South African Business 2020 edition
A unique guide to business and investment in South Africa. Welcome to the eighth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
A unique guide to business and investment in South Africa.
Welcome to the eighth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. A special feature focusses on the huge potential for growth and job creation which the tourism industry holds. The possibilities presented by the age of renewable energy for the mining industry is the topic of another special feature and the CEO of Minerals Council South Africa responds to a set of questions on the state of mining in the country. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces.
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OVERVIEW<br />
Oil, gas and petrochemicals<br />
<strong>South</strong> <strong>African</strong> ports are gearing up to service the oil and gas industry.<br />
Natural gas lies offshore to the west of <strong>South</strong> Africa in the<br />
Atlantic Ocean (Ibhubesi) and off the southern coast in the<br />
Indian Ocean (Bredasdorp Basin). Both fields have great<br />
potential: Block 2A of the Ibhubesi gas field north-west of<br />
Saldanha is estimated to have reserves of 850-billion cubic feet of gas<br />
and the Bredasdorp Basin one-trillion cubic feet but getting to the gas<br />
has been difficult. In addition, massive new fields are being exploited<br />
off the coast of Mozambique, opening up opportunities in the region<br />
that never existed before.<br />
Anadarko Petroleum, a US company, decided in 2019 to go ahead<br />
with a $20-billion project to build a liquid natural gas (LNG) plant in<br />
Mozambique. The projected spinoffs for the <strong>South</strong> <strong>African</strong> economy<br />
are estimated to top R7-billion. Part of the projected benefit for <strong>South</strong><br />
Africa will be through the access to the project that will come with the<br />
expected involvement of the Export Credit Insurance Corporation of<br />
SA (ECIC). ECIC intends underwriting Standard Bank’s financing of this<br />
and other projects and part of the conditions of such financing deals<br />
is market access for <strong>South</strong> <strong>African</strong> firms.<br />
A new addition to <strong>South</strong> Africa’s pipeline network is a pipe to get<br />
natural gas from Mozambique to Gauteng. SacOil’s R90-billion project<br />
aims to deliver gas to Johannesburg and the nearby towns in <strong>2020</strong>.<br />
Large quantities of oil are transported around Cape Point every<br />
year: 32.2% of West Africa’s oil and 23.7% of oil emanating from the<br />
SECTOR INSIGHT<br />
Coastal Special Economic<br />
Zones are investing in<br />
gas plants.<br />
Middle East. Irrespective of market<br />
volatility, the long-term prospects<br />
for shipping and oil and gas are<br />
strong enough for national government<br />
to pursue Operation<br />
Phakisa (which includes a strong<br />
maritime economy element)<br />
and for Transnet National Ports<br />
Authority to spend heavily on<br />
upgrading the nation’s ports.<br />
In the Western Cape thousands<br />
of direct jobs have been<br />
created in the ship and rig repair<br />
sector of the oil and gas business<br />
and the Saldanha Bay Industrial<br />
Development Zone is being<br />
SOUTH AFRICAN BUSINESS <strong>2020</strong> 68
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