds. Other marula<br />

products are also sold such as nuts, body lotions,<br />

jam, cooking oil and soap.<br />

The LTA also backs the Mapungubwe Festival,<br />

which is growing in stature every year. In addition to<br />

the popular musical performances, crafters have an<br />

opportunity to display their crafts and generate good<br />

income during the festivities.<br />

The tourist authority has six focus areas:<br />

• Golf and game<br />

• Hunting and safari<br />

• Family and recreation<br />

• Special interest<br />

• Mega-conservation<br />

• Meetings Incentives Conference and Events<br />

(MICE).<br />

Varied assets<br />

<strong>Limpopo</strong> Province has varied tourism assets that include<br />

the bare bushveld of the north, misty mountains<br />

in the central highlands, hot springs, a unique cycad<br />

forest, excellent golf courses, the Kruger National Park<br />

and numerous luxury private game reserves.<br />

Kruger, Mapungubwe and Marakele are all national<br />

parks and they are run by South African National Parks<br />

(SANParks). There are a further 53 provincial nature<br />

reserves managed by the <strong>Limpopo</strong> Department of<br />

Economic Development, Environment and Tourism<br />

(LEDET). Many of these reserves are communally<br />

owned but jointly managed by the province and<br />

communities. The combined land area of <strong>Limpopo</strong>’s<br />

national, provincial and private game and nature<br />

reserves is 3.6-million hectares.<br />

The provincial government has committed<br />

to enhancing the value of <strong>Limpopo</strong>’s two<br />

UNESCO World Heritage Sites, Makapans Valley<br />

and Mapungubwe, where the superbly crafted<br />

little golden rhinoceros, a relic from medieval<br />

times, was found in 1932. This is also a priority<br />

programme in the National Tourism Sector<br />

Strategy. The Waterberg Biosphere Reserve is a<br />

UNESCO protected site.<br />

A new drive to promote home-stays is underway<br />

in the northern part of the province. Getting tourists<br />

to eat mopani worms and learn about local traditions<br />

and cultural practices would help to generate<br />

income for villages and hamlets otherwise outside<br />

the mainstream economy.<br />

25<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


SPECIAL FEATURE<br />

In support of the arts and culture sector, a potential<br />

area of growth for tourism in <strong>Limpopo</strong>, a performance<br />

theatre is to be built in Polokwane.<br />

The South African Golf Tourism Association says that<br />

up to 10% of visitors to the country are attracted by its<br />

golf courses, and <strong>Limpopo</strong>’s offering has been extended<br />

and improved in recent years. At the high-end of the<br />

luxury offering are the Zebula Golf Estate and Spa (west<br />

of Bela Bela) and the Legend Golf and Safari Resort.<br />

Adventurous visitors can choose from off-road<br />

biking, hunting, elephant rides and tough 4x4 trails.<br />

A vast array of different cultures can be experienced,<br />

from the Rain Queen and her people in the central<br />

districts, to the myth-inspired art of the Venda in the<br />

north, to the bright geometric house designs of the<br />

Ndabele people in the Sekhukhune District.<br />

Hotels and casinos<br />

The 160-room Park Inn by Radisson Polokwane has<br />

opened in the provincial capital. Located near the<br />

golf course and the Peter Mokaba Stadium, the hotel<br />

also has conference and event facilities.<br />

Tsogo Sun runs the Garden Court Polokwane,<br />

which has 180 rooms ranging from executive suites<br />

to family rooms.<br />

The Protea Hotel group has two hotels in the<br />

province. The Protea Hotel Landmark in Polokwane<br />

has 80 rooms and six conference venues. Just outside<br />

the city is the Protea Hotel Polokwane Ranch Resort<br />

where guests can walk with lions. The hotel is on a<br />

1 000-hectare nature conservancy and specialises in<br />

catering for weddings.<br />

In Mokopane near the Waterberg mountains, the<br />

family-run The Park Hotel Mokopane has 125 rooms<br />

and can cater for up to 400 conference delegates. The<br />

three-star hotel recently added 25 self-catering units.<br />

The Fusion Boutique Hotel in the provincial<br />

capital offers five-star quality in 30 en-suite rooms<br />

and two exclusive suites. Sun International runs<br />

the Meropa Casino and Entertainment World near<br />

Polokwane. In the province’s northern regions at<br />

Thohoyandou, there is the Khoroni Hotel, Casino and<br />

Convention Resort. This is a Peermont venture and<br />

there is a three-star Peermont Metcourt Hotel in the<br />

complex. The <strong>Limpopo</strong> Gambling Board regulates<br />

the industry and grants licences. The Mopani District<br />

was recently granted two new bingo licences.<br />

The most recent casino licence was awarded<br />

to Peermont Global Resorts for the official launch<br />

and operation of the Thaba Moshate Casino, Hotel<br />

and Conference Centre in the Greater Tubatse Local<br />

Municipality. There are 237 limited pay-out gambling<br />

machines in the province, and licences of one sort<br />

or another generate more than R50-million for the<br />

provincial government.<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Economic Development,<br />

Environment and Tourism: www.ledet.gov.za<br />

<strong>Limpopo</strong> Tourism Authority:<br />

www.golimpopo.com<br />

Marula Festival: www.limpopomarulafest.co.za<br />

South African Golf Tourism Association:<br />

www.sagta.co.za<br />

South African National Parks:<br />

www.sanparks.co.za<br />

26


<strong>Limpopo</strong> will soothe<br />

your soul<br />

MESSAGE<br />

Nomasonto Ndlovu, CEO of the <strong>Limpopo</strong> Tourism<br />

Agency, extends a warm welcome to visitors.<br />

We welcome everybody to our<br />

peaceful Province of <strong>Limpopo</strong><br />

which offers an opportunity to<br />

see Africa’s Big Five, while the<br />

adventurous can go abseiling, bungee jumping,<br />

rock climbing, walking on trails, caving, horse<br />

riding or kloofing. For those who enjoy more<br />

relaxed and conventional sport, the province<br />

offers some magnificent golf courses. We<br />

guarantee everybody the enjoyable and breathtaking<br />

tranquillity of nature’s fauna and flora.<br />

It is heart-warming to note that visitors to our<br />

province can expect to receive a warm welcome<br />

in our people’s homes. The <strong>Limpopo</strong> Tourism<br />

Agency and Traditional African Homestays –<br />

South Africa (TAH-SA) has found a solution to<br />

the concept of homestays in South Africa. We are<br />

proud that this award-winning organisation is in<br />

<strong>Limpopo</strong> and continues to make an impact in the<br />

lives of the poor women in the Makhado Municipal<br />

area. Makushu village is an international tourist<br />

attraction visited by tourists from England, USA,<br />

Holland, Australia and Germany. The village now<br />

has 25 homestays and TAH-SA hopes to expand<br />

to other areas.<br />

A wonderful surprise is in store for visitors to<br />

the Modjadji Cycad Reserve, boasting some of<br />

the oldest and largest cycad specimens on earth.<br />

The natural forest can be viewed in its prehistoric<br />

state thanks to its strict protection by succeeding<br />

generations of Modjadji (“rain queens”), the<br />

hereditary rulers in the area.<br />

<strong>Limpopo</strong> is a land of beautiful and contrasting<br />

landscape with hidden gems, exquisite flora and<br />

fauna, expansive national parks and nature reserves,<br />

mountain passes, rivers and productive fruit farms.<br />

Less than 100km north-east of the capital of <strong>Limpopo</strong><br />

Province, Polokwane, lies the Magoebaskloof<br />

mountain range. This area is known as “The Land of<br />

the Silver Mist” and offers incredible views, mountainbike<br />

trails and canopy tours along zip lines. Then there<br />

is the Mapungubwe UNESCO World Heritage Site, the<br />

“Cradle of Humankind”, and archaeological sites such<br />

as Sterkfontein and Makapans Caves.<br />

Some of the flagship events that visitors can<br />

look forward to include: the Tour de <strong>Limpopo</strong><br />

cycle race, the <strong>Limpopo</strong> Golf Championship, the<br />

<strong>Limpopo</strong> Marula Festival and the Mapungubwe<br />

Cultural Festival.<br />

We look forward to welcoming you in <strong>Limpopo</strong>.<br />

27<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


LTA 2pp interview, pp 28-29<br />

INTERVIEW<br />

BIOGRAPHY<br />

Nomasonto Ndlovu has wide experience in brand marketing, communication<br />

and events in the private and public sector. She worked as Strategic Executiv<br />

Director for the City of Tshwane before taking senior marketing positions in<br />

South Africa’s most<br />

visited province pulls<br />

South African Tourism.<br />

ahead<br />

fields as varied as banking (Standard Bank) and fast-moving consumer good<br />

(Unilever in South Africa and Kenya). In <strong>20</strong>05 she joined KwaZulu-Natal’s<br />

tourism board and then worked as the global manager of business tourism at<br />

South Africa’s most visited province pulls ahead<br />

The CEO of the <strong>Limpopo</strong> Tourism Agency, Nomasonto Ndlovu explains how<br />

The CEO of the <strong>Limpopo</strong> Tourism Agency, Nomasonto<br />

locals can become valued tourists.<br />

Ndlovu, explains how locals can become valued tourists.<br />

Nomasonto Ndlovu<br />

BIOGRAPHY<br />

Nomasonto Ndlovu has wide<br />

experience in brand marketing,<br />

communications and events in<br />

the private and public sector. She<br />

worked as Strategic Executive<br />

Director for the City of Tshwane<br />

before taking senior marketing<br />

positions in fields as varied as<br />

banking (Standard Bank) and<br />

fast-moving consumer goods<br />

(Unilever in South Africa and<br />

Kenya). In <strong>20</strong>05 she joined<br />

KwaZulu-Natal’s tourism board<br />

and then worked as the global<br />

manager of business tourism at<br />

South African Tourism.<br />

How How many visitors has has <strong>Limpopo</strong> <strong>Limpopo</strong> had had in in recent recent years? years?<br />

Destination <strong>Limpopo</strong> enjoyed a lead a lead as the as the most most visited visited province province in the coun<br />

the since country <strong>20</strong>16 from to <strong>20</strong>18 <strong>20</strong>16 despite to <strong>20</strong>18 despite fluctuating fluctuating figures. figures. <strong>Limpopo</strong>’s <strong>Limpopo</strong>’s performance can b<br />

performance depicted over can the be past depicted three over years the as past follows: three years as follows:<br />

Year<br />

Domestic<br />

Trips<br />

International<br />

Arrivals<br />

<strong>20</strong>16 8.3-million 1.5-million<br />

<strong>20</strong>17 5.1-million 1.8-million<br />

<strong>20</strong>18 3.3-million 2.1-million<br />

Do<br />

Do<br />

you<br />

you<br />

have<br />

have<br />

a strategy<br />

strategy to<br />

to<br />

increase<br />

increase<br />

these<br />

these<br />

numbers?<br />

numbers?<br />

LTA has a marketing strategy which gets reviewed annually for<br />

purposes LTA has of a maintaining marketing relevance. strategy which It is aligned gets to reviewed the National annually Tourism for purposes of<br />

Sector maintaining Strategy relevance. (NTSS), <strong>Limpopo</strong> It is aligned Tourism to Growth the National Strategy Tourism (LTGS) and Sector Strategy<br />

the (NTSS), <strong>Limpopo</strong> <strong>Limpopo</strong> Development Tourism Plan. Growth The Agency Strategy has developed (LTGS) and another<br />

<strong>Limpopo</strong><br />

strategy Development that would Plan. address The Agency the visiting has developed friends and another relatives strategy (VFR) that would<br />

segment address to the be visiting transformed friends into and holiday-makers. relatives (VFR) This segment makes to be transformed in<br />

up holiday a big number makers. of This our segment domestic makes tourists up but a big with number less spending, of our domestic touris<br />

as but they with often less do spending, not view as themselves they often as do holiday-makers. not view themselves This plan as holiday make<br />

seeks This to plan increase seeks the to increase domestic the tourists domestic that tourists visit the that province visit the for province for<br />

holidays, against those that are VFR, thus improving spend, length of<br />

stay and geographic spread. LTA will develop consumer insights that<br />

will assist in developing well-targeted campaigns and interventions.<br />

We will also develop a targeted all-year-round campaign that focuses<br />

on the VFR market in order for them to explore extending their stay<br />

to enjoy the tourism attractions in the province, thereby positively<br />

contributing to tourism and economic growth.<br />

What sectors are you focussing on?<br />

The Agency focuses on several clusters to achieve its vision of being<br />

a leading tourism destination in Southern Africa. LTA reviewed its<br />

clusters and has finalised a new structure. The clusters are as follows:<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

28


INTERVIEW<br />

Culture and Heritage, Family and Recreation, Sport<br />

and Wildlife Safari, Safari and Hunting, <strong>Business</strong> and<br />

Events and Special Interest.<br />

Our campaigns are all-encompassing with<br />

specific events supporting other respective clusters<br />

such as adventure events like 4x4 off-road challenges<br />

and cycling events. The Agency also sometimes<br />

invites media and influencers to the province to<br />

familiarise them with some products and attractions<br />

in the province. These trips often provide positive<br />

feedback which lead to more visits to the province.<br />

What role do festivals play in the tourism<br />

offering of the province?<br />

Events play a key role in driving people from one<br />

place to the other. LTA partners with several festivals<br />

as they draw people to the province. The role of LTA<br />

in these events is to assist by bringing the marketing<br />

element to make sure they are successful. Provincial<br />

flagship events like the <strong>Limpopo</strong> Marula Festival<br />

and the Mapungubwe Cultural Festival are the two<br />

government-organised events that LTA annually<br />

partners with and assists in marketing for their<br />

success. The Agency has identified several other<br />

events and festivals that have the potential to grow<br />

to the level of the two provincial festivals. Other<br />

festivals that also draw more people are organised<br />

in various districts and local municipalities such as<br />

the Phala Phala Royal Festival in Vhembe District,<br />

Collins Chabane Cultural Festival, Thobela FM Gospel<br />

Festival and Sekhukhune Gospel Festival. Festivals<br />

contribute immensely to the provincial economy.<br />

Please comment on the first Tour de<br />

<strong>Limpopo</strong> cycle race in <strong>20</strong>18.<br />

<strong>Limpopo</strong> Tourism Agency Board and the MEC for<br />

Economic Development, Environment and Tourism<br />

(LEDET) officially welcomed the organisers and the<br />

teams that participated in the inaugural Tour de<br />

<strong>Limpopo</strong> road race, at Park Inn Hotel in Polokwane<br />

on 22 April <strong>20</strong>18. This was the first international<br />

road cycling stage race to be hosted in <strong>Limpopo</strong><br />

Province and South Africa. The fully-catered<br />

stage race is a UCI Africa Tour 2.2 stage race for<br />

professional teams. The Tour de <strong>Limpopo</strong> aimed<br />

to set a new precedent in stage racing, one that<br />

would develop and leave a legacy of continued<br />

and sustained cycling development and investment<br />

into community SMMEs as service providers to<br />

the event. This was an opportunity to showcase<br />

<strong>Limpopo</strong> Province as a premier Adventure Tourism<br />

destination with so much to enjoy. This was a<br />

perfect platform to showcase via livestreaming<br />

the beauty of attractions such as Magoesbaskloof,<br />

Moria Zion City, Modjadjiskloof, the Sunland Baobab<br />

and Debengeni Falls.<br />

What is the mandate of LTA?<br />

<strong>Limpopo</strong> Tourism Agency (LTA), established in<br />

respect of <strong>Limpopo</strong> Tourism Act No 2 of <strong>20</strong>09, has<br />

witnessed a metamorphosis since its inception 14<br />

years ago. <strong>Limpopo</strong> Tourism and Parks (LTP) at the<br />

time was also responsible for conservation including<br />

management of provincial nature reserves, but in<br />

<strong>20</strong>07, the <strong>Limpopo</strong> Executive Council resolved to<br />

transfer the conservation function to <strong>Limpopo</strong><br />

Economic Development, Environment and Tourism<br />

(LEDET). It was against this background that the<br />

legislation for the establishment of the LTP Board,<br />

<strong>Limpopo</strong> Tourism and Parks Board Act No 8 of had<br />

to be repealed to give way to the new one. From<br />

then on the entity remained with the management<br />

of state-owned resorts (<strong>Limpopo</strong> Wildlife Resorts)<br />

in provincial nature reserves. In August <strong>20</strong>15,<br />

the Board underwent a strategic workshop to<br />

internalise the new piece of legislation governing<br />

it, <strong>Limpopo</strong> Tourism Act No 2 of <strong>20</strong>09. The entity<br />

was commissioned to review its marketing strategy<br />

in line with the new Act. The Executive Council<br />

also issued Resolution No 7 of <strong>20</strong>15/16, which<br />

further directed that <strong>Limpopo</strong> Wildlife Resorts be<br />

transferred to LEDET. This left LTA with only one<br />

focus or mandate, of marketing <strong>Limpopo</strong> Province<br />

as a leading tourist destination in Southern Africa.<br />

<strong>Limpopo</strong> Wildlife Resorts (LWR) would be promoted<br />

like all other tourism products in the province.<br />

29<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

<strong>Business</strong> tourism on a<br />

growth trajectory<br />

<strong>Limpopo</strong>’s venues range from game lodges to conference centres.<br />

<strong>Limpopo</strong> is undoubtedly on a growth trajectory<br />

in respect of business tourism.<br />

Evidence of this trend comes in the form<br />

of the International Fellowship Evangelical<br />

Students (IFES) World Assembly which was held in<br />

July <strong><strong>20</strong>19</strong> in Bela Bela at ATKV Klein Kariba.<br />

The conference attracted an estimated 1 <strong>20</strong>0<br />

delegates from some 160 countries, who spent<br />

about two weeks in the region. The idea to bring the<br />

conference to <strong>Limpopo</strong> was born out of engagements<br />

by <strong>Limpopo</strong> Tourism Agency (LTA) at Meetings Africa<br />

<strong>20</strong>18, confirming the importance of this marketing<br />

platform. The agency will also host International<br />

Association of Schools and Institutes of Administration<br />

(IASIA) at ATKV Klein Kariba from 19-25 July <strong>20</strong><strong>20</strong>.<br />

<strong>Limpopo</strong> offers unique conference, meetings,<br />

incentives and other venues with relevant resources<br />

and superb settings. In recent years, the meetings<br />

and incentive industry within <strong>Limpopo</strong> has grown<br />

significantly. <strong>Limpopo</strong>’s MICE (Meetings, Incentives,<br />

Conferences, Exhibitions) products are conveniently<br />

situated within one-and-a-half to three-hour’s drive<br />

from Johannesburg. Access to most of the venues is<br />

made easy, as the province is served by three airports<br />

with direct flights from Johannesburg and Cape Town.<br />

<strong>Limpopo</strong> offers a wealth of conferencing and<br />

exhibition facilities, including custom-built centres<br />

designed to the highest international specifications,<br />

facilities at hotels, educational institutions and<br />

theatres. Conference venues in the province range<br />

from country lodges to large conference and<br />

exhibition centres in the cities. While in <strong>Limpopo</strong> on<br />

a business mission, conference goers will be spoilt<br />

for choice with a plethora of offerings from wildlife<br />

to adventure activities.<br />

Three South African cities are currently excelling in<br />

the business tourism sector, namely, Johannesburg,<br />

Durban and Cape Town. <strong>Limpopo</strong> does not have the<br />

same sort of large infrastructure that these centres<br />

can call on such as convention centres, but the LTA is<br />

now focussing on creating awareness about what the<br />

province has to offer in the business tourism space.<br />

While <strong>Limpopo</strong> is still striving towards its goals<br />

in taking full advantage of the opportunities in<br />

tourism, the MICE sector undoubtedly presents an<br />

opening for the province as a destination to focus<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

30


FOCUS<br />

on providing big entities or corporate organisations<br />

with opportunities to host a variety of activities. This<br />

includes incentive trips and team-building sessions<br />

which would be ideally suited to what the province<br />

has to offer.<br />

LTA already has a <strong>Business</strong> Tourism Strategy in<br />

place that guides it on what needs to be done in the<br />

marketing space and on the supply infrastructure<br />

and tourism demand side. The entity is ready to<br />

establish a dedicated conventions bureau unit to<br />

begin searching for and bidding for events from<br />

associations in the country and beyond, for example,<br />

mining chambers, the Mango Association and Grain<br />

Association. LTA intends to secure the calendars of<br />

these organisations to lobby for their events to be<br />

held in <strong>Limpopo</strong> Province.<br />

It must be emphasised that there are excellent<br />

facilities throughout the province although<br />

transformation is critical given a low number of<br />

previously disadvantaged enterprises working in this<br />

space. The Agency will work closely with <strong>Limpopo</strong><br />

Economic Development, Environment and Tourism<br />

(LEDET) to address this challenge.<br />

<strong>Limpopo</strong> Province continues to be one of the<br />

major recipients of tourism arrivals in South Africa<br />

given its broad tourism product offering and appeal.<br />

<strong>Limpopo</strong> Tourism Agency will continue to build and<br />

strengthen partnerships with the industry, local<br />

government and other key stakeholders in order to<br />

deliver on its mandate. The Agency will capitalise on<br />

this advantage to support and nurture its business<br />

tourism profile.<br />

The Agency will continue to maximise its<br />

competitive advantage of being bordered by three<br />

countries in the SADC region, namely, Botswana,<br />

Zimbabwe and Mozambique. These countries<br />

are seen as a low-hanging fruit as the distance<br />

to <strong>Limpopo</strong> for business events and conferences<br />

is shorter than anywhere else in the country.<br />

Destination <strong>Limpopo</strong>’s prospects in business<br />

tourism are enormous with the upcoming Makhado<br />

and Tubatse Special Economic Zones (SEZs) that will<br />

inject R44-billion in investments to the province’s<br />

economy thereby creating 22 800 direct jobs. This<br />

will also contribute to business tourism growth in<br />

the province.<br />

31 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Destination <strong>Limpopo</strong><br />

More to Enjoy<br />

<strong>Limpopo</strong> offers a mosaic of exceptional scenic<br />

landscape, a fascinating cultural heritage, an<br />

abundance of wildlife species and many nature-based<br />

tourism opportunities. <strong>Limpopo</strong><br />

is the land of myths, legends, beautiful scenery and<br />

landscapes as well as majestic baobab trees.<br />

The province consists of living cultures, ancient<br />

places, nature reserves and national parks, trees,<br />

things to do and things to experience but all of them<br />

will leave the visitor with a greater insight into what<br />

makes <strong>Limpopo</strong> the Great North.<br />

<strong>Limpopo</strong> borders Botswana, Zimbabwe and<br />

Mozambique. It is a prime wildlife destination with<br />

a host of game and nature reserves. The climate in<br />

the <strong>Limpopo</strong> Province is quite hot since the area<br />

is bisected by the Tropic of Capricorn. Visitors will<br />

find that they can enjoy long sunny days and dry<br />

weather on most days.<br />

There is spectacular game viewing and birding<br />

in the province, as well as a mix of African cultures,<br />

intriguing folklore and legend and prehistoric treasures.<br />

It is home to the Mapungubwe World Heritage<br />

Site, as well as Modjadji, the fabled Rain Queen, and<br />

the age-old relics of the Makapansgat Valley. It is<br />

here that the Venda artists live and thrive, and where<br />

places like Lake Fundudzi and the Vondo Forest are<br />

considered to be sacred.<br />

The birding at Nylsvley RAMSAR Wetland is a<br />

magnet for nature-lovers and many golf enthusiasts<br />

have the extreme 19th hole at Legend Golf and<br />

Safari Resort on their bucket list. The province<br />

is endowed with bountiful natural resources,<br />

including 54 provincial reserves and many private<br />

game reserves.<br />

The city of Polokwane is at the heart of the province<br />

– a growing urban hub with its sights set on<br />

the future, yet with a heart and soul steeped in<br />

traditional values. <strong>Limpopo</strong> is a fascinating province<br />

and conference delegates or visitors will enjoy the<br />

wild beauty of the area combined with incredible<br />

cultural insights and numerous adventure attractions<br />

that will keep them coming back for more.<br />

<strong>Limpopo</strong> Tourism Agency is charged with the<br />

responsibility of marketing the province as the<br />

leading tourism destination in Southern Africa with<br />

“More to Enjoy”.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

32


ADVERTORIAL<br />

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KEY SECTORS<br />

Overviews of the main economic sectors of<br />

<strong>Limpopo</strong><br />

Agriculture 40<br />

Mining 44<br />

Construction and property 58<br />

Energy 59<br />

Transport and logistics 60<br />

Banking and financial services 70<br />

Development finance and SMME<br />

support 74<br />

Education and training 86


OVERVIEW<br />

Agriculture<br />

Five Agricultural Development Zones have been declared.<br />

<strong>Limpopo</strong>’s fruits and vegetables form an important part of<br />

South Africa’s export basket and more than 45% of the annual<br />

turnover of the Johannesburg Fresh Produce Market originates<br />

in the fertile province.<br />

The percentage contribution of <strong>Limpopo</strong> agriculture to national<br />

agriculture is 7.6% although its contribution to provincial GDP is just<br />

2.3%. Agri-processing has enormous potential to expand in every<br />

subsector. The establishment of agri-parks and co-operatives and<br />

support for youth in farming are key provincial government initiatives.<br />

Cotton growing is experiencing a renewal in the province.<br />

Companies like ZZ2 are major contributors to the country’s annual<br />

production of 1<strong>20</strong> 000 tons of avocadoes. Of the current crop, about<br />

half is produced in two <strong>Limpopo</strong> regions, Letaba and Tzaneen. Exports<br />

are rising exponentially. In response to this demand, and the potential<br />

of the Chinese market, almost 1 000ha per year of new land is being<br />

planted with avocadoes in South Africa.<br />

The same amount of new macadamia planting is underway every<br />

year, according to the Macadamias South Africa (SAMAC), adding to<br />

the existing 19 000ha.<br />

The other big sellers are mangoes and tomatoes. <strong>Limpopo</strong> grows<br />

three-quarters of South Africa’s mangoes and two-thirds of its tomatoes.<br />

The Waterberg District produces large quantities of red meat, Capricorn<br />

has potatoes in abundance, Vhembe in the north specialises in citrus and<br />

subtropical fruits, Mopani has those fruits too – and the Mopani worm.<br />

The Sekhukhune region in the south-east produces grain and the marula<br />

fruit that goes into Amarula cream liqueur.<br />

SECTOR INSIGHTS<br />

The IDC’s support of a<br />

blueberry operation created<br />

62 new jobs.<br />

The <strong>Limpopo</strong> Department<br />

of Agriculture and Rural<br />

Development has identified<br />

five Agricultural Development<br />

Zones (ADZs) where support will<br />

be given to farmers to promote<br />

production in the sector. More<br />

than 1 000 small-scale farmers<br />

are being trained annually to<br />

improve their skills and to improve<br />

production. Irrigation schemes<br />

have been revived in eight<br />

districts to assist farmers.<br />

The Provincial Government<br />

of <strong>Limpopo</strong>’s nine-point<br />

economic plan includes<br />

RAAVC (the revitalisation of the<br />

agriculture and agri-processing<br />

value chain).<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

40


OVERVIEW<br />

National government’s Industrial Policy Action Plan (IPAP)<br />

acknowledges agri-processing as one of the best sectors for<br />

labour-intensive growth. In that context, the decision by Dursots-<br />

All Joy to relaunch and upgrade the tomato processing plant in<br />

Modjadjiskloof, Tzaneen, is important for the larger economy. At<br />

least 15 commercial farmers now have a ready market for one of<br />

<strong>Limpopo</strong>’s chief products and there is potential for the factory to<br />

employ as many as 300 people. There is a shortage of tomato paste<br />

in South Africa.<br />

More support for farmers comes in the allocation of R32-million<br />

by the provincial government of the construction of the Molemole<br />

Agricultural Office in the Capricorn District Municipality. In addition to<br />

tackling drought, the <strong>Limpopo</strong> Department of Agriculture and Rural<br />

Development has had to put a strategy in place to fight Fall Army Worm.<br />

All of South Africa’s major retailers have enterprise development<br />

programmes which connect farmers to suppliers. In <strong>Limpopo</strong><br />

Woolworths supports independent farmers by buying their produce<br />

and Spar channels produce from smallholders through its Fresh<br />

Assembly Point in Mopani.<br />

Massmart’s five-year programme, which tailed off as the company<br />

focussed more on the manufacturing sector which is relevant to their<br />

main business, trained more than 700 farmers in logistics, food safety<br />

and financial management. At its peak, the programme was supporting<br />

164 smallholder farmers.<br />

Another example of an initiative to link farmers to markets was<br />

a Market Linkage Information Day, organised by the <strong>Limpopo</strong><br />

Department of Agriculture and Rural Development (LDARD) in <strong>20</strong>18<br />

at Soekmekaar.<br />

The <strong>Limpopo</strong> regional office of the Industrial Development<br />

Corporation (IDC) has helped expand the province’s agricultural<br />

sector by supporting the creation of two blueberry operations near<br />

Tzaneen. Tzaneen Blueberries used its own money to establish 17.5ha<br />

of blueberry plantations but approached the IDC to fund later stages<br />

of development. The IDC’s R13.5-million assisted in the building of a<br />

packhouse. The expansion created 62 jobs.<br />

In terms of the Provincial Red Meat Cluster Development as<br />

ONLINE RESOURCES<br />

Agro-Food Technology Station, <strong>Limpopo</strong> University: www.ul.ac.za<br />

Citrus Growers Association: www.cga.co.za<br />

Deciduous Fruit Producers Trust: www.dfpt.co.za<br />

<strong>Limpopo</strong> Department of Agriculture and Rural Development:<br />

www.lda.gov.za<br />

Macadamias South Africa: www.samac.org.za<br />

South African Subtropical Growers’ Association:<br />

www.subtrop.net<br />

a catalyst towards sustainable<br />

rural livelihoods development<br />

through livestock farming, the<br />

Nguni cattle loan project saw a<br />

total of 350 livestock breeding<br />

animals distributed in <strong>20</strong>17/18<br />

to 16 farms. The scheme, a<br />

partnership between LDARD,<br />

the Industrial Development<br />

Corporation and the University<br />

of <strong>Limpopo</strong>, aims to improve the<br />

quality of breeding stock. It also<br />

forms part of the development<br />

of a provincial Red Meat Cluster.<br />

Companies<br />

ZZ2 is the major brand of Bertie<br />

van Zyl (Pty) Ltd, which produces<br />

160 000 tons of tomatoes per<br />

year. Westfalia is another huge<br />

enterprise, part of the Hans<br />

Merensky Group, and it is the<br />

world’s largest avocado grower.<br />

It also produces significant<br />

quantities of mango, litchi,<br />

citrus and macadamia and has<br />

three agri-processing plants in<br />

the province. Greenway Farms<br />

supplies about 45% of the freshmarket<br />

carrots consumed in<br />

Southern Africa under the Rugani<br />

brand.<br />

The two most active<br />

agricultural companies in<br />

<strong>Limpopo</strong> are NTKLA (with its<br />

headquarters in Modimolle)<br />

and Afgri, South Africa’s biggest<br />

agricultural company, which has<br />

its headquarters in Centurion<br />

(Gauteng).<br />

NTKLA is a shareholder in<br />

Venda Roller Mills in Thohoyandou<br />

and operates 10 grain silos, 23<br />

retail outlets, 28 flour depots and<br />

one cold storage facility.<br />

41 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

Mahlolane<br />

Agricultural Projects<br />

Creating sustainable employment.<br />

Vision<br />

To create sustainable employment opportunities<br />

for young people and encourage them to look no<br />

further than farming.<br />

How do we realise that goal?<br />

Seek partnerships with provincial government and<br />

agricultural schools to provide internships and create<br />

export markets.<br />

Mahlolane Agricultural Projects is an<br />

agricultural production company currently<br />

operating at remotely located<br />

Lepelle Nkumpi Municipality.<br />

The company was formed in <strong>20</strong>14. Production<br />

capability is based on 30 hectares of land that is<br />

prepared for crops, which include tomatoes, green<br />

peppers, cabbage and spinach. There are 15 employees,<br />

with scope for at least 30 more people to<br />

be employed.<br />

Underpinning the project is the idea that hard<br />

work promotes peace and happiness. This is captured<br />

in the Latin saying “Labor pacemque felicium”.<br />

Mission statement<br />

To demonstrate crop farming as a sustainable commercial<br />

venture for young and seasoned farmers.<br />

Company objectives<br />

• The company’s short- to medium-term ambitions<br />

are to attract tourism through crop- and<br />

stock-farming activities.<br />

• Our company to be used as an agricultural<br />

school for primary and secondary schools to<br />

visit and learn first-hand about farming.<br />

• To provide local crèches and primary schools<br />

with crops and vegetables at affordable prices.<br />

• To encourage retail stores and supermarkets at<br />

shopping malls to buy local, freshly produced<br />

products.<br />

• To serve and aid strong and aggressive<br />

protection of food security in our province.<br />

ONLINE RESOURCES<br />

Mahlakoleng Village, Ga–Mphahlele 0736<br />

<strong>Limpopo</strong> Province<br />

General Manager, Pontsho Gloria Mooa<br />

Tel: 076 296 8544<br />

Non-executive Director, Richard Mooa<br />

Tel: 082 467 3049<br />

Email: richardm@globeflight.com<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

42


Making farming a<br />

success story<br />

FOCUS<br />

Ambitious plans to grow Mahlolane Agricultural<br />

Projects into a sustainable model.<br />

Non-executive Director,<br />

Richard Mooa<br />

Richard Mooa is a man on<br />

a mission. As a man who<br />

has achieved success in<br />

more than one field, he<br />

set out in <strong>20</strong>14 to plough back to<br />

the community and environment<br />

where he grew up. As he puts it, it<br />

was his way of saying, “Thank you<br />

for raising me, I now want to do<br />

something for you.”<br />

The vehicle was Mahlolane<br />

Agricultural Projects (Pty) Ltd,<br />

which has continued to grow<br />

over the five years of its existence,<br />

and now stands ready to further<br />

expand, if sufficient support can be<br />

found and beneficial partnerships<br />

can be created.<br />

Tackling problems<br />

The project was designed as a<br />

sizeable, affordable and wellmanaged<br />

project to relieve the<br />

pain of hunger among povertystricken<br />

people, especially families<br />

without breadwinners, from<br />

nearby villages in the Lepelle<br />

Nkumpi Municipality area in the<br />

Capricorn District Municipality.<br />

The other major goal was to address the question of jobless youth wandering<br />

the streets aimlessly and hopelessly. These are the youth without any formal<br />

education or any form of training that could help them to support themselves.<br />

Farming was chosen as the solution, the way to bring hope and selfconfidence<br />

to these two target groups. The project faced many challenges,<br />

not least from people who did not believe that it could work.<br />

But Mooa was driven. Remembering that time, he says, “Just because I did<br />

not know where I was at that time, did not mean that I did not know where I<br />

wanted to be.” He wanted to help people and make a difference in their lives.<br />

Partnerships<br />

Of the project’s current status Mooa is upbeat, “I am so delighted at the progress<br />

so far,” but he wants the project to achieve much more. He is looking for<br />

partnerships and the support of agricultural institutions and departments at<br />

local, provincial and national levels.<br />

There are many reasons to support MAP, both social and economic. These<br />

include:<br />

• the creation of employment for local people<br />

• encouragement of youngsters to work and get to love farming as a<br />

career<br />

• the use of animal manure as a means of soil fertilisation<br />

• local pride in a special project of its own<br />

• employees being given a chance to be leaders in their own right.<br />

Huge potential<br />

The challenges faced by the project are real, not least the dryness and the<br />

heat of the area and the fact that movable assets require constant repairs and<br />

maintenance. Access to capital would make it possible to expand production,<br />

sink boreholes, install a pivot irrigation system, fence off areas and buy seed<br />

and equipment. A marketing strategy and a website would help the project<br />

achieve its full potential.<br />

Potential partners – private and public – could provide the assistance to<br />

take this project a long way.<br />

“We are blessed in that we work with young and highly ambitious people,<br />

determined to be role models in their own rights,” says Richard Mooa. “We<br />

believe we have a viable and highly profitable commodity here,” he says.<br />

Moving to the next level will depend on the quality and quantity of resources<br />

that are made available.<br />

43<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Mining<br />

Eight new investments are bringing<br />

jobs to <strong>Limpopo</strong>.<br />

Mining companies are increasingly concerning themselves<br />

with environmental issues. A R1.5-billion project to improve<br />

air quality at Anglo-Platinum’s Polokwane smelter will be<br />

finalised in <strong>20</strong><strong>20</strong>. The Sulphur Dioxide Abatement project<br />

will reduce carbon emissions by 96%, create 500 construction jobs and<br />

provide contract work for about a dozen <strong>Limpopo</strong> companies. The<br />

smelter is shown in the main picture on this page.<br />

Anglo Platinum’s (Amplats) Mogalakwena mine produced a record<br />

1 170 000 PGM ounces in <strong>20</strong>18, an improvement of 7%. The company<br />

recorded a number of improvements in efficiencies (operating time<br />

of concentrators rose to over 94%) and the company is investigating<br />

possible expansion of the mine complex.<br />

The sale in late <strong>20</strong>18 of Glencore’s stake in the Mototolo PGM mine and<br />

chrome plant marked the end of that company’s foray into platinum. The<br />

purchase of Glencore’s 39% stake takes Amplats’ share in the complex<br />

SECTOR INSIGHTS<br />

Amplats’ Polokwane smelter<br />

has installed sophisticated<br />

air-quality equipment.<br />

up to 89%, giving Amplats access<br />

to a further 130 000oz of platinum<br />

and improving the prospects<br />

of working on the adjacent Der<br />

Brochen. The deal was worth<br />

about R1.5-billion.<br />

Eland mine, after being put on<br />

care and maintenance, was sold in<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

44


OVERVIEW<br />

expansion projet at its Zondereinde mine just south<br />

of Thabazimbi. By building a second furnace at the<br />

facility, Northam is making provision for reaching<br />

a goal of processing one-million ounces of PGMs.<br />

The cost of the expansion, which was partly born<br />

by Heraeus, is R900-million.<br />

Heraeus South Africa has offices in Gauteng<br />

and runs a precious metal chemical compounds<br />

production and refinery site in Port Elizabeth.<br />

<strong>Limpopo</strong> contributes 4% of coal mining in South<br />

Africa, according to the National Department of<br />

Mineral Resources, but it is likely that within the next<br />

three decades, the province will be supplying about<br />

half of South Africa’s coal. <strong>Limpopo</strong>’s Waterberg coal<br />

field is estimated to contain about 75-billion tons<br />

of coal.<br />

This is where Exxaro operates its Grootegeluk<br />

mine. Nine plants serve a 4km long and 1<strong>20</strong>m deep<br />

opencast mine on a 1 <strong>20</strong>0ha site. Originally intended<br />

to supply the nearby power plants, Exxaro is now<br />

eyeing the export market with countries such as<br />

Ethiopia, Egypt and Pakistan potential markets. By<br />

<strong>20</strong>23 Exxaro hopes to be producing 60-million tons<br />

of coal from its sites in <strong>Limpopo</strong> and Mpumalanga.<br />

Its current annual production is 47-million tons.<br />

New projects<br />

<strong>20</strong>17 by Glencore to Northam for R175-million. In<br />

<strong><strong>20</strong>19</strong> plans were being put in place to re-open the<br />

mine because of higher prices for rhodium. The<br />

company intends spending R300-million at Eland<br />

and R1.5-billion at Booysendal.<br />

Impala Platinum (Implats) has an interest in two<br />

big operations on the eastern limb of the Bushveld<br />

Igneous Complex. Marula (in which Implats is a 73%<br />

shareholder) is in <strong>Limpopo</strong>, about 50km north of<br />

Burgersfort. South of the same town, in Mpumalanga,<br />

Implats (49%) is in a joint venture with African Rainbow<br />

Minerals (ARM) at the Two Rivers mine.<br />

Northam bought the Tumela block from<br />

Amplats and invested heavily in a smelter<br />

Eight new mining projects in the Capricorn and<br />

Sekhukhune districts are expected to attract<br />

investments worth R2.5-billion and create about<br />

3 000 new jobs. There are currently 147 active<br />

mining projects in the province and the sector<br />

contributes 24.5% to the Provincial Gross Domestic<br />

Product (PGDP).<br />

According to the Office of the Premier, the number<br />

of jobs in the sector increased from 71 000 in <strong>20</strong>13 to<br />

103 000 in <strong>20</strong>17/18. The soils of <strong>Limpopo</strong> are rich in<br />

platinum group metals, coal, copper, diamonds, gold,<br />

iron ore, nickel, rare earth minerals and tin.<br />

Other major investments in <strong>Limpopo</strong> include an<br />

ongoing project by De Beers to convert its Venetia<br />

45<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

NEW WIMSA CHAIRPERSON RAISES THE BAR<br />

Selected as one of the “Top 100 Global Inspirational Women<br />

in Mining” by Women in Mining UK in <strong>20</strong>18, Thabile Makgala<br />

was recently appointed to the position of Chairperson of<br />

Women in Mining South Africa (WiMSA).<br />

Thabile holds the position of Executive: Mining at Impala<br />

Platinum but getting to the top was no easy journey.<br />

Thabile recalls “numerous obstacles while navigating my<br />

mining career path”. Her qualifications include a master’s<br />

degree in business administration from the University of<br />

Stellenbosch <strong>Business</strong> School and a Bachelor of Science<br />

degree in Mining Engineering (Cum laude), from the<br />

University of the Witwatersrand. But as the first female<br />

mining engineer graduate at Goldfields Kloof and Driefontein<br />

division (now Sibanye Gold), it soon became clear that, as she<br />

recalls, “the industry had not adequately prepared itself to<br />

accept women in mining”.<br />

“The response to women’s needs (infrastructure, personal<br />

protective clothing, and policies) was slow and very little was<br />

in place to address women’s issues.”<br />

Her extensive experience has given Thabile insight into what<br />

is needed. “Women and men should hold equal representation<br />

in the workplace,” she says, “and mining companies should<br />

prioritise and advocate for diversity, inclusion, parity and<br />

for greater recognition of female leadership within their<br />

organisations.”<br />

Thabile is encouraged by progress made by women in mining<br />

but wants to see “more deliberate and proactive action”.<br />

Her hope is that in 10 years, “the fundamental elements<br />

such as empowering, caring, showing respect, connecting<br />

and growing our female talent, would have been achieved”.<br />

mine from an open-pit mine to a verticalshaft<br />

mine, and a multi-billion new<br />

platinum mine project led by a Canadian<br />

firm. Venetia mine is by far the most<br />

important part of De Beers’ South African<br />

operation, accounting for 3.1-million of<br />

the 5.4-million carats recovered by the<br />

company from its six operations.<br />

Ivanplats, the subsidiary of the<br />

Canadian company, has started sinking<br />

shafts at its new mine near Mokopane<br />

south-west of Polokwane. Ivanhoe has a<br />

64% stake in Ivanplats with 10% owned<br />

by a group of Japanese companies<br />

including ITOCHU Corporation and Japan<br />

Gas Corporation.<br />

Mineral beneficiation is a key<br />

component of the newly accredited<br />

Musina-Makhado Special Economic<br />

Zone (SEZ) in the far north of <strong>Limpopo</strong>.<br />

The De Beers Group’s Venetia<br />

mine in northern <strong>Limpopo</strong> is a giant<br />

project in every sense.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

46


OVERVIEW<br />

Impala Platinum is a major presence in <strong>Limpopo</strong>.<br />

In <strong>20</strong>18 nine Chinese companies committed to<br />

investing more than $10-billion in projects related<br />

to the zone’s four main areas of activity: a coking<br />

plant, a power plant, an alloy factory and the<br />

manufacture of steel.<br />

The planned Tubatse Platinum SEZ will focus on<br />

mining, as its name implies. According to LEDA, 17<br />

new mines were established in the greater Tubatse/<br />

Burgersfort/Steelport area between <strong>20</strong>01 and <strong>20</strong>16,<br />

and a further 22 new mines are planned.<br />

The focus at Tubatse will be on the beneficiation<br />

of platinum group metals, magnetite, vanadium<br />

and chrome. The other strong mineral focus in<br />

the eastern part of the province is at Phalaborwa<br />

where Palabora Copper, a subsidiary of Palabora<br />

Mining Company, produces about 45 000<br />

tons of copper annually, most of which is sold<br />

domestically. It runs a smelter and a refinery and<br />

also mines magnetite, vermiculite sulphuric acid,<br />

and nickel sulphate.<br />

ONLINE RESOURCES<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

Department of Mineral Resources: www.dme.gov.za<br />

Geological Society of South Africa: www.gssa.org.za<br />

South African Institute of Mining and Metallurgy: www.saimm.co.za<br />

47<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

Ties with China build<br />

a better Phalaborwa<br />

Since 1956, PMC has been South Africa’s<br />

sole producer of refined copper.<br />

and the mine produces other by-products such as magnetite,<br />

vermiculite, sulphuric acid, anode slimes and nickel sulphate.<br />

Chinese investment<br />

Palabora Copper (Pty) Limited<br />

is an incorporated operative<br />

subsidiary of Palabora<br />

Mining Company (PMC), a<br />

copper mine that also operates as a<br />

smelter and refinery complex in Ba-<br />

Phalaborwa Municipality, <strong>Limpopo</strong><br />

Province in South Africa.<br />

The mine is 80% owned by a<br />

Chinese Consortium comprising HBIS,<br />

Tewoo, General Nice and CADFund<br />

through Smart Union Resources<br />

South Africa. The rest of the equity<br />

is jointly owned by the South African<br />

government through the Industrial<br />

Development Corporation (IDC), a<br />

black empowerment consortium,<br />

PMC employees and communities.<br />

Since its incorporation in 1956,<br />

Palabora Copper (PC) has been South<br />

Africa’s sole producer of refined copper,<br />

The Chinese Consortium acquired PC in <strong>20</strong>13 when PC was<br />

facing two possible scenarios: (a) culmination of the life-ofmine<br />

and (b) no overhauling of the smelter which was outdated<br />

and facing shutdown. The first scenario would have resulted<br />

in the loss of employment for more than 3 500 employees<br />

(direct and indirect) while the second scenario would have<br />

led to the loss of jobs for more than 700 off-stream employees<br />

at the smelter.<br />

Soon after the sale transaction, the new owners fostered<br />

partnerships between PC and Chinese companies in areas<br />

such as economic development, trade, skills and technology<br />

transfers to achieve ground-breaking and substantive results<br />

in extending the life-of-mine, refurbishing the smelter and<br />

building a floatation plant.<br />

To this end, the Chinese Consortium approved R10.4-billion<br />

to extend the life-of-mine to beyond <strong>20</strong>33, R878-million to<br />

refurbish the smelter to ensure that PC continues to produce<br />

copper rod, and R199-million to construct the floatation plant<br />

to improve copper recoveries, operational efficiencies and to<br />

reduce operational costs.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

48


PROFILE<br />

Looking into the future<br />

Palabora Copper is undertaking a life-of-mine<br />

extension project known as the Lift II. The project<br />

aims to extend the life of the business up to <strong>20</strong>33.<br />

The project includes the magnetite reclamation<br />

and beneficiation study aimed at creating<br />

additional revenue from the legacy stockpile.<br />

The company committed about R700-million<br />

to the pre-feasibility study and approximately<br />

R10-billion is expected to be spent throughout<br />

the development of the project.<br />

The employer of choice<br />

Since its inception, Palabora Copper has been<br />

at the forefront of employment practices in<br />

the local mining industry. Palabora, which<br />

employs an average of 3 700 employees (Lift<br />

I and II) aims to remain industry competitive<br />

through its favourable conditions of<br />

employment.<br />

This is reflected in the utmost importance<br />

with which the safety and health of<br />

employees is regarded in order to remain efficient<br />

and profitable as a business.<br />

The company has written and developed its<br />

code of ethics to follow strategic imperatives<br />

which include: providing a safe and healthy work<br />

environment for all employees and contractor<br />

employees and practising sound environmental<br />

management to ensure the sustainable<br />

biodiversity of the natural environment within<br />

which it operates.<br />

Palabora Copper acknowledges and respects<br />

its stakeholders’ interest and concerns, striving to<br />

be a leading corporate citizen within the mining<br />

industry and supplying a high standard of quality<br />

products and services, reliably and responsibly,<br />

at national and global level. Palabora Copper is<br />

certified as a Top Employer.<br />

For more information:<br />

www.palabora.com<br />

49 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

PMC’s support for ongoing<br />

sustainability drive is paying off<br />

Palabora Mining Company is an energy-efficiency leader in<br />

the mining sector.<br />

The water quality of the Olifants River (above) and the Selati River are constantly<br />

monitored as part of PMC’s Environmental Management Programme.<br />

Palabora Mining Company’s code of ethics<br />

includes consideration given to the healthy<br />

work environment of employees but also to<br />

ensuring that sound environmental management<br />

is pursued so that the biodiversity of the<br />

natural environment in which PMC operates can be<br />

sustained for many years to come. These are among<br />

the company’s strategic imperatives.<br />

Energy Management Programme<br />

Mining activities are inherently very energy<br />

intensive, so PMC launched an Energy Management<br />

Programme in <strong>20</strong>12 to curb the half-a-billion-rand<br />

energy bill which was continually growing. PMC<br />

collaborated with a consulting company, resulting<br />

in the employment of 12 energy specialists and<br />

project managers who would, in conjunction with<br />

mining personnel, identify, implement and sustain<br />

energy cost-saving projects. As a result, 117 initiatives<br />

were identified. Following stringent technical and<br />

financial adjudication processes, 31 projects were<br />

implemented.<br />

Step 1: Identify energy cost-saving opportunities<br />

and ideas through data collection and process<br />

analysis.<br />

Step 2: Scope the ideas in terms of cost and return.<br />

Step 3: Prioritise the ideas based on ease of<br />

implementation, highest return and least cost.<br />

Step 4: Develop an implementation plan for the<br />

suite of projects submitted to management and<br />

board members for approval.<br />

Step 5: Implement the approved plan.<br />

Step 6: Continuous measurement and verification<br />

of each project’s performance to ensure the<br />

sustainability of the programme.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

50


FOCUS<br />

As a result of adherence to the Productivity<br />

Approach over the past five years the company<br />

has saved R232-million through avoided energy<br />

costs. These consist of:<br />

• Electricity savings worth R181-million<br />

• Coal and liquid fuels savings worth R43-million<br />

• Water savings worth R8-million.<br />

With the help of external funding mechanisms<br />

worth R28-million the Energy Management<br />

Programme had a net benefit of R173-million by<br />

the end of July <strong>20</strong>17.<br />

Palabora Mining Company’s Energy<br />

Management Programme has not only created<br />

a sustainable model but has also emphasised<br />

the company’s standpoint regarding its<br />

environmental responsibility. PMC is now an<br />

energy-efficiency leader in the mining sector.<br />

Going green<br />

The company is a certified ISO 14001<br />

business, that subscribes to worldleading<br />

practices. Located directly<br />

adjacent to the world-renowned ecotourism<br />

attraction, the Kruger National<br />

Park, Palabora Copper coordinates several<br />

onsite wildlife management and cultural<br />

heritage programmes as part of its<br />

ongoing sustainability drive.<br />

Over the past years, Palabora Copper<br />

has retained a record of being one of the<br />

safest mines in South Africa and Africa.<br />

This is particularly due to the stringent<br />

SHEQ regulations and procedures in<br />

place, and the effective management of<br />

contractors on site.<br />

51<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Women of PMC<br />

Experience, skill and drive underpin<br />

three success stories.<br />

A<br />

number of highly motivated women are<br />

making stellar careers for themselves in<br />

mining at PMC and providing inspiration<br />

for scores of other women in the sector.<br />

Matsela Ntsepe: Process Engineering<br />

Manager<br />

Matsela Dolphinah Ntsepe is a chemical engineer with<br />

more than 17 years of experience in diamond, coal<br />

and copper mining. Matsela is Palabora Copper’s (PC)<br />

Process Engineering Manager for the Smelter Retrofit<br />

Project, a position she earned through hard work and<br />

ascending through the ranks. Matsela started her career<br />

as a Metallurgical Trainee and rose through various<br />

levels including System Engineer, Refinery Technical<br />

Metallurgist, Refinery Technical Superintendent,<br />

Concentrator and Magnetite Technical Superintendent<br />

and Refinery Operations Manager.<br />

Matsela’s experience in the mining industry<br />

embraces equipment evaluation and selection, plant<br />

process audits, treatment and optimisation, initiation,<br />

implementation and management of processes,<br />

maintaining and improving safety and financial and<br />

human resources management.<br />

Matsela or “Tsela” serves as the current Chairperson<br />

of the Women in Mining (WiM) PC branch and is an<br />

Ex-Officio Executive Member in the <strong>Limpopo</strong> region.<br />

In addition, Tsela is a member of PC Transformation<br />

Committee and a Trustee of PC Essop.<br />

Matsela holds a National Diploma and B-Tech in<br />

Chemical Engineering from Witwatersrand Technikon and<br />

a Management Development and Financial Management<br />

Programmes from the University of South Africa.<br />

Being able to acquire mining technical qualifications<br />

is hard and being a manager in the mining industry is a<br />

difficult ladder to climb. Matsela has achieved both while<br />

maintaining her humility and promoting the needs of<br />

others. Tsela proved that a woman does not need to<br />

behave like a man to be smart, support other women<br />

and make it in the mining industry.<br />

Matsela Ntsepe: Process Engineering Manager<br />

As the member of the PC Transformation Committee,<br />

Tsela influences and facilitates the direction of PC’s<br />

future strategic transformation agenda. This includes<br />

recommendations on local economic development<br />

projects that take gender mainstreaming and equality<br />

into consideration.<br />

Tsela is a finalist for the <strong>Limpopo</strong> Mine and Safety<br />

Council’s Women Achievers Award and the Standard<br />

Bank Women in Science Award.<br />

Manyabela Mailula: Manager for Training,<br />

Development and Contractor Management<br />

At only 35 years of age, Manyabela Mailula has more than<br />

13 years’ experience in technical research and mining in<br />

countries such as Turkey, Georgia, USA and South Africa.<br />

Manyabela is Palabora Mining Company (PMC) Manager<br />

for Training, Development and Contractor Management.<br />

She holds a National Diploma in Metallurgical<br />

Engineering from Vaal University of Technology, a BTech<br />

in Metallurgical Engineering (Tshwane University of<br />

Technology), Honours in Management of Technology<br />

(University of Pretoria), a Higher Certificate in Education,<br />

Training and Development (University of Johannesburg)<br />

and a Work Place Assessor Certificate from the Drum<br />

Beat Academy.<br />

PHOTO FLURRY PRODUCTIONS PHOTOGRAPHY<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

52


FOCUS<br />

Manyabela Mailula: Manager for Training,<br />

Development and Contractor Management<br />

Manyabela started her career as a Metallurgical Trainee<br />

at ASA Metals (Dilokong Chrome Mine). She joined PMC/<br />

Palabora Copper (PC) as a Smelter Training Officer and<br />

ascended to the position of Operational Readiness<br />

Manager. Manyabela’s current responsibilities include the<br />

development of PC’s training and development strategies,<br />

policies and standards.<br />

Manyabela is the Chairperson of <strong>Limpopo</strong> Region’s<br />

Women in Mining. She is Chairperson of Employment<br />

Equity Skills Development and serves as the member<br />

of the board of Phalaborwa’s Technical and Vocational<br />

Education and Training (TVET) College.<br />

Training and development policies influence how the<br />

company perceives safety, gender parity and employment<br />

equity. Manyabela has used her role at PC to create training<br />

materials that allow for gender freedom and flexibility.<br />

Manyabela is a finalist for the <strong>Limpopo</strong> Mine and Safety<br />

Council’s Women Achievers Award and Standard Bank<br />

Young Achiever of the Year Award. The latter award is for<br />

women who have achieved a lot before the age of 40.<br />

Zani Kutumela: A leader without a title<br />

Zani Kutumela, 35, is an author, social activist,<br />

motivational speaker and mother. She has a BA Degree<br />

in Communications, with majors in English and Journalism,<br />

from the University of Johannesburg.<br />

Palabora Copper (PC) employs Zani on a full-time<br />

basis as an Administrator for the Training Department. Her<br />

work involves interacting with people from diverse social,<br />

political, economic and cultural backgrounds. The majority<br />

interact with PC in order to get some type of assistance<br />

(securing employment or learnership opportunities or a<br />

contract). Zani is required to appreciate socio-economic<br />

dynamics and balance the socio-economic imbalances<br />

which exist in society.<br />

Zani indirectly plays a role in ensuring that PC<br />

training, procurement and learnership opportunities<br />

are in line with the national transformation agenda and<br />

the demands of local communities.<br />

As an author, Zani published a poetry collection<br />

titled Re-routing in <strong>20</strong>18. Her poems criticise gender- and<br />

children-based violence. Other poems in the anthology<br />

speak to her love for Africa and pride in being an African.<br />

As a social and gender activist, Zani is committed to<br />

alleviating poverty and to opposing violence. She has<br />

for the past three years dedicated time and financial<br />

resources to donating food parcels, sanitary towels,<br />

school shoes and blankets to disadvantaged families<br />

and children, of which the majority are women. This<br />

she achieves by asking for donations, and sometimes by<br />

utilising her own limited resources. So far in <strong><strong>20</strong>19</strong>, Zani<br />

has donated 156 pairs of shoes to Zamani Primary School<br />

and 46 winter blankets to Phulabyehola Primary School.<br />

Zani has also adopted Thabelang Disability Centre<br />

based in Makhushane. The Centre houses 56 physically<br />

challenged adults and children from the Phalaborwa<br />

municipal area. Zani regularly donates food parcels and<br />

her commitment has helped attracted sponsorships: a<br />

borehole has been dug and paint donated.<br />

Zani is a finalist for <strong>Limpopo</strong> Mine and Safety<br />

Council’s Best Poverty Alleviation Project Award and<br />

Standard Bank Young Achiever of the Year Award.<br />

Zani Kutumela: Social activist and author.<br />

53 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Addressing<br />

community needs<br />

Electrification, water supply and a crèche upgrade are<br />

recent projects undertaken by Marula Platinum Mine.<br />

Recent initiatives<br />

Marula Platinum Mine is 73% owned by<br />

Implats and is one of the first operations<br />

to have been developed on the<br />

relatively under-exploited eastern limb<br />

of the Bushveld Complex in South Africa. The mine is<br />

in the <strong>Limpopo</strong> Province and employs approximately<br />

3 500 people. Black economic empowerment forms<br />

a key component of the Marula operation, and our<br />

partners together own 27% of the company.<br />

Marula’s social investment strategy focuses<br />

on addressing the needs identified within its<br />

host communities. The mine invests in local<br />

socio-economic development initiatives, drives<br />

transformation, and engages with community<br />

representatives and government officials at all levels.<br />

Makgoma Chrome is a joint venture that assists local<br />

communities with the extraction and marketing of<br />

chrome from tailings.<br />

However, it is through Marula’s core activities<br />

– employing people, paying taxes and procuring<br />

from host communities – that it makes the biggest<br />

contribution to the socio-economic development of<br />

the Sekhukhune District and the <strong>Limpopo</strong> province.<br />

Water supply: The installation of an electric pump<br />

and three JoJo tanks in the Seuwe community in<br />

the Mashibiring section. The pump supplies water to<br />

500 households, approximately 5 000 people in the<br />

village and a nearby crèche and secondary school.<br />

Crèche revamp: Karabo Crèche, an early childhood<br />

development centre in Mashibiring, now consists<br />

of an office, kitchen, sick bay and three additional<br />

classrooms. The donation brings to an end many<br />

years of struggles with the daily running of the centre<br />

because of limited space and inadequate facilities.<br />

Village electrification: The Maahlapa section in<br />

Ga-Mashishi Village has been electrified from the<br />

proceeds of the chrome project. Phase two of the<br />

project will see another 108 houses electrified.<br />

Literacy: Ongoing full-time literacy classes are<br />

provided at the mine, and Marula invests in skills<br />

development through learnerships, short courses<br />

and workplace training.<br />

Supporting local business: Preferential procurement<br />

and investment in enterprise and supplier<br />

development provide important opportunities for<br />

social and economic transformation. During the <strong>20</strong>18<br />

financial year, Marula procured R101-million worth of<br />

goods and services from local companies.<br />

CONTACT INFO<br />

Contact: Alice Lourens, Group Head: Investor<br />

Relations and Corporate Communication<br />

Tel: +27 11 731 9033<br />

Email: alice.lourens@implats.co.za<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

54


ENRICHING LIVES<br />

in many ways<br />

Implats’ commitment to sustainable mining<br />

businesses creates employment and stimulates<br />

local business opportunities and the development<br />

of social infrastructure around its operations.<br />

Implats is proud of its contribution to the<br />

economy and the role it plays in bringing about<br />

economic transformation – enriching lives in<br />

many ways.<br />

Coole Adv 18361


INTERVIEW<br />

Safety first at<br />

Venetia Mine<br />

Gerrie Nortje, General Manager at Venetia Mine, outlines all the<br />

steps that are taken to keep miners as safe as possible.<br />

Gerrie Nortje, General<br />

Manager at Venetia Mine<br />

BIOGRAPHY<br />

Gerrie Nortje began his career<br />

with Anglo American in 1997<br />

as a bursar studying Mining<br />

Engineering. On completion of<br />

his degree, he worked at various<br />

Anglo American Thermal Coal<br />

operations before becoming<br />

Operations Manager at Xstrata.<br />

He re-joined Anglo American as<br />

a Principal Mining Engineer and<br />

transitioned into a Lead Open<br />

Pit Mining role during <strong>20</strong>14 as<br />

a member of the Technical and<br />

Sustainability team. At head<br />

office he was involved with a<br />

variety of projects across the<br />

group’s business units.<br />

What are the key principles behind keeping a<br />

mineoperation safe?<br />

All mines should be constructed and operated as per the design to eliminate<br />

and, where not possible, mitigate risk in every part of the process. Quantifying<br />

the risks to which our employees and communities are exposed forms a key<br />

pillar in Safety Management. Engineering controls remain the most effective<br />

and as a result are the highest on the hierarchy of controls.<br />

At De Beers and Venetia Mine, we pride ourselves in our first value, which<br />

is “Putting Safety First”. This means that all our employees and contractors<br />

are empowered to work safely, stop unsafe work, withdraw from an unsafe<br />

area and escalate any unsafe conditions. This is an expectation from every<br />

employee. The safety culture and one of transparency and collaboration is<br />

absolutely critical. Not tolerating risk and being unconditional about safety<br />

every single day remains paramount in succeeding. Fatigue management<br />

is also important.<br />

What programmes are in place to promote safety?<br />

We have in excess of <strong>20</strong> workstreams focusing on elimination of fatalities.<br />

Controls keep people safe and critical controls keep people alive. We are<br />

improving all our critical controls and verifications.<br />

What are some of your achievements in tackling safety?<br />

Before we talk about successes, we should first reflect on the tragic death<br />

of Maggie Semata on 25 March <strong>20</strong>18 in the ore-processing plant at Venetia.<br />

The loss was devastating for Maggie’s family, everyone at Venetia Mine, De<br />

Beers Group and Anglo American. I have taken a stance that no Venetian<br />

will lose his or her life ever again.<br />

Is Zero Harm achievable?<br />

There is no doubt that Zero Harm is achievable. Some departments at Venetia<br />

have never suffered an injury in 27 years since commencement of operations.<br />

Will mechanisation assist in advancing safety?<br />

Removing employees from harm’s way will remain one of the most effective<br />

measures, so yes it will. Mechanisation and automation play a critical role in<br />

keeping our employees safe. It also provides opportunities for employees<br />

to develop other skill sets.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

56


INTERVIEW<br />

Moving more<br />

Giants<br />

Project aims to translocate 300 elephants.<br />

The second translocation of elephants<br />

from the Venetia <strong>Limpopo</strong> Nature Reserve<br />

(VLNR) in South Africa to Zinave National<br />

Park in Mozambique has taken place.<br />

The first herds of elephants made the 1 700km<br />

road journey to Zinave in the last week of June <strong><strong>20</strong>19</strong>.<br />

The final herds arrived at Zinave on 11 July​, bringing<br />

the total number of elephants moved in <strong><strong>20</strong>19</strong> to 53.<br />

During the first phase of the project, 48 elephants<br />

were translocated. These elephants, moved in family<br />

groups, consisted of matriarchs, younger males and<br />

females, and calves. Those elephants have been<br />

seen integrating with other herds at Zinave and<br />

have been thriving with more space and food now<br />

available to them.<br />

The translocation is part of a major conservation<br />

effort – “Moving Giants” – that aims to move some<br />

<strong>20</strong>0 elephants over three years to secure the future<br />

of the VLNR, which was under threat due to too<br />

many elephants affecting the broader ecosystem,<br />

and to help repopulate Mozambique’s elephant<br />

population.<br />

VLNR is partnering with Peace Parks Foundation,<br />

a transfrontier conservation organisation whose<br />

aim is to re-establish, renew and preserve<br />

large functional ecosystems, and Conservation<br />

Solutions, experts in wildlife management whose<br />

team manage the challenging logistics and<br />

veterinary care of the elephants throughout the<br />

process. Peace Parks co-manage Zinave National<br />

Park with the Mozambique government and have<br />

ongoing responsibility for the wellbeing of the<br />

elephants.<br />

Werner Myburgh, CEO, Peace Parks Foundation,<br />

said, “The future of the African elephant is bleak in<br />

most parts of Africa, except for the southern Africa<br />

region where the outlook on their population<br />

numbers are stable and even, in some cases,<br />

increasing. Zinave National Park in Mozambique<br />

is one of these places and brings hope as a new<br />

founder population is on the rise.”<br />

Anglo American is backing up its investment in<br />

the elephant translocation initiative by providing<br />

Peace Parks with a further US$500 000 investment<br />

from the Anglo American Foundation to enhance<br />

and extend anti-poaching support measures. Peace<br />

Parks has been working with local communities<br />

to ensure that the introduction of the elephants<br />

to the park has a positive impact for their human<br />

neighbours.<br />

57 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Construction and<br />

property<br />

Infrastructure and state housing are<br />

potential markets for builders.<br />

SECTOR INSIGHTS<br />

A provincial theatre is in the<br />

planning stages.<br />

The Risima Housing and Finance Corporation, a division of the<br />

<strong>Limpopo</strong> Development Agency (LEDA), is helping citizens of<br />

the province to become homeowners. Since <strong>20</strong>14, Risima has<br />

assisted 1 037 beneficiaries with loans of up to R1.5-million.<br />

The gap market – people who earn too much to qualify for social<br />

(RDP) housing but don’t earn enough to be granted bonds – is a<br />

hot topic. Opportunities exist, but the risk profile is different. A new<br />

association caters for this subsector, the South African Affordable<br />

Residential Developers Association (SAARDA).<br />

Risima has introduced the Finance Linked Individual Subsidy<br />

Programme, for those earning between R3 501 and R15 000 per month.<br />

Risima and the Department of Cooperative Governance, Human<br />

Settlement and Traditional Affairs (COGHSTA) distribute grants to cover<br />

a deposit or to make up the shortfall between an asking price and what<br />

the applicant can afford.<br />

A non-mortgaged financial product assists government employees<br />

to get a foot on the property ladder. Risima is also exploring cooperation<br />

with mining houses such as Exxaro, Amplats and Northam at Thabazimbi.<br />

The Provincial Government of <strong>Limpopo</strong> has built more than 3<strong>20</strong> 000<br />

houses since 1994. A budget of R3.9-billion has been assigned by National<br />

Treasury towards the <strong>Limpopo</strong> Academic Hospital. Clinics are also<br />

ONLINE RESOURCES<br />

Black <strong>Business</strong> Council in Built Environment: www.bbcbe.org<br />

Construction Industry Development Board: www.cidb.org.za<br />

South African Property Owners Association: www.sapoa.org.za<br />

being built, providing more work<br />

opportunities in the construction<br />

sector. A start has been made on a<br />

provincial theatre, with R15-million<br />

allocated to allow planning for the<br />

project to get underway.<br />

A large development is under<br />

way in Thohoyandou. A 27ha<br />

site is being converted into<br />

Thavhani City which will include<br />

an office park, automotive-related<br />

businesses, private healthcare, a<br />

library, an information centre and<br />

a sports stadium. Thavhani Mall<br />

(pictured) is already functioning.<br />

Its anchor retail tenants include<br />

Woolworths, Edgars, Pick n Pay<br />

and SuperSpar. The partners in<br />

the R1-billion project are Thavhani<br />

Property Investments, Vukile<br />

Property Fund and Flanagan &<br />

Gerard Property Development.<br />

The Enterprise Development<br />

and Finance Division of LEDA not<br />

only offers loans to businesses in<br />

the construction and property<br />

sector but runs specialised<br />

training in vocational skills<br />

such as bricklaying, plastering,<br />

carpentry, plumbing, electrical<br />

and welding.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

58


OVERVIEW<br />

Energy<br />

Large energy users are going off-grid.<br />

The Mogalakwena Mine run by Anglo American Platinum<br />

(Amplats) is a large energy user. The mine’s concentrator relies<br />

on constant and reliable electricity supply. With energy<br />

comprising a significant portion of costs and national utility<br />

Eskom experiencing difficulties in terms of its debt and its ability to supply<br />

reliable power, the mining company is investigating the installation<br />

of a large solar PV project. In early <strong><strong>20</strong>19</strong> the project was at the “request<br />

for interest” stage.<br />

Anglo Platinum has pioneered an underground mining locomotive<br />

powered by a fuel cell. Platinum coating greatly enhances the hydrogen<br />

absorption capacity of fuel cells. Mining group Exxaro is sponsoring<br />

the roll-out of alternative energy near its remote Tshikondeni mine<br />

east of Musina.<br />

Implats is already using natural gas to supply its refinery in Springs.<br />

Phase one of the project will see <strong>20</strong> Doosan fuel cells generating 8MW<br />

of power. The long-term goal is to generate 22-30MW.<br />

The huge Eskom project at Medupi power station is over budget and<br />

behind in implementation. Three of the plant’s six units are operating<br />

(although there have been some problems) and two more will come<br />

on stream in <strong><strong>20</strong>19</strong>. When the plant is completed, the Lephalale area will<br />

become a petrochemical hub and energy complex.<br />

An Energy and Metallurgical Cluster is an important component of<br />

the new Special Economic Zone that has recently been approved at<br />

<strong>Limpopo</strong> Projects<br />

Project MW Location Operational<br />

Tom Burke Solar Park 60MW Lephalale,<br />

ONLINE RESOURCES<br />

Waterberg DM<br />

August <strong>20</strong>16<br />

Witkop Solar 29.68MW Polokwane September <strong>20</strong>14<br />

Soutpan Solar Park 28MW Blouberg,<br />

SOURCE: IPPPP, Provincial Report IV, March <strong>20</strong>17.<br />

Capricorn DM<br />

July <strong>20</strong>14<br />

The provincial government's Green Economy Plan has identified solar<br />

and biomass as the main kinds of renewable energy for <strong>Limpopo</strong>. With<br />

National Department of Energy: www.energy.gov.za<br />

huge silicon reserves in the province, there is also potential to produce<br />

solar Southern panels and African solar Biofuels charges for Association: cell phones. www.saba.za.org<br />

Nine South biogas African digesters Photovoltaic have been installed Industry in Association:<br />

the Vhembe District to be<br />

controlled www.sapvia.co.za by young entrepreneurs trained by the University of Venda. A<br />

group of 31 students is studying Energy Management Systems as part of<br />

the provincial plan.<br />

SECTOR INSIGHTS<br />

The Musina-Makhado Special<br />

Economic Zone (SEZ) will be<br />

a power generator.<br />

Musina-Makhado in the far north<br />

of the province.<br />

The two local municipalities<br />

have been allocated R147-million<br />

by provincial government for<br />

infrastructure upgrades, including<br />

electricity.<br />

The National Department<br />

of Energy’s Renewable Energy<br />

Independent Power Producer<br />

Procurement Programme<br />

(REIPPPP) has been very successful<br />

so far. The three photovoltaic solar<br />

projects located in <strong>Limpopo</strong> have<br />

a combined investment value of<br />

R3.6-billion.<br />

The provincial government’s<br />

Green Economy Plan has identified<br />

solar and biomass as the main kinds<br />

of renewable energy for <strong>Limpopo</strong>.<br />

With huge silicon reserves in the<br />

province, there is also potential<br />

to produce solar panels and solar<br />

chargers for cell phones.<br />

Nine biogas digesters have<br />

been installed in the Vhembe<br />

District to be controlled by young<br />

entrepreneurs trained by the<br />

University of Venda. A group of<br />

31 students is studying Energy<br />

Management Systems as part of<br />

the provincial plan.<br />

Online resources<br />

59 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

National Department of Energy: www.energy.gov.za<br />

Southern African Biofuels Association: www.saba.za.org<br />

South African Photovoltaic Industry Association: www.sapvia.co.za


OVERVIEW<br />

Transport and logistics<br />

The new Musina Intermodal Terminal is operating.<br />

The official opening of the Musina Intermodal Terminal near the<br />

Beitbridge border post is further confirmation of <strong>Limpopo</strong>’s<br />

status as a leader in transport and logistics. Located in the<br />

town of Musina on the N1 highway leading to Zimbabwe, the<br />

terminal is used to move cargo from road to rail.<br />

Warehousing facilities on site make for loading efficiencies in the<br />

main cargoes such as chrome, fertiliser, coal, fuel and citrus. Bulk and<br />

containerised cargo are handled, with an annual capacity of threemillion<br />

tons per annum.<br />

Logistics is a vital feature of the <strong>Limpopo</strong> economy for two reasons<br />

– the province has huge volumes of minerals and horticultural<br />

products to be transported to markets elsewhere and the province<br />

is strategically positioned.<br />

In addition to the N1 highway, the N11 is a primary road corridor and<br />

there are nine provincial road corridors. Freight volumes on the N11 (to<br />

Botswana and Mpumalanga) have increased since <strong>20</strong>06, whereas the<br />

R33 carries less traffic.<br />

The building of the Musina-Makhado Special Economic Zone<br />

(SEZ) will further boost <strong>Limpopo</strong>’s importance as a transport and<br />

logistics hub.<br />

Roads Agency <strong>Limpopo</strong> (RAL), of which the provincial government<br />

is the sole shareholder, accounts for about a third of the budget of the<br />

<strong>Limpopo</strong> Department of Public Works, Roads and Infrastructure. It<br />

has been successfully focussed on tackling a backlog of infrastructure<br />

maintenance, but it has also created partnerships with the national<br />

roads agency and private companies to deliver roads.<br />

The South African National Roads Agency Limited (SANRAL) is<br />

involved in two major road projects in support of the Musina-Makhado<br />

SEZ. The N1 is to be re-routed and a new single carriageway created in<br />

the Musina CBD. A bypass into ZCC Moria, the site of huge gatherings<br />

every Easter, has been completed. Elsewhere, RAL is working with<br />

Implats to build 17km of road near the company’s Marula mine.<br />

SECTOR INSIGHTS<br />

The Great North Transport<br />

company runs more than<br />

500 buses.<br />

Since <strong>20</strong>14, some R2.6-billion<br />

has been spent by the provincial<br />

government on building bridges<br />

and upgrading gravel roads to tar.<br />

Polokwane is the site of<br />

major investments in transport<br />

infrastructure. SANRAL is building<br />

a R640-million ring road and a bus<br />

rapid transport system is being<br />

introduced to the provincial<br />

capital. The scheme is called<br />

Leeto la Polokwane. Within the<br />

province more broadly, 22.6% of<br />

households in <strong>Limpopo</strong> use bus<br />

transport and 45.8% use taxis<br />

(<strong>20</strong>13 Household Travel Survey).<br />

Outside Polokwane, the towns<br />

of Tzaneen, Lephalale, Burgersfort<br />

and Musina (a border post with<br />

Zimbabwe) are all important in<br />

the field of logistics.<br />

Great North Transport falls<br />

under the <strong>Limpopo</strong> Economic<br />

Development Agency. The<br />

company has more than 500<br />

buses, covers about 36-million<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

60


OVERVIEW<br />

kilometres every year on 279 routes, employs more than 1 <strong>20</strong>0 people<br />

and transports 37.6-million passengers.<br />

In addition to ownership of Great North Transport buses, the<br />

provincial government has 26 private bus subsidy contracts. In <strong>20</strong>18/19,<br />

R737-million was spent on bus subsidy services.<br />

South Africa’s major logistics companies have facilities in Polokwane,<br />

and some have warehouses and forwarding facilities in other parts of the<br />

province. RTT has offices in Makhado. <strong>Limpopo</strong>’s biggest exports (minerals<br />

and fruit and vegetables) require dramatically different levels of handling.<br />

Minerals are poured in great volumes into the freight trucks of Transnet<br />

Freight Rail (TFR) and taken onward to Richards Bay Coal Terminal.<br />

Companies such as Freezerlines, Fast ‘n Fresh and Cold Chain have<br />

developed specialist techniques in getting delicate fruits to market and<br />

to port undamaged. Grindrod has a Perishable Cargo division which<br />

specialises in transporting cargo by air.<br />

The large national logistics company Value Group has only four major<br />

regional depots outside Gauteng: in Cape Town, Durban, Nelspruit –<br />

and Polokwane. This illustrates the importance of the <strong>Limpopo</strong> Province<br />

and its capital city in the national logistics chain.<br />

IMPERIAL Logistics Southern Africa has 70 companies in its group<br />

structure, including Kobus Minaar Transport, a firm that began in<br />

Tzaneen transporting fruit and vegetables. Other active companies<br />

ONLINE RESOURCES<br />

Gateway Airports Authority <strong>Limpopo</strong>: www.gaal.co.za<br />

<strong>Limpopo</strong> Economic Development Agency: www.lieda.co.za<br />

<strong>Limpopo</strong> Department of Public Works, Roads and Infrastructure:<br />

www.dpw.limpopo.gov.za<br />

<strong>Limpopo</strong> Department of Transport: www.ldot.gov.za<br />

Roads Agency <strong>Limpopo</strong>: www.ral.co.za<br />

Transnet Freight Rail: www.transnet.net<br />

in <strong>Limpopo</strong> include Dawn Wing<br />

Logistics, Kargo, F&R Logistics and<br />

Aramex SA.<br />

Polokwane International Airport<br />

(PIA) is wholly owned by the<br />

provincial government and run by<br />

the Gateway Airport sAuthority Ltd<br />

(GAAL), an agency of the <strong>Limpopo</strong><br />

Department of Transport. It has<br />

the potential to be an important<br />

regional cargo airport.<br />

SA Airlink caters mainly to the<br />

business market and offers 21<br />

flights to Johannesburg six days<br />

a week. The airline also provides<br />

links between Phalaborwa and<br />

Johannesburg, and between<br />

Hoedspruit and Johannesburg<br />

and Cape Town.<br />

Many game reserves have<br />

airstrips and regional airports in<br />

the eastern part of the province<br />

provide easy access to the Kruger<br />

National Park. Eastgate Airport at<br />

Hoedspruit is close to the Orpen<br />

Gate. Phalaborwa’s airport is<br />

notable for its African-themed<br />

terminal which includes a zebrapatterned<br />

floor. Musina, near the<br />

border with Zimbabwe in the<br />

north, hosts the province’s other<br />

regional airport.<br />

61 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


PROFILE<br />

Gateway Airports<br />

Authority Limited<br />

Accelerating change to improve aviation.<br />

Gateway Airports Authority (SOC)<br />

Limited (GAAL) is a strategic entity of<br />

the <strong>Limpopo</strong> Department of Transport.<br />

It has the fundamental responsibility of<br />

providing passenger and cargo services through its<br />

airport, Polokwane International Airport, while also<br />

providing aviation support services.<br />

The geographical location of the province<br />

provides the airport with numerous business and<br />

economic opportunities. <strong>Limpopo</strong> Province, which<br />

is the Gateway to the rest of Africa, shares borders<br />

with Botswana, Zimbabwe and Mozambique. The<br />

airport is therefore a strategic entity to boost and<br />

to benefit from trade relations between South Africa<br />

and the rest of Africa.<br />

GAAL’s annual performance plan for <strong>20</strong>18/19<br />

shows a clear understanding of the priorities of<br />

the <strong>Limpopo</strong> Provincial Government; purposefully<br />

to contribute towards the growth of the provincial<br />

economy and the creation of employment<br />

opportunities in line with the <strong>Limpopo</strong><br />

Development Plan.<br />

Customer services targets as set out in the annual<br />

performance plan will ensure the success of the<br />

ultimate strategic objectives as set out by GAAL.<br />

Polokwane International Airport welcomes<br />

thousands of business people and visitors to our<br />

province annually. Our airports welcome millions of<br />

business people and visitors to our country. We are<br />

proud that our world-class infrastructure supports<br />

economic growth, job creation and contributes to<br />

the tourism value chain.<br />

Commitments<br />

GAAL is committed to running the airport efficiently<br />

and ensuring we remain relevant while contributing<br />

towards the province’s economy.<br />

GAAL is also committed to addressing the<br />

challenges to increase the frequency and number<br />

of flights as well as utilising bigger aircraft to<br />

unlock the latent demand in <strong>Limpopo</strong> and to build<br />

a culture of flying to complement the prevailing<br />

road travel preferences. GAAL is committed to its<br />

corporate social investment and to live up to its<br />

corporate citizenship responsibilities and to deliver<br />

on the plans and targets put forward in the annual<br />

performance plan.<br />

All of these commitments are made with the<br />

prime objective of accelerating change in order to<br />

improve aviation in <strong>Limpopo</strong>.<br />

CONTACT DETAILS<br />

Physical address:<br />

N1 North Makhado Road<br />

Gateway Drive<br />

Polokwane<br />

0700<br />

Postal address:<br />

PO Box 1309, Polokwane, <strong>Limpopo</strong> 0700<br />

Tel: +27 15 288 0122<br />

Email: marketing@gaal.co.za<br />

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

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

62


Leading the growth of the<br />

aviation industry in <strong>Limpopo</strong><br />

The Gateway Airports Authority Limited (GAAL) provides aviation<br />

services and maintains the Polokwane International Airport.<br />

Mission Statement<br />

• To operate and develop public<br />

airports within the province of<br />

<strong>Limpopo</strong><br />

• To create an intra-<strong>Limpopo</strong> flight<br />

operations network to feed<br />

Polokwane International Airport<br />

(PIA)<br />

• To develop PIA as the hub of the<br />

SADC region and the north region<br />

of South Africa<br />

• In collaboration with our key<br />

stakeholders, to stimulate economic<br />

and social development for the<br />

people of <strong>Limpopo</strong>.<br />

GAAL core values<br />

Passionate - Living our values and pursuing<br />

our goals, shared vision and commitment<br />

to our mission with passion<br />

Integrity - Enabling trust and respect in<br />

all our actions by doing the right actions<br />

all the time and being accountable and<br />

ethical<br />

Agility - Ability to move quickly, easily and<br />

accurately in compliance with aviation and<br />

other applicable legislations<br />

Commitment - Appetite and thirst for new<br />

challenges, and caring for the business’<br />

success<br />

Customer-centric - Providing innovative<br />

all-round service delivery to the customer<br />

needs and positive experience<br />

Tel: +27 15 288 0122 | Website: www.gaal.co.za


MESSAGE<br />

<strong>Limpopo</strong>’s airport<br />

authority is exploring<br />

business opportunities<br />

GAAL’s new CEO, Masingita Baloyi, envisages turning the Polokwane International Airport<br />

into a hub for airfreight and passengers by setting up a feeder network for all the airports<br />

within the province.<br />

GAAL CEO, Masingita Baloyi<br />

BIOGRAPHY<br />

Masingita has a wealth of<br />

experience in aviation. He<br />

holds a bachelor’s degree in<br />

Administration from the University<br />

of <strong>Limpopo</strong> and a programme<br />

in e-Commerce from UNISA<br />

Graduate School of <strong>Business</strong><br />

Leadership. He is currently<br />

studying for a Master of <strong>Business</strong><br />

Leadership. Masingita has worked<br />

at the University of Johannesburg,<br />

South African Airways (cargo and<br />

revenue management) and First<br />

Rand Bank. He was GM: Human<br />

Resources of the Independent<br />

Development Trust. Before joining<br />

GAAL, he was a management<br />

consultant at ATA Research.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

The Gateway Airports Authority Limited is a state-owned company<br />

under the custody of the <strong>Limpopo</strong> Department of Transport. Despite<br />

the entity’s listing as a schedule 3D public enterprise in terms of the<br />

Public Finance Management Act, it is administered in accordance with<br />

the Companies Act of <strong>20</strong>08’s scope and limitations. GAAL’s mandate is derived<br />

from its articles of association dated 29 March 1995, which is for GAAL to act as<br />

airport manager and administrator within the province.<br />

GAAL seeks to create prolific business opportunities to better maximise<br />

the utilisation of its assets and resources so as to generate sufficient revenue<br />

to be a financially sustainable entity that generates modest profits. Among<br />

other prospective business opportunities are the plans the entity has to lease<br />

45 hectares of land to potential investors for business opportunities that<br />

will be in support of the growth, development and operations of the entity.<br />

The entity is also currently looking to secure alternative passenger and/<br />

or commercial airline operators as well as increase routes from OR Tambo<br />

International Airport to other airports such as Lanseria, Cape Town International<br />

Airport and King Shaka International Airport on a 1, 5, 7 schedule.<br />

Another business prospect that the entity is looking to secure is that of<br />

a reputable restaurant that will operate from the Polokwane International<br />

Airport. Such business prospects will allow the entity to make the Polokwane<br />

International Airport an optimally functioning airport that serves the needs<br />

of its clientele.<br />

Infrastructure<br />

The airport has successfully installed positive pressure ventilators in the airside<br />

as well as upgraded and maintained its runways and lights. Other completed<br />

developments include the construction of the JOC operating centre. An<br />

infrastructure development that is currently still in the supply-chain process is<br />

that of upgrading and maintaining the airport’s board signages.<br />

Aeronautical services<br />

This service focusses on all airline operations, including private chartered flights.<br />

Non-aeronautical services<br />

This service includes: general aviation, car rentals, travel agencies, retail stores,<br />

aviation fuel supply, hangars and office rentals.<br />

64


Celebrating Nelson<br />

Mandela 100: Creating<br />

Legacies Towards<br />

World-Class Public<br />

Transport<br />

FOCUS<br />

Leeto la Polokwane increases momentum for faster, more inclusive<br />

growth that heralds an economic transformation in a sustainable way.<br />

By Musa Ndlangamandla<br />

A new study of transport systems in 35 major cities around the<br />

world has revealed that an efficient public transport network can<br />

provide these cities with an economic value of up to R3-trillion<br />

($238-billion) annually by <strong>20</strong>30. The best transportation systems<br />

are those in cities that can move people quickly, efficiently and<br />

comfortably to their destination. This is according to Londonbased<br />

consulting firm Credo, which conducted The Mobility<br />

Opportunity study.<br />

Like other leading cities, the City of Polokwane is already<br />

achieving this with the roll-out of an Integrated Rapid Public<br />

Transportation System (IRPTS) that features modern infrastructure,<br />

easy connections across various modes of transportation, and,<br />

above all, a clear strategy of how to meet future needs.<br />

Executive Mayor of Polokwane Councillor Thembisile<br />

Nkadimeng, above, asserts that an efficient and cost-effective<br />

As South Africa gears itself to<br />

be the next big emerging<br />

market story of <strong>20</strong>18<br />

(according to Goldman<br />

Sachs), the public transport sector is<br />

at the heart of reigniting economic<br />

growth and investment to ensure<br />

sustainable livelihoods.<br />

65<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

public transport system not only connects<br />

people to daily life but also spurs socio-economic<br />

development, sustainable job creation and improved<br />

access to markets.<br />

The City of Polokwane was chosen by the<br />

government, through the National Department<br />

of Transport (NDoT) to be among 13 cities in South<br />

Africa to introduce the Integrated Rapid Public<br />

Transport Network (IRPTN). For Polokwane the<br />

vision has found expression in the multi-modal<br />

transport service aptly called “Leeto la Polokwane”<br />

– It is Our Journey.<br />

The project is implemented in phases with<br />

Phase 1 covering the Central <strong>Business</strong> District and<br />

Seshego corridor. The project has resulted in the<br />

construction of a trunk route and the upgrading of<br />

road infrastructure.<br />

The majority of road infrastructure has been<br />

constructed, including the following:<br />

• a trunk route between Seshego and the City<br />

• trunk extensions<br />

• feeder routes<br />

• feeder stops<br />

• non-motorised transport (NMT) infrastructure<br />

• a control centre at the new Peter Mokaba<br />

Stadium<br />

• a layover facility<br />

• Leeto la Polokwane is characterised by<br />

dedicated bus lanes, modern buses, smartcard<br />

payment systems, modern bus stations that<br />

are safe and comfortable, and a control<br />

centre to speed up public transport and give<br />

passengers a better quality of service<br />

• Go-Live <strong><strong>20</strong>19</strong> will in the interim operate<br />

kerbside until the depot and bus station are<br />

ready. Buses will in the interim be operated at<br />

the layover facility.<br />

“We are well on track towards our Go-Live targets.<br />

We have set our sights on delivering the high-quality<br />

public transportation infrastructure that the City<br />

of Polokwane, and indeed the greater <strong>Limpopo</strong><br />

Province, needs to build and sustain a more productive<br />

economy. The progress that has been made so<br />

far in the implementation of Leeto la Polokwane is<br />

testimony to this,” says Executive Mayor Nkadimeng.<br />

“We will ensure that the people of Polokwane<br />

benefit fully from this project, through job<br />

opportunities, skills transfers and meaningful<br />

participation through stakeholder engagement.”<br />

Honouring Nelson Mandela and<br />

Albertina Sisulu<br />

Executive Mayor Nkadimeng adds that Leeto la<br />

Polokwane was one with South Africa in honouring<br />

the Nelson Mandela and Albertina Sisulu Centenary.<br />

“The central theme for this year is to celebrate<br />

these great leaders and keep their legacies alive<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

66


FOCUS<br />

by making an individual and collective<br />

contribution towards the attainment of<br />

a South Africa where everyone has equal<br />

opportunities for self-determination.<br />

As Leeto la Polokwane we note and<br />

acknowledge the cooperation and support<br />

of the people we serve. Such partnerships<br />

and dedication to a better South Africa<br />

continue to ensure that the project remains<br />

on course for Go-Live. These achievements<br />

are also a testament to the hard work and<br />

dedication that the City has tackled this<br />

project with,” she says.<br />

Interaction with taxi and bus<br />

owners<br />

Since inception of the project in <strong>20</strong>12, the<br />

municipality has ensured proper and active<br />

stakeholder engagement. The taxi and bus<br />

industry is among the key stakeholders<br />

which fully participate in and benefit from<br />

the total value chain and wealth creation of<br />

the transportation industry.<br />

“An MOA has been signed between the municipality<br />

and the four Taxi Associations involved in Phase 1&2 of<br />

the project. Working with the University of <strong>Limpopo</strong>’s<br />

Turfloop Graduate School of Leadership (TGSL), owner<br />

members were trained on the Taxi Industry Capacitation<br />

Programme with modern business and operational skills<br />

in order to create the space and capacity to ensure<br />

a successful integrated transport system for our city<br />

and value-add for the entire industry,” Executive Mayor<br />

Nkadimeng says.<br />

In <strong>20</strong>17, the TGSL programme successfully offered<br />

professional business development training to<br />

approximately 100 taxi owners across Flora Park-<br />

Pietersburg, Moletjie, Seshego-Polokwane and<br />

Westernburg Taxi Associations in Polokwane.<br />

Participants received a Professional Certificate in<br />

<strong>Business</strong> Management Skills for the Public Transport<br />

Sector upon completion. The programme comprises four<br />

modules, namely: Introduction to General Management;<br />

SA Companies Act and Corporate Governance;<br />

Communication, Problem-solving and Negotiation Skills;<br />

and Introduction to Public Transport Management.<br />

“We have also seen the signing-off of the Great North<br />

Transport (GNT) Market Survey Results in October <strong>20</strong>17, as<br />

an important milestone which presents the municipality<br />

67<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

THE TAXI<br />

INDUSTRY IS<br />

AN IMPORTANT<br />

STAKEHOLDER<br />

WITH A WEALTH<br />

OF EXPERIENCE,<br />

KNOWLEDGE AND<br />

VESTED INTEREST<br />

IN THE SUCCESS OF<br />

THE PROJECT<br />

with a clear picture of the market share of GNT, a significant<br />

partner in the Leeto la Polokwane project. I want to<br />

emphasise that the GNT is an important stakeholder with<br />

a wealth of experience, knowledge and vested interest in<br />

the success of the project. This achievement also serves<br />

as a resource for understanding the value, amount and<br />

number of those affected in Phases 1 and 2 of the project,”<br />

she says.<br />

Through great effort and hard work by the project<br />

team, coupled with cooperation and unity of purpose<br />

with key stakeholders, the following milestones have<br />

been achieved, among others:<br />

• Establishment of the Transportation Directorate and<br />

appointment of a substantive Director of Transport<br />

Services to drive strategy and implementation<br />

• Significant road infrastructure network<br />

upgrades were completed<br />

• Full Non-Motorised Transportation (NMT) Planning<br />

and supporting by-laws/policies, awareness<br />

programmes, integration with donor-funded NDPG<br />

and MIG projects in terms of specifications<br />

• Signing of MOA with industry regarding sitting<br />

allowances<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

68


FOCUS<br />

• Signing of MOA with Great North Transport<br />

• Completion of Market Surveys for GNT and taxi<br />

industry<br />

• System naming<br />

• The utilisation of council land instead of acquisition<br />

of private land<br />

• The same design standards are being used across all<br />

grants in the municipality, eg same NMT on Public<br />

Transport Network Grant (PTNG); and employment<br />

of over 180 workers a month through the Expanded<br />

Public Works Programme (EPWP).<br />

Meanwhile, Executive Mayor Nkadimeng adds that the<br />

systems and processes to deliver a world-class project<br />

were also put in place.<br />

To date 36 Universal (UA) Compliant buses (21 x 12 metre and<br />

15 x 9 metre) have been procured and installed with Automated<br />

Fare Collection (AFC) and Public Transport Management<br />

System (PTMS).<br />

PTMS’s primary aim is to monitor<br />

the movement of public transport<br />

vehicles and increase the comfort of<br />

their passengers around the controlled<br />

urban network. It provides the means<br />

of dynamically monitoring the location<br />

and status of Public Transport Vehicles<br />

to determine performance according<br />

to prescribed route schedules and<br />

to identify any operational problems<br />

quickly. This is an innovative and<br />

complex system which has two major<br />

components: integrated e-ticketing<br />

and Automatic Vehicle Location by<br />

GPS (AVL).<br />

She adds that significant progress<br />

is being made to have a fully-fledged<br />

depot.<br />

“The project is a sustainable package<br />

of measures that will transform our<br />

province into a healthy and effective urban<br />

environment as it integrates Bus Rapid<br />

Transit (BRT) with non-motorised transport,<br />

progressive land-use approaches and carrestriction<br />

interventions,” Executive Mayor<br />

Nkadimeng says.<br />

“This has spurred economic growth<br />

in our city through upgrades in public<br />

physical infrastructure within a wellplanned<br />

spatial context and has ensured<br />

sustainable job creation while ushering in<br />

a clean, green, safe and healthy province.<br />

Such improvements have a positive<br />

impact in promoting local businesses and<br />

stimulating investments.”<br />

At a national level, the project is<br />

aligned with the National Development<br />

Plan <strong>20</strong>30 (NDP). Adopted by all political<br />

parties represented in the National<br />

Assembly, it is government’s blueprint to<br />

eliminate poverty and reduce inequality<br />

by the year <strong>20</strong>30.<br />

The system will go operational before<br />

the end of <strong><strong>20</strong>19</strong>.<br />

69 LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Banking and financial<br />

services<br />

Banking choices are expanding very quickly.<br />

The first new banking licence in nearly two decades was<br />

issued in <strong>20</strong>17, to TymeDigital by Commonwealth Bank SA.<br />

The bank will have no physical branches although Tyme’s<br />

Money Transfer product, which it launched in <strong>20</strong>16, is available<br />

at Boxer and Pick n Pay. African Rainbow Capital is the venture’s BEE<br />

partner. The banking licence is the first to be issued since Capitec was<br />

granted a licence by the South African Reserve Bank in 1999.<br />

In a province with a high proportion of rural citizens such as the<br />

<strong>Limpopo</strong>, the prospect of Postbank being upgraded to a full-service bank<br />

is positive news. The current Postbank focusses on taking deposits and<br />

savings accounts. Postbank has secured a R3.7-billion loan to enable it to<br />

open its own loan book. The large geographical footprint of the Post Office<br />

will make the bank easily accessible to even remote parts of the country.<br />

Two other state-owned enterprises are looking to create banks, The<br />

Ithala Development Finance Corporation is an enterprise funder in<br />

KwaZulu-Natal that has applied for a banking licence. At national level,<br />

SECTOR INSIGHTS<br />

South African businesses<br />

are lining up to register new<br />

banking licences.<br />

there is a plan to create a Human<br />

Settlements Development Bank.<br />

The focus will be on financing<br />

housing for poorer households<br />

and for large state-funded<br />

housing projects. Part of the drive<br />

is to integrate cities better and to<br />

combat the legacy of the spatial<br />

divide that apartheid left behind.<br />

The <strong>Limpopo</strong> Economic<br />

Development Agency intends<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

70


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OVERVIEW<br />

establishing a local life insurance company. These initiatives aim to make<br />

banking more accessible for rural communities and to make finance more<br />

readily available to small and micro-sized businesses. Trying to integrate<br />

small business into the mainstream economy is a major goal of national<br />

and provincial governments in South Africa.<br />

VBS Mutual Bank, one of three mutual banks in South Africa, was<br />

placed under curatorship in <strong>20</strong>18. The appointed curator was not able<br />

to confirm all deposits. In the lead-up to the bank not being able to<br />

meet its commitments, municipalities had been making deposits to the<br />

bank although these violated restrictions put in place by the National<br />

Treasury. VBS began life as the Venda Building Society in 1982. The Public<br />

Investment Corporation held 34% of equity.<br />

To support entrepreneurial students, the University of <strong>Limpopo</strong><br />

has set up the <strong>Limpopo</strong> Student Seed Fund together with the SAB<br />

Foundation. The signing ceremony for the fund is shown in the<br />

photograph on the previous page. Support will be offered to businesses<br />

that promise to find solutions to social problems such as unemployment<br />

and hunger.<br />

Ubank is owned by a trust that is managed by the Chamber of Mines<br />

and the National Union of Mineworkers (NUM). It has about 100 branches<br />

and a strong presence in <strong>Limpopo</strong> because of its focus on the mining<br />

sector. Ubank has about half-a-million clients.<br />

South Africa’s four big retail banks (Nedbank, Absa, Standard Bank<br />

and First National Bank) have a solid presence in the major towns in the<br />

province. Agriculture is an important focus area for banks and so they<br />

have established specialised units such as Nedbank Agribusiness. Focus<br />

areas for this unit are agronomy (grain, oil seeds, sugar and cotton),<br />

livestock (including game farming), horticulture (fruit and vegetables, for<br />

example), and secondary agriculture which covers agricultural processing<br />

and storage.<br />

The two most active agricultural companies in <strong>Limpopo</strong> are both<br />

registered financial service providers. NTK, a subsidiary of the Free<br />

State-based VKB, has access to lending for farmers and insurance<br />

products. Afgri offers the same services under the brand Unigro, and<br />

it has another service called Gro Capital Financial Services which offers<br />

ONLINE RESOURCES<br />

National Credit Regulator: www.ncr.org.za<br />

Office of the Auditor-General of South Africa: www.agsa.co.za<br />

Post Bank: www.postbank.co.za<br />

South African Institute for Chartered Accountants:<br />

www.saica.co.za<br />

more sophisticated products such<br />

as trade finance, foreign exchange<br />

and currency, and interest rate<br />

hedging.<br />

Banks are actively working to<br />

sign up more of the unbanked<br />

population. Nedbank has Approveit,<br />

which allows customers<br />

to accept or reject an Internet<br />

transaction by cellphone. Nedbank<br />

also has partnerships with shops<br />

such as Boxer Stores and Pick n Pay<br />

where customers can have access<br />

to financial services in previously<br />

unserviced areas.<br />

Some of Nedbank’s other<br />

innovations include Home<br />

Loans Online Digital Channel<br />

and Market Edge, together with<br />

the Nedbank App Suite. The<br />

Keyona Plus account includes<br />

funeral cover, a loan facility and a<br />

method of transferring money. The<br />

Nedbank4me account is tailored to<br />

the youth market.<br />

The insurance market has<br />

adapted to specific market<br />

segments, including middleincome<br />

earners. A typical example<br />

of a new product is Old Mutual’s<br />

iWYZE medical gap cover,<br />

designed to pay the difference<br />

between what a medical aid<br />

scheme is willing to pay and the<br />

fee of the hospital or doctor.<br />

Relative newcomer, Capitec,<br />

is rapidly moving towards<br />

being part of a Big Five and it<br />

announced in <strong>20</strong>18 that it would<br />

partner with Centriq Life to enter<br />

the insurance market. Capitec<br />

has no fewer than 69 branches<br />

and ATMs outlets in <strong>Limpopo</strong>,<br />

suggesting that its low-cost<br />

banking model is popular.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

72


SMME Development Programme<br />

<strong>Limpopo</strong> Jewellery <strong>Business</strong> Incubator’s SMME<br />

Development Programme identifies jewellery<br />

businesses which need assistance with developing<br />

and growing their businesses. After a needs<br />

analysis interview is conducted, a comprehensive<br />

development and growth plan is put in place.<br />

The entrepreneurs enter a three-year incubation<br />

programme where they are offered business<br />

assistance, training and development, guidance,<br />

mentoring and ongoing support.<br />

.6 CENTER PRODUCTION<br />

jewellery<br />

and the<br />

aim is to<br />

Entrepreneurs who meet the following<br />

sure The its Centre requirements manufactured should its apply: own jewellery<br />

pieces for<br />

Entrepreneurs<br />

exhibitions,<br />

who have<br />

shop<br />

formal<br />

sales<br />

trading<br />

and<br />

jewellery<br />

the<br />

ufactured bridal boutique Interested in town. entrepreneurs The main should aim email is to their<br />

team: boost sales applications and to: also to ensure its<br />

sustainability. Mabatho Malatji: mabatho@slji.org.za or<br />

Frans Nkuna: info@slji.org.za<br />

3.6 CENTER PRODUCTION<br />

Tel: +27 15 293 0214​<br />

Below are Fax: some 086 of 232 the 7348 products manufactured<br />

The Centre manufactured its own jewellery<br />

and repairs by the Centre Production team:<br />

pieces for exhibitions, shop sales and the<br />

bridal boutique in town. The main aim is to<br />

boost sales and also to ensure its<br />

sustainability.<br />

businesses and also those who are trading without<br />

a formal business. Entrepreneurs who have<br />

passion in the jewellery sector with or without a<br />

jewellery qualification.<br />

Who qualifies? South African citizens. Youth and<br />

adults.<br />

The following documents are required for<br />

application: Application letter; CV with supporting<br />

documents; company registration documents (if<br />

applicable); portfolio of evidence.<br />

Benefits include full access to a workshop with<br />

state-of-the-art machinery, business skills training,<br />

mentoring, facilitate access to market and funding.<br />

Technical training is offered in metal, glass beads,<br />

costume and traditional beads.<br />

New physical address:<br />

Seshego Industrial Park, 7 Freedom Drive,<br />

Zone 6, Seshego 0742<br />

Email: info@slji.org.za<br />

Website: www.slji.org.za<br />

Below are some of the products manufactured<br />

and repairs by the Centre Production team:<br />

<strong>Limpopo</strong> Jewellery <strong>Business</strong> Incubator (LJBI) is a jewellery<br />

design and manufacturing business incubator which<br />

is unlocking the potential of technical graduates and<br />

promoting entrepreneurship.<br />

Products illustrated here range in price from R150 to<br />

R550.<br />

The LJBI offers training in jewellery design and<br />

manufacturing and fosters a culture of entrepreneurship<br />

among marginalised black communities.<br />

Accreditation and licences:<br />

• Precious Metal Jeweller’s permit<br />

• Member of JCSA<br />

• Full accreditation by MQA<br />

• ISO 9001:<strong>20</strong>15 certificate<br />

• Import and Export permit<br />

• Member of Proudly South African


OVERVIEW<br />

Development finance<br />

and SMME support<br />

Big companies are using their supply<br />

chains to support small business.<br />

SECTOR INSIGHTS<br />

The University of <strong>Limpopo</strong><br />

has started a Seed Fund for<br />

students with business ideas.<br />

Chairman of Zizwe Opencast Mining, Howard Maimela, Kgosi<br />

Manotshe Ramokoka and senior general manager of Amandelbult<br />

Complex, Patrick Morutlwa.<br />

The provincial government, through its departments and<br />

agencies, has since <strong>20</strong>14 given financial support amounting<br />

to more than R51-million to 1 <strong>20</strong>0 co-operatives. In the same<br />

period, R193-million was provided to SMMEs.<br />

In partnership with the Small Enterprise Development Agency (Seda),<br />

the provincial government has established a construction incubation<br />

centre at Steelpoort in Sekhukhune to train emerging contractors. A<br />

jewellery incubation centre in Polokwane trains young jewellery makers.<br />

Local, provincial and national government have all committed to<br />

spending more of their budgets through small businesses and cooperatives.<br />

The <strong>Limpopo</strong> Provincial Government reports that in <strong>20</strong>17,<br />

government departments paid invoices within 30 days 96% of the time.<br />

The University of <strong>Limpopo</strong> has launched the <strong>Limpopo</strong> Student<br />

Seed Fund which aims to promote social innovation among students.<br />

Sponsored by the SAB Foundation, the new fund will see R400 000<br />

distributed to students whose businesses tackle social issues such as<br />

hunger, violence and unemployment.<br />

A concerted strategy to strengthen and develop the economies of<br />

the townships and villages of <strong>Limpopo</strong> has been launched. Spearheaded<br />

by the <strong>Limpopo</strong> Economic<br />

Development Agency (LEDA), a<br />

unit of the <strong>Limpopo</strong> Department<br />

of Economic Development,<br />

Environment and Tourism (LEDET),<br />

the plan has eight focus areas<br />

which include making licences<br />

and permits easier to obtain, that<br />

government departments buy<br />

from small, medium and microenterprises<br />

(SMMEs), indigenous<br />

products are supported and<br />

protected, and encouraging small<br />

businesses to support one another<br />

through the clustering approach.<br />

The revitalisation of the<br />

Seshego and the Nkowankowa<br />

Industrial Parks is intended to<br />

boost the local economy, with<br />

SMMEs expected to benefit the<br />

most. The National Department of<br />

Trade and Industry has committed<br />

R21-million to revitalising the<br />

Seshego Industrial Park which will<br />

provide trading and storage space<br />

for businesses of all sizes.<br />

LEDET has signed<br />

memorandums of understanding<br />

with the South African Bureau<br />

of Standards (SABS) and with<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

74


OVERVIEW<br />

Productivity South Africa. These agreements aim to help SMMEs within<br />

the province become more competitive. Ten SMMEs and 10 co-operatives<br />

are currently being assisted. LEDA intends establishing a bulk-buying cooperative.<br />

The plan is to enlist more than <strong>20</strong>0 members whose collective<br />

buying power will give them an advantage in purchasing stock.<br />

The National Department of Small <strong>Business</strong> Development (DSBD)<br />

has several programmes to assist SMMEs and co-operatives. These<br />

include:<br />

• The Black <strong>Business</strong> Supplier Development Programme, a costsharing<br />

grant to promote competitiveness<br />

• The Co-operative Incentive Scheme, a 100% grant.<br />

The National Gazelles is a national SMME accelerator jointly funded<br />

by Seda and the DSBD. The aim is to identify and support SMMEs<br />

with growth potential across priority sectors aligned with the National<br />

Development Plan and Seda’s SMME strategy.<br />

Private sector<br />

Large companies in <strong>Limpopo</strong> are supporting new business ventures by<br />

allocating service functions to local businesses and through training<br />

and mentoring.<br />

Anglo American Platinum has extended the contract with Zizwe<br />

Batlase for the provision of strip-mining services at its Amandelbult<br />

Complex. Zizwe Batlase is 51% owned by the local community of<br />

Baphalane through the Baphalane Community Trust, named Batlase.<br />

Since <strong>20</strong>16, Zizwe Batlase has been providing employment, SMME<br />

development, infrastructure development and business opportunities<br />

to local and small businesses in the community.<br />

The Implats Group spent 36% of its procurement budget with<br />

<strong>Limpopo</strong> companies in <strong>20</strong>17/18. The Marula platinum mine alone spent<br />

R54-million on goods and services in the Sekhukhune District where the<br />

mine is located on the eastern limb of the Bushveld Complex.<br />

De Beers Consolidated Mines plays a big role in the economy<br />

of northern <strong>Limpopo</strong> through its Venetia Mine. The company has<br />

ONLINE RESOURCES<br />

Industrial Development Corporation: www.idc.co.za<br />

<strong>Limpopo</strong> Department of Economic Development, Environment<br />

and Tourism: www.ledet.gov.za<br />

National Gazelles: www.nationalgazelles.org.za<br />

Shanduka Black Umbrellas: www.shandukablackumbrellas.org<br />

Small Enterprise Development Agency: www.seda.org.za<br />

Zimele: www.anglozimele.co.za<br />

launched two business incubators<br />

in local municipalities, Blouberg<br />

and Musina. The De Beers<br />

Zimele Venetia Mine <strong>Business</strong><br />

Hub has created more than 495<br />

jobs since it was established to<br />

support entrepreneurs through<br />

low-interest loans, mentorship,<br />

coaching and skills development.<br />

Local procurement has given<br />

chances to 15 local companies, in<br />

fields such as road maintenance,<br />

the canteen, small civils work and<br />

the supply of tyres and batteries.<br />

More than <strong>20</strong> small businesses<br />

are registered as clients with<br />

the Shanduka Black Umbrella<br />

incubator in Lephalale. The<br />

sectors in which these companies<br />

operate range from plant hire<br />

and construction to training and<br />

marketing. Individual mentors<br />

for these enterprises are drawn<br />

from the local TVET college, the<br />

<strong>Limpopo</strong> Economic Development<br />

Agency and private businesses.<br />

The major banks all have SMME<br />

offerings. Standard Bank runs a<br />

Community Investment Fund<br />

and Nedbank offers an enterprise<br />

development product for businesses<br />

with turnovers up to R35-million.<br />

The Seda Technology<br />

Programme (STP) is a key method<br />

of helping businesses scale up to<br />

the point where their products<br />

pass muster in the commercial<br />

world. A jam manufacturer may<br />

need assistance in getting the<br />

necessary health certificates<br />

before being able to sell to a big<br />

retailer, for example. Nachem<br />

Chemical, a company making<br />

cleaning chemicals in the Vhembe<br />

District Municipality, is an example<br />

of a company that has used the<br />

STP to good effect.<br />

75<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


INTERVIEW<br />

Koenie Slabbert<br />

BIOGRAPHY<br />

Koenie Slabbert began his<br />

career as an apprentice in tool,<br />

jig and die-making. Promotion<br />

to Supervisor inspired him<br />

to sign up for training at his<br />

own expense. Courses at<br />

the Production Management<br />

Institute of South Africa led to<br />

a Higher Diploma in Production<br />

Management and a BSc<br />

Honours through the PMI/<br />

University of Hertfordshire. A<br />

Master’s Degree in Operations<br />

Management followed. Before<br />

joining Seda, Koenie was an<br />

industrial engineer at Limac. He<br />

has been Provincial Manager<br />

from June <strong>20</strong>07.<br />

Technology Incubation<br />

Centres are spurring<br />

growth<br />

Koenie Slabbert details how the Small Enterprise Development<br />

Agency in <strong>Limpopo</strong> is helping small businesses.<br />

What is the key business proposition of Seda <strong>Limpopo</strong>?<br />

The Small Enterprise Development Agency (Seda) is an agency of the<br />

Department of Small <strong>Business</strong> Development (DSBD) which provides<br />

non-financial support to small enterprises and co-operatives. Seda<br />

has by far the biggest network of offices in the country. <strong>Limpopo</strong> has<br />

five branches, one in each municipal districts and three co-location<br />

points. Seda has presence in some townships and rural areas and has<br />

programmes targeting youth and women from all sectors.<br />

Seda <strong>Limpopo</strong> supports three Technology Incubation Centres affording<br />

start-ups a well-equipped and protected environment in which to develop<br />

and grow for a period of three years. Incubation has been proven to reduce<br />

the failure rate in the first few years of small enterprises’ cycle.<br />

Seda interventions involve exploring possible new revenue streams,<br />

improving competitiveness and productivity in the business.<br />

Are there particular economic sectors in which you<br />

specialise?<br />

Seda assists all types of business and cuts across a number of sectors<br />

that are key to job creation. These include: agriculture and agroprocessing,<br />

manufacturing, engineering, renewable energy and<br />

services (ICT and tourism). Seda has also prioritised small enterprises<br />

and co-operatives owned by youth, women, people with disabilities<br />

and people in townships and rural areas.<br />

What are the challenges and opportunities for small<br />

businesses in <strong>Limpopo</strong>?<br />

One of the challenges is access to markets; another is access to funding.<br />

There are great opportunities in exporting of primary produce and<br />

value-adding through agro-processing initiatives. Manufacturing and<br />

technology and ICT initiatives are other areas of potential.<br />

Do the branches deal with different kinds of business<br />

support depending on where they are located?<br />

It is very important for Seda to ensure that its branches provide a series<br />

of packaged products and services to assist businesses in various phases<br />

of operation. The dynamics of the economic imperatives will differ from<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong> 76


INTERVIEW<br />

region to region, but Seda has four phases of business<br />

development as offered to its clients:<br />

Seda <strong>Business</strong> Talk provides practical answers and<br />

guidance to potential entrepreneurs wanting to start their<br />

own business and get it right the first time. Assistance<br />

includes: business advice and information; small enterprise<br />

training and seminars; business registration.<br />

Seda <strong>Business</strong> Start provides businesses with<br />

instruments and techniques to plan their operations for<br />

a better chance of success. Focus is placed on: business<br />

planning counselling and support; business incubation;<br />

facilitation of access to finance; basic business skills and<br />

training; introduction to co-operatives course.<br />

Seda <strong>Business</strong> Build focusses on clients who want<br />

to sustain and strengthen their businesses. Assistance<br />

provided: technical support; networking and business<br />

linkages; capacity-building systems and mentorship;<br />

tender advice/procurement; export orientation;<br />

technology transfer; starting and managing a co-operative.<br />

Seda <strong>Business</strong> Grow focusses on clients who wants<br />

to grow their business and expand nationally and<br />

internationally. Assistance provided: export development;<br />

business systems development; co-operative support;<br />

growth strategies; technology transfer.<br />

What are Seda’s key programmes?<br />

• The Export Development Programme develops<br />

export-ready small enterprises that are globally<br />

competitive and able to grow markets<br />

• The Seda Technology Programme seeks to<br />

stimulate economic growth and development<br />

through technology transfer, increasing the<br />

access to and use of technologies and offering<br />

technical support<br />

• The Co-operatives and Community<br />

Public Private Partnership Programme<br />

promotes the establishment and growth of<br />

viable co-operatives and collectively-owned<br />

enterprises<br />

• The EMPRETEC Programme is an integrated<br />

capacity-building programme of UNCTAD<br />

targeting SMEs and entrepreneurial skills.<br />

What is the Seda Technology Programme?<br />

The Seda Technology Programme (STP) is a division<br />

of Seda which focuses on sustainable<br />

enterprise development through technology<br />

business incubation, monitoring, evaluation,<br />

improvement of service and product quality<br />

and standards, and technology-transfer-funding<br />

services and support.<br />

STP seeks to make it easier for small enterprises<br />

to gain access to technology and technical<br />

support, while improving their sustainability<br />

and international competitiveness. STP is a<br />

programme of the Department of Small <strong>Business</strong><br />

Development.<br />

The Incubation Unit is designed to strengthen<br />

technology commercialisation and harness the<br />

entrepreneurship of the technology community<br />

in South Africa.<br />

The Technology Transfer Unit promotes<br />

and facilitates the transfer of technology<br />

that is appropriate, effective and competitive<br />

to small enterprises. The unit offers the<br />

following services: grant funding for the<br />

acquisition of technology, such as equipment<br />

and machinery, to facilitate technology<br />

transfer; improving access to technology<br />

information by small enterprises; improving<br />

access to technology-transfer funding<br />

through structured referrals to the funding<br />

institutions; linking inventors/universities or<br />

science councils with small enterprises or<br />

entrepreneurs with matching needs.<br />

The key mandate of the Quality and<br />

Standards Unit is to ensure that small<br />

businesses have access to Quality Improvement<br />

Programmes that can give small enterprises<br />

a sound foundation to be competitive and<br />

sustainable. The unit offers: management<br />

systems development, implementation;<br />

product testing and product certification;<br />

product design and packaging; SMME<br />

management systems auditing.<br />

Does Seda have programmes to<br />

assist women and youth in business?<br />

We have capacity-building programmes<br />

focusing on women.<br />

77<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Small businesses thriving<br />

through Empretec<br />

programme<br />

Seven years of success.<br />

The Small Enterprise Development<br />

Agency has adopted Empretec, which<br />

is a capacity-building programme of the<br />

United Nations Conference on Trade and<br />

Development (UNCTAD).<br />

The programme aims to promote<br />

entrepreneurship and to enhance productive<br />

capacity and international competitiveness of small<br />

and medium-sized enterprises (SMEs) of developing<br />

countries and economies in transition. The Empretec<br />

programme is designed to provide training,<br />

technical assistance and an institutional base for the<br />

formation, expansion and transformation of SMEs.<br />

The programme identifies promising entrepreneurs,<br />

provides them with training aimed at developing<br />

their entrepreneurial skills and understanding basic<br />

business procedures, assists them in the preparation<br />

of business plans and in obtaining finance for their<br />

business ventures, helps to arrange mutually<br />

beneficial connections with larger national and<br />

foreign companies, and makes available long-term<br />

support systems to facilitate the<br />

growth and internationalisation<br />

of their ventures.<br />

Empretec training sessions<br />

have been proven to have a<br />

positive impact over seven<br />

years. Data shows that the<br />

survival rate of SMEs of<br />

Empretec graduates is almost<br />

twice as high as that of non-<br />

Empretecos, and that over<br />

80% of participants reported<br />

a steady and efficient growth<br />

of their business as a result of<br />

participation in the programme.<br />

Seda <strong>Limpopo</strong> has hosted 10 Empretec sessions<br />

so far and more training sessions will be rolledout.<br />

Empretec promotes a methodology of<br />

behavioural change that helps entrepreneurs<br />

to put their ideas into action and helps fledging<br />

businesses to grow. Innovative, experiential and<br />

competency-based entrepreneurship training<br />

initiatives such as UNCTAD’s Empretec programme<br />

are key components of a dynamic and sustainable<br />

entrepreneurship ecosystem.<br />

As Seda <strong>Limpopo</strong> continues to roll out<br />

the programme in all local municipalities in<br />

the province, the programme also benefits<br />

from the support of many different strategic<br />

partners, including De Beers Venetia Mine and<br />

the National Department of Tourism. Other local<br />

donors and partners are invited to form part of<br />

this opportunity which yields tangible impact<br />

on the lives, businesses and communities of<br />

entrepreneurs.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

78


Seda offices<br />

Seda contacts<br />

Provincial Office<br />

Koenie Seda Slabbert <strong>Limpopo</strong> - Provincial Provincial Manager Mopani Branch<br />

Tel: Office +27 15 287 2940<br />

(located in Tzaneen)<br />

Fax: +27 15 297 4022<br />

Email: Mr kslabbert@seda.org.za<br />

Koenie Slabbert: Provincial Ms Maseje Nchabeleng: Branch<br />

2nd Manager Floor Suite 6, Maneo Building, 73 Biccard Street, Manager Polokwane 0700<br />

Postnet Tel: Suite +27 15 32287 Private 2940 Bag X 9307 Polokwane 0700 Tel: +27 15 306 6400<br />

Fax: +27 15 297 4022<br />

Fax: +27 15 307 2233<br />

Seda Email: Vhembe kslabbert@seda.org.za<br />

Branch<br />

Email:<br />

Mr Marcus Physical Mukumela address: - Branch 2nd Floor Manager mnchabeleng@seda.org.za<br />

Tel: +27 15 960 8700<br />

Nictus Building<br />

Physical address: 2nd Floor<br />

Fax: 086 634 8964<br />

68 Hans van Rensburg Street ABSA Building<br />

Email: mmukumela@seda.org.za<br />

Old Polokwane Mutual Building, Old Group Scheme Offices, Mphephu 13 Danie Road, Joubert Thohoyandou Street 7950<br />

0699<br />

Tzaneen<br />

Seda Capricorn Branch<br />

0850<br />

Mr Peter Capricorn Maredi - Branch Manager<br />

Tel: (located +27 15 290 87<strong>20</strong> in Polokwane) Waterberg Branch<br />

Fax:<br />

Mr.<br />

+27<br />

Peter<br />

15 290<br />

Maredi:<br />

8736<br />

Branch Manager (located in Mokopane)<br />

Email: pmaredi@seda.org.za<br />

Tel: +27 15 290 87<strong>20</strong><br />

Mr Steve Botha: Branch Manager<br />

1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699<br />

Fax: +27 15 290 8736<br />

Tel: +27 15 492 9600<br />

Seda Email: Waterberg pmaredi@seda.org.za<br />

Branch<br />

Fax: +27 15 491 7361<br />

Mr Steve Physical Botha address: - Branch 1st Manager Floor<br />

Email: sbotha@seda.org.za<br />

Tel: Nictus +27 15 Building 492 9600<br />

Physical address: Old Nedbank<br />

Fax: 68 +27 Hans 15 491 van 7361 Rensburg Street Building<br />

Email: Polokwane sbotha@seda.org.za<br />

40 Retief Street<br />

Old<br />

0699<br />

Nedbank Building, 40 Retief Street, Mokopane<br />

Mokopane<br />

0600<br />

Seda Mopani Branch<br />

Vhembe Branch<br />

Martin Rafferty - Acting Branch Manager<br />

(located in Thohoyandou) Sekhukhune Branch<br />

Tel: +27 15 306 6400<br />

Fax: Mr +27 Marcus 15 307 Mukumela: 2233 Branch (located in Groblersdal)<br />

Email: Manager mrafferty@seda.org.za<br />

Mr Sabelo Ntshangase<br />

27 Peace Tel: +27 Street, 15 960 1st Floor, 8700Prosperitas Building, Tzaneen Tel: +27 0850 13 262 9430<br />

Fax: +27 15 962 4285<br />

Fax: +27 13 262<br />

Seda Sekhukhune Branch<br />

Email: mmukumela@seda.org.za Email: sntshangase@seda.org.za<br />

Mr Sabelo Ntshangase - Branch Manager<br />

Physical address: Bindulavhathu Physical address:<br />

Tel: +27 13 262 9430<br />

Email: Office sntshangase@seda.org.za<br />

Building<br />

Mutual Building<br />

Bareki 3rd Mall, Floor Shop No. <strong>20</strong>B, Cnr Chris Wild and Van Shop Riebeek 4 and Street, Office Groblersdal 10, 12 0407<br />

Thohoyandou<br />

Hereford Street<br />

0950<br />

Groblersdal<br />

0470<br />

We have built a strong team in the province made up of 16 <strong>Business</strong><br />

Advisors, two Regional Facilitators and five Information Officers who have<br />

the responsibility of making measurable differences in the businesses that<br />

they assist. This team of <strong>Business</strong> Advisors works closely with a team of<br />

carefully selected service providers who possesses expert knowledge in<br />

different functional areas of business and industry sectors.<br />

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za<br />

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


FOCUS<br />

Local business benefits from<br />

spirit of Chinese investments<br />

and technology exchanges<br />

PMC is supporting progress and development through community initiatives.<br />

BRICS describes the group of Brazil, Russia,<br />

India, China and South Africa working<br />

together to promote development. The<br />

Palabora Mining Company success story<br />

shows that amid cultural differences and global<br />

economic uncertainties, cooperation by companies<br />

from BRICS can create a favourable environment for<br />

growth, technology exchanges and the buiding<br />

of international cooperation in the spirit of BRICS.<br />

Before commissioning and construction of the new<br />

floatation plant at PMC, the executive managers and<br />

senior managers travelled to China for fact-finding<br />

and comparative analysis missions on floatation<br />

plants to be built at the site in <strong>Limpopo</strong>. As part of<br />

resource sharing, skills and technology transfer, the<br />

main Chinese contractor has subcontracted work to<br />

various South African companies.<br />

Skills transfer<br />

Palabora Mining Company’s smelter refurbishment<br />

project and construction of the floatation plant are<br />

being implemented in partnership with China’s<br />

Beijing General Research Institute of Mining and<br />

Metallurgy. In addition to technology transfer,<br />

BGRIMM has contractually committed to employ 90%<br />

of unskilled labour and 80% of the semi-skilled labour<br />

from the Phalaborwa area and transfer new skills to<br />

PC employees who work at the smelter. The aim is<br />

to empower employees to operate and maintain the<br />

refurbished smelter once it is completed.<br />

Community development initiatives<br />

Collaboration between Palabora Copper, the Chinese<br />

Consortium and BGRIMM does not only extend to<br />

tangibles, considerable investments and technology<br />

transfer opportunities, but is also benefitting the<br />

communities of Phalaborwa. Since <strong>20</strong>13, the Chinese<br />

Consortium – through PC – has spent more than<br />

R186.5-million in socio-economic development<br />

initiatives in Phalaborwa. These include:<br />

Enterprise and Supplier Development<br />

Palabora Copper has implemented enterprise and<br />

supplier development programmes to empower<br />

Phalaborwa’s Small, Medium and Micro Enterprises<br />

(SMMEs) to so that they are able to grow and shine<br />

the economic candle of Phalaborwa beyond the<br />

life of PC.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

80


FOCUS<br />

Renovation of schools<br />

Palabora Copper has renovated Block C of Matome<br />

Malatjie High in Maseke Village and painted Lepato<br />

High School in Makhushane to ensure that pupils<br />

study in a conducive environment.<br />

Bus shelters<br />

Palabora Copper has constructed 19 bus shelters<br />

around the Ba-Phalaborwa Municipal area to<br />

ensure that bus users wait for busses in the<br />

shade, considering the heat in Phalaborwa.<br />

Instilling the love of sport<br />

Palabora Copper understands the positive effect<br />

of sports on youth. As a result, Palabora Copper<br />

supports township sporting events and has hosted<br />

several soccer tournaments to instil the love of<br />

sports in the youth.<br />

Construction and rehabilitation of roads<br />

Palabora Copper believes that rehabilitation and<br />

construction of roads signifies the company’s<br />

seriousness about socio-economic development.<br />

Roads are an essential part of human endeavour, a<br />

symbol of progress and development.<br />

In collaboration with the Ba-<br />

Phalaborwa Municipality and<br />

other strategic stakeholders, PC<br />

established a road rehabilitation<br />

project which involves tarring of<br />

roads and streets in Namakgale,<br />

the biggest township in<br />

Phalaborwa.<br />

To date, Palabora Copper<br />

has collaborated with various<br />

strategic stakeholders to<br />

rehabilitate the Ackson<br />

Malatji, Zakes Ngwasheng<br />

and Maphutha Malatji roads.<br />

The amount spent on the<br />

rehabilitation of these roads is<br />

over R44-million.<br />

81<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Turning dreams into<br />

lasting realities<br />

Zimele improves the sustainability of SMEs.<br />

Development Agency (Seda) more than 150<br />

SMEs from Musina and Blouberg benefitted<br />

from business courses.<br />

• The relationship with the National Youth<br />

Development Agency (NYDA) resulted in five<br />

local youth-owned businesses gaining access<br />

to equipment worth R50 000.<br />

• 27 local businesses employing more than 84<br />

people were supported through Enterprise<br />

Development Programmes.<br />

• AWOME (Accelerated Women Owned Micro<br />

Enterprises) was launched in partnership with<br />

the UN Women organisation which aims to<br />

reach 500 women.<br />

Zimele, which means “stand on one’s own<br />

feet” was introduced to local communities<br />

near mines to bring about sustainable black<br />

economic empowerment through the creation<br />

and support of small, medium and micro-enterprises<br />

(SMMEs). In <strong>20</strong>17, De Beers Zimele changed<br />

its strategic focus from being a funding initiative to<br />

one that targets capacity-building and improving the<br />

sustainability of SMMEs.<br />

Over the last three years, De Beers Zimele at<br />

Venetia Mine has made huge strides in supporting<br />

and developing sustainable enterprises though the<br />

Enterprise and Supplier Development programmes.<br />

Measures were introduced to make available<br />

procurement opportunities from the mine to local<br />

businesses.<br />

Enterprise Development<br />

• 52 SMEs have enrolled on an SME incubation<br />

programme with the focus on operational and<br />

financial management and marketing.<br />

• Through partnership with the Small Enterprise<br />

Local procurement and supplier<br />

development<br />

There are now 34 locally owned companies doing<br />

business with Venetia Mine and they employ in excess<br />

of 340 people. The Bussing Empowerment transaction<br />

led to community members now owning 40%<br />

of each of the newly established companies called<br />

Hope Diamond Transport and Millennium Diamond<br />

Transport. They employ more than 1<strong>20</strong> people.<br />

Chibadura Trading was appointed as the supplier<br />

for Venetia Mine LDV tyres, EMV rims and LDV batteries.<br />

Strategic partners Bridgestone and Global Wheel are<br />

providing training.<br />

Aucor <strong>Limpopo</strong> was established in partnership<br />

with the biggest auction company in Africa. In <strong>20</strong>18,<br />

Aucor opened its doors in Bochum. Two locally<br />

owned construction companies were appointed to<br />

do construction on the Venetia Underground Project.<br />

De Beers Group is committed on the journey of<br />

“turning diamond dreams into a lasting reality” for the<br />

communities in which it operates.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

82


New crèche brings joy<br />

Madimbo community receives new facility from Venetia.<br />

FOCUS<br />

On Friday, 26 July <strong><strong>20</strong>19</strong>, De Beers Venetia<br />

Mine handed over the keys to the<br />

newly-built community crèche in the<br />

small village of Madimbo.<br />

The project was undertaken in partnership with<br />

Basil Reed, with the core focus of providing adequate<br />

infrastructure to support childhood development.<br />

The children have now moved from an old fourroomed<br />

house into a big, bright, modern, fullyequipped<br />

building, which is kitted out with a variety<br />

of educational toys and learning resources. Catering<br />

for 126 children between the ages of two and five,<br />

the crèche is also furnished with small plastic tables<br />

and chairs.<br />

Run by principal Precious Mahada, the crèche<br />

strives to educate preschoolers despite a lack of<br />

resources. Mahada said that she could not believe<br />

that the facility is now theirs to operate in.<br />

“As you can see, there are no playgrounds for our<br />

children in our community. Many parents cannot<br />

afford to buy toys for their children, yet toys can<br />

play a big role in a child’s development. This new<br />

crèche will offer them that opportunity, all thanks to<br />

thanks Venetia Mine and their partnering contractor<br />

Basil Reed. Today, I am completely overjoyed and<br />

speechless,” she said.<br />

The new facility is a much safer environment<br />

in which to play and learn. The upgrade is allencompassing,<br />

with everything from the kitchen<br />

to the ablution facilities and classroom being newly<br />

furnished.<br />

Bonani Nyabane, Social Performance Specialist<br />

at Venetia Mine, said, “As De Beers, we are excited<br />

to hand over such a beautiful facility to the most<br />

important members of our society, our children. We<br />

are committed to the development of our children<br />

and will continue to work to ensure that there is an<br />

improvement in the level of education in communities<br />

in which we operate.”<br />

For Mahada, what started as a small request for a<br />

few blankets and toys, turned into something much<br />

greater. “I don’t think there is anybody here who is<br />

not happy about this development. Thank you to<br />

Venetia; I promise to take care of this facility and will<br />

continue to raise these children, care and protect<br />

them,” she said.<br />

The toddlers were visibly excited as they enjoyed<br />

their new play areas and toys.<br />

83<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


FOCUS<br />

Ikefree Projects looks<br />

to take its mission<br />

to a higher level<br />

Patience Nqaba wants to grow the company and create jobs.<br />

Ikefree Projects is a maintenance and services<br />

company that operates in the Musina area and<br />

is growing through its exposure to the De Beers<br />

Zimele programme and opportunities on offer<br />

through the Venetia Mine.<br />

Patience Nqaba, the co-owner of the business,<br />

says that when Ikefree Projects was established about<br />

five years ago, it was with a desire to not only promote<br />

innovation in Musina, but to inspire confidence in the<br />

hearts of unemployed young people.<br />

And when she agreed to kickstart the business,<br />

she admitted the plan was to keep going despite<br />

having encountered difficulties, as she could<br />

clearly see how valuable the business would be<br />

to the community of Musina.<br />

But rather than just keep going, Nqaba has<br />

committed to taking the business to a much<br />

higher level. And with the help of her life partner<br />

and co-owner, Ikemeleng Mokoena, she is driving<br />

Ikefree Projects in doing just that.<br />

“We realised there was a gap and asked<br />

ourselves how we could effectively penetrate the<br />

market. It was not easy but when we came across<br />

the opportunity at Venetia Mine, things started<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

84


FOCUS<br />

picking up. We applied for<br />

a tender, and have never<br />

looked back since,” she says.<br />

The business offers<br />

a full spectrum of civil<br />

maintenance services to<br />

residential and commercial<br />

properties, including<br />

building, painting, plumbing,<br />

carpentry and tiling. Nqaba<br />

says that Ikefree Projects<br />

currently employs 29 skilled<br />

and driven young people to<br />

help the company grow, and<br />

to allow them to improve<br />

their craft.<br />

“A lot of young people<br />

from our community who<br />

are willing to do this kind<br />

of work do not have the necessary tertiary<br />

education but because they have the skills, we<br />

take them on. Right now, we have added four<br />

other young people to join us for a three-month<br />

basis, and even though it is just a short period, I<br />

think they will leave this place more skilled than<br />

before,” she said.<br />

Together, Nqaba and Mokoena are working to<br />

make the business an important part of the ecosystem<br />

in Musina as they have also recently started a food<br />

delivery service in partnership with Nando’s.<br />

“We recently signed a contract with Nando’s to<br />

deliver orders to their customers and are in the<br />

process of approaching other fast food franchises<br />

in and around Musina. This has been one of our<br />

greatest achievements as we continue to receive<br />

positive feedback from them,” she said.<br />

In addition to this, Ikefree Projects signed a<br />

contract with Top 40 JSE company, Tiger Brands,<br />

to provide maintenance services to their property.<br />

“It was purely by chance that we landed the<br />

contract. We conducted some research and<br />

realised they had no maintenance company.<br />

Thereafter, we pitched and presented our<br />

proposal, and they were highly impressed with<br />

our profile as we had listed Venetia Mine as one<br />

of our clients. They then gave us a contract to<br />

renovate an office. As the saying goes, the rest is<br />

history,” says Nqaba.<br />

With the help of the De Beers Zimele<br />

programme, the owners of Ikefree Projects<br />

are now equipped to run the business more<br />

efficiently than before.<br />

“We are continuously trained in interpreting<br />

financial statements and budgeting, and we are<br />

shown how to create provision for unexpected<br />

expenses. We are also guided on how to apply for<br />

tenders and how to market the business better<br />

while complying with the mandatory regulations,”<br />

she says.<br />

Like any business, Ikefree Projects has the broad<br />

goal to be a trusted and sustainable company in<br />

Musina. The business owners are actively laying a<br />

solid foundation that will enable it to do just that.<br />

“The goal is to continue doing what we are<br />

doing but at an even larger scale. Yes, there<br />

will be challenges and equally, there will be<br />

opportunities. And thanks to the exposure<br />

Venetia Mine has given us, we – the small<br />

business that secured a contract with Tiger<br />

Brands – shall continue to move steadily<br />

forward,” she laughs.<br />

85<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


OVERVIEW<br />

Education and training<br />

Training is a key provincial priority.<br />

The provincial government saw to the training of 190<br />

teachers through the Continuous Professional Teacher<br />

Development Programme in <strong>20</strong>17/18. Training was also<br />

provided to 53 curriculum advisors in mathematics,<br />

science and technology (through the Continuous Professional<br />

Development Centre) and 1 141 teachers were trained in numeracy<br />

and mathematics teaching strategies.<br />

In <strong>20</strong>17, libraries were constructed in Eldorado, Rooiberg and<br />

Ramokgopa with the following villages due to receive libraries in <strong>20</strong>18:<br />

Phokwane, Maphalle, Zamani and Mahlabathini.<br />

The province’s relationship with Cuba is paying off handsomely in<br />

that 145 graduates of the medical student programme were working<br />

as doctors in the province in <strong>20</strong>18. A further 328 students are currently<br />

studying in the Caribbean.<br />

Tertiary education and training<br />

There is a plan to establish a Manufacturing Support Centre to<br />

make sure that the right skills are being taught to support industry.<br />

Participants include the <strong>Limpopo</strong> Tooling Initiative Advisory Board,<br />

the Technology Information Agency and universities.<br />

Impala Platinum, with <strong>Limpopo</strong> subsidiary Marula Platinum, has a<br />

partnership with the National Department of Minerals and Energy and<br />

the Da Vinci Institute for Technology Management, which focuses on<br />

the training of black women in the mining industry.<br />

The Medupi Power Station Joint Venture (Grinaker-LTA, Murray<br />

& Roberts and Concor) has a training facility where about 1 300<br />

local people have been trained to qualify for jobs on this complex<br />

building site.<br />

De Beers has established a Skills Development Centre linked to its<br />

Venetia Mine. The centre caters not only to mine employees, but also for<br />

local school pupils and adults from the community of Alldays.<br />

The Sefako Makgatho Health Sciences University is now an<br />

independent university in Gauteng Province and <strong>Limpopo</strong> University<br />

ONLINE RESOURCES<br />

<strong>Limpopo</strong> Department of Education: www.edu.limpopo.gov.za<br />

National Education Collaboration Trust: www.nect.org.za<br />

Turfloof Graduate School of Leadership: www.ul.ac.za<br />

SECTOR INSIGHTS<br />

Local doctors trained in<br />

Cuba are working across the<br />

province.<br />

has a separate Medical School. The<br />

University of <strong>Limpopo</strong> is organised<br />

into four faculties: Humanities,<br />

Management and Law, Science<br />

and Agriculture and Health<br />

Sciences.<br />

University of South Africa<br />

(Unisa) has a regional support<br />

centre in Polokwane and agencies<br />

at Makhado and Giyani.<br />

The University of Venda<br />

for Science and Technology<br />

(Univen) is situated in<br />

Thohoyandou. Univen has eight<br />

schools, with Environmental<br />

Sciences, Agriculture and Rural<br />

Development and Forestry<br />

illustrating the practical emphasis<br />

of the institution. The university<br />

has invested more than R1-billion<br />

over the last decade in new<br />

infrastructure.<br />

There are seven Technical<br />

and Vocational Education and<br />

Training (TVET) colleges in<br />

<strong>Limpopo</strong>: Capricorn College,<br />

Lephalale College, Mopani East<br />

College, Mopani South College,<br />

Sekhukhune College, Vhembe<br />

College and Waterberg College.<br />

The Turfloop Graduate School<br />

of Leadership (TGSL) is based in<br />

Edupark, Polokwane, and offers<br />

three master’s degrees.<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

86


SALGA <strong>Limpopo</strong><br />

PROFILE<br />

A pilot project is promoting rural densification.<br />

The South African Local Government Association is an<br />

autonomous association of all 257 South African local<br />

governments. SALGA comprises a national association with<br />

one national office and nine provincial offices. The SALGA<br />

<strong>Limpopo</strong> Provincial Office is in Polokwane. Membership of the<br />

association is voluntary.<br />

Targeted rural densification programme<br />

Densification is about increasing the intensity with which land is used.<br />

The aim is to create more compact and sustainable settlements by<br />

building more on a smaller geographic footprint. Population distribution<br />

has a major impact on the provision of public amenities and facilities<br />

such as transport, utilities and social infrastructure.<br />

In <strong>Limpopo</strong>, Thulamela Municipality in the Vhembe District<br />

Municipality is being piloted for this project. Thulamela is in the far<br />

north-east of the province and borders the Kruger National Park. The<br />

town of Thohoyandou is a regional centre.<br />

Current challenges<br />

• Unserviceable locations. Due to the remoteness of some of the<br />

settlements, service installation is exacerbated by treacherous terrain.<br />

• Spatially disoriented and economically unviable locations.<br />

Dispersed rural areas are on the periphery of economic<br />

opportunities.<br />

• One-dimensional rural development approach. The current<br />

approach is inordinately focused on capital investment, with<br />

little attention given to addressing structural challenges.<br />

• Discretionary land allocation. There are instances of outdated<br />

methods in the allocation of land by tribal authorities.<br />

Rural densification benefits<br />

Higher densities lead to higher population thresholds which increases<br />

social returns on infrastructure investments. Higher densities also create<br />

CONTACT INFO<br />

Acting Provincial Executive Officer, Ledile Molope<br />

Physical address: 125 Marshall Street, Private Bag X9523,<br />

Polokwane<br />

Tel: +27 15 291 1400 and 082 268 5163<br />

Fax: +27 15 291 1414<br />

Email: lmolope@salga.org.za and mraboshakga@salga.org.za<br />

SALGA <strong>Limpopo</strong> has appointed a<br />

new Acting Provincial Executive<br />

Officer, Ledile Molope.<br />

more viable private investments<br />

and the cost of basic infrastructure<br />

is considerably reduced in a dense<br />

development.<br />

Higher densities create viable<br />

social services based on minimum<br />

population threshold standards,<br />

whereas dispersed settlements<br />

are inextricably linked to poverty<br />

and underdevelopment. An added<br />

benefit is that higher densities<br />

create a significantly lower<br />

environmental footprint.<br />

SALGA’s value proposition<br />

All work on this project is internally<br />

sourced, which is the first time a<br />

specialised service of this nature<br />

has been done internally without<br />

the aid of a service provider.<br />

Cost saving for municipalities<br />

can be achieved in township<br />

establishment applications and<br />

support is offered directly and<br />

quantitatively.<br />

87<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong>


INDEX<br />

INDEX<br />

De Beers Group of Companies — Venetia Mine...................................... 56, 82-85, OBC<br />

Distell ​(Amarula)​.........................................................................................................................................23<br />

Eco-Industrial Solutions​................................................................................................................. 16-21<br />

Gateway Airports Authority Limited (GAAL)​.................................................................... 62-64<br />

Implats​..............................................................................................................................................................54<br />

Leeto la Polokwane​.......................................................................................................................... 65-69<br />

<strong>Limpopo</strong> Eco-Industrial Park...................................................................................................... 16-21<br />

<strong>Limpopo</strong> Economic Development Agency (LEDA) .............................................................. 8<br />

<strong>Limpopo</strong> Jewellery <strong>Business</strong> Incubator.......................................................................................​73<br />

<strong>Limpopo</strong> Office of the Premier​........................................................................................................... 6<br />

<strong>Limpopo</strong> Tourism Agency ​.......................................................................................................... 27-33<br />

Mahlolane Agricultural Products​.....................................................................................................42<br />

MTN​...................................................................................................................................................................... 3<br />

Nedbank​.............................................................................................................................................5, 34, 71<br />

Old Mutual........................................................................................................................................... ​IFC, 36<br />

Palabora Mining Company (PMC)​................................................................................... 48-53, 80<br />

SA Airlink.......................................................................................................................................................​IBC<br />

Small Enterprise Development Agency (Seda)​............................................................... 76-79<br />

South African Local Government Association (SALGA).....................................................87<br />

LIMPOPO BUSINESS <strong><strong>20</strong>19</strong>/<strong>20</strong><br />

88


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VENETIA<br />

UNDERGROUND<br />

PROJECT<br />

The future of South African<br />

diamond mining.<br />

The new US$2 billion Venetia underground<br />

mine ranks as the biggest single investment by<br />

De Beers Group in the South African diamond<br />

industry.<br />

Excavation work for the underground<br />

extension got under way in <strong>20</strong>13, the year<br />

De Beers celebrated its 125th anniversary.<br />

Production is scheduled to begin in <strong>20</strong>22,<br />

climbing to full production in <strong>20</strong>25. Over<br />

the course of its life, the underground mine<br />

will treat about 132 million tonnes of ore<br />

containing an estimated 94 million carats.<br />

The underground project will extend the life of<br />

Venetia mine to <strong>20</strong>46, securing the future for<br />

our host communities.

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