South African Business 2021

Welcome to the ninth 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. This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy. 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. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.

Welcome to the ninth 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.

This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy. 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.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.


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Let’s come together and heal as a nation.

Let’s focus on Renewing, Restoring and Rebuilding

successful partnerships and investment opportunities so we

can get back to promoting our city as the ideal destination

for business and pleasure to the rest of the world.

Your support coupled with our world-class infrastructure,

innovative business environment and ever evolving

investment opportunities, means we can get back to

‘connecting continents’ in no time.



















Tel: +27 31 311 4227

Email: invest@durban.gov.za

web: invest.durban


















The city of

Durban (eThekwini

Municipality) is South

Africa’s second most

important economic














Extensive first-world

road, rail, sea and air



























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and King


International 1

Airport - 60-

year Master

Plan - driving

growth of


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Rated in top 5

‘Quality of Living’

cities in Africa and

Middle East by

Mercer Consulting in


Named one of the

New 7 Wonders Cities

by the Swiss-based

New 7 Wonders

Foundation in 2014









Coega fast-tracking

economic recovery

Cecilia Makiwane Hospital is a large,

provincial, government-funded hospital

situated in the Mdantsane township

of East London, Eastern Cape.

Coega’s expertise in Infrastructure Project Management will help South Africa fast-track

economic recovery amid the Covid-19 pandemic.

The Coega Development Corporation (CDC),

developer and operator of the number-one

Special Economic Zone (SEZ) on the African

continent, namely the Coega SEZ, provides

expertise in the fast and efficient delivery of minor and

mega complex infrastructure development projects

in South Africa and the rest of the African continent.

The CDC has a 20-year proven record in infrastructure

development and facilities maintenance.

“We can assist all government departments to

fast-track the implementation of their infrastructure

projects, amid the coronavirus pandemic challenges,

to stimulate the local economy, lift local SMMEs,

and create job opportunities.

“We are the infrastructure implementing agency

of choice in the country because of our cuttingedge

customised solutions, international best

practices and methodology. Coega has ISO-certified

systems and processes that guarantee

the effective delivery of the projects

within scope, time and budget. We

can even save our clients money through

our project accounting solutions. Our

record of unqualified audit opinion

by the Auditor General of South Africa

on our projects speak for itself,” said

Dr Ayanda Vilakazi, CDC’s Head of

Marketing, Brand and Communications.

Lusikisiki Village Clinic opened by

the President of South Africa, HE Cyril

Ramaphosa, in 2019.

The CDC’s Infrastructure Project

Management Services include:

• Project methodology and system.

• Development of reporting and monitoring


Nolitha Kingsburgh Clinic Primary opened School, by the Honourable Premier

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of Lovu the Town, Eastern KwaZulu-Natal.

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other countries.


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Email: chuma.mbande@coega.co.za

Project Management •



+27 Mr. 43 Chuma 711 1600 Mbande Coega on: is an Infrastructure

Fax: +27 43 721 0210

E-mail: chuma.mbande@coega.co.za

Telephone: +27 43 711 1600

E-mail: chuma.mbande@coega.co.za

Implementing Agency.


Fax: +27 43 721 0210

Telephone: +27 43 711 1600 ISO 9001:2015 ISO 14001:2015 ISO 45001:2018


Fax: +27 43 721 0210

ISO 20000-1:2011 ISO 27001:2013

PRETORIA Address: OFFICE: 145 Herbert Road, East Wood,

145 Herbert Road, East Wood, Arcadia,



Pretoria, Arcadia, 0083

Pretoria 0083

145 Herbert Road, East Wood, Arcadia, •

Telephone: Tel: +27 12 +27 451 12 8300 451 8300

Pretoria, 0083

The Coega E-mail: Development chuma.mbande@coega.co.za

Telephone: +27 12 451 Corporation


Telephone: +27 43 711 1600


Fax: +27 43 721 0210

ISO 9001:201



South African Business 2021 Edition


Foreword 8

A unique guide to business and investment in South Africa.

Special features

An economic overview of South Africa 10

Building a more sustainable future while reducing debt will

require great skill from the country’s leaders.

Provinces of South Africa 16

A snapshot of South Africa’s nine provinces.

Building infrastructure is a

presidential priority 22

Projects worth R340-billion have been gazetted

for implementation.

The Maritime Economy offers blue

water opportunities 32

Contribution to GDP could rise to R177-billion by 2033.

Economic sectors

Agriculture 40

Berry production is up as exports rise.

Mining 44

Exploration is the next frontier.

Energy 56

Solar and wind projects are regularly coming onstream.

ICT 61

Data centres are booming.

Oil, gas and petrochemicals 62

Exploration for gas off the south-eastern coast is hotting up.




SABS - 75 Years of dedication to Quality Compliance

The South African Bureau of Standards supports the industrialisation effort of the dtic.

SABS has an established network of national, regional and international partners that

develop technical solutions adopted as South African National Standards (SANS), this

in return enables business and government to:

Improve the quality of products and services

Enhance competitiveness and access to markets

Ensure that procurement of products and services meet quality standards

Improve the delivery of services underpinned by best practice

and support policy and regulatory objectives

SABS provides services to assist the implementation of best practice solutions

• More than 7000 South African National Standards

• Laboratory Testing Services for a diverse range of Products

• Certification of Companies to Management System Standards

• Certification of Products and the Application of the SABS Mark Scheme

• Training of Management and Employees on Implementations of SANS

• Local Content Verification for South African manufacturing industry

SABS a Trusted Partner in Delivering Quality Assurance.

Contact SABS to establish support for your Standardisation,

Testing, Training and Certification Aspirations.


Water 66

Infrastructure spending will have to be consistently high.

Engineering 70

Many engineering groups are selling off assets.

Construction and property 72

Logistics property is strongly placed for growth.

Manufacturing 74

TFG plans to double manufacturing capacity..

Food and beverages 76

Starch mills are changing hands.

Automotive 78

The automotive sector makes up a third of

South Africa’s manufacturing capacity.

Transport and logistics 80

Decongestion of ports is a priority.

Tourism and events 82

The MICE sector faces special challenges.

Banking and financial services 84

Investors are getting behind fintech.

Development finance and SMME support 86

A new fund aims to make R5-billion available at a fair price.


Key sector contents 38

Overviews of the main economic sectors of South Africa.

Index 88


Sasol One at Sasolburg was established in

1950 and converted from coal gasification

in 2004. It now uses more efficient natural

gas in its production processes of products

such as ammonia, ammonium nitrate,

catalyst, ethylene, mining chemicals,

phenolics, solvents and wax. With more

than 25 000 employees, Sasol is a global

integrated chemicals and energy company

active in 33 countries.





reliability The reliability of forehead of forehead infrared infrared

thermometers in South in Africa South Africa

blic can check The public with the can National check with Metrology the National Institute Metrology of South Institute Africa. of South Africa.

e screening The of people screening using non-contact of people using The non-contact National Metrology The National Institute Metrology of South Institute of South

hermometers has thermometers become one of has the become Africa one (NMISA), of the has established Africa (NMISA), a platform has established where a a platform where a

any striking images many to come striking out images of the to come Team of out Experts, of the representing Team of Experts, the relevant representing public the relevant public

ovid-19 crisis in South Covid-19 Africa. crisis in South Africa. entities as well as private entities calibration as well as laboratories,

private calibration laboratories,

d (forehead) Infrared thermometers (forehead) are thermometers widely are able are to widely review and are able provide to review reliable and responses provide reliable responses

creen people used for to high screen fever, people one for of the high fever, to topical one temperature of the to topical screening temperature related questions. screening related questions.

s of the coronavirus, symptoms of to the identify coronavirus, people to identify A video people on temperature A video screening on temperature is available screening is available

be infected that thereby may be reducing infected the thereby risk reducing and the the Team risk of Experts and the can Team be of contacted Experts can at: be contacted at:

ing the virus of spreading workplaces, the virus schools in workplaces, and www.nmisa.org/Pages/Temperature.aspx.

schools and www.nmisa.org/Pages/Temperature.aspx.

as. Since an public elevated areas. temperature Since an elevated does temperature does

lusively indicate not conclusively a Covid-19 indicate infection, a Covid-19 About infection, NMISA About NMISA

edical evaluation further medical is necessary evaluation to is Mandated necessary by to the Measurement

Mandated by the Measurement

if a person determine is infected. if a person is infected. Units and Measurement

Units and Measurement

Standards Act, 2006, Standards NMISA Act, 2006, NMISA

provides for the accuracy provides and for the accuracy and

international recognition international of recognition of

local measurement local results. measurement results.

This enables trade, This component enables trade, component

manufacturing, legal manufacturing, acceptance legal acceptance

of measurement of results measurement for results for

law enforcement, law accurate enforcement, accurate

measurement in environment

measurement in environment

and safety, and is and crucial safety, for and is crucial for

healthcare. healthcare.

NMISA is part of the NMISA Department is of of the Trade, Department of Trade,

Industry and Competition’s Industry (the and dtic) Competition’s family of the (the dtic) family of the

Technical Infrastructure Technical (TI) Institutes, Infrastructure which (TI) also Institutes, which also

includes the South includes African Bureau the South of Standards African Bureau of Standards

ver, many questions However, have many been questions raised by have (SABS), been raised National by (SABS), Regulator National for Compulsory Regulator for Compulsory

s about the businesses reliability of about the measurement

the reliability of the Specification measurement (NRCS) Specification and the South (NRCS) African and the South African

btained results from such obtained thermometers. from such thermometers.

National Accreditation National System Accreditation (SANAS) that System (SANAS) that

ctors influence Several the factors accuracy influence of these

accuracy together of provide these for together confidence provide in local for goods confidence and in local goods and

ment results, measurement including results, the type including of products the type and allows of products for successful and allows prosecution for successful in prosecution in

t used, the instrument accuracy of used, the thermometer accuracy of the cases thermometer of non-compliance. cases of ■non-compliance. ■

through (obtained calibration), through the measurement

calibration), the measurement

followed, procedure ambient conditions, followed, ambient etc. conditions, etc.

details Contact details

12 841 4152Tel: + 27 12 841 4152

fo@nmisa.org Email: info@nmisa.org

: www.nmisa.org Website: www.nmisa.org





South African Business

A unique guide to business and investment in South Africa.


Publishing director:

Chris Whales

Editor: John Young

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Simon Lewis

Production: Lizel Olivier

Ad sales:

Gavin van der Merwe

Sam Oliver

Jeremy Petersen

Gabriel Venter

Vanessa Wallace

Shiko Diala

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Printing: FA Print

Welcome to the ninth edition of the South

African Business journal. First published in

2011, the publication has established itself

as the premier business and investment

guide to South Africa, supported by an e-book edition at


This issue has a focus on economic recovery plans which

have been put in place to tackle the challenges thrown up

by the global Covid-19 pandemic. National government’s

focus on infrastructure and the use of Special Economic

Zones is highlighted, together with a feature on the nascent

maritime economy. 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.

South African Business is complemented by nine regional

publications covering the business and investment

environment in each of South Africa’s provinces. The e-book

editions can be viewed online at www.globalafricanetwork.

com. These unique titles are supported by a monthly

business e-newsletter with a circulation of over 23 000.

In 2020, the inaugural African Business joined the Global

African Network stable of publications. ■

Chris Whales

Publisher, Global Africa Network Media | Email: chris@gan.co.za


South African Business is distributed internationally on outgoing

and incoming trade missions, through trade and investment

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

partners around the world; at top national and international

events; through the offices of foreign representatives in

South Africa; as well as nationally and regionally via chambers

of commerce, tourism offices, airport lounges, provincial

government departments, municipalities and companies.

COPYRIGHT | South African Business is an independent publication

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

the publication vests with Global Africa Network Media (Pty) Ltd.

No part of the publication may be reproduced in any form without

the written permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Africamps at Ingwe, Amatola Water, AngloAmerican,

Betterect,Buckler’s Africa Lodge, Council for Geoscience, Data Centre

Map, De Beers Group, ELIDZ, Equites, 5M2T, Fortress Fund, Implats,

Khobab Wind Farm, Nissan, Perdekraal East Wind Farm, Port of Cape


Town, SA Furniture Forum, SA Heavy Haul Association, SANRAL, SASOL,

THEGIFT777/iStock, TNPA, Tongaat Hulett, Utopia_88/iStock.


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

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

South African Business is accurate and up-to-date, the publishers make no

representations as to the accuracy, quality, timeliness, or completeness of

the information. Global Africa Network will not accept responsibility for any

loss or damage suffered as a result of the use of or any reliance placed on

such information.



Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

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

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

Member of the Audit Bureau

of Circulations ISSN 2221-4194

Early engagement with

the private sector is vital


Jason Lightfoot, Portfolio Manager at Futuregrowth, assesses the latest moves to

attract the private sector to invest in infrastructure.

What is constraining infrastructure investment in South Africa?

The concern is that a lot of noise has been made previously around

government’s infrastructure plans which have in few instances

resulted in real opportunities for investors to play a role. Many of these

issues have been around policy certainty and also ensuring that such

projects actually reach a level of bankability for such investors to make

an investment that will offer a proper risk-adjusted return. Perhaps this

time is different with the recent engagement with the private sector.

Jason Lightfoot


Jason is the Portfolio Manager of the

flagship Futuregrowth Infrastructure

& Development Bond Fund, as well

as the Yield Enhanced ALBI benchmarked

range of portfolios. In addition,

he plays a mentoring role within

the Credit team and is involved in

various aspects of risk assessment

within the investment process.

Do you mean the Sustainable Infrastructure Development

Symposium of South Africa (SIDSSA)?

This is a step in the right direction. It crowds in potential private sector

investors in a much more coordinated manner and includes them in

assessing how these various initiatives can be funded.

Why is gross fixed capital formation an important benchmark?

This measure captures how much money as a proportion of total

economic activity is being invested in capital goods, such as

equipment, tools, transportation assets and electricity and various

measurable outputs of these. The extent of infrastructure spending

in an economy is reflected in the level of gross fixed capital formation

(GFCF) as a percentage of Gross Domestic Product (GDP) which is an

important precursor of economic growth.

What can be learnt from the Renewable Energy Independent

Power Producer Procurement Programme (REIPPPP)?

Before capital market players invest, they need to have confidence

that the policy environment is stable and that such potential

investments will offer sufficiently attractive risk-related returns. To a

great extent, the Renewable Energy Independent Power Producer

Procurement Programme (REIPPPP) met these criteria, enabling the

private sector to play an important role. REIPPPP is an important

success story.

Of the major infrastructure projects being discussed at the

moment, which are the most significant?

Energy generation remains of utmost importance in an environment

where a massive strain on the system remains and the launch of

Emergency Procurement round of up to 2000MW will address that. ■

41 9




Building a more sustainable future while reducing debt will require

great skill from the country’s leaders.

By John Young

Build back better has become the new

catchphrase. There is a lot of building to

do for the South African economy after

two recessions, a decade of looting of state

resources and a health crisis that all but shut down

the economy for several months.

The Chief Executive Officer of the

Johannesburg Stock Exchange, Leila Fourie,

wrote in June 2020 that she wants to “contribute

towards a better, fairer, more sustainable

world” (Business Day). As co-chair of the Global

Investors for Sustainable Development (GISD)

Alliance, a grouping of banks, bourses and asset

managers, Fourie has been working to promote

investment in Covid-19 bonds, the Sustainable

Development 500 fund and renewable energy.

This kind of thinking informs many of the plans

that were put forward by business, labour and

political parties as the Covid-19 lockdown served

to focus the minds of all South Africans about the

need to plot a better way forward. The National

Economic Development and Labour Council

(Nedlac) came up with an agreement which

focussed on infrastructure investment, creating a

supportive policy environment and the promotion

of “strategic localisation” and exports. An umbrella

business body, Business for SA (B4SA), identified

12 initiatives which, if accompanied by policy

reforms, would boost the economy significantly.

The African National Congress (ANC) produced its

own economic recovery document.

Having consulted with all these bodies,

President Cyril Ramaphosa on 15 October

revealed government’s recovery plan. The

Economic Reconstruction and Recovery Plan

(EcoRRP) names infrastructure investment and

building up the country’s manufacturing base as

priorities. The plan intends to unlock R1-trillion in

private investment. Furthermore, a commitment

is made to improving the capability of the state




and to remove barriers to doing business or

investing in the country.

Soon afterwards, Finance Minister Tito

Mboweni announced the medium-term budget

policy statement where the most significant

promise related to reducing the state’s wage

bill. Mboweni is a former Reserve Bank Governor

and Labour Minister. The President is a former

miner and trade unionist. Both men have been

engaged for years in drafting the economic policy

of the ANC but it remains to be seen if they can

persuade the unions representing workers in the

public sector to accept a three-year freeze on

wage increases. This will be a major test because

South Africa’s debt to GDP ratio is high. The cost of

servicing debt is equal to nearly 14% of revenue.

A step that President Ramaphosa took in

July did not receive many headlines, but his

amendment of the regulations governing the

enquiry into state capture made a big difference

to the work of the National Prosecuting Authority

(NPA). Enabled by the amendment to work with

the evidence presented to the commission,

prosecutors quickly finalised cases and arrests

started happening. After a decade in which

it seemed that immunity was guaranteed for

corrupt officials and employees of state-owned

enterprises, the tide started to turn.

Prosecutions obviously do not provide

certainty against future corruption, but at least

the prospect of arrest might be a deterrent. One

of the biggest obstacles to economic recovery

is South Africa’s level of debt, and that is caused

largely by the state electricity utility, Eskom,

where corruption was rife for years.

The government’s directory lists 131 stateowned

entities but there are said to be about 700

altogether, at various levels of government. The

three biggest, all of which fall under the Department

of Public Enterprises, are Eskom, South African

Airways (SAA) and Transnet, with five large divisions

covering ports, railways and logistics. Eskom and

SAA are significant drains on the country’s finances

and getting control of all of the country’s SOEs is

another major priority.

Agriculture was one industry that saw

some positives during the Covid-19 lockdown.

Although sectors like wine suffered badly, a

reported increase in maize exports, as well as

greater international demand for citrus fruits and

pecan nuts, helped the industry expand by 15%

(StatsSA). Grain crops such as maize, wheat, barley

and soya beans are among the county’s most

important crops. Only rice is imported. Wine, corn

and sugar are other major exports.

Basing economic growth on a devaluing

currency is not always the best long-term method

of boosting economic growth, but high-value

agricultural exports and increased numbers of highspending

international tourists hold some promise

for helping to get the South African economy back

on a growth path. Horticulture in particular is seen

as holding great potential not only for increased

earnings, but for creating jobs.

New economic sectors

Another new area that holds great potential for the

South African economy is the Oceans Economy.

South Africa has 3 000km of coastline and the

extent of the country’s territorial waters is greater

than its land size. And yet the country does not

have a merchant marine fleet and only scrapes

the surface in terms of the percentage of repair

and maintenance of boats and oilrigs which could

potentially bring work to its ports.

The introduction of renewable energy into the

South African energy market via the Renewable

Energy Independent Power Producer Procurement

Programme (REIPPPP) was successful but the

programme stalled.

Hopes were raised with the publication of

a new Integrated Resource Plan (IRP) because

investors crave certainty. The IRP is a road map

for South Africa’s electricity generation and the

previous administration seemed determined

to push for an expensive nuclear programme.

The latest plan confirms that the already hugely

successful drive for renewable energy will be

continued and expanded.

South Africa’s traditional strength in minerals

still holds good. Although gold mining is

declining in volumes (even while prices rise), the

major investment of Vedanta Zinc International

in a project in the Northern Cape and Sibanye-




New roads such as this link to the North West from Gauteng are important parts of infrastructural

development. Credit: SANRAL

Stillwater’s acquisition drive in the platinum group

metals (PGM) sector are significant economic

drivers. Coal and iron ore continue to be exported

in large volumes through the Richards Bay

Coal Terminal on the east coast and the Port of

Saldanha on the west coast.

Automotive manufacturing and automotive

components continue to thrive, with large

investments by most of the major marques and

increased exports a feature of the sector. There

has been inward investment in recent years, most

notably by the Beijing Automotive International

Corporation (BAIC) in the Coega Special Economic

Zone outside Port Elizabeth. The Tshwane

Automotive Special Economic Zone (TASEZ) has

been launched at Silverton in Pretoria.

A new SEZ has been formally declared in the

northern part of Limpopo, the Musina-Makhado

SEZ. The Namakwa SEZ in the Northern Cape

is awaiting its licence, as is the Tubatse SEZ in

eastern Limpopo.


South Africa’s location between the Atlantic and

Indian oceans ensures a generally temperate

climate. The 2 954km coastline stretches from the

border with Namibia on the Atlantic to the border

with Mozambique in the east. The cold Benguela

current sweeps along the western coast while the

warm Indian Ocean ensures that the Mozambique/

Agulhas current is temperate.

South Africa’s coastal plain is separated from

the interior by several mountain ranges, most

notably the Drakensberg which runs down the

country’s eastern flank. Smaller ranges in the

south and west mark the distinction between the

fertile coastal strip and the dry interior known as

the Karoo.

The city of Johannesburg is located on the

continental divide, whereby water runs south of

the city towards the Atlantic Ocean while waters

to the north drain towards the north and east.

Johannesburg is 1 753m above sea-level.

Most of the country has summer rainfall but

the Western Cape, which has a Mediterranean

climate, receives its rain in winter. Droughts

are not uncommon and although the national

average is 464mm, most of the country receives

less than 500mm of rain every year. The Western

Cape experienced a severe drought which was

broken in 2018. The Orange and Vaal rivers play

important roles in water schemes and irrigation

and the Limpopo River defines the country’s

northern boundary. ■








Growing middle class, affluent consumer

base, excellent returns on investment.




South Africa (SA) has the most industrialised economy in Africa.

It is the region’s principal manufacturing hub and a leading

services destination.



SA is the location of choice of multinationals in Africa.


Global corporates reap the benefits of doing business in

SA, which has a supportive and growing ecosystem as a

hub for innovation, technology and fintech.






SA has a sophisticated banking sector with a major

footprint in Africa. It is the continent’s financial hub,

with the JSE being Africa’s largest stock exchange by

market capitalisation.

The African Continental Free Trade Area will boost

intra-African trade and create a market of over one

billion people and a combined gross domestic product

(GDP) of USD2.2-trillion that will unlock industrial

development. SA has several trade agreements in

place as an export platform into global markets.



SA has a number of world-class universities and colleges

producing a skilled, talented and capable workforce. It

boasts a diversified skills set, emerging talent, a large pool

of prospective workers and government support for training

and skills development.









SA has a progressive Constitution and an independent judiciary. The

country has a mature and accessible legal system, providing certainty

and respect for the rule of law. It is ranked number one in Africa for the

protection of investments and minority investors.



SA is endowed with an abundance of natural resources. It is the leading producer

of platinum-group metals (PGMs) globally. Numerous listed mining companies

operate in SA, which also has world-renowned underground mining expertise.




A massive governmental investment programme in infrastructure development

has been under way for several years. SA has the largest air, ports and logistics

networks in Africa, and is ranked number one in Africa in the World Bank’s

Logistics Performance Index.


SA offers a favourable cost of living, with a diversified cultural, cuisine and

sports offering all year round and a world-renowned hospitality sector.



Page | 2



Why Invest

in Space

OUR IMPACT is derived from our national capacity, experience

and expertise in space science and technology through six thematic focus areas:

• Earth Observation - SANSA collects, assimilates and disseminates

Earth observation data to support South Africa’s policy making,

economic growth and sustainable development initiatives. Earth

observation data is used for human settlement growth mapping,

infrastructure monitoring, as well as disaster and water resource

management. Earth observation satellite data contributes to

monitoring environmental variables in the water cycle such as

water quantity, quality, soil erosion and vegetative health which

ensures water safety and security for the country.

• Space Operations - SANSA provides global competitive space

operations and applications, tracking, telemetry and command

services while managing ground stations for international clients.

Space Operations provides world class launch support for space

missions (from Earth into our solar system) and ensures satellites

are continuously monitored when they are travelling over African


• Space Science - SANSA conducts cutting edge space science

research, development and magnetic technology innovation.

Space science research is vital for gaining a deeper understanding

of our space environment in order to protect essential

infrastructure such as power grids and communication and

navigation systems on Earth and in space. SANSA operates the

Space Weather Regional Warning Centre for Africa, providing

forecasts and warnings on space weather conditions. Extreme

space weather may impact technological systems such as

satellites, power grids, avionics and radio communication.

• Space Engineering – SANSA aims to provide access to state-ofthe-art

satellite assembly, integration and testing services, as well

as satellite systems coordination and development, to ensure

an environment conducive to industrial participation in satellite


• Human Capital Development - SANSA aims to advance human

capital development to grow the knowledge economy and

create awareness about opportunities in engineering, science and

technology. This is achieved through scarce skills development,

summer and winter schools, the supervision of MSc and PhD

students, and teaching at partner universities.

• Science Advancement and Public Engagement - SANSA

promotes science advancement and public engagement through

participation in national science awareness events and through

using the fascination of space to drive a greater uptake of studies

in science, maths, engineering and technology.


provides stateof-the-art


station facilities and

services including

satellite tracking, launch

support, mission

control and space


SANSA monitors

the Earth’s magnetic

field and space weather

storms to assist in

protecting technology

on Earth and in space.

Satellite imagery

helps manage food

and water security as

well as natural disasters

on Earth like floods,

droughts and fires.

In a country faced with numerous challenges in

housing, crime, poverty and the provision of basic

necessities, you may ask why invest in space?

The answer is clear.

Space investment is essential

for economic sustainability

and development!

Without space applications we would not be able to mitigate

disasters or effectively manage our resources such as water, food, land

and housing. Mobile phones, internet, GPS, ATMs, meteorological

forecasting and safe land and sea travel all rely on satellites positioned

in space. Government, industry and academia also rely on space

data to deliver on their priorities through the creation of applied

knowledge, products and services.

SANSA provides value-added products and services that are utilised

in both space and non-space applications. Space information

enables everyday decision making at all levels of society. SANSA has

contributed towards goals within the National Development Plan

(NDP) and the goals of the Department of Science and Technology

(DST) by delivering products and services to its stakeholders and the


South Africa’s next earth observation satellite is an example of one of

these deliverables and is also one of the incredible opportunities to

showcase the importance of investment in space science, engineering

and technology and for South Africa to take its place in the global

space arena.


South African National Space Agency

South African National Space Agency

Enterprise Building, Mark Shuttleworth Street, Innovtion Hub, Pretoria, 0087

T: 012 844 0500 | F: 012 844 0396 | information@sansa.org.za | www.sansa.org.za


Provinces of South Africa

A snapshot of South Africa’s nine provinces.

Eastern Cape

Capital: Bhisho

Main towns: Port Elizabeth, East

London, Uitenhage, Graaff-

Reinet, Mthatha, Grahamstown


Population: 6 916 200 (2015)

Area: 168 966km² (13.8%

of South Africa)


Lubabalo Oscar Mabuyane (ANC)

Key sectors: Automotive,

agriculture, agri-processing,

forestry, finance, retail, tourism,

renewable energy.

Infrastructure: Coega Industrial

Development Zone, East London

Industrial Development Zone,

ports of East London, Port

Elizabeth and Ngqura, airports at

Port Elizabeth and East London.

Notable tourism assets: Addo

Elephant National Park, Mountain

Zebra National Park, Wild Coast,

Jeffreys Bay, National Arts Festival.

Provincial government website:


Eastern Cape Development

Corporation: www.ecdc.co.za

Free State

Capital: Bloemfontein

Main towns: Welkom, Sasolburg,

Parys, Kroonstad

Population: 2 817 900 (2015)

Area: 129 825km² (10.6%

of South Africa)


Sefora Hixsonia Ntombela (ANC)

Key sectors: Agriculture,

agri-processing, chemical

manufacturing, mining, transport

and logistics.

Infrastructure: Maluti-A-Phofung

Special Economic Zone, Bram

Fischer International Airport,

University of the Free State,

Central University of Technology,

N8 Corridor.

Notable tourism assets: Vaal

River, Gariep Dam, Golden Gate

Highlands National Park, Cherry

Festival, Mangaung African

Cultural Festival (Macufe).

Provincial government website:


Free State Development

Corporation: www.fdc.co.za


Capital: Johannesburg

Main towns: Tshwane

(including Pretoria), Ekurhuleni,

Vanderbijlpark, Roodepoort

Population: 13 200 300 (2015)

Area: 18 178km² (1.5%

of South Africa)


David Makhura (ANC)

Key sectors: Financial and

banking, manufacturing, trade,

creative industries, media.

Infrastructure: OR Tambo

International Airport, Gautrain,

major universities and research

institutions, large convention

centres, FNB Stadium (Soccer City).

Notable tourism assets: Cradle of

Humankind, Apartheid Museum,

Constitution Hill, Magaliesberg,

Soweto tours, Dinokeng.

Provincial government website:


Gauteng Growth and

Development Agency:






Capital: Pietermaritzburg

Main towns: Durban, Newcastle,

Ballito, Port Shepstone,

Empangeni, Ulundi

Population: 10 919 100 (2015)

Area: 125 755km² (7.7%

of South Africa)


Sihle Zikalala (ANC)

Key sectors: Chemicals, dissolving

pulp manufacture, sugar, forestry,

automotive, textiles and footwear,

mining, oil and gas, logistics.

Infrastructure: King Shaka

International Airport, Dube TradePort,

Richards Bay Industrial Development

Zone, ports of Richards Bay and

Durban, Albert Luthuli International

Convention Centre Complex.

Notable tourism assets: HluhluweiMfolozi

Park, the Drakensberg

mountains, iSimangilso Wetlands

Park, Durban beaches, South Coast,

Zulu cultural heritage, historical


Provincial government website:


Trade and Investment KwaZulu-

Natal: www.tikzn.co.za


Capital: Polokwane

Main towns: Musina,

Ba-Phalabora, Bela-Bela,

Steelpoort, Tzaneen, Thohoyandou

Population: 5 726 800 (2015)

Area: 125 755km² (10.2%

of South Africa)


Chupu Stanley Mathabatha (ANC)

Key sectors: Mining, agriculture,

tourism, logistics.

Infrastructure: Musina-Makhado

Special Economic Zone, N1

highway and rail network, new

Medupi power station.

Notable tourism assets: Kruger

National Park, Mapungubwe

Heritage Site, Makapans Valley,

Marula Festival, Waterberg


Provincial government website:


Limpopo Economic

Development Agency:



Capital: Mbombela

Main towns: Emalahleni,

Middelburg, Sabie, Lydenburg

Population: 4 283 900 (2015)

Area: 76 495km² (6.3%

of South Africa)


Refilwe Mtshweni-Tsipane (ANC)

Key sectors: Agriculture, forestry,

mining, steel manufacturing,

petrochemicals, pulp and paper,

power generation, tourism.

Infrastructure: Nkomazi Special

Economic Zone, Mbombela

International Fresh Produce

Market, Maputo Development

Corridor, Kruger Mpumalanga

International Airport.

Notable tourism assets: Kruger

National Park, Blyde River Canyon,

Barberton Makhonjwa Mountains

(a UNESCO World Heritage Site).

Provincial government website:


Mpumalanga Economic Growth

Agency: www.mega.gov.za





Northern Cape

Capital: Kimberley

Main towns: Douglas, Upington,

De Aar, Port Nolloth, Colesberg

Population: 1 185 600 (2015)

Area: 372 889km² (30.5%

of South Africa)


Dr Zamani Saul (ANC)

Key sectors: Agriculture, mining,

renewable energy, astronomy.

Infrastructure: Upington Special

Economic Zone, Sol Plaatje

University, Vaalharts Irrigation


Notable tourism assets: Six

national parks including the

Kgalagadi Transfrontier Park,

Orange River, spring flower

displays, diamond routes.

Provincial government website:


Department of Economic

Development and Tourism:


North West

Capital: Mahikeng

Main towns: Klerksdorp,

Rustenburg, Brits, Potchefstroom

Population: 3 707 000 (2015)

Area: 104 882km² (8.6%

of South Africa)

Premier: Professor Tebogo Job

Mokgoro (ANC)

Key sectors: Mining, agriculture,

agri-processing, automotive


Infrastructure: Hartbeespoort

Dam, Pelindaba nuclear research

unit, North West University,

Bakwena Platinum Highway.

Notable tourism assets: Sun City,

Mmbatho Palms Hotel Casino

Convention Resort, Pilanesberg

National Park, 18 luxury lodges in

Madikwe Game Reserve.

Provincial government website:


North West Development

Corporation: www.nwdc.co.za

Western Cape

Capital: Cape Town

Main towns: Stellenbosch,

George, Plettenberg Bay, Beaufort

West, Oudtshoorn, Worcester,


Population: 6 200 100 (2015)

Area: 129 462km² (10.6%

of South Africa)


Alan Winde (DA)

Key sectors: Agriculture, agriprocessing,

wine and grapes,

financial services, manufacturing,

tourism, oil and gas, boatbuilding.

Infrastructure: Ports of Cape

Town, Saldanha and Mossel Bay,

Mossgas oil-to-gas refinery, Cape

Town International Airport, Cape

Town International Convention

Centre, Koeberg nuclear power


Notable tourism assets: Table

Mountain, Garden Route National

Park, Karoo National Park, West

Coast National Park, Kirstenbosch

Botanical Gardens, Cape Point,

V&A Waterfront, Plettenberg

Bay, Route 62, Zeitz Museum of

Contemporary Art.

Provincial government website:


Wesgro: www.wesgro.co.za


An ExtrAordinAry

BusinEss EvEnts dEstinAtion

northern Cape, south Africa

An award winning business and incentive destination, this ageless land offers

a seamless fusion of first world technologies and infrastructure with ancient

authentic cultures, dramatic natural beauty and awesome adventure. This is

the Northern Cape. Now come and experience it for yourself…

For more information do visit



Northern Cape Tourism @NorthernCapeSA northerncapetourism northerncapesa


Sectoral strengths of

South African provinces



A wide variety of investments are available.


• Financial and business services

• Information and communications


• Transport and logistics

• Basic iron and steel, steel products

• Fabricated metal products

• Motor vehicles, parts and accessories

• Appliances

• Machinery and equipment

• Chemical products, pharmaceuticals

North West:

• Agro-processing

• Mining

• Agriculture and agro-processing

• Tourism

• Metal products

• Machinery and equipment

• Renewable energy (solar)

Northern Cape:

• Mining

• Agriculture and agro-processing

• Fisheries and aquaculture

• Renewable energy (solar, wind)

• Jewellery manufacturing


• Mining

• Fertilisers

• Tourism

• Agriculture

• Agro-processing

• Energy, including

renewables (solar)


• Mining

• Tourism

• Forestry, paper and paper

products, wood and wood


• Agriculture and agroprocessing

• Metal products



• Transport and logistics

• Tourism

• Motor vehicles, parts and


• Petrochemicals

• Aluminium

• Clothing and textiles

• Machinery and equipment

• Agriculture and agroprocessing

• Forestry, pulp and paper,

wood and wood products

Western Cape:

• Tourism

• Financial and business services

• Transport and logistics


• Agriculture and agro-processing

• Fisheries and aquaculture

• Petrochemicals

• Basic iron and steel

• Clothing and textiles

• Renewable energy (solar, wind)

Free State:

• Agriculture and agro-processing

• Mining

• Petrochemicals

• Machinery and equipment

• Tourism

Eastern Cape:

• Motor vehicles, parts and


• Forestry, wood and wood products

• Clothing and textiles

• Pharmaceuticals

• Leather and leather products

• Tourism

• Renewable energy (wind)

Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary

Source: Industrial Development Corporation (IDC)

(South African Investment Conference, 2018).

Page | 40



Gert Sibande

District Municipality

A national leader in job creation through the EPWP programme.


Executive Mayor Councillor

Muzi Chirwa

Gert Sibande District

Municipality received

an unqualified audit

opinion from the

Auditor-General for the 2018/19

financial year for the second

consecutive year. Running a

clean municipality in terms

of financial management and

governance has been a priority

for the current administration

since coming into office in 2016.

Gert Sibande District

Municipality (GSDM) has a

comprehensive and credible

Integrated Development Plan.

The 2020/21 IDP document is

in line with the Municipal

Systems Act which makes

community participation in

the affairs of the municipality a

legal obligation. The municipality

has been consultative

and transparent in its approach.

GSDM cannot govern alone; the developmental agenda must be

determined by residents.

The impact of Covid-19 has put a huge strain on the economy.

Having been placed as a leading district in South Africa in terms

of job creation through the EPWP programme, GSDM commits to

grow this programme and to find more innovative ways to create

sustainable and dignified jobs. Further interventions are planned in

the agricultural and forestry sector, informal traders, construction,

manufacturing, mining and the tourism industry as we rejuvenate

our economy and the realise the economic freedom for our people.

Gert Sibande District Municipality is the largest of the three

districts in Mpumalanga Province at 31 841km², covering 40% of

the province’s land mass. According to Stats SA, Gert Sibande’s

population increased from 1 043 194 in 2011 to 1 135 409 people in

2016. This makes it the smallest district in population.

Name of Local Main Admin Area Population

Municipality Location (km²) Size (2016)

Chief Albert Luthuli Carolina 5 559 187 630

Dipaleseng Balfour 2 616 45 232

Dr Pixley Isaka Ka Seme Volksrust 5 227 85 395

Govan Mbeki Secunda 2 955 340 091

Lekwa Standerton 4 585 123 419

Mkhondo Piet Retief 4 882 189 036

Msukaligwa Ermelo 6 017 164 608


A community-driven district of excellence and development.


To support and coordinate our local municipalities to provide

excellent services and development.

Contact details

Tel: +27 17 801 7000

Email: records@gsibande.gov.za | Website: www@gsibande.gov.za

Follow us on Facebook & Twitter @GertSibandeDM

105 21



Building infrastructure is a

presidential priority

Projects worth R340-billion have been gazetted for implementation.

young people will be employed to digitise

government information, including hospital

files and police dockets.

• Student accommodation.

• SA Connect Phase 1B, broadband expansion.

Richards Bay SEZ.

The two central planks of the South African

government’s post-Covid rebuilding

programme are infrastructure and


To promote and monitor the first priority, an

Investment and Infrastructure Office has been

created in the Presidency. It is headed by the

former Gauteng MEC for Economic Development,

Dr Kgosientso Ramokgopa. In 2020 national

government gazetted 51 priority infrastructure

projects, with a total investment value of more than


Sectors targeted for intervention include energy,

housing, transport, water and sanitation, agriculture,

agro-processing and digital infrastructure. Some

of the “special projects” that fall outside sector

categories include:

• Rural pedestrian bridges and rural roads.

• Energy and water savings on government


• Digitising of government information: 10 000

A reconstituted Council of the Presidential

Infrastructure Coordinating Commission met

for the first time in July 2020. With President

Cyril Ramaphosa in the chair, the commission

includes national ministers, provincial premiers,

mayors of big cities and representatives of the

South African Local Government Association.

Where the council intends doing things

differently is by paying close attention to:

• Preventing corruption through transparent

tender processes and strong due diligence.

• Community involvement in planning and


• Emphasis on local employment and procurement

and targeted involvement of SMMEs.

• Blended financing through the Infrastructure

Fund to mobilise more resources from the

private sector, multilateral development banks

and development finance institutions.

A World Bank report has shown that a 10%

increase in infrastructure spending results in a

1% growth in GDP. A study carried out by KMPG

for the Gauteng Province found that spending

on infrastructure resulted in additional economic

activity worth R26-billion in the province and

created 92 000 direct jobs.

In the country’s biggest province in

terms of economic activity, the Provincial

Government of Gauteng spent R30-billion on

infrastructure between 2013 and 2016. The

Gauteng Infrastructure Master Plan is expected

to account for expenditure of about R1.8-trillion

over a 15-year period.




Special Economic Zones

A key component of the strategy to boost the value

of the country’s products is to develop infrastructure

where manufacturing can take place, namely

Special Economic Zones (SEZs) and industrial parks.

Each province has been allocated SEZs that

play to regional strengths. Described as “major

catalytic projects” for the northern province of

Limpopo, the Musina-Makhado SEZ (MMSEZ), the

proposed Tubatse SEZ and several industrial parks

are central to the strategy of expanding Limpopo’s

manufacturing capacity.

As of February 2020, Shaanxi CEI Investment

Holdings had committed to a $5-billion investment

in a vanadium and titanium smelter project at

the MMSEZ and a further $1.1-billion had been

pledged from other sources. The first-phase focus

is on energy and metallurgical processes but agroprocessing,

logistics and general manufacturing are

expected to follow.

In the Pretoria area, already home to several

Original Equipment Manufacturers (OEMs), the

Tshwane Automotive Special Economic Zone

(TASEZ) has been launched. It is a joint project of

the Gauteng Province, the Department of Trade,

Industry and Competition, and the City of Tshwane.

The implementing agent is the Coega Development

Corporation (CDC), the developer and operator of

the Coega Special Economic Zone (SEZ).

The Coega SEZ is at the Port of Ngqura near Port

Elizabeth and it too has an automotive component,

recently strengthened by the large investment of

the Beijing International Automobile Corporation

(BIAC). East London’s Industrial Development

Zone (ELIDZ) has many companies that sell to and

service the nearby Mercedes-Benz plant while both

coastal SEZs have a strong suite in logistics and are

planning expanded aquaculture parks.

Energy is a key infrastructural requirement for

the growth of any economy, and SEZs are playing

a role. The Coega SEZ has been named as the site

for one of two liquefied natural gas (LNG) plants to

be built (if partners can be found) in terms of the

national gas-to-power plan.

The Richards Bay Industrial Development

Zone (RBIDZ) in KwaZulu-Natal is the other site

Gauteng Premier David Makhura visited the Nissan

plant at Rosslyn in 2020.

designated for an LNG plant, with the capacity

planned for 2 000MW. RBIDZ is also the location

of a new biomass plant.

The OR Tambo SEZ in Gauteng underscores

Ekurhuleni’s strengths in manufacturing and

logistics. The OR Tambo SEZ has launched the

biggest food processing operation in the southern

hemisphere (and the world’s second-largest

refrigeration plant). With a special focus on exportoriented

value-added industry, the OR Tambo SEZ

leverages its connection to the country’s busiest

airport. The focus of this SEZ is on agro-processing,

jewellery manufacturing and mineral beneficiation

as well as the development of hydrogen fuel cell

technology. The SEZ is a subsidiary of the Gauteng

Growth and Development Agency (GGDA).

Two of the largest infrastructure projects in

South Africa’s history have unfortunately been

delayed and are running over budget. National utility

Eskom set out to build two huge power stations in

Mpumalanga (Kusile) and Limpopo (Medupi). Both

are near existing power stations and should have a

stable supply of coal.

Eskom committed to completing Medupi in

2020 and intends finishing Kusile by 2023. Medupi

will be able to feed 4 764MW into the South African

power grid when in full commission. Kusile will have

a capacity of 4 800MW and will be the fourth-largest

coal-fired power station in the world. It will also the

first in South Africa to use flue-gas desulphurisation

(FGD), a technology that removes oxides of sulphur,

such as sulphur dioxide, from exhaust flue gases. ■



Ready to get behind government’s

ambitious infrastructure programme

Jason Lightfoot, Portfolio Manager at Futuregrowth, explains how private capital

can be mobilised to support infrastructure projects.

In a world in which the government and central

bank have several means available to stimulate

the economy, infrastructure spend is a powerful

anti-recessionary fiscal policy tool.

However, in South Africa economic growth has

been constrained by lower levels of investment in

infrastructure than in other developing economies,

which has been exacerbated by specific issues

such as ageing infrastructure and infrastructure

bottlenecks. The Covid-19 crisis and the fiscal

support needed to alleviate the damage done

to businesses and the most vulnerable citizens

as a result of the lockdown could also put the

government’s future infrastructure ambitions at risk.

The extent of infrastructure spending in an

economy is reflected in the level of gross fixed

capital formation (GFCF) as a percentage of

Gross Domestic Product (GDP). The measure

captures how much money as a proportion of

total economic activity is being invested in capital

goods, such as equipment, tools, transportation

assets and electricity and various measurable

outputs of these.

South Africa’s reported GFCF has been

historically low, with the exception of the build-up

to the FIFA World Cup in 2010. Latest statistics show

GFCF as a percentage of GDP was 18.19% in 2019,

which is considered far too low for a developing

economy. Several studies consider an acceptable

norm to be in the region of 30% to 35% of GDP.

South Africa’s GFCF ratio also has some way

to go before it will achieve the target in the

government’s National Development Plan of

30% by 2030. While assessing this, it is important

to note that a country’s current debt level does

have a bearing on its ability to fund infrastructure

initiatives – and South Africa’s government

debt burden doesn’t bode well for the country’s

infrastructure funding capacity.

When you include guarantees to State-Owned

Enterprises (SOEs), the government’s debt-to-

GDP ratio is expected to rise to well above 100%

compared to the average emerging market level

of around 45%. A debt-to-GDP level of more than

twice as large as the average emerging market

means that the South African government will have

very little scope to fund large-scale infrastructure

and developmental initiatives and thus the burden

will fall elsewhere.

Although there are historical reasons for this high

debt-to-GDP burden, the government’s finances

have also been stretched by the social and

economic measures it has needed to put in place

to alleviate the economic fallout from Covid-19.

A fiscal rescue package of R500-billion will add

to the already high debt burden and economic

lockdowns have already resulted in lower levels of

revenue generation, putting the government in a

difficult position fiscally.

If the environment is right, private investors

are ready

Banks, as well institutional investors, are no

strangers to fulfilling a funding role but have

become more apprehensive about doing so,

given the government’s governance, financial and

operational SOE failures.

While the various developmental finance

institutions need to fulfil a specific role when it

comes to industrial policy, economic development

and providing credit-enhancing capital, capital

market players need to have confidence that

the policy environment will remain stable and

that potential investments will offer sufficiently

attractive risk-related returns.

To a great extent, the Renewable Energy

Independent Power Producer Procurement


24 42


Programme (REIPPPP) met these criteria, enabling

the private sector to play an important role,

committing about R200-billion to the programme

to date. REIPPPP is seen as an important success

story, particularly in respect of the impressive

implementation role that the Independent Power

Producers Office played in that programme.

Unfortunately, the success of this programme

has not been emulated in other sectors

and there hasn’t been a coordinated approach

to address the other necessary infrastructure

investments until now. That may change with the

Investment and Infrastructure Office set up by

President Cyril Ramaphosa. The government

gauged private sector investment appetite

recently when it presented various project

pitches for various sectors deemed a priority

to the broader market, as a precursor to

the inaugural Sustainable Infrastructure

Development Symposium of South

Africa (SIDSSA). Sectors the government

has identified as in need of infrastructure

investment include energy, digital

infrastructure, water and sanitation, human

settlement, agriculture and transport.

The government’s latest engagement

with the private sector is a step in the right

direction. It crowds in potential private sector

investors in a much more coordinated manner

and includes them in assessing how these various

initiatives can be funded.

It is encouraging that the government is

engaging with capital market participants during

the conceptual stage of some of these projects

because it will allow concerns to be addressed

earlier and thereby potentially ensure a much

higher success rate.

Breaking out of SA’s low-growth trap

Although the range of projects is wide, there are

several significant ones that could change the

South African landscape to the benefit of all. From

a digital perspective, infrastructure investment

in broadband fibre connectivity could provide

peri-urban (townships) and rural communities,

which have been traditionally underserviced, with

affordable access to broadband connectivity.

The infrastructure initiatives under consideration

could be important contributors to

getting South Africa out of its current low-growth

trap. Although the estimated R1.5-trillion needed

to fund the projects over the next decade is a tall

ask, the private sector is ready to fund them as

long as they are well structured and managed,

that investors are compensated for the risks that

they are taking and that they ultimately have

policy certainty.

Futuregrowth is an investor in the Khobab Wind Farm.


Futuregrowth has been a long-standing

institutional investment partner in infrastructure

and developmental finance, funding projects for

close on 24 years. It manages the largest debt

fund of this nature in Sub-Saharan Africa, the

Futuregrowth Infrastructure and Development

Bond Fund, which has a market value of more

than R15-billion. It has funded various transactions

over the last two decades to the benefit of all

South Africans – and will continue investing in

projects that provide the impetus the domestic

economy needs to lift its economic growth rate to

sustainable levels in the future, while earning riskadjusted

returns. ■





The game-changer:


Special Economic Zone

Revitalising the Limpopo economy through industrialisation.

The Economic Reconstruction and Recovery

Plan outlines immediate actions to rebuild

the national economy and to provide

jobs and relief to the South African people.

These actions include an aggressive infrastructure

programme, far-reaching reforms to increase our

competitiveness and inclusiveness, measures to

catalyse industrialisation, relief for vulnerable

households and individuals, and a public investment

in employment programmes. This plan is a

response to a severe economic contraction unlike

any we have experienced in recent memory. South

Africa is not alone in experiencing an economic

crisis of this depth and extent. Unemployment has

risen across the world and nearly every economy

has shrunk. As President Cyril Ramaphosa has noted,

“It is true that the measures that were necessary

to delay the spread of the virus and prevent deaths

led to a sharp decline in economic activity.”

The strategic geographic location of the

Musina‐Makhado Special Economic Zone (MMSEZ)

and its close proximity to the main land‐based

route into SADC and the African continent,

together with supporting incentives and a good

logistics backbone, will make it the location of

choice for investment in mineral beneficiation,

agro‐processing industries, manufacturing and

logistics. This will provide job opportunities to the

people of Limpopo province currently in need of

jobs and skills development. The establishment of

the metallurgical cluster in close proximity to the

source of raw materials, along with a logistics hub

in the SEZ with access to markets, presents unique

opportunities for mineral beneficiation, which is a

key priority of national government.

Genesis of the MMSEZ

Following the enactment of the Special Economic

Zones Act, the Limpopo provincial government

submitted a comprehensive proposal on strategic

areas for consideration to develop the province’s

economy through industrialisation to the

Department of Trade, Industry and Competition

(dtic). The dtic designated the MMSEZ, which has

become the flagship of the provincial government.

Subsequently, the Musina-Makhado State Owned

Company (SOC), a subsidiary of the Limpopo

Economic Development Agency was established.

This entity is tasked with the responsibility of

facilitating and managing the planning and

development of the MMSEZ.

MMSEZ business case

The essence behind the creation of the MMSEZ

is the establishment of a new industrial hub in

the Vhembe District Municipality, which forms

part of the Trans‐Limpopo Spatial Development

Initiative, situated at two locations, Makhado and

Musina, each with its own unique industrial focus.

The energy and metallurgical cluster (power plant,






LEDET MEC Thabo Mokone, MMSEZ Executive

Manager: Investment Promotion Richard Zitha and

MMSEZ CEO Lehlogonolo Masoga.

steel plant, stainless steel plant, coking plant, pig

iron plant, ferromanganese plant, ferrochrome

plant, chrome plating, lime plant, ferromanganese,

silicon-manganese and calcium carbide plants and

vanadium-titanium magnetite plant) is located on

the Makhado side and the Northern Site in Musina

is focussing on general manufacturing, agroprocessing

and logistics.

“The MMSEZ has positioned itself as a

platform to revitalise the Limpopo economy

through industrialisation. Our focus is to generate

much-needed base-load electricity, establish a

metallurgical complex, develop a manufacturing

hub, enhance agro-processing and to develop a

regional logistics centre. The close proximity of

chain. The beauty of the MMSEZ lies in the

diversity of opportunities across sectors both at

the downstream and upstream with backward and

forward linkages. The North-South Corridor makes

the Musina-Makhado location a strategic passage

for trade between South Africa and the rest of the

Artistic Impression of the MMSEZ.

the Beit Bridge border post and the abundance of

mineral and agricultural resources gives the MMSEZ

a competitive advantage,” says Lehlogonolo

Masoga, MMSEZ Chief Executive Officer.

The MMSEZ SOC has another critical

responsibility of attracting and mobilising both

domestic and foreign direct investment in the

identified industrial activities across the value

SADC region and the African continent, further

given impetus by the Africa Continental Free Trade

Agreement. Limpopo Province has always enjoyed

a niche of being a gateway to the rest of Africa

as a home to one of the busiest ports of entry,

Beit Bridge Border Post. The development of the

MMSEZ becomes an ideal platform to cement this

strategic socio-economic position of the province.



Agro-processing potential

Vhembe Region is the food basket of Limpopo

province as it is endowed with various agricultural

resources. some of which are sought after

in lucrative world markets. Exotic fruits and

vegetables are available in abundance, which

creates a viable potential for agro-processing of

value-added products for domestic consumption

and export markets. Food production has over

the years become a multi-billion industry that

requires the creativity of entrepreneurs to exploit.

Complemented by logistics support, the agroprocessing

cluster of the MMSEZ is destined to

become a big success over the next few years.

Various opportunities exist within the agroprocessing

cluster such as food processing,

fresh-produce handling, dry-fruits packaging,

food canning, timber processing, furniture

manufacturing, etc.

Manufacturing within the automotive sector

South Africa has established itself as the

powerhouse of the automotive industry in

Sub-Saharan Africa. Over 10% of the vehicles

manufactured in South Africa are supplied by

road via the Beit Bridge Border post to markets

to the north of South Africa in the SADC region.

This window of opportunity makes the MMSEZ

an ideal location for various opportunities across

the automotive sector value chain such as vehicles

and components manufacturing, storage and

distribution hub, after-care products distribution

hub, tyre manufacturing and distribution hub,

etc. The manufacturing cluster of the MMSEZ will

provide a platform for various Original Equipment

Manufacturers to manufacture products in

the SEZ for both domestic consumption and

export markets in Africa and beyond. A strategic

opportunity exists for manufacturers of products

such as fertilisers, agro-chemicals, industrial

chemicals, steel fabrication, etc.

Sustainable development

The South African Constitution enjoins us to pursue

economic development in a sustainable manner

and preserve the environment for the benefit of

current and future generations. Section 24 states

that everyone has the right to an environment that

is not harmful to their health or well‐being and to

have the environment protected for the benefit of

present and future generations, through reasonable

legislative and other measures, that prevents

pollution and ecological degradation, promotes

conservation and secures ecologically sustainable

development and the use of natural resources

while promoting justifiable economic and social

development. This constitutional provision is

supported by the National Environmental Act

(NEMA) which provides that negative impacts on

the environment and on people’s environmental

rights must be anticipated and prevented, and

where they cannot be altogether prevented, are

minimised and remedied.

Our country aspires to be a sustainable,

economically prosperous and self‐reliant nation

state that safeguards its democracy by meeting

the fundamental human needs of its people,

managing its limited ecological resources

responsibly for current and future generations, and

by advancing efficient and effective integrated

planning and governance through national,

MEC of Limpopo Economic Development Environment

and Tourism, Thabo Mokone (left) and MMSEZ

CEO Lehlogonolo Masoga at the launch of the MMSEZ

Corporate Identity. Credit: MMSEZ






Artistic Impression of the MMSEZ.

regional and global collaboration. Our application

for the environmental impact assessment

(EIA) was guided by the above fundamental

values, principles, directives and the entity’s

environmental, social and governance (ESG)

policy provisions. We recognise that sustainable

development and sustainable use and exploitation

of natural resources are at the core of the

protection of the environment.

The months of September and October 2020

were dedicated to a public consultation process

for the EIA application for the South site, energy

and metallurgical cluster. The outcome of the EIA

process indicated that the benefits of the MMSEZ

will potentially promote justifiable economic and

social development although a negative impact

upon the environment will become inevitable.

The ultimate goal of the EIA process is to protect

ecologically sensitive areas and support sustainable

development and the use of natural resources,

whilst promoting justifiable socio-economic

development in the location of the project. In our

endeavour to ensure the effective implementation

of the mitigation and management actions,

an environmental management plan has been

developed to provide mitigation measures

necessary to ensure that the project is planned,

constructed, operated, and decommissioned in an

environmentally responsible manner.

The Draft EIA Report identified and assessed

all the potential impacts of the project as well

as the proposed mitigation measures and

management actions. Various specialist studies

have been conducted beyond the approved

EIA scoping report which included the aquatic

impact assessment, ecological impact assessment,

heritage impact assessment, palaeontology /

archaeology impact assessment, soil and land

capability assessment, visual impact assessment,

climate change assessment, air quality assessment,

socio-economic assessment, noise impact

assessment, health impact assessment, traffic

impact assessment, water assessment, high-level

energy study, economic analysis, biodiversity

study, biodiversity offset study, biodiversity offset

strategy, waste impact assessment, town-planning



Artistic Impression of the MMSEZ.

impact assessment, tourism and food

security study, security of water study,

energy requirement study and energy

generation technology options.

Integrating SMMEs within

the SEZ

Special Economic Zones are

predisposed to attract foreign direct

investment which could translate into

blue-chip international enterprises

locating in the zone. Although it is a

good thing to attract international

companies to locate in the SEZ,

this should not happen at the

expense of local enterprises. Skills

and technology transfer forms an

integral part of the essence of the SEZ

phenomena. In the MMSEZ, SMME

promotion and integration is inherent

to the business model. An instrument

has been developed in the form of

an Enterprise Development Strategy

to mainstream SMMEs development

into the life cycle of the MMSEZ.

The strategy is supported by an

ambitious programme to develop

an SMME Incubation Centre as

a platform for entrepreneurship

excellence, creativity and skills and

technology localisation.

The MMSEZ is partnering with

the Department of Small Business

Development to roll out this magnificent

initiative. During the month

of October 2020, a Memorandum

of Agreement was concluded with

the Council for Scientific and Industrial

Research (CSIR) to collaborate

on supporting SMMEs in the

MMSEZ and ensuring technology

localisation through various initiatives

across sectors.

Lehlogonolo Masoga

has been a driving force

behind the development

of the MMSEZ.






Developing small towns into cities

The MEC of Limpopo Economic

Development Environment and Tourism

(LEDET), Thabo Mokone, stated on the

occasion of the launch of the MMSEZ

Corporate Identity, “We are pleased that

finally the province has established a

capable and agile entity seized with a

mandate to implement the MMSEZ.

Our ambition is not just to build an

industrial park but rather to use the SEZ

as a catalyst to unlock a plethora of other

economic opportunities, including the

potential of realising a new Smart City in

our province.” It is our anticipation that

the MMSEZ as a mega-industrial project

will transform the spatial configuration of

the two towns of Musina and Makhado.

According to the external masterplan

report, the two towns requires an

investment of R133-billion in socioeconomic

infrastructure such as roads,

rail, human settlement, schools, health

facilities, ICT infrastructure, airport,

electricity, water and sewerage.

Catalytic projects such as the envisaged

High-Speed Rail Project connecting Johannesburg

and Musina will add the much-desired impetus

of engendering the creation of a new smart city.

The province is currently developing a model

for a new smart city based on the principles of

smart economy, smart mobility, smart housing,

smart environment, smart governance, artificial

intelligence and the internet-of-things. With the

creation of opportunities for local people to earn a

decent income, entrepreneurs to create wealth and

investment in socio-economic infrastructure, such

conditions will lay a solid base for the new smart

city to take shape.

Investment opportunities outside the zone

SEZ projects are by their nature catalytic. They

stimulate growth and development which is felt

outside the delimited geographic space. In Musina

and Makhado towns various stimulus packages

have been identified as investment opportunities

for the private sector outside the confinement of

the SEZ spaces. Among such opportunities are

the new Musina Dam, High Speed Rail Project,

Manaledzi Mega Housing Project in Makhado,

Musina Airport, MMSEZ human settlement, private

hospital, private schools and training centres, retail

property and hotels.

The launch of the MMSEZ Corporate Identity.

It is for this reason, among others, that the

Musina-Makhado Special Economic Zone is “a

world of game-changing opportunities”. ■



29 Market Street,


Limpopo Province (RSA)



Marketing and

Communication Manager

Tel: +27(0) 15 295 5120

Cell: +27 (0)66 173 8957



Executive Manager:

Investment Promotion

Tel: +27(0) 15 295 5120

Cell: +27 (0)71 391 8188




The Maritime Economy offers

blue water opportunities

Contribution to GDP could rise to R177-billion by 2033.

Richards Bay is the site of South Africa’s largest coal export terminal.

Rarely does a country have an opportunity

to start a new sector from scratch, let

alone two. When the Renewable Energy

Independent Power Producer Procurement

Programme (REIPPPP) began in 2011 to find new

sources of electricity, a strong new economic

sector came into being.

In eight years, investment totalling R209.4-billion

was committed to the energy programme by local

and foreign entities. If anything, the potential of the

Maritime Economy, sometimes called the Oceans or

the Blue Economy, is even greater.

The anticipated numbers are impressive. The

share of the Maritime Economy to South Africa’s

gross domestic product (GDP) will by 2033 grow by

upwards of 250% (and perhaps as much as 350%)

compared to its current value, to a figure between

R129-billion and R177-billion. A million new jobs are

expected to be created.

In every field South Africa either has existing

infrastructure or is in the process of creating or reviving

it: ship-building and repairs, oil rig maintenance, oil

and gas operations, port operations, logistics, marine

engineering and bunkering.

South Africa’s eight ports are run by the stateowned

group Transnet, which has a strategic plan for

each port to focus on its strengths. Transnet spent

R2.5-billion on new port equipment in 2019/20.

On the west coast, Saldanha is the main

port for the export of iron ore. Large industrial

operations already exist and the Saldanha Bay

Industrial Development Zone (SBIDZ) is set to

become a hub for maritime repair activities and oil

rig maintenance and repair.

About 1 800km to the east and five degrees

further north, Richards Bay Coal Terminal (RBCT)

is South Africa’s primary export portal. Although

volumes dipped somewhat to 72.1-million tons

in 2019, the fact remains that the infrastructure

is in place to support expansion of aspects of the

Maritime Economy through the Richards Bay Special

Economic Zone (RBSEZ).

Sectors under investigation include alternative

energy generation and opportunities in the gas

sector. A feasibility study is being done on a gas-topower

plant and a large liquid petroleum gas import

and storage terminal was recently built for Petredec

by Bidvest Tank Terminals.

Saldanha Bay can offload Very Large Crude

Carriers as can the Port of Durban, which is Africa’s

busiest port. Durban handled more than 81-million

tons of cargo in 2019, which included 2.84-million




TEUs (twenty-foot container equivalent). The

Durban Car Terminal handled 521 280 vehicles

(Africa Ports & Ships). Durban is responsible for

about 60% of the total volume of containers

handled by the country’s ports.

The Port of Durban is home to many maritime

companies. EBH SA has been in marine engineering

and ship repair since it began as Elgin Brown and

Hamer in 1878. Three South African shipbuilders

(SAS, Damen Shipyards Cape Town and Nautic

Africa) have agreed to pool resources on contracts

to become more competitive.

The KwaZulu Cruise Terminal (KCT) consortium

won the contract from TNPA to finance, build and

run the new Durban Cruise Terminal.

The Port of Cape Town has also launched a

dedicated cruise-ship terminal. A renewed focus

on ship repair through facilities such as the Sturrock

and Robinson drydocks is on the cards for the Port

of Cape Town, which has a diverse offering through

its Container Terminal, Multipurpose Terminal,

Liquid Bulk Terminal and Fresh Produce Terminal.

Drilling off the southern coast has revealed vast

resources in the Brulpadda field in the Southern

Outeniqua Basin. If some of this gas can be recovered,

the two SEZs on the Eastern Cape coast would

become critical to its utilisation. The Port of East

London is aligned to the East London Industrial

Development Zone while Port Elizabeth has two ports,

the city port being joined by the Port of Ngqura which

anchors the Coega Special Economic Zone.

R700-million have been made. The Coega Special

Economic Zone is planning a 440ha Aquaculture

Development Zone to accommodate new

projects. One possibility is to promote import

substitution, for example, with salmon, of which

South Africa currently imports more than 5 000

tons every year.

The allocation of commercial fishing rights in

12 sectors that was due to happen in 2020 has

been postponed to December 2021. It is likely

that the quotas of larger fishing companies will be

reduced in favour of small-scale fishing companies.

There have been several changes in ownership

in the fishing industry, most likely linked to the

upcoming determination of new fishing rights

in which black shareholding will be a factor. The

acquisition by black-controlled Sea Harvest Group

of Viking Fishing is part of a larger trend.

Tiger Brands has unbundled its 42% stake

in Oceana Group. Oceana holds the popular

pilchards brand Lucky Star, which enjoys 80% of

market share in South Africa, and has the highest

market value of fishing companies in South

Africa. The Oceana Group recently purchased

Foodcorp’s fishing rights and a US fishmeal and

oil company, Daybrook. ■


South Africa has 3 000km of coastline and the extent

of the country’s territorial waters is greater than its

land size. About half of the fish that South Africans

eat is caught locally, and almost all of that comes

from the waters off the Western Cape. The two most

popular types of fish are hake and sardines, which

are harvested by deep-sea trawlers.

The fishing industry earns R3.4-billion in foreign

earnings annually and employs 26 500 people

across 22 sectors, the main ones being deep-sea

trawling and aquaculture (JSE).

The aquaculture industry is currently small, but

since 2014 investment commitments of about

Work underway at Durban’s drydock facilities.



Now more than ever before the Oceans Economy will be one of the key

pillars on which the South African economy of the future will be rebuilt.

The Ocean, or Oceans Economy,

is positioned within the South

African Government’s National

Development Plan (NDP) as a

key driver of economic activity and

growth which will help eliminate

widespread poverty and inequality

by 2030.

As Africa’s largest fishing company,

and home to the South Africa’s

iconic brand, Lucky Star, Oceana

is focused on protecting the

integrity of the country’s marine

ecosystems, promoting sustainable

employment opportunities, and

contributing to the country’s food


Oceana believes that South Africa’s

more than 3 000km of coastline

along a major international

strategic shipping route presents

the perfect platform for sustainable

and long-term usage of our oceans

and coastline for responsible

growth and development and

shared prosperity.

A sustainable oceans economy

incorporating both the traditional

and newer industries such as

fishing and maritime transport,

allied to newer sectors such as

marine tourism, renewable energy,

aquaculture and marine

biotechnology, have the potential

to meet the needs of all peoples,

particularly those who make up

rural coastal communities who

have borne the brunt of poverty.

From humble beginnings in the

tiny West Coast fishing village of

Lamberts Bay when the Lamberts

Bay Canning Company Ltd was

established in 1918, Oceana has

over the course of the last century

grown to be a leading global fish

protein company and Africa’s

largest fishing company. Oceana

is ranked among the top 5 most

empowered companies on the

Johannesburg Stock Exchange and

listed on the Namibian Stock

Exchange as well.

The Group operates in South

Africa, Namibia and the

USA and markets fish-based

products in 46 countries

across the world.

The fishing industry estimates that

it accounts for 20 000 direct jobs

and a further 60 000 indirect jobs

across the economy in South

Africa, where the Group continues

to drive economic empowerment,

real transformation and

environmental stewardship for

current as well as future


Government launched Operation

Phakisa (“hurry up” in Sesotho)

in mid-2014 to spur sustainable

economic growth across key areas

in a bid to address poverty,

inequality and unemployment.

The Oceans Economy was one of

seven targeted sectors, and listed

six priority areas including offshore

Oil & Gas, Aquaculture, the

further development of Small

Harbours, Coastal and Marine

Tourism, Marine Transport and

Manufacturing & Marine

Protection Services & Ocean


The fishing sector was not included

as one of the key priority areas

under the Oceans Economy despite

its significant socio-economic

contribution which is estimated

at over R14 billion a year.

The fishing sector is far more

established than some of the newer

maritime industries punted under

Operation Phakisa but this does

not mean that fishing is not a key

contributor and enabler to

national imperatives of economic

growth, job retention and creation,

and sustainable economic

development, particularly in

coastal areas and communities

where unemployment and

underdevelopment are chronic


The commercial fishing sector,

of which Oceana is an important

stakeholder, makes a socioeconomic

contribution of Rl4.3

billion per annum, employing in

excess of 20 000 people directly

and a further 60 000 indirectly,

and has an annual spend of over

Rl billion in developing and

supporting around 2 000 SMMEs

all across South Africa.

The sector is also noted for its

capital intensive nature and, as

such, lists fleet and processing

facilities valued at over R13,5

billion, with further capital

investments of R7,5 billion over

the last 15 years.

The sector furthermore can speak

to demonstrable transformation,

having moved from one of the

most untransformed sectors into

one of the most transformed.

Under Apartheid only 1% of

commercial fishing rights were

held by black South Africans,

but black ownership has grown

and has continued to rise, from

35% in 2004 to over 75% currently.

Oceana operates 11 factories

across the world and also manages

a fleet of 54 vessels and 8 cold

storage facilities.

The Oceana Group works hard

to empower communities and

contribute to environmental

sustainability throughout all the

communities in which the

company operates.

Oceana is also committed to

job security, investing in skills

development, and bringing new

technologies to bear to support

and uplift coastal communities.

The Group is working hard to

drive positive transformation

in fishing to ensure that the small

scale fishing sector participates

in and contributes towards the

broader economic development

of South Africa by creating better

job opportunities, shared

prosperity and enabling sustainable

development in coastal


While the commercial fishing

industry is well transformed in

terms of broad ownership, here

is still a need for greater

transformation at participation


Continuity through certainty and

long-term stability provides the

platform for significant further

growth and economic

development and it is imperative

that all stakeholders work together

with a unified sense of purpose.

A fully transformed commercial

fishing industry is key to unlocking

economic development in South

Africa because the fishing value

chain offers enormous

opportunities for inclusive growth

and employment and enterprise

development in coastal


At Oceana, we believe that

any company that is afforded

the right to fish must prove

their tangible commitment to

converting these rights into

broad-based social and

economic benefits.

This should at all times be done

in a sustainable and inclusive

manner. As such, the company

launched the Oceana

Empowerment Trust (OET) in

2006 to unlock and convert the

value of harvesting fishing rights

into shared, broad-based value

for eligible black South African


The OET has a 10% shareholding

in Oceana with a market value

of almost Rl-billion, making the

Trust the largest 100% black-owned

fishing entity in South Africa in

terms of ownership value.

As of September 2019, 2 447

beneficiaries had received over

R400 million through the Trust,

allowing them to become

financially empowered and active

participants in South Africa’s

formal economy.

The Oceana Group will also

continue to play its part in skills

development as it is vital for

South Africa and the greater

continent’s growth.

Oceana’s interventions are

premised on the fact that holistic

skills development is central to

enabling young people and women

in particular to be active economic

participants and not mere


Oceana recognises that the

development of the small scale

fishing sector and the enhancing

of skills in this area is paramount

to longer term success, to empower

individuals and communities to

participate to a greater degree in

the formal economy, but crucially,

also creating the opportunities

and platforms to support and

meet these ambitions.

Communities need to move

beyond just survival mode to a state

where they are empowered enough

to become agents of economic

change, where dignity is restored

and long-held dreams fulfilled.

I am confident that we have a

sustainability strategy that enables

us to convert fishing rights into

shared value and continue to

deliver social and environmental

dividends to society.

Areas of potential growth include

marine science, engineering,

vessel crewing, supply chain,

artisans, food safety and supply

of vessels and related equipment.

Oceana invested R28.3 million

in skills development in South

Africa and Namibia in 2019 and

offered leamerships, internships

and graduate programmes to

empower the youth.

A key part of the Oceana Group’s

strategy in terms of empowerment

and greater participation in the

Oceans Economy is the Oceana

Maritime Academy which will be

launched and fully operational

in the first quarter of 2021.

Oceana has launched this exciting

initiative with an initial R40

million capital investment and

will spend R35 million a year on

fishing sector skills and training

with a particular focus on small

scale fishers.

The state-of-the-art facility in the

Hout Bay harbour precinct is an

investment in the future of the

South African and international

fishing industry, being the only

academy in South Africa that

focuses exclusively on the needs

of the fishing industry, both small

scale and commercial.

Seeking to address the scarce and

critical skills shortage in the

industry, the Oceana Maritime

Academy will offer world-class,

accredited and industry relevant

maritime skills and training that

will provide the industry with new

talent while enabling small scale

fishers to fish more productively,

profitably and sustainably.

The Academy will draw attendees

from the local Hout Bay

community, the small scale fishing

sector from all over South Africa,

Oceana Group employees, as well

as anyone interested in a career

in the fishing industry, and offer

training in a broad range of skills.

This shared value initiative will

not only strengthen the Oceana

business and the talent pipeline

pool for the entire industry, but

will help build a stronger, more

prosperous and equitable country.

While Oceana’s strength lies in

fishing, with its core business

being the catching, procuring,

processing, marketing and

distribution of canned fish,

fishmeal, fish oil, horse mackerel,

hake, lobster & squid, the Group

has a diversified portfolio of

operations which extend to the

provision of refrigerated

warehouse facilities and logistical


Oceana markets and sells close

to 300,000 tons of fish and fish

products in 46 countries in Africa,

North America, Asia, Europe and

Australia and as part of further

diversification in the Blue

Economy, is seeking to move into

longer term sustainable fish supply

in aquaculture.

Oceana views the Oceans Economy

as a key driver of sustainable

economic growth, job creation

and food security, yet the Group

remains fully committed to

protecting the integrity of the

country’s marine ecosystems.

Yet fishing is but one way in which

the Oceana Group is seeking to

empower the communities in

which it operates.

Through the Group’s flagship

brand Lucky Star, the company

has partnered with the West

Coast Business Development

Centre (WCBDC) to assist aspirant

and existing business owners

in the small West Coast towns

of Laingville, Steenberg’s Cove,

Stompneusbaai, Velddrif and

Lamberts Bay.

Lucky Star provided the WCBDC

with the building to be able to

provide its services to the St Helena

Bay community, resulting in the

WCBDC in 2019 assisting almost

200 entrepreneurs with a variety

of services.

Oceana recognises that the Small

and Medium-sized Enterprise

(SME) sector will be one of the

key drivers of economic growth

and development and employment

in years to come and therefore is

an active enabler and supporter

through initiatives such as interestfree

loans, training and

infrastructure support, which

seek to unlock the inherent

potential in this sector, particularly

for rural coastal communities.

At Oceana, we believe that

by working together, the

glaring inequalities which so

blight South Africa’s beautiful

landscape, can be overcome

and we can create a country

where opportunity, inclusivity

and prosperity for all can find

a home.


Main ports, controlled

and managed by

Transnet National Ports


Facilities Key cargo/function Plans


Slipways, quayside

facilities (Mossgas

Jetty). Fabrication

facility (FerroMarine


Iron ore.

Industrial Development

Zone. Oil and gas supply

base and rig repair.

Cape Town

SWL floating crane,

two graving docks,

syncrolift. Cruiseship


General cargo,

General cargo.

containers, drydocking.

Enhance Promote drydock, marine invest engineering

marine capability fleet, improve for

oil loading and gas times. sector.

Mossel Bay

Two offshore mooring

points. Slipway.

PetroSA logistics



Slipway upgrade.


Rig repair.

Containers, dry and

liquid bulk.

Expand rig repair. Serve

Coega IDZ.



Container terminals,

bunkering, slipway.

Vehicles, manganese,

general cargo.

Removal of manganese

to Ngqura, creation of

leisure waterfront.

East London

Dry dock and repair


Vehicles and grain.

Serves East London IDZ.

Recent upgrades have

been done.


Ship repair. One

graving dock, several

floating docks. Three

repair quays. Private

quayside facilities

(EBH and Dormac).

Cruise-ship terminal.

Vehicles and multicargo.

Improve access for

trucks, back-of-port.

New storage areas.

Richards Bay

Richards Bay Coal

Terminal. Repair

berth in small craft

harbour. Serves IDZ.


Possible gas and

renewable energy hub.

Service offshore oil and

gas sector.



Overviews of the main economic

sectors of South Africa

Agriculture 40

Mining 44

Energy 56

ICT 61

Oil and gas 62

Water 66

Engineering 70

Construction and property 72

Manufacturing 74

Food and beverages 76

Automotive 78

Transport and logistics 80

Tourism and events 82

Banking and financial services 84

Development finance and SMME support 86



Berry production is up as exports rise.

The number of hectares of blueberries will rise over a fiveyear

period by 136% in Limpopo and 102% in Mpumalanga,

an agricultural economist has told the South African Berry

Producers’ Association (SABPA).

Nina Viljoen’s findings have big implications for employment and

exports, especially as blueberries are growing in popularity globally

as a so-called “superfood”. Wandile Sihlobo of Agbiz promotes the

idea of South Africa focussing on horticulture, partly because it is

so labour intensive. He cites blueberries, which need 2.64 workers

for every hectare planted. Signs are promising; gross value rose from

R15.8-million in 2008 to R1.25-billion in 2018 with the total area

planted expanding four times. More than 70% of the blueberry crop

is exported.

The major production companies are Berryworld South Africa,

United Exports and Haygrove SA, an affiliate of UK-based Haygro.

There is plenty of scope for berry exports to grow. Current annual

exports are at about 13 500t compared to over 200 000t for table

grapes and about 300 000t for apples (SABPA). Once South African

producers pass muster with Chinese import authorities, volumes can

be expected to grow quickly.

An application launched by Fedgroup Ventures gives investors a

chance to invest in blueberry bushes without getting soil on their

hands. Fedgroup Impact Farming expects investors to earn 10-15%

over an eight-year timeframe and also offers investments in beehives

and solar panels.


The University of Pretoria has

joined an African alliance to

tackle food security.

Another subsector to

experience rapid export

growth is oranges. As a source

of vitamin C, oranges grew

in popularity as the Covid-19

pandemic spread. South Africa

is the world’s second-largest

citrus exporter, after Spain, and

the number 11 in the world

in terms of production. Citrus

exports earned South Africa

about R20-billion in 2019.

By contrast, flower

growers were badly hit by

the effects of the global

shutdown. Normally, Europe

accounts for 80% of exports

with the Americas and Japan

accounting for the balance.




Wool exports suffered too, although this was mostly related to

China stopping imports due to a foot-and-mouth disease scare.

About 70% of South Africa’s export of this commodity are to China

in a normal year.

Avocado exports were worth about R4.3-billion in 2019, with

more than 1 000ha of new plantings taking place every year to try

to meet growing demand. South Africa is among the top three

countries exporting to Europe and the Chinese market is growing

at a rapid rate.

Beef exports increased from 8 292 tons in 2001 to 31 888 tons in

2018 with the largest areas of growth in Muslim countries.

A record crop of 59 050 tons of in-shell macadamias was

achieved in 2019 and production was up by more than 2 500 tons

over 2018. A less fruitful year is expected in 2020.

Total South African agricultural exports reached R175-billion in

2019 with about 40% going to other African countries and 25% to

Europe. The grain and fruit harvests in 2020 were good with the

maize return of 15.5-million tons the second-largest ever and fully

38% better than the previous year’s figure.

The global shutdown threatened the agricultural products

that South Africa imports: rice and palm oil are 100% dependent

and half of the maize that South Africans consume comes from

abroad. South Africa imports 80% of its fertiliser and 98% of its


Variety and quality

While agriculture’s contribution to national GDP is variously given

in the range of 2.0-2.5%, the upstream and downstream links to

agriculture through processing and logistics mean that the real

contribution is more like 15%.

AgriSA states that the amount of agricultural land in South Africa

in 2016 stood at 93.5-million hectares. This represents 76.3% of South

Africa’s total land mass of 122.5-million hectares and about 3% less

than in 1994.

A total of 70% of South Africa’s grain production is maize, which covers

60% of the cropping area of the country. KwaZulu-Natal and Mpumalanga

produce sugar, but volumes are down. The Free State Province supplies


Agricultural Research Council: www.arc.agric.za

Grain SA: www.grainsa.co.za

National Department of Agriculture, Forestry and Fisheries:


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

South African Berry Producers’ Association: www.berriesza.co.za

significant proportions of the

nation’s sorghum, sunflower,

potatoes, groundnuts, dry beans,

and almost all of its cherries.

South Africa is famous for

its fruit, of which 35% is citrus,

23% subtropical and nuts, 26%

pome fruit, 11% stone fruit and

9% table grapes. Most of South

Africa’s citrus and subtropical

fruit comes from the eastern part

of Limpopo. There are about 3

500 wine producers in South

Africa, with the majority located

in the Western Cape, where

canola (pictured) is also grown.

The Eastern Cape is the

largest livestock province.

South Africa has a beef herd

of 14-million. South Africa’s

milk producers normally

produce about 3.3-billion

litres of milk every year (Milk

Producers Association).

The Faculty of Natural

and Agricultural Sciences

at the University of Pretoria

(UP) has joined an African Research

Universities Alliance

programme together with

the University of Nairobi and

the University of Ghana. The

Centre of Excellence for Food

Security that has been established

intends to create a

network to find solutions to

food security challenges in

Africa. The UP Department

of Plant and Soil Sciences is

working with Impilo Projects

to research aeroponics for deployment

in urban areas. The

faculty has a R13-million facility

to grow plants in different

conditions which mimic possible

future climate scenarios.

Potatoes are being grown in a

first experimental phase. ■




Crafters and knitters

are returning to their


Michael Brosnahan, CEO of SAMIL, unpacks the effects of

the Covid-19 lockdown on the mohair industry.

Michael Brosnahan, CEO

With people at home during the Covid-19 lockdown, was there

greater demand from creative people?

Happily for SAMIL the crafters and knitters of the world took refuge in

their art, many of them returning to their passion, with time on their

hands. The demand for our hand knitting and crochet yarns increased

dramatically during the hard lockdown periods and this increase in

demand shows no signs of abating.

What were other effects of the pandemic?

Sadly, the effect on farmers and processors was quite devastating

financially, particularly in the months of April to June, when we were

unable to export our mohair tops. This obviously impacted all who are

employed in the industry by way of significantly reduced income. We

are very grateful for the assistance provided by the government via the

UIF TERS system which helped to reduce the impact.


Michael emigrated from the UK to

KwaZulu-Natal in South Africa in

1981 in order to take up the position

of Quality Assurance Manager with

the Frame Group. A chartered member

of the Textile Institute in South

Africa, he has managed several large

textile companies since then. Mooi

River Textiles was awarded Cotton

Spinner of the Year for three consecutive

years under his leadership. He

was appointed CEO of Samil Natural

Fibres in Port Elizabeth in 2016.

How will the “new normal” affect the mohair industry?

Providing that South Africa and other countries do not return to a

hard lockdown situation, it should not have a further impact. Demand

for high-fashion goods will always be there and due to the reduction

in availability caused by the ongoing drought conditions in the Karoo

region, where most of the mohair is farmed, demand outstrips supply.

Is there a growing awareness of the importance of sustainability

among customers?

There is no doubt that the consumer of today makes purchase decisions

no longer merely on price alone, but also on their understanding of

the ethicality of the manufacturing process. They want to know that

the goods have not harmed the environment in any way. This concern

extends further to the welfare of the people producing the items and

the treatment of the animals.

The Responsible Mohair Standard is an established set of rules

drawn up by the global non-profit organisation, Textile Exchange.

These rules govern all aspects of the mohair industry, from the care of

the environment to the welfare of the animals and all the individuals

employed in the industry. ■


54 42

Sharing Africa’s

beauty with the

Sharing world Africa’s beauty

with the world

SAMIL produces and processes

SAMIL mohair, produces the noble and processes fibre. mohair, the noble fibre.

South African African Mohair Mohair Industries Industries Limited (SAMIL) Limited

is the (SAMIL) link between is the mohair link producers, between processors

producers, and consumers. processors Our vision and consumers. is to be an Our in-


novative vision South is to be African innovative company South specialising African

company in the production specialising and in processing the production of natural and processing fibres, as

of well natural as speciality fibres, as spun well yarns. as speciality spun yarns.

Mohair, Mohair, the the fleece fleece of the of the Angora Angora goat, goat, is: is:

• the the noble noble fibre, fibre, known known as the as the diamond diamond fibre fibre

• lustrous, lustrous,













• one one













natural fibres

natural fibres

• a symbol of luxury and exclusivity.

• a symbol of luxury and exclusivity.

African Expressions

African Expressions

Our local brand African Expressions was born of the

Our local brand African Expressions was born of the

desire to share Africa’s natural beauty with the rest


of the



share Africa’s












of the


we express








that which

of yarns,


we express


the magical. essence Our of network that which of local makes farmers, Africa who magical. farm Our in

network optimal Angora of local farmers, goat conditions, who farm breed in optimal stock Angora which

goat bear conditions, excellent breed fibres. stock This which ensures bear that excellent our yarns fibres.

This are ensures naturally that soft our to yarns the are touch, naturally easy soft to to knit the touch, and

easy luxuriously to knit and versatile. luxuriously versatile.

SAMIL divisions

Farming: SAMIL Farming, was established with

the primary objective of stabilising and possibly

increasing mohair supply to the processors.

Combing: SAMIL Natural Fibres Combing is is in in Berlin,

outside East London in the Eastern Cape. As mohair

processing has decreased in other parts of the world,

SAMIL Combing has become one of the world’s

leading processors. Unlike many processing plants

SAMIL Combing focusses on and is committed to to

processing only mohair.

Trading: Through a strong support base of of affiliated

companies, partners partners and agents, and agents, SAMIL has SAMIL established has

strong established connections strong connections throughout the throughout world for the the

purchase world for and the sale purchase of raw materials and sale and of finished raw materials goods.

South and finished Africa processes goods. in South excess Africa of 80% processes of the world’s in

mohair excess production. of 80% of the The world’s advantage mohair of production. having both The topmaking







both top-making

in South




as well



access to raw

in South




as well


as access

the company,

to raw

material produced within the company, is that SAMIL

is that SAMIL is able to offer lots guaranteed from origin,

is able to offer lots guaranteed from origin, a rare

a rare luxury in today’s business environment.

luxury in today’s business environment.

Spinning and dyeing: SAMIL Spinning is a global

Spinning and dyeing: SAMIL Spinning is a global

manufacturer of outstanding quality mohair yarns,

manufacturer of outstanding quality mohair yarns,

producing a wide and exclusive range of mohair and

producing a wide and exclusive range of mohair


and mohair





and fine-spun

and fine-spun

yarns in




in both fine-count

and coarser






are internationally

We are



for our





our superior

range and



for range the and hand cater knitting, for the machine hand knitting, knitting, machine weaving,

hosiery knitting, and weaving, decor markets. hosiery Although and decor we markets. specialise

in Although pure mohair, we specialise we also in blend pure mohair, we with also a blend range

of mohair other with natural a range and of man-made other natural fibres. and Yarns man-made can be

custom fibres. Yarns dyed can to any be shade custom at dyed SAMIL’s to state any shade of the art at

dye SAMIL’s house. state of the art dye house.

Genetic research: The latest venture under the SAMIL

umbrella is the research project called ANGELA

which aims to enhance Angora goats and the

mohair industry, from increasing kidding rates to

the improvement of the different hair qualities. The

project will make available its results to all in the

mohair farming community.

Contact details

Tel: +27 41 486 2430

Email: yarns@samil.co.za

Website: Contact www.samil.co.za


Tel: +27 41 486 2430

Email: yarns@samil.co.za


Website: www.samil.co.za



Exploration is the next frontier.

South Africa is currently attracting just 1% of global

spending on mining exploration, a figure that normally

reaches R160-billion annually. Several industry leaders

have expressed concern about the low level of exploration

activity but in 2020 they were joined by the Economic

Transformation Committee (ETC) of the African National Congress

(ANC), the country’s majority political party. The ETC sees

exploration as a way of broadening the scope of ownership within

the mining industry.

Gwede Mantashe, South Africa’s Minister of Mineral Resources

and Energy, wants to see South Africa attracting at least 5% of

global exploration. For exploration to expand a reliable cadastre

is required. A cadastre is a record of property boundaries and

ownership. The Council for Geoscience is working on this. Drone

technology could take the mapping process forward, allowing for

more exploration at a lower cost.

In his 2019/20 budget vote, Mantashe noted that

about 4 000 permanent jobs would be created by the

recent investment of about R45-billion through projects

such as Exxaro’s Belfast expansion (coal), Sasol’s coal mine

replacement programme and Vedanta Resources’ huge zinc

mine in the Northern Cape.

Many mining companies want to start generating their own

power, particularly in the light of unreliable supply from the

national utility, Eskom.


Good mineral prices kept

mining shares buoyant during

the lockdown.

African Rainbow Minerals

is currently operating just

three of its 10 plants in the

ferroalloy sector, with the cost

of electricity the main reason

for reduced activity. ARM is

constructing a demonstration

ferromanganese plant to test

alternative energy systems

with the hope that costs can

be significantly reduced.

The CEO of Minerals

Council SA, Roger Baxter, calls

the hurdles faced by mining

companies trying to put

alternative power projects in

place, a “serious challenge”.

In 2019 Minister Mantashe

wrote to the National Energy




Regulator of South Africa (NERSA) granting a deviation from the

existing Integrated Resources Plan (IRP) to allow for the quick

licensing of generation facilities up to 10MW.

Coal giant Exxaro has disposed of its stake in Tronox Holdings

(mining and processing of titanium ore, zircon and other minerals)

but in 2019 took full ownership of renewable energy company

Cennergi, which owns two wind farms in the Eastern Cape. Indian

company Tata Power held 50% of the company through a whollyowned

subsidiary before the sale.

Despite the global lockdown Exxaro expected earnings for the

first six months of 2020 to be higher than the R3.2-billion earned in

2019. The weaker rand and record coal exports helped to balance

lower dollar prices achieved.

Coal continues to be an important part of the South African

mining landscape, despite pressure to move to renewable

resources. As Baxter points out, “In 2018 the sector employed almost

90 000 people (representing about 19% of total employment in the

mining sector), with an estimated 180 000 further people employed

as a result of coal mining activities.”

Gold Fields’ earnings for the half-year to June 2020 increased

four-fold because of a buoyant gold price. The August 2020 price

for gold reached nearly $2 000. Analysts warned against reading

too much into some of the more extreme rises in the value of gold

mining stocks (DRD Gold went up some 240% between January

and July) because the underlying conditions for gold mining in

South Africa are tough.

Implats (Impala Platinum) was expecting to report annual

headline earnings five times better as a result of improved

commodity prices.

Another company to report improved half-year results was

Sibanye-Stillwater which increased volumes at its platinum group

metals (PGM) operations and its gold mines in the first half of 2020.

Some production was lost due to the steps taken to deal with

Covid-19 but, because of the inclusion of the Marikana operations

(bought from Lonmin), South African PGM production actually

increased by 5% year-on-year to 657 828 ounces.

Gold production within the group was also up after strikes

affected volumes in 2019. Production of 403 621 ounces was 17%

higher than the previous year’s figure. The group expects all of

its South African operations to be running at optimal production

levels by the end of 2020.

The sale in 2020 by AngloGold Ashanti of its Mponeng mine

and Mine Waste Solutions to Harmony Gold for $300-million (about

R4.4-billion) marks the end of an era. Although the company’s

headquarters will continue to be in Johannesburg and it will be

listed on the JSE, its mines are in Ghana, the Americas and Australia.

AngloGold Ashanti was the

successor to the mining

company formed by Ernest

Oppenheimer in 1917.

Harmony Gold’s acquisition

strategy, including the

purchase from AngloGold

of Moab Khotsong mine in

2017, will result in it being

the country’s biggest gold

producer. With 350 000 new

ounces coming from Mponeng,

it could produce an annual

total of 1.7-million ounces.

Afrimat continued to

expand its commodities

portfolio in 2020. Previously

focussed on construction

materials, Afrimat bought

a 27.27% stake in a highgrade

anthracite mine in

Mpumalanga, Nkomati, and

followed this with the purchase

of Coza Mining, an iron ore

and manganese company in

the Northern Cape. Afrimat’s

first foray into commodities

was also in that province, the

R322-million acquisition of the

Diro mine. In October 2020

Afrimat applied for Nkomati

to be placed under business

rescue because of the Covid-19

lockdown but stated that it

believed the business could

indeed be resuscitated.


An ongoing project by De

Beers to convert its Musina

mine from an open-pit mine

to a vertical-shaft mine will

extend the life of mine of this

northern Limpopo project



to 2045. Venetia Mine is by far the most important part of De

Beers’ South African operation, accounting for 3.1-million of the

5.4-million carats recovered by the company from its six operations.

Petra Diamonds has made it known that it will consider offers for

parts of its business or all of its operations. This follows a strategic

review where the issue of a R11.25-billion debt repayable in 2022

loomed large. The review began when the South African Covid-19

lockdown began. Most of the company’s major expenditure on

expansion projects is behind it but reduced demand, even before

the lockdown, has affected earnings. Revenue for the six months to

December 2019 was down by 6%. Of the company’s three South

African mines Finsch (Northern Cape) and Cullinan (Gauteng)

generate 90% of output and 75% of revenue.

In the Northern Cape, Ekapa Mining paid R300-million to buy

out Petra Diamonds from a JV.


When phase three is reached, the biggest new mining project

in South Africa will deliver 600 000 tons of zinc for Vedanta Zinc


Located at Aggeneys in the Northern Cape near the border

with Namibia, the Gamsberg zinc project has so far attracted

$400-million in investment from the company and has started

trucking product to the Port of Saldanha. Phase one of the open-pit

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

proceeds to phase three, it will likely go underground.

The Northern Cape Province is planning for a deep harbour at

Boegoebaai. Part of the strategy involves the creation of a commodities

corridor linking the Upington Industrial Park with the port.

In August 2020 Australian miner Orion announced it had raised

$6.2-million in share capital towards its Prieska Zinc-Copper Project.

Iron ore and manganese

In 2019 Sitatunga Resources purchased the East Manganese

project on the Hotazel-Kalahari ore belt from Southern

Ambition. Menar Holdings,

which controls a majority

share in Sitatunga, is mostly

invested in coal.

The overwhelming

majority of the world’s

manganese comes from the

Postmasburg and Kalahari

regions of the Northern Cape.

Assmang has two manganese

mines in the province:

Nchwaning and Gloria.

The Northern Cape

produces more than 84% of

South Africa’s iron ore. The

province has two major iron

belts, from Postmasburg to

Hotazel, and running through

Sishen and Kathu. Sishen is the

most important iron-ore mine in

South Africa, where operations

include extraction and four

beneficiation plants.

Kumba Iron Ore has the

huge Sishen facility at Kathu

and Kolomela. Assmang, a

joint venture comprising

African Rainbow Minerals and

Assore, mines at Khumani.

The company will spend

R2.7-billion on upgrading its

Gloria mine.

South32 is active in the

Northern Cape: Hotazel

Manganese Mines is made

up of two mines, Wessels

(underground) and Mamatwan

(open cut), and the Metalloys

manganese smelter. ■


Council for Geoscience: www.geoscience.org.za

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

Mintek: www.mintek.co.za

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




November 2020

The Council for Geoscience (CGS) is the national custodian responsible for the collection, compilation and

curation of all onshore and offshore geoscience data and information. The CGS aims to use this information

and knowledge to develop geoscience solutions to real-world challenges in South Africa.


Geoscience mapping is the core

function of the CGS and aims to

develop fundamental geoscience

knowledge using an integrated

and multidisciplinary approach

as well as innovation that merges

several onshore and offshore

geoscience themes such as

geology, geotechnical studies,

geochemistry, geophysics and

economic geology for mineral

and energy resources and their

mineralising systems information

to boost sustainable exploration

for economic growth.



As the custodian of the national

seismological network, the

CGS monitors and maintains

a geohazard inventory for

South Africa. This information

is primarily used in developing

effective and novel geohazard

mitigation solutions for safe

and judicious land use. Modern

artifi cial intelligence techniques

are applied in subsidence

mapping and seismic hazards



The geoscience functions are

supported by a multi-faceted

laboratory that performs a wide

range of analytical services

such as petrography, whole

rock geochemistry, petrophysics,

coal science and hydrochemistry.

The CGS also manages a

geoscience museum, library,

bookshop, and national core

repository which are used by

the scientific community and

the general public.


The CGS carries out hydrogeological studies and aquifer

modelling and is also responsible for environmental geoscience

research which aims to provide sustainable solutions to monitor

and mitigate the impact of geology and mining activities on the

health of the environment including its inhabitants.



As the permanent secretariat

of the Organisation of African

Geological Surveys (OAGS), the

CGS has an impressive footprint

in the African continent where

various geoscience services

have been rendered in line with

global standards, international

policy and governance. The CGS

also collaborates with various

academic institutions and science

councils around the world.


• The CGS is undertaking integrated and multidisciplinary geoscience mapping programme across South Africa.

• Some of the recent projects include:

- Multidisciplinary geoenvironmental baseline investigations in the Southern Karoo for possible shale gas

development, which uncovered previously undefi ned groundwater aquifers.

- Regional soil geochemical sampling and detailed follow-up surveys, particularly within the Northern Cape,

North West and Mpumalanga provinces.

- Geothermal energy and carbon capture and storage research, which aims to expand the current renewable

energy mix of South Africa and decrease the carbon footprint.

- Ground stability and geotechnical assessments for infrastructure development in the Northern Cape and Free

State Provinces.


Our head office is located at: 280 Pretoria Street, Pretoria, 0184 I @CGS_RSA I I I

Tel: +27 (0)12 841 1911 I Email: info@geoscience.org.za I Web: www.geoscience.org.za




By: Casper Badenhorst, Chief Operations Officer,

Pilanesberg Platinum Mines

Despite facing a tough economic

period, the mining sector continues to

play an important role in our economy

and still has the potential to make

a significant impact in the socioeconomic

development of our country.

We trust the upswing experienced in

2019 will spill over into 2020 and reclaim

profitability in the industry. Pilanesberg

Platinum Mines is cautiously optimistic;

a productive 2020 will support the

continuation of our plans to expand

mining operations thus increasing our

staff component and benefitting the

communities in which we operate.

As a growing mine, we are proud that we

sustained production in a constrained

environment, ensuring continued

contribution towards the social and

economic development of our wider

community. As we enter a new decade,

I reminisce on our achievements. In

2019, we purposefully held ourselves

accountable to our core values of zero

harm, upliftment and innovation.

Our specific focus on zero harm resulted

in no fatalities. In fact, because of our

commitment to the safety of our people,

we wrapped up this past decade with

over 5 million fatality-free shifts.

In addition, our efforts in uplifting

our female employees, has gained

some traction. Tebogo Metsileng was

nominated in the mining category for

the Women’s Lifestyle Award. Tebogo,

a Lab Technician, has been recognised

for her community service as a PPM

Wellness Team Member and for her

contribution as a Lab Technician.

She has also been recognised for

her motivation of the youth in her

community, making her a worthy

recipient of the 2019 Women Lifestyle

Award. This recognition will pave the

way for many women in this industry.

Furthermore, our commitment to reduce

our impact on the environment remains

a core focus.

We have taken innovative steps towards

decreasing our negative impact on the

environment, including the termination

of polystyrene packaging in our


We will continuously strive to improve

the lives of our people, our immediate

communities; and protect the

environment, as we contribute to the

growth and transformation of this

sector. Over and above our operational

accomplishments, I am proud

of what we have achieved in our

respective communities. Our top three

achievements include:

Supporting small businesses

In creating a meaningful impact in

our communities, we realised that

supporting small businesses is critical.

The ‘Community Crusher’ which started

as a non-profit project is now proving its

potential to be a fully-fledged business,

rendering a service to most of our

building projects.

Most importantly, 14 community

members are employed in this project,

of which 64% are women – securing

future female community leaders!

Furthermore, the ongoing support of

the relocated farmers is anchored in our

mission to train, develop skills and build

capacity of the small-scale subsistence

livestock keeper; and grow them to

become sustainable and independent

commercial farmers. To this end, a

professional Extension Officer has been

allocated to service and capacitate

them and all the basic farming support

infrastructure has been set up.

Enabling economic development in


As part of our contribution to socioeconomic

development in the Moses

Kotane Local Municipality and the

Bakgatla Ba Kgafela, our conviction is

that infrastructure interventions can play

a major role in enabling and catalysing

economic development. Consequently,

we have concluded construction of

Legkraal - Bofule paving and phase one

of the Motlhabe - Ngweding roads. This

will enable village to village connectivity

and access, with subsequent boosting

of the economies of the affected areas.

To secure a sustainable and productive

mine is not only about our employees’

jobs, but it is also about the impact that

these jobs and our operations have on

our people. As a mine, we are constantly

reminded that the future is a legacy in

the making and the best tomorrow for

all, relies on the crucial decisions we

make today.

“As a mine,

we are



that the

future is a

legacy in

the making

and the best

tomorrow for

all, relies on

the crucial


we make


Educating the youth

Education is important for our youth,

who are the real bastions of tomorrow.

Maths and Science are key tools to

understand, analyse and impact local

communities. We assisted over 200

students with their studies through

a Saturday school programme. As a

result, the 2019 academic results have

improved significantly from a pass

rate of 40% to 80% providing more

opportunities to these learners.

Tel: 014 555 1800


World-class zinc operation in

the heart of the Northern Cape

R5-billion investment by Vedanta Zinc International is a major catalyst for growth.

Vedanta Zinc International (VZI) is a

grouping of zinc assets located in South

Africa and Namibia, owned by the sixthlargest

diversified resources company

in the world, Vedanta Limited. Vedanta Limited

recently invested R5-billion into VZI’s flagship,

Gamsberg open-pit and concentrator project in

the Northern Cape province, which is now fully

operational and was inaugurated in February 2019

by President Cyril Ramaphosa.

President Cyril Ramaphosa and Vedanta chairman

Anil Agarwal at the Gamsberg mine opening.

VZI’s operations include Black Mountain Mining

(Pty) Ltd (consisting of underground operations

Deeps and Swartberg as well as the flagship surface

operation, Gamsberg Project) located in South

Africa’s Northern Cape province and the Skorpion

Zinc Mine and refinery in Namibia’s //Kharas region.

VZI’s vision is to create an integrated, world-class

regional zinc complex with the values of Safety, Trust,

Entrepreneurship, Innovation, Excellence, Integrity,

Respect and Care at the core of their business.

As of March 2020, VZI employed more than

4 200 people (including business partners), of which

99% are South Africans: 80% are from the Northern

Cape and 60% from the Namakwa District.

VZI’s Gamsberg Phase I open-pit mine

represents $400-million worth of investment

into South Africa by the Vedanta Group. Life of

mine extension at other mines in the complex

($46-million), Gambserg Phase II ($350-million) and

a further $850-million worth of investment on a

possible Gamsberg Smelter-Refinery Complex are

potential future investments in the South African

mining sector. The smelter-refinery is subject to the

availability of power and support from government

to make the project economically viable.

Leveraging technology

Gamsberg has implemented a unique flotation

system, the Staged Flotation Reactors. They

break the conventional flotation paradigm into

individual, optimised reactors which drastically

reduce energy and air consumption. The footprint

in the plant gets reduced by around 50%,

operations become easier and maintenance costs

are lower. VZI is the first company in Africa to

adopt Staged Floatation Reactors.

Backfilling operations is an integral part of Black

Mountain. Underground mining creates voids

which need to be filled. This provides opportunities

for mining operations like Black Mountain to

dispose of waste material underground and

provide support and stability to the surrounding

rock mass.







The Gamsberg Nursery houses

379 different species and will

have a capacity of 129 000

plants after the upgrade.


The Succulent Karoo Biome is unique in its floral

diversity. Among the 36 global biodiversity

hotspots, the biome is home to at least 6 000

species of plants that have evolved over millennia.

VZI’s environmental specialists have worked closely

with a wide range of experts, including those from

the International Union for Conservation of Nature

(IUCN), to ensure the site’s necessary protection,

preservation and ultimate restoration.

The Gamsberg Nursery is derived from the

Environmental Management Plan (EMP) and the

requirements for the Integrated Flora Permit.

Since October 2019, there have been 12 000

plants grown with 379 different species. After

the upgrade, 129 000 plants will be housed in

the nursery.

Community commitment

VZI has joined hands with PinkDrive NPC, a

significant player in the gender-related cancer

sector, to bring critical screening to the Northern

Cape. The outreach programme is for the communities

of Okiep, Nababeep, Bergsig, Pella and

Pofadder. The campaign aims to create awareness,

provide education and render health-related

services to community members. Community

members are also provided with free screening

and testing for Covid-19.

In 2015, 12 new local businesses were created

and commercial opportunities to the value of

R7.1-million were provided.

Childcare and education

support programmes

benefit more than 1 800

children at a cost of R6-

million per annum. Youth

and sports clubs are

supported. The total spend

on corporate social responsibility and community

work is over $14-million to FY2020.

During the Covid-19 lockdown period, many

outreaches were made throughout the region.

Items distributed included masks, hand sanitiser,

gloves, care packages, face shields, food and

clothing to areas within the Khai Ma and Nama

Khoi municipal areas. Visits were made to old-age

homes and disability care centres and schools. ■

The outreach programme delivers groceries to

local communities and organisations.



Showcasing Ivanhoe’s

education initiatives

Ensuring inclusive and equitable quality education.

Ivanhoe Mines places great value on the level of

host community acceptance and trust, which underpins

its social licence to operate. We strongly

believe in collaborative problem-solving and

employ a sustainability strategy that includes social

development goals, targets and projects in alignment

with host country regulatory frameworks and

international frameworks such as the UN’s Sustainable

Development Goals (SDGs).

Our sustainability strategy recognises the power

of education and aims to advance the objectives of

ensuring inclusive and equitable quality education

and promoting lifelong learning opportunities for

all (SDG 4). Ivanhoe has, accordingly, developed

and implemented various educational initiatives

across its three principal projects.

A case study at the Platreef Project

To enable access to education, and raise the quality

of education across all stages of the education

value chain (including the vulnerable in society), we

have invested numerous educational infrastructure

and support initiatives at our Platreef Project under

the first Social and Labour Plan (2015-2019):

• Investment into the development of the Lesedi

Centre and its staff capacity to support the Early

Childhood Development Function.

• Under its scholarship programme, Platreef

supported 426 learners from underprivileged

families. Platreef further provided study assistance

to 79 employees, and external bursaries to 37

employees and host community members, also

partnering with universities in Canada and Japan

for post-graduate qualifications.

• Platreef established five E-learning venues with

support from the Department of Education, which

remain crucial during the Covid-19 pandemic to

maintain momentum for learners at beneficiary

schools. Expansion to four more schools is

planned for 2021.

• Platreef introduced the MiniChess programme at

the Motshitshi Primary School through the Entrust

Foundation. This resulted in a marked improvement

in numeracy and mathematical abilities,

spatial perspective development, critical/strategic

thinking development and mastery of English

mathematical terminology among learners.

• Infrastructure support (food garden, irrigation system)

was provided to the Thobela Disability Centre,

which caters for 30 young people of various ages.

• Free Wi-Fi access to the host communities has

enabled digital inclusion.

The phased development plan

The MiniChess programme at Motshitshi Primary

School has been a huge success for learners.



Ivanhoe is investigating a phased development

plan for the Platreef Project, targeting significantly

lower initial capital, to accelerate first production

by using Shaft 1 as the mine’s initial production

shaft. This plan will focus on initially targeting the

development of mining zones accessible from

Shaft 1 and maximising the hoisting capacity of this

shaft, followed by expansions to the production rate

as outlined in the 2017 Definitive Feasibility Study.


Platreef-sponsored science laboratories help

bring the subject to life and make it fun.




Solar and wind projects are regularly coming onstream.

Credit: Abengoa

South Africa’s acclaimed Renewable Energy Independent

Power Producer Procurement Programme (REIPPPP)

attracted about R200-billion in committed investments,

mostly in solar and wind power, in just five years.

The early rounds of the independent power producers’

programme continue to produce regular dividends. In October

2020, another wind farm started commercial operations.

Located about 80km north-east of Ceres in the Witzenberg Local

Municipality, the Paardekraal East Wind Farm is in the Western Cape.

The 110MW project was constructed by the Concor and Conco

Consortium, Siemens Gamesa Renewable Energy supplied and

installed the wind turbines, the towers were built by GRI in Atlantis

and Mainstream Asset Management South Africa will manage the


According to the Department of Energy, the REIPPPP by

2016 had created more than 30 000 jobs and benefited local

community development to the tune of R256-million. Figures

released by the South African Wind Energy Association (SAWEA)

showed shareholding for local communities reached an

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

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

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

been spent on Black Economic Empowerment (BEE) in the

construction phase.

The majority of wind projects have been allocated to the Eastern


Training for a renewable future

is a new priority.

Cape, but approximately 60% of

the solar projects so far allocated

in the programme have been in

the Northern Cape, the nation’s

sunniest province.

Gas is also in the mix.

The Department of Energy is

targeting the procurement

of 3 126MW and intends

spending R64-billion on port,

pipeline, generation and

transmission infrastructure at

three key ports, Richards Bay,

Coega and Saldanha Bay.

The most popular method

relies on solar panels, namely

solar photovoltaic (PV). The

other form of solar power

(concentrated solar power, CSP)

is effective and some projects




Liquefied natural gas can

help South Africa reach its

decarbonisation goals



help SoS


Aldworth Mbalati, CEO of DNG Energy, reveals how his company will offer a cleaner Aldworth Aldworth Mbalati

fuel stop for ships that travel along the South African coastline.

fuel fuel stop stop for ships for s

What are the main advantages of liquefied natural gas (LNG)?

Liquefied natural gas is a cleaner and cheaper fuel alternative for the

energy market. The environmental, social and economic benefits will

help the country meet its targets in reducing greenhouse gas emissions,

drive economic growth and improve the lives of its citizens.

Aldworth Mbalati, CEO


Aldworth Mbalati started his entrepreneurial

journey as owner and

CEO of Vutomi Properties in 2002.

In 2005 he was involved at Bayethe

Investment Company, a company

investing in coal and other energy

assets. Five years later, he expanded

into oil and gas exploration, production

and midstream activities

such as gas-to-power as the major

shareholder and CEO of African

International Energy, Africa. He started

DNG Energy in 2013. He obtained

rights and developed an LNG import

terminal in Mozambique.

Transnet National Ports Authority recently gave permission for

you to begin bunkering operations: how significant is that?

The promulgation of regulations by the International Maritime

Organisation (IMO) in January 2020 requiring all ships to use fuel that

has sulphur content of no more than 0.5% has put LNG to the fore

as a solution for decarbonising the marine industry. Finalisation of a

bunkering licence for DNG Energy at Coega gives us a go-ahead to

begin our integrated gas infrastructure for on-shore and off-shore LNG

logistics. We are building the first floating storage unit (FSU) Aldworth for Africa Aldworth Mbalati, C

and the largest in the southern hemisphere. Our position at Coega

gives us an opportunity to optimise trade for the global marine industry

by offering a cleaner fuel stop for ships that pass through Algoa Bay,

estimated at 57 000 ships every year.


What will be the impact of DNG Energy’s bunkering activities?

We support government’s strategy to develop the Coega Industrial

Development Zone as a gas hub. Our operations will reduce the



Aldworth Mbalati Mbalati start

costs of doing business, expand the marine economy by creating trepreneurial trepreneurial jobs, journey journe as

developing skills and will also move South Africa closer to meeting CEO of CEO its Vutomi of Vutomi Properti

climate change objectives.

In 2005 In 2005 he was he involved was Investment Investment Company, a

Who do you see as your customers in the LNG space? investing investing coal in and coal ot a

Our customers are global and local shipping companies, assets. intensive assets. Five years Five years later, la he

energy users, logistics companies, industrial and commercial operations,

into oil into and oil gas and explor gas e

the taxi industry and households.

duction duction and midstream

and such such as gas-to-power as

What are the strengths of your team?

shareholder shareholder and and CEO

DNG Energy’s team has unity in vision, values and shared culture. International International The Energy, Energy Afric

working environment is steeped in a culture of hard workers ed who DNG ed are DNG Energy Energy in 2013. in 20 H

focused on the value proposition needed by the market. To those rights who rights and developed and develope an

say it cannot be done, DNG Energy asks, “Why not?” ■

terminal terminal Mozambique






have been commissioned, but it is relatively expensive.

Projects such as Kathu Solar Park (100MW), a

concentrated solar power project, and the Roggeveld

Wind Farm (147MW) are indicative of the large scale of

most of the energy generation that is being rolled out.

At Black Rock Mine solar power is being put to use on

a smaller scale. To light the intersections leading to

the mine, BEKA Schréder has installed solar-powered


All of Abengoa’s three plants in the Northern Cape

use CSP which reflects the sun’s rays during the day into

a molten salt storage system. The energy is then slowly

released during the night. The 205m tower that collects

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

structures in South Africa.

Despite the emphasis on renewables in South

Africa’s latest integrated resources plan (IRP), South

Africa’s energy mix is still weighted towards coal.

Two huge new power stations, Kusile and Medupi,

are being built by Eskom and 1 000MW has been

allocated to private producers to build coal-powered

stations known as Thabametsi and Khanyisa. The IRP

has attracted criticism for enabling an expansion of the

coal industry. Koeberg nuclear power station is due to

be decommissioned soon after 2045.

A new centre has been established at Wits Business School

to teach the new skills that are needed for new kinds of energy.

The Africa Energy Leadership Centre (AELC) is supported by the

Chemical Industries Education and Training Authority (CHIETA).

Another body active in energy training is the Energy and Water

Sector Education and Training Authority (EWSETA).

Regulations in the energy sector are being keenly watched.

The 2019 decision that power projects generating less than 10MW

do not have to get licences from national departments has given

hope to independent power producers and city governments

across South Africa that a new era in energy policy has begun.

These smaller projects can go ahead (up to a total of 500MW)

outside of the country’s IRP but the next step – allowing

companies to sell any excess power they generate to the grid –

will be a real game-changer.

Mining companies such as Sibanye-Stillwater and Gold

Fields have made it clear that they want to marshall renewable

energy resources to power their own operations, to the

tune of 150MW and 40MW respectively, but clearance from

government is still needed.

An example of the potential that lies within companies is Tongaat

Credit: Perdekraal East Wind Farm

Hulett. This company’s sugar

mills are producing between

12MW and 14MW of power.

The company believes that the

national sugar industry could

generate between 700MW

and 900MW. The managing

director of South Africa’s other

sugar major, Illovo Sugar SA,

was quoted in the Sunday

Times in March 2020, saying,

“There are opportunities around

how do we sell power into

the grid, opportunities within

the whole biofuel, bio-energy

sphere.” Mamongae Mahlare

also said that the key to the

sugar industry’s future lay in

diversifying into energy.

Many of the same conditions

exist for Sappi’s wood and fibre

mills in Mpumalanga and




KwaZulu-Natal and all of the breweries making

beer across South Africa.

Discussions about feed-in tariffs will have

to be finalised before the huge potential of the

relevant sectors can be fulfilled with regard to

energy generation. If national utility Eskom is

broken into separate business units then the

likelihood of the tariff discussions taking place

will greatly increase.


Enel Green Power has adopted a new approach

to funding its renewable energy projects. Law

firm Norton Rose Fulbright has concluded a

R3.5-billion financing arrangement with Absa

and Nedbank which treats five wind farms to be

built by Enel as one project, resulting in better

terms. This is the first time such a method has

been adopted in Africa.

Investec intends listing a renewable energy

fund on the JSE, to be called Revego Africa

Energy. In addition, private banking clients of

Investec may now receive loans to fund the

installation of solar power in their homes, which

payment can be linked to the home loan.

The support of two of South Africa’s

biggest institutional investors, the Industrial

Development Corporation (IDC) and the Public

Investment Corporation (PIC), has been crucial

in getting the renewable energy sector off

the ground. They have also played a role in

helping communities fund their participation in

community trusts.

Many partnerships between local and

international companies have been established.


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

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

South African National Energy Development Institute: www.sanedi.org.za

South African Photovoltaic Industry Association: www.sapvia.co.za

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

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

South African partners are often local energy

companies and representatives of residents.

Typically, a community trust is established to

represent the interests of the local community.

Investment by black people into the

renewable energy programme is not limited to

community trusts. Pele Green Energy is engaged

with a photovoltaic plant at Touwsrivier in the

Western Cape as a shareholder and as a provider

of construction management services. Once the

facility starts generating power, Pele will operate

and maintain the plant.

Among the international investors

active are Enel Green Power (Italy), Scatec

Solar (Norway), Globeleq (UK), Mainstream

Renewable Power (Ireland), Gestamp

Renewable Energies and Abengoa (Spain),

Solar Capital (Phelan Energy Group, Ireland),

SunEdison (USA), ACWA Power (Saudi Arabia),

China Longyuan Power Group (China), Engie

(France), juwi Group (Germany) and Tata

Power of India. The last-named company

recently sold to partner Exxaro Resources its

50% stake in Cennergi, which owns two wind

farms in the Eastern Cape.

Partnerships with foreign utilities or power

companies are becoming more common,

in part because the competition is bringing

down the price which bidders are offering

to sell power. This makes it difficult for South

African firms to compete on their own. Many

foreign investors such as large national utilities

have strong reserves of cash and do not need

to borrow money.

The bank created by the five nations of

BRICS, the New Development Bank (NDB), has

made $180-million available to Eskom to help it

integrate power from renewable energy sources

to the national grid. ■




Data centres are booming.


As South Africa joins the global trend towards online

shopping and with the first networks rolling out 5G in

2020, data centres are going up all over the country.

Teraco stores data in Johannesburg, Durban and Cape

Town. A second 30MW site is under construction in Brackenfell

to complement the existing facility in Rondebosch (pictured).

Microsoft Azure has facilities in Cape Town and Johannesburg

and Amazon has two sites in Cape Town. Huawei Cloud Services

will use a partner company in Johannesburg to store its data.

Africa Data Centre (ADC), part of the Liquid Telecom Group, has

purchased a Tier IV data centre in Johannesburg, previously used

by Standard Bank.

A 2019 study by Microsoft found that the cloud ecosystem

will create around 112 000 new jobs in South Africa by 2022

(IT Web). The number of permanent employees of Amazon Web

Services reached 7 000 in October 2020. Acuity Consultants was

quoted in 2019 as saying that software developers’ salaries had

risen by 30% in a year (Business Times).

A new entrant to the South African market relies entirely

on the cloud. Uniconta, an enterprise resource planning (ERP)

system for small and medium-sized businesses, opened its first

offices in Cape Town in 2019, a precursor to plans to expand

elsewhere in Africa.

Cell C became South Africa’s third mobile operator in 2001,

following MTN and Vodacom. Cell C was in the news early in

2020 when it defaulted on interest payments on a loan and this

had an effect on the shares of Blue Label Telecoms, which owns

45% of the operator. When Cell C’s results were announced in

October 2020, reference was made to a turnaround strategy.

Telkom, which became the country’s fourth operator in 2010,

intends selling its cellphone towers and masts (estimated to be

worth about R12-billion) in order to invest in 5G.

The Council for Scientific and Industrial Research (CSIR) in

Pretoria will host a new body aimed at preparing South Africa

for the Fourth Industrial Revolution (4IR), the South African


Business Process Enabling SA: www.bpesa.org.za

Independent Communications Authority: www.icasa.org.za

Technology Innovation Agency: www.tia.org.za


Vodacom is rolling out 5G.

Credit: Data Centre Map

Affiliate Centre of the World

Economic Forum.

The Small Enterprise

Development Agency

(Seda) runs the SoftstartBTI

ICT incubator in Midrand

and Tuksnovation, a hightech

incubator, at Pretoria

University. Several incentives

relevant to companies and

educational bodies in the ICT

sector are available from the

Department of Trade, Industry

and Competition (dtic).

The Information

Technology Association (ITA)

is the trade and employer

body of the Information

Technology industry in South

Africa. The ITA represents

more than 200 companies

which supply information

technology equipment,

systems, software and

services. Members include

IBM, Microsoft SA, Siemens,

SAP and Axiz. ■



Oil, gas and petrochemicals

Exploration for gas off the south-eastern coast is hotting up.


Sasol is selling assets to

reduce debt.

The Karoo Deep Drilling and Geo-environmental Baseline Project is

investigating the potential impact of shale gas drilling.

(Credit: Council for Geoscience)

There was great excitement in the oil and gas sector when

Total and its joint venture partners announced in the 2019

that they had made a discovery at a site called Brulpadda,

off the coast of Mossel Bay.

The drilling was successful enough to warrant the return of the semisubmersible

rig Deepsea Stavenger from Norway to South Africa and in

August 2020 the rig was in place to drill the nearby Luiperd prospect in

Block 11B/12B. The block, in the Outeniqua Basin 175km off the southern

coast, covers an area of about 19 000km² in water depths of 200-1 800m.

In October 2020, Total announced that it made a second significant gas

condensate discovery on the Luiperd prospect.

Total E&P South Africa BV is the operator (45%) with partners

Qatar Petroleum International Upstream LLC (25%), CNR

International (South Africa) Ltd

(20%) and Main Street 1549

Proprietary Ltd (10%, of which

Africa Energy has a 49% stake).

Petroleum Agency South

Africa (PASA), which encourages

exploration and regulates the

oil and gas industry, has noted

the significance of international

oil companies committing to

exploration off South Africa’s

coast. Increased confidence by

such companies can only lead

to growth in the industry, and

with the massive gas finds in the

Rovuma Basin off Mozambique

in 2020, there are sure to be

more companies interested in

South Africa’s potential.

Another drilling project – on

land this time – was launched in

September 2020 in the Karoo.

The Council for Geoscience

(CGS) announced phase two

of the Karoo Deep Drilling and

Geo-environmental Baseline

Project (KDD) in Beaufort West.

The geoscientific research

project in the Karoo Basin is

aimed at developing a geoenvironmental

baseline model

with a focus on assessing

the potential environmental

impacts of shale gas

development in the Karoo.

A Gas Utilisation Master Plan

(GUMP) is being developed as a




part of national energy policy. Private companies are responding

to this changed environment. Renergen, which owns rights to a

field of liquified natural gas (LNG) in the Free State, has started

taking orders for its product from logistics companies. Bulk Hauliers

International Transport (BHIT) has signed an agreement to take LNG

to fuel 50 of its trucks, which should lead to lower operating and

maintenance costs. South African Breweries is another client.

Delta Natural Gas (DNG) Energy announced in 2019 the rollout of

400 natural gas refuelling sites across South Africa with a focus on the

taxi and logistics sectors. The major economic sectors using gas are

the metals sector and the chemical, pulp and paper sector. Brick and

glass manufacturers are also big consumers.

Anadarko Petroleum, a US company, is investing $20-billion

to build a liquid natural gas (LNG) plant in Mozambique. The

projected spin-offs for the South African economy are estimated

to top R7-billion.

A new addition to South Africa’s pipeline network is a pipe to

get natural gas from Mozambique to Gauteng. SacOil’s R90-billion

project will deliver gas to Johannesburg and nearby towns.

International chemicals and energy company Sasol has

several large plants in Mpumalanga and the Free State. Sasol Gas

is one of the four Sasol operations at Secunda, supplying natural

gas to Sasol Synfuels and buying Sasol Synfuels’ methane-rich

pipeline gas.

Air Liquide Large Industries SA, a subsidiary of French company

Air Liquide, has purchased Sasol’s oxygen production site in Secunda

for R8.5-billion. The site, which contains 16 air separations units, will

continue to supply gas and oxygen to Sasol’s various plants in terms

of a supply agreement. Sasol is selling a number of its assets in an

effort to reduce debt.

Large quantities of oil are transported around the Cape of Good

Hope every year: 32.2% of West Africa’s oil and 23.7% of oil emanating

from the Middle East. Irrespective of market volatility, the longterm

prospects for shipping and oil and gas are strong enough for

national government to pursue Operation Phakisa (which includes a

strong maritime economy element) and for Transnet National Ports

Authority to spend heavily on upgrading the nation’s ports. The Port

of Saldanha has a new open-access liquefied petroleum gas (LPG)

plant run by Sunrise Energy.

The Department of Trade, Industry and Competition (dtic)

has established a Gas Industrialisation Unit (GIU). The first two


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

Petroleum Agency SA: www.petroleumagencysa.com

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

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

sites identified by the DoE

for liquefied natural gas

(LNG) plants are Richards Bay

(2 000MW) and the Coega

Industrial Development Zone

(1 000MW) in the Eastern Cape.

This has the potential to turn

the Richards Bay Industrial

Development Zone (RBIDZ) and

its Eastern Cape counterpart

into energy hubs.

The Coega IDZ is also

home to the country first gasfired

plant run by a private

consortium, the Dedisa power

plant. A new gas turbine open

cycle power plant near Durban

has been commissioned by

Avon Peaking Power.

The South African oil industry

generates annual sales of about

R365-billion and includes global

giants such as Engen, BP, Shell,

Total and Chevron.

Most of the oil that feeds

the country’s four crude-oil

refineries is imported. The

refineries are in Cape Town,

Sasolburg and Durban (two).

In addition to South Africa’s

crude-oil refineries, natural-gas

conversion plant, coal-to-fuel

and gas-to-liquid crude-oil

refineries, Sasol produces fuel

from coal at its Secunda facility

and PetroSA has the country’s

only gas-to-liquid (GTL) facility

at Mossel Bay.

Getting fuel to the province

of Gauteng is the key mission of

the new multi-purpose pipeline

(NMPP) which started delivering

fluids in 2012. The NMPP

terminals allow for greater

flexibility in supply. Refined

products such as jet fuel,

sulphur diesel and both kinds of

octane petrol are carried. ■



A game-changer for

South African oil and gas

Light oil and gas condensate discoveries could be the start

of something big off the Southern Cape coast.

If the South African gas market is to take off and

thrive, significant drilling has to take place. As the

new CEO of Petroleum Agency SA, Dr Phindile

Masangane, describes the situation: “That would

be a game-changer for South Africa’s upstream oil

and gas industry.”

As it happens, a major discovery has been made

at a site south-east of Mossel Bay called Brulpadda.

Says Dr Masangane: “The recent discovery by Total

and its JV partners in Block 11B/12B (Brulpadda) is

the first giant step in that direction.”

Odfjell’s Deepsea Stavanger semi-submersible

oil rig relocated from Norway to South Africa

in June 2020 to start exploratory drilling. The

Luiperdpadda prospect where the rig is drilling

is the second of five prospects in the group. With

light oil and gas condensate having been found

in the Brulpadda well, it is possible that other

prospects will be found with this further drilling.

Africa Energy holds a 4.9% effective interest

in the Exploration Right for Block 11B/12B.

The Company owns 49% of the shares in Main

Street 1549 Proprietary Limited, which has a 10%

participating interest in the block. Total as operator

holds a 45% participating interest in Block 11B/12B,

while Qatar Petroleum (25%) and CNRI (20%) are

the other participants.

The exploration drilling in Block 11B/12B

is in deep waters similar to where the gigantic

Mozambique Rovuma Basin gas discoveries were

made in 2010. The drilling campaign has long-term

benefits to South Africa which include introducing

frontier deepwater (>1400m) exploration drilling,

building confidence and potentially shifting

petroleum exploration activities to private

international oil companies (IOCs), de-risking

deep-water acreage which is believed to be

prospective for large oil and gas resources. This will

encourage other IOCs to take risk in drilling deepwater

prospects, which could result in the country

discovering more oil and gas resources.

In June 2020, the Block 11B/12B joint venture

received the fast-track 3D seismic dataset

from Petroleum Geo-Services ASA for the

2 305km² 3D seismic programme completed

earlier in the year on the block. Initial

interpretive work has identified a number

of additional leads, including a potential

northern extension to the Luiperd Prospect.

When the Block 11B/12B JV receives

the fully-processed 3D dataset it will then

integrate the PGS data with the Polarcus

3D seismic data from 2019 in order to

mature previously identified leads into

prospects. “Further development of the

discovery is highly dependent on the

success of this further drilling,” comments

Dr Masangane. “Possible development

could see condensate being piped to the

PetroSA facility in Mossel Bay,” she adds, “but

these decisions are ultimately up to the

operator, Total and its partners.”



64 34


Petroleum Agency SA: promoting

and regulating exploration and production.

Petroleum Agency SA evaluates, promotes and

regulates oil and gas exploration as well as related

production activities in South Africa, in addition

to archiving all relevant geotechnical data. The

Agency acts as an advisor to the government and

carries out special projects at the request of the

Minister of Mineral Resources and Energy.

South Africa’s energy mix is changing to include

more gas through importing liquefied natural gas

(LNG), using shale gas if reserves prove commercial,

and developing infrastructure for the import of

LNG. Petroleum Agency SA plays an important

role in developing South Africa’s gas market by

attracting qualified and competent companies to

explore for gas. Another major focus is increasing

the inclusion of historically disadvantaged South

African-owned entities in the upstream industry.

Currently, natural gas supplies just 3% of South

Africa’s primary energy. A significant challenge

facing the development of a major gas market

is the dominance of coal. Opportunities for gas

lie in the realisation of South Africa’s National

Development Plan (NDP) and the Integrated

Resource Plan (IRP).

As custodian, Petroleum Agency SA ensures

that companies applying for gas rights are

vetted to make sure they are financially qualified

and technically capable, as well having a good

environmental track record. Oil and gas exploration

requires enormous capital outlay and can

represent a risk to workers, communities and the

environment. Applicants are therefore required to

prove their capabilities and safety record and must

carry insurance for environmental rehabilitation. ■

Contact details

Tel: +27 21 938 3500

Email: plu@petroleumagencysa.com

Website: www.petroleumagency.com


Dr Phindile Masangane was appointed as the

CEO of the South African upstream oil and gas

regulatory authority, Petroleum Agency South

Africa, in May 2020. Before then, Dr Masangane

was an executive at the South African state-owned

energy company, CEF (SOC) Ltd, which is the

holding company of PASA.

Dr Masangane was responsible for

clean, renewable and alternative energy

projects. In partnership with private

companies, she led the development

of energy projects including the deal

structuring, project economic modelling

and financing on behalf of the CEF Group

of Companies. Her responsibilities included

supporting the national government

in developing energy policy and

regulations for diversifying the

country’s energy mix. In 2019, Dr Masangane was

Head of Strategy for the CEF Group of Companies

where she led the development of the group’s

long-term strategic plan, Vision 2040+ as well as

the group’s gas strategy. From 2010 to 2013, she

was a partner and director at KPMG, responsible for

the Energy Advisory Division. She successfully

led the capital raising of $2-billion for

hydro and coal power plants expansion

programmes of the Zimbabwean power

utility, ZESA/ZPC.

An alumnus of three universities, Dr

Masangane has a BSc (mathematics

and chemistry) from the University of

Swaziland, a PhD in Chemistry from

Imperial College, London and an

MBA from the University of the

Witwatersrand. ■




Infrastructure spending will have to be consistently high.


The National Cleaner

Production Centre South

Africa is finding ways to use

less water.

Amatola Water.

The National Department of Water and Sanitation has

released a master plan in response to the severe droughts

that have affected the country in recent years. It calls

for annual investment for a decade of R3.3-billion in

infrastructure to achieve water security. This is a figure that can

only be achieved with the help of the private sector.

In 2030 South African demand for water will be 17%

greater than supply. That is the verdict of the 2030 Water

Resources Group, an international consortium of private

companies, agencies and development banks that has

established a South African chapter, the Strategic Water

Partners Network.

The National Cleaner Production Centre South Africa (NCPC)

is the technical partner for the water use part of Phase 2 of the

Strategic Water Sector Cooperation between the governments

of Denmark and South Africa. NCPC, which runs the Industrial

Water Efficiency project, has found that more efficient use of

energy (a key focus area of its work) has also led to less water

being used in production processes.

A strategic review led Aveng to dispose of Aveng Water and

Aveng Namibia Water in June 2019, together with a range of

other businesses deemed to be non-core. The buyer was Infinity

Partners, a 100% black-owned company jointly held by investor

E-Squared Investments and Suzie Nkambule, who was the MD of

Aveng Water up until the time it was sold.

Another sale in 2019 resulted in Inzalo Capital Holdings taking

a 60% stake in the water group of Sebata Group Holdings. The two

companies affected are USC Metering and Amanzi Meters which,

as a result of the transaction,

qualify as “Black Industrialist”

businesses in terms of the Black

Industrialist Policy (BIP) of the

Department of Trade, Industry

and Competition (dtic).

The Western Cape, which

bore the brunt of a fierce

drought for several years, fares

well in terms of providing water

infrastructure and maintaining

its wastewater treatments

plants. The Western Cape

Department of Agriculture

has launched a climate action

plan called Smart Agri which

includes doing studies on

conservation agriculture.

When the long-term

drought was at its worst,

tourists to Cape Town were

encouraged to “Save like a

Local”. Together with a range

of technical and legislative

measures, the campaign

to use less water worked

remarkably well.

The drought also led

to creative thinking by

corporate South Africa. Old

Mutual’s large Pinelands

campus (accommodating

approximately 9 000 staff

members) is producing its own

water by purifying wastewater.




Technology and innovation

A plant that makes water from air was launched in 2019. Aqua Air

Africa has established an atmospheric water-generation plant at

Ga-Rankuwa near Pretoria and is producing about 10 000 litres

per day through a process that involves the condensation of

water vapour into liquid.

Simpler technology is giving the pupils at a school

in Limpopo access to drinking water. Students from

the University of Pretoria’s Department of Geography,

Geoinformatics and Meteorology have helped to build a net

in the mountains where Tshiavha Primary School is located.

Fog is captured by a big net and channelled into tanks by

a gutter running along the bottom of the net. About 2 500

litres of water is captured per day which means that there is

enough to share among the villagers.

A new kind of water filtration system has been pioneered by

a water entrepreneur from the same province, a system which

puts macadamia nut shells to use. The brainchild of Murendeni

Mafumo, the idea was first put into action in 2018 and has been

used in schools and rural communities by Kusini Water. Powered

by solar power, the purification system uses a carbon filter that

is made from macadamia nut shells.

The province of KwaZulu-Natal is taking a lead in

desalination technology. Richards Bay has installed a

10-container desalination plant next to the municipal water

treatment plant at Alkanstrand. The first mobile sea water

purification unit in South Africa, it comprises 10 containers

and is located adjacent to the water treatment plant at

Alkantstrand. It can deliver 10 megalitres of drinking water. In

2018 JG Afrika and technology partner NuWater delivered a

R72-million desalination plant to South32’s Hillside aluminium

smelter in the same town.

In an attempt to reduce the amount of water sucked up by

alien plants, Coca-Cola aims to recover nearly three-billion litres


National Cleaner Production Centre South Africa: www.ncpc.co.za

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

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

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

of water through the removal

of invasive plants.

Supplying water to

households and businesses

has often been a task

beyond the capabilities

of some of South Africa’s

municipalities. The Municipal

Infrastructure Support

Agency (MISA) falls under

the National Department

for Cooperative Governance

and Traditional Affairs and

will assist municipalities

to plan for, provide and

maintain infrastructure. The

first action of MISA was to

commission 81 engineers

and town planners to get to

work in areas that need the

most help.

Another response to

the municipal problem is a

new national strategy which

gives a bigger role to wellresourced

water boards

such as Umgeni Water and

Sedibeng Water.

In terms of the National

Water Resource Strategy,

catchment area management

agencies have been established

to oversee water resource

management on a regional

basis. The Imkomati-Usuthu

Catchment Management

Agency covers Mpumalanga,

parts of Limpopo and part of

the Kingdom of Swaziland.

Another example of a CMA is

the Breede-Gouritz Catchment

Management Agency in the

Western Cape. ■



Gert Sibande Water

Quality Testing Laboratory

Improving water quality for citizens of the district.

The Gert Sibande Water Quality Testing

Laboratory is the only SANASaccredited,


facility in the Mpumalanga Province.

It is situated on the N17 corridor in

Ermelo, bounded by Ekurhuleni Metro of the

Gauteng Province to the west, Sedibeng District

Municipality of the Northern Free State to

the south-west, Ehlanzeni District Municipality

of Mpumalanga Province to the northeast,

Nkangala District Municipality to

the north (Mpumalanga Province), Amajuba

District Municipality to the south-east of

KZN and Swaziland to the east and, therefore,

easily accessible.

The facility is evidence of Gert Sibande District

Municipality’s vision to be “A community-driven

district of excellence and development” and is in

line with the National Development Plan (NDP)’s

vision 2030 which is:

“To ensure that all South Africans have access to

clean running water in their homes.”

The centrality and the strategic location of

this facility ensures easy accessibility by all stakeholders.

Informed by the need to improve water

quality in the district, the laboratory was established

in 2011 to guarantee safe drinking water

provided to millions of citizens within the district

according to section 9 (1) of the Water Services Act

No. 108 of 1997.

GSDM laboratory staff at the GSDM Water Quality Testing Laboratory led by Ms Victoria Tshabalala (centre).






Mr Siyabonga Makhathini, the Senior Technician (Chemistry) at the ICP room in the GSDM laboratory.

The focus of the facility is on the following:

• Chemical analysis.

• Microbiological analysis.

• Physical analysis.

These services are available to all stakeholders

and customers including local municipalities

and industries. A pricelist is available on request.

Gert Sibande District Municipality prides itself

about this facility which meets the requirements of

the ISO/IEC 17025:2017. In addition, the Gert Sibande

Water Quality Testing Laboratory promotes water

quality and care for water in communities through

active involvement in awareness programmes

offered by local municipalities. It also promotes

careers in science by providing opportunities to

students in the form of in-service training.

The laboratory boasts of the provision and

delivery of superior laboratory services and aims to

promote and support the development of a culture

of scientific learning. The Gert Sibande Laboratory

regards its clients as valuable stakeholders whose

interests are a priority for the laboratory.


Monday to Thursday: 07h30-13h00; 13h30-16h30

Friday: 07h30 to 14h00.

Contact details

Address: Cnr N17 Bethal and Nelspan Roads,

Cassim Park. PO Box 1748, Ermelo, 2350.

Tel: +27 17 801 7143.

Email: laboratoryservices@gsibande.gov.za

Website: www.gsibande.gov.za

Facebook: @gertsibandedm

Twitter: @GertSibandeDM

GPS coordinates: S26 31’ 25.73” E29 58’ 19.25




Many engineering groups are selling off assets.


A presidential infrastructure

office may breathe new life

into the sector.

A semi-portable crane from RGM Cranes. Credit: Betterect.

Aveng’s disposal of non-core assets is typical of

the activity of larger companies in the sector. The

company’s website lists Aveng Trident Steel and

Aveng ACS (Automotive Control Solution) as solid

businesses which will realise good value once a new owner

is found and lists another eight businesses (in roads, rail,

civils and electrical) which the group sold in 2019.

With a renewed focus on infrastructure, resources and

mining solutions, Aveng’s main operating companies are

now Moolmans in South Africa (contract mining and mining

services) and McConnell Dowell (engineering, construction

and maintenance) in Australasia, Southeast Asia and the

Middle East.

Some of the big names such as Group Five, Basil Read

and Esor are in business rescue. Others such as Murray &

Roberts and WBHO rely heavily on offshore contracts for

revenue. Murray & Roberts has completed its transition from

being a South African company focussing on contracting to a

multinational engineering and construction group with a focus

on natural resources markets.

An Investment and Infrastructure Office has been created

in the Presidency. It is headed by the former Gauteng MEC for

Economic Development, Dr

Kgosientso Ramokgopa. In

2020, 51 infrastructure projects

with a total investment value

of more than R340-billion were

gazetted and hopes are high

that this initiative will provide

a boost for engineering firms.

A study carried out by

KMPG found that spending

on infrastructure resulted in

additional economic activity

worth R26-billion and created

92 000 direct jobs.

Marine repair and

engineering form a significant

sector in the Western Cape and

KwaZulu-Natal, with established

companies such as EBH South

Africa offering comprehensive

services. Both KwaZulu-Natal

ports are expanding (Durban has

built a cruise-liner terminal and

Richards Bay is undertaking no

fewer than 45 projects) and will

continue to attract engineers.

Dormac, which is

headquartered in the Bayhead

area of the Port of Durban,

is best known for its marine

engineering but it offers

specialised services to the

sugar industry and provides

machinery for industrial giants

like Toyota and Defy.




Sector news

Expansion at Betterect’s manufacturing plant in Krugersdorp has

helped to push production to a monthly level of 650 tons of steel

plate work. This has necessitated the installation of strong and

reliable cranes which have been provided by RGM Cranes for

more than 30 years. Betterect specialises in mild and stainless

steel fabrication, steel erection and corrosion protection.

Betterect recently commissioned RGM Cranes to supply a

30-ton semi-portable crane and two 10-ton single-girder cranes.

The smaller cranes lift items for the erection of semi-assembled

or fully assembled tanks and skids in the workshop area. Most of

the RGM cranes are on site at the Chamdor site but when a fuel

gantry was constructed at the airport on the island of St Helena,

the two companies worked together there.

RGM is the South African agent and supplier for Turkish

company Güralp. The Güralp hoist is sent to South Africa in kit

form (the hoist, cabling and electrics) and RGM manufactures the

girders and assembles the crane.

A good sign for the engineering sector came in the news that

the Boksburg site where DCD Rolling Stock used to make rail

wagons and fix locomotives is up and running again, courtesy of

TMH Africa, a part of the TMH Group, which has head offices in


ELB Group’s Engineering Services division employs more than

1 000 people and the company is currently working full-time on

the vast Gamsberg zinc project in the Northern Cape. Manganese,

iron ore and coal are other mining sectors where ELB is active and

it does work for Eskom (the national utility) and companies such

Nestlé and Unilever.

The Renewable Energy Independent Power Producer

Procurement Programme (REIPPPP) has created an entirely

new industry in less than seven years, with investment of about

R200-billion in solar parks and wind farms. This has created

many opportunities for engineers.


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

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

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

South African Consulting Engineering Firms: www.consultsa.co.za

Southern African Institution of Civil Engineering: www.civils.org.za


A study jointly commissioned

by the Water Research

Commission and the South

African Local Government

Association (SALGA) found

that the country’s four-in-amillion

ratio of engineers is a

long way from the required

50-per-million. In 2015 there

were are 16 423 registered

professional engineers in

South Africa.

One response at national

level was the importation

of Cuban engineers. Several

partnerships between the

public and private sectors are

trying to address the skills

deficit. One example is the

partnership that Wits’ National

Aerospace Centre has with

Boeing and Airbus.

The Skills Development

Amendment Act is intended

to improve the situation.

Universities, universities of

technology and companies

are increasing their focus on

the training of engineers.

The Engineering Council

of South Africa (ECSA) has a

programme where trainees

can earn certificates in specific

disciplines from a range of

institutions. The qualifications

are in line with the council’s

Exit Level outcomes. Six

of South Africa’s biggest

construction companies have

established a R1.25-billion

skills fund. ■



Construction and property

Logistics property is strongly placed for growth.


Cement and brick

manufacturers are hoping for

a quick recovery.

Credit: Equites

The trend which saw logistics property growing as a

sector because of the Amazons of the world needing

more space to store their products will speed up in

the post-Covid world as more people work and order

from home.

The Economist focused in its 30 May 2020 issue on

Prologis, Amazon’s biggest landlord. The American company

has assets of $125-billion and 90km² of floor space, and spent

$25-billion in 2019 in America and Europe. E-commerce now

accounts for about 40% of its construction activity, whereas

it was a fifth before the pandemic.

A similar trend playing out in South Africa was noted by

Nick Wilson in the Business Times (Sunday Times 5 July 2020).

The logistics property sector had “boomed in recent years due

to the growth of e-commerce” but was likely to do even better

because of Covid-19. About a third of Fortress’s R30-billion

portfolio is in the logistics sector and it signed contracts in

2020 with Takealot and a Netflix production company.

The clients of Equites, a company which focusses on

logistics property, include Amazon, Super Group, HDL and

DSV, a Danish transport and logistics company. Equites is the

only specialist logistics property company listed on the JSE. In

six years, its portfolio has grown from R1-billion to R15-billion.

There are more than 30 real estate investment trusts (REITs)

on the JSE and they generally deliver good value.

FNB, which publishes a regular property barometer,

has done an in-depth analysis of previous crises to help

understand what may occur in the post-Covid property

market. According to John Loos, a property strategist at FNB

Commercial Property Finance, the most vulnerable sector is

likely to be Retail Property. Smaller neighbourhood centres,

with more essential items

and greater convenience,

will be less vulnerable.

This is borne out by

the results announced by

Resilient in 2020. Of the

company’s 28 retail centres

across South Africa, the

ones that did best were the

smaller, rural malls.

The South African Council

of Shopping Centres calculates

that the country has the sixthhighest

number of shopping

malls in the world. R2-billion

was recently spent on Menlyn

Park in Pretoria to expand it to

177 000m² of gross lettable

space while the Gateway

Theatre of Shopping in

Durban, South Africa’s secondbiggest

mall, recently spent


The lockdown accelerated

the trend for people to work

from home, and so the

Office Property sector will

come under pressure. Many

companies will be reducing

office space but, as Loos

writes, “Improved technology

has gradually been driving a

greater remote working trend

for some years. Covid-19 has

merely sped this trend up.”




Industrial Property will take a hit but is expected to

recover strongly while Residential Property is expected to be

the least at risk. Prices will likely go down, but people need

a place to live and the work-from-home trend will increase

the importance of residential property. Loos concludes that,

“In a few decades time, the composition of the property

stock may look noticeably different to what it is today, the

key features being a smaller portion of the total being retail

and office property, and an even larger portion of the stock

being residential property than is currently the case.”

Statistics SA has found that the percentage of South

Africans living in flats has risen markedly. Whereas 26 out

of 100 approved plans in 2013 were for flats, this figure

reached 59 in 2016. Although the total number of people

living in flats is still relatively small (5.4%), this figure will rise

as urbanisation increases.

Construction rebuilding

Job losses and business rescues have been recurring themes

in the South African construction sector for some time.

The fact that some kind of recovery must happen after the

lockdown will give hope to all construction and construction

material companies, and they will hope that increased order

books will allow them to restart some of their facilities.

Corobrick is a manufacturer of masonry, pavers and

concrete earth retaining systems. The company, which has its

headquarters in Durban and employs 1 400 people, announced

in 2020 that four of its 13 factories would be closing.

PPC Cement suffered losses for the year ending 30 March

2020 with cement demand significantly down from the

previous year. The Covid-19 lockdown will have made the

situation worse and a rights issue is likely to follow.

Road-building, renewable energy and affordable housing

have proved good sectors for Raubex, which returned

good results in 2020, despite the lockdown occasioned by


Construction Industry Development Board: www.cidb.org.za

SA Institute of Architects: www.saia.org.za

SA Reit Association: www.sareit.prowly.com

South African Property Owners Association: www.sapoa.org.za

Credit: Fortress Reit Ltd

Covid-19. The company’s

Earthworks and Materials

division delivers two-thirds

of its operating profit but

it is upbeat about its Roads

division winning contracts

in South Africa in the short

term. Tenders were entered

for R22-billion worth of

road construction in the six

months to March 2020.

The Inner City Local Area

Plan (LAP) for Durban has

been developed for the

Strategic Planning unit of the

eThekwini Municipality by a

Joint Venture called IPPU. A

major milestone was reached

in 2019 when the beachfront

promenade extension

reached the harbour. The

project began in early 2018

and cost R400-million.

According to the organisers

of the 2019 KZN Construction

Expo, infrastructure will attract

more than R200-billion in

investment over seven years

and R35-billion will be spent

over 15 years at the Port

Waterfront development. ■




TFG plans to double manufacturing capacity.

TFG, whose South African brands include TotalSports,

Markhams and Foschini, has a five-year plan to double its

manufacturing capacity.

Having purchased Prestige Clothing Maitland and

Prestige Clothing Caledon in 2012 and spent R75-million on

expanding the factory in Caledon in 2017, TFG now plans to

significantly increase the percentage of locally-made clothing

items from the current level of 35% to 55%. This expansion should

lead to more jobs within the group, which expanded in 2020 with

the purchase of Jet from Edcon.

The Manufacturing and Competitiveness Enhancement

Programme (MCEP) of the Department of Trade, Industry and

Competition (the dtic) has disbursed grants which have resulted in

230 000 jobs being “sustained”. Because of the Clothing and Textile

Competitiveness Programme, that sector currently now employs

around 95 000 workers, contributing 8% to manufacturing GDP and

2.9% to overall GDP. In the leather sector 22 new factories have

been opened, supporting 2 200 jobs.

In the Western Cape, this revival is reflected in member

companies of the Cape Clothing and Textile Cluster hiring 35% more

staff in four years. About 23 600 people are employed in the province

and exports from the Cape amounted in 2017 to R4.4-billion with

sales up by 34% above inflation.


The furniture sector is finding

ways to grow.

The furniture manufacturing

sector earned R3.9-billion in

exports in 2018 and contributed

1% to the country’s gross

domestic product (GDP).

Employment across the sector

amounts to more than 26 000,

but that figure is markedly

down from a high of 80 000 in

the 1990s. Exposure to foreign

imports and distance from

lucrative markets continue to

pose threats to the sector, but a

group of manufacturers, buyers,

government and traders has set

out to do something about it.

A first Furniture Sector

Forum (pictured) was held




Johannesburg in 2019 where government incentives and ideas

about how to reduce the cost of expensive machinery through

co-ownership and partnerships were shared. The forum was cohosted

by the South African Furniture Initiative (SAFI), Proudly

South African, PG Bison and the Department of Trade, Industry and

Competition. The second Forum took place in October 2020, with

the support of Interior Design Professions (IID) and Trend-Forward.

The dtic’s Agro Processing Support Scheme (APSS) includes

furniture manufacturing as a core sector for future growth and

support. Other efforts to get government departments to buy locally

were explained. Average employment per manufacturer is 13 people

per facility which makes the sector well suited to expansion and to

measures requiring flexibility, but it can lead to manufacturers feeling

isolated. The idea-sharing forum is one way of overcoming that.

Contribution to GDP

Manufacturing’s contribution to South African GDP is 13%, less

than half its contribution in the 1980s and a drop of about 11%

from the 1990s. In 2018, the real-term contribution to GDP was

R386.8-billion (Stats SA).

The manufacturing sector employs the third most people of South

Africa’s economic sectors, about 1.7-million, after financial services and retail.

Two of the manufacturing sectors that have achieved the best

results in recent years, automotive and food and beverages, are

featured separately. Food and beverages is the most significant,

contributing 25% to total manufacturing activity.

The global surf ski market is worth about R220-million.

According to Dale Granger of biznews, some 30-40% of that niche

market belongs to South African manufacturers such as East

London’s Fenn and Durban-based Revo and Carbonology. The

South African after whom the world’s first surf ski was named, Oscar

Chalupsky, is now CEO of Nelo Surf Skis in Portugal. A new surf ski

sells for between $3 000 and $6 000.

South Africa’s pharmaceutical sector is worth approximately

R20-billion annually. Although there are more than 200

pharmaceutical firms in the country, large companies

dominate, with Aspen (34%) and Adcock Ingram (25%) the key

players, followed by Sanofi, Pharmaplan and Cipla Medpro. The

National Association of Pharmaceutical Manufacturers (NAPM)


Chemical and Allied Industries’ Association: www.caia.co.za

Manufacturing Circle: www.manufacturingcircle.co.za

South African Furniture Initiative: www.furnituresa.org.za

South African Textile Federation: www.texfed.co.za

has re-branded as Generic

and Biosimilar Medicines of

Southern Africa.

The opening in May 2018

of a R1-billion specialised

product facility at the Port

Elizabeth plant of Aspen

Pharmacare will add 500 jobs

to the existing complement of

2 000 staff members.

South Africa’s chemical

industry contributes 5%

to national gross domestic

product and about 60% of

earnings are derived from

exports. The complexes

run by Sasol at Secunda

(Mpumalanga) and Sasolburg

(Free State) underpin the

national manufacturing

capacity. Sasol Chemical

Industries makes about 60% of

South Africa’s polypropylene.

AECI is one of South

Africa’s biggest groups. The

two principal divisions are AEL

Mining Services (with a large

factory site at Modderfontein

near Johannesburg) and

Chemical Services, which

has 20 separate companies.

Foskor is the country’s

only vertically integrated

phosphates producer.

The by-products of the

sugar and forestry processing

plants of KwaZulu-Natal

benefit the chemicals sector.

Illovo Sugar manufactures

downstream products such

furfural, furfuryl, alcohol,

diacetyl and ethyl alcohol.

Sappi makes 17% of the world’s

dissolving wood pulp. Two of

the companies three mills are

in South Africa, Ngodwana

(Mpumalanga) and Saiccor

(KwaZulu-Natal). ■



Food and beverages

Starch mills are changing hands.


South Africans love chicken

and hamburgers.

Tongaat Hulett, best known as a sugar producer, is selling

its starch business (with three milling plants in Gauteng

and one in the Western Cape) to the KLL Group, a whollyowned

subsidiary of Barloworld Logistics Africa. The

Germiston plant is pictured.

The R5.3-billion transaction was in doubt because of concerns

about the value of the business expressed by the buyer in the

context of Covid-19 but the Competition Tribunal in July 2020

approved the deal.

The top five fast-food companies in terms of outlets in 2019 were

KFC (900), Steers (600), Debonairs (569), Wimpy (467) and Nando’s

(340). McDonald’s, FishAways and King Pie were close together in the

next three positions in a survey done by Business Tech. The survey

found a total of 5 287 stores, which includes the somewhat vague

“over 200 stores” claimed by Chicken Licken.

Famous Brands owns Steers, Debonairs, Wimpy and FishAways,

a typical scenario in the South African fast-food sector. The Spur

Corporation has outlets in several segments including family

diners, pizzerias, hamburger outlets and steak houses, including

the Hussar Grill.

Taste Holdings announced in 2020 that it was placing its

food business into voluntary liquidation after a failed attempt

to sell the Domino’s Pizza business. The Starbucks franchise

was sold for R7-million.

More than half of the companies operating in the food

and beverage sector in South Africa are in Gauteng, including

Nestlé, Tiger Brands, Pioneer Foods, RCL, AVI and Astral. There are

approximately 4 000 food processing companies in the province,

employing more than 100 000 people.


Agricultural Research Council: www.arc.agric.za

FoodBev SETA: www.foodbev.co.za

National Agricultural Marketing Council: www.namc.co.za

Two of the best-known large

companies in South Africa’s

food and beverages sector were

purchased by international

companies in 2019. PepsiCo

bought Pioneer Foods and

Central Bottling Co of Israel made

on offer on dairy company Clover.

Clover’s action in 2019

in closing three small-town

plants in rural areas illustrated

a less positive aspect of South

African manufacturing: the

inability of small municipalities

to adequately supply services

to companies. Clover moved

production to Port Elizabeth,

Durban and Johannesburg.

Food and beverages makes

up 26% of the South African

consumer products sector,

just ahead of agro-business

(25%), diversified companies

(23%) and sugar producers.

Recent capital expenditure

in the industry has targeted

improving efficiency rather

than expansion of production.

The food and beverages

sector employs about 230 000

people. Beverages accounts for

just over 4% of all manufacturing

sales while food is responsible

for 13.5%. Within the sector,

beverages accounts for 24% of

sales. One quarter of the 37% of

national GDP that is generated

by agro-industries derives from

agro-processing. ■





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The automotive sector makes up a third of South Africa’s manufacturing capacity.


Supplier parks and Special

Economic Zones are playing

to South Africa’s automotive


The East London IDZ hosts a number of automotive companies.

Vehicle sales declined sharply in the Covid-19 lockdown

period. For the year to September 2020, sales of passenger

vehicles went down by 34.4% and by a similar amount in

light commercial vehicles.

Analysts will be closely watching consumer behaviour as

economies open again to monitor the effects of working from home

and the further growth of the ride-hailing trend.

The manufacturing part of the automotive and components

sector is a vital part of South Africa’s manufacturing landscape. It is

responsible for more than 112 000 jobs which translates to more than

450 000 jobs once the multiplier effect is taken into account.

The South African automotive industry also accounts for:

• 30.1% of the country’s manufacturing output.

• 6.9% of GDP (4.4% manufacturing, 2.5% retail).

• 27.6% of value addition within domestic manufacturing.

• exports to 151 countries, 74% to EU.

• exports in 2018 of vehicles and components of R201.7-billion, a

record (and 15.5% of country total).

• exports in 2019 of 387 125 vehicles achieved a new record

amount of R148-billion and components also set a new record

of R53.7-billion.

(National Association of Automobile Manufacturers of South Africa,


Foreign direct investment

(FDI) into South Africa from

seven of the eight Original

Equipment Manufacturers

(OEMs) totalled R7.3-billion

in 2019 and a further

commitment was made

of another R40-billion

investment over the next

five years. The component

sector invested R3.5-billion

in 2019 (Automotive Industry

Development Centre, AIDC).

Long-term state support

of the industry through the

Automotive Production and

Development Programme

(APDP) is a major reason for

the continuing health of this

vital sector. The industry itself

is looking to Africa for new

markets. By increasing total

production numbers to onemillion

vehicles, the sector will

become more viable.

The National Department of

Trade, Industry and Competition

(the dtic), working together

with the National Association

of Automobile Manufacturers

of South Africa (NAAMSA) has

set targets for 2035 to increase

production to 1% of world

volumes (which would mean

1.4-million more vehicles made




in SA), increasing local content and doubling employment and blackowned

businesses in the sector.

South Africa has three centres of automotive production: the

Eastern Cape, Gauteng and KwaZulu-Natal. In the Eastern Cape, the

OEMs are Volkswagen, Mercedes-Benz, Isuzu and Beijing Automobile

Investment Corporation (BAIC). Ford has an engine plant in Port


In KwaZulu-Natal Toyota has a large plant just south of Durban.

Although the manufacturers of loaders, dump trucks and haulers are

not counted in the tally of South African OEMs, Bell Equipment, a

global leader in its field, runs a large manufacturing site in Richards

Bay. Dezzi Equipment is based in Port Shepstone. In 2018 AIH

Logistics started assembling Mahindra and Bolero bakkies from kits

imported from India on a site at the Dube TradePort. Pretoria is home

to BMW, Nissan and Ford.

All three centres are making use of targeted land allocation to

try to boost the sector through industrial parks or Special Economic

Zones. The idea is to get economies of scale through grouping

companies which serve one another. Training becomes easier and

costs can be reduced.

Chinese OEM BAIC is the first new entrant into the market to set

up within an SEZ. The planned investment in the Coega SEZ by BAIC

and its partners is R11-billion. BAIC expects to be building 50 000

vehicles per year at its site at the Coega SEZ by 2022.

Automotive component suppliers and downstream

manufacturers such as electronics components, metal fabrication,

plastic moulding, precision machining and trim are expected to

take up opportunities in the Automotive Zone within the Coega

SEZ, as they do at the East London Industrial Development Zone

(ELIDZ). Companies in the ELIDZ which manufacture in support of

the Mercedes-Benz operation include Feltex Automotive Trim, TI

Automotive (brake and fuel pipes), Yanfeng Automotive Interiors,

Linde+Wiemann (seat frames, recliners, metal surface treatment)

and Onelogix VDS, which is a logistics company that delivers

motor vehicles.

In line with the policy of developing industrial economic

hubs, the Durban Automotive Supplier Park is being built at Illovo,

south of Durban and near to the Toyota plant. The Dube TradePort

Corporation will manage the project, which covers 1 013ha. The

Durban Automotive Cluster, which has 39 member companies,


Automotive Industry Development Centre: www.aidc.co.za

Manufacturers: www.naacam.co.za

National Association of Automotive Component and Allied

National Association of Automobile Manufacturers of South Africa:


is funded by the municipality.

Together, these firms have

about 17 000 employees.

Trade and Investment

KwaZulu-Natal (TIKZN) estimates

that the province’s component

automotive manufacturers

enjoy a combined turnover

approaching R10-billion.

The Tshwane Automotive

Special Economic Zone (TASEZ)

is a project of the Gauteng

Province, the Department of

Trade, Industry and Competition

(dtic) and the City of Tshwane.

The implementing agent

is the Coega Development

Corporation (CDC), the

developer and operator of the

Coega SEZ.

The TASEZ, branded as

“Africa’s First Automotive City”,

has a mandate to promote

economic participation for

SMMEs and create employment

in the region. Sectors

targeted include security,

ICT maintenance, facility

maintenance, construction,

automotive supply chain,

marketing and advertising,

catering and events.

Both the Nissan and

BMW plants are expanding

and Ford is investing in

Silverton. An Incubation

Centre for SMMEs has been

launched at Nissan’s assembly

plant in Rosslyn. The facility

supports small enterprises

through subsidised rental

and mentorship and training.

Management of the centre

is done by the Automotive

Industry Development Centre,

a subsidiary of the Gauteng

Growth and Development

Agency (GGDA). ■



Transport and logistics

Decongestion of ports is a priority.


Airlink has signed partnerships

with two world-leaders.

Credit: South African Heavy Haul Association

Getting freight through South Africa’s ports in a more

efficient manner has become an urgent priority. A Port of

Durban Decongestion Task Team includes a broad range

of private and public sector organisations involved in the

port. Through nine targeted workstreams the team is tackling the

root causes of Bayhead congestion and is working on improving

coordination, planning, operations and cargo flows.

A mandatory automated truck booking system has been

introduced at Durban Container Terminal Pier 1 and Pier 2, while the

Grindrod, FPT and Bulk Terminal depots have also piloted their own

booking systems.

Although Transnet Port Terminals and Transnet Freight Rail are

vital to the smooth running of the loading systems, private operators

of storage facilities and trucking companies also need to synchronise

their operations. In Cape Town, efforts to work on decongestion

include the City of Cape Town, the Cape Chamber of Commerce and

Industry and the provincial government.

The 2020 Technical Conference of the South African Heavy Haul

Association tackled the issue of bringing smart technology to the

railway system under the theme, “Smart, Resilient Railway Operations

& Infrastructure”. Smart systems can self-monitor and self-diagnose

railway conditions and then predict failures or problems before

they occur. One of the biggest

problems facing the South

African rail system is cable theft,

which leads to frequent delays

along the network.

Transnet Freight Rail (TFR)

has had a new CEO since

April 2020. Siza Mzimela, with

a background in airlines and

logistics, wants to divert road

freight to rail, which currently

attracts just 20% of South

Africa’s general freight. One

of her goals is to find a South

African manufacturer who can

produce railway lines.

Transnet Freight Rail’s

operations represent about

80% of Africa’s rail infrastructure.

With 25 000 employees TFR has

specialist divisions for hauling

coal and iron ore together with

a general freight division which

transports everything from

grain to chemicals.

It is on these specialised

lines that TFR excels. A new

record was set in 2019 when

375 wagons were hitched

to the Sishen-Saldanha train

that hauls iron ore from the

Northern Cape to a dedicated

terminal at Saldanha in the

Western Cape. The total

volume transported in 2019

amounted to 58.4-million tons.




Coal tonnage reached 72mt in the same year and general freight

accounted for a further 85mt.

Increasing the amount of general freight transported by rail

would not only bring down costs but it would also take the burden

of thousands of heavy trucks off South Africa’s roads.

South Africa has 22 000km of railway lines and 747 000km of

roads, 325 019 heavy-load vehicles and the road freight industry

employs 65 000 drivers. The logistics and courier market is worth

R10-billion. There are 135 licensed airports in the country, 10 of

which have international status.


Four airlines were still flying after the Covid-19 lockdown: Airlink,

Mango, Cemair and FlySafair. The business rescue process was

applied to SAA, SA Express and Comair.

A R1.5-billion business rescue offer was made to Comair that

would enable it to restart in time for Christmas 2020. The offer entails

delisting from the JSE. Comair operates as a British Airways franchisee

on domestic routes and launched its own low-cost airline, kulula.

com, in 2001.

In October 2020, Airlink signed two deals in quick succession with

Qatar Airways and Emirates, giving customers single-ticket travel and

one-stop baggage check-in.

Airports Company South Africa (ACSA) owns and operates the

country’s 10 biggest airports. The company also manages airports in

India and Brazil.

Ekurhuleni wants to leverage the location of South Africa’s

biggest airport, OR Tambo International, into a major economic

asset. OR Tambo International in Johannesburg caters for more than

21-million passengers annually. Cape Town International Airport

recorded 10-million passengers in 2016, a figure that rose in 2019 to

a shade under 11-million. King Shaka International Airport (KSIA) is

north of Durban.

The South African Ministry of Transport has several agencies

and businesses reporting to it: Air Traffic and Navigation Services

Company, ACSA, National Transport Information System, Road

Accident Fund, South African Civil Aviation Authority, South


Airlines Association of Southern Africa: www.aasa.za.net

Airports Company South Africa: www.acsa.co.za

Road Freight Association of South Africa: www.rfa.co.za

South African Association of Freight Forwarders: www.saaff.org.za

South African Heavy Haul Association: www.saheavyhaul.co.za

African Maritime Safety

Authority (SAMSA), the

South African National Roads

Agency Limited (Sanral) and

the Passenger Rail Agency of



South Africa’s largest agricultural

company has signed an

agreement with Transnet to

partner in upgrading grain

facilities at two ports. East

London and Durban will receive

R100-million revamps as part of

a 15-year tender won by Afgri.

Transnet is hoping that the

partnership will help it towards

reaching its goals in its road-torail


The building of the Musina-

Makhado Special Economic

Zone (SEZ) will boost Limpopo’s

role as a transport and logistics

hub. The Musina Intermodal

Terminal is 15km from the busy

Beit Bridge border crossing. It

will boost efforts to move cargo

from road to rail.

The Maputo Development

Corridor is Africa’s most

advanced spatial development

initiative. Run by the Maputo

Development Corridor

Logistics Initiative (MCLI),

the corridor runs from near

Pretoria in Gauteng, to Maputo

in Mozambique.

The Harrismith Logistics

Hub at the Maluti-A-Phofung

SEZ on the N3 is an inland

port that can handle cargo

containers and shift cargo

from road to rail, reducing

congestion and costs. ■



Tourism and events

The MICE sector faces special challenges.


Tsogo Sun Hotels has

increased its stake in three

hotels post-lockdown.

Credit: AfriCamps at Ingwe

Although all projections about the tourism sector and

its potential for growth and for job creation were shortcircuited

by the Covid-19 pandemic, the fact remains that

the sector can grow quickly and it is a good job creator. In

the short term, domestic tourism will be the focus but the potential

of the sector, and South Africa’s riches in terms of what it can offer,

remain significant.

According to John Loos, a property strategist at FNB Commercial

Property Finance, an overlooked factor in many analyses of the

Covid-19 lockdown has been how technology has shown that some

business travel can be avoided altogether. Corporate travel budgets

will be cut, and fewer physical conferences will be held, he predicts,

which will put the meetings, incentives, conferences and events

(MICE) sector under even more pressure.

A relatively small market currently, but one with massive

potential, is Muslim tourism. The Western Cape has already started

doing research in its agricultural and tourism sectors and there is no

doubt that with good marketing, South Africa could start gearing

up for a growing number of Muslim tourists. The fact that most of

the country’s major cities have a proportion of Muslim residents and

mosques are widely spread across the country means that travelling

around the country is easy.

The 16 units that comprise

the Buckler’s Africa Lodge by

BON Hotels on the banks of the

Crocodile River overlooking

the Kruger National Park has

halal certification. A coastal

option that allows for selfcatering

is AfriCamps Boutique

Glamping site at Ingwe near

Plettenberg Bay. Situated on a

hilltop with great views of the

ocean and the Tsitsikamma

Mountains, the luxury tents

have fully-fitted kitchens.

Virtual tours have been

taken up by heritage operators

such as Constitution Hill and

Liliesleaf Farm and this option

is likely to grow as people in

other countries seek out a

South African experience free

from any worries.

When the Marriott

International hotel group

closed three of its South African

hotels during the Covid-19

lockdown, Tsogo Sun Hotels,

which owns a controlling stake

in all three hotels, stepped up

its commitment by agreeing

to bring them into its portfolio,

keep them open and run them.

Two of the affected

hotels were the Protea Hotel

by Marriott Hazyview in




Mpumalanga and Durban’s Protea Hotel by Marriott Durban

Edward. The third hotel, the Mount Grace in the Magaliesberg, was

originally developed by the Brand family and was the sister hotel

to The Grace in Rosebank. Tsogo bought and restored The Grace

in 2015 and it currently operates as 54 on Bath. The Tsogo group

believes that demand for conferencing, weddings and shorter

family getaways will grow and that the Mount Grace, with its close

proximity to Johannesburg, is in a good position to respond to

those markets.

Tsogo Sun Holdings split its casino and hotel operations in 2019

in order to unlock value in the two sectors. With a market cap of

R25-billion, Tsogo is the country’s biggest hotel group. It has 36

hotels and three casinos in Gauteng. The hotel brands cover four

market segments, and they include a handful of stand-alone hotels

such as the Palazzo (at Montecasino) and the boutique hotel in

Rosebank. SunSquare, Southern Sun Hotels, Southern Sun Resorts,

Garden Court and StayEasy are among the group’s brands.

The move by Marriott International into the South African

market was seen as significant, and it retains most of its

properties. In partnership with the Amdec Group, Marriott

spent about R1-billion on the Marriott Hotel Melrose Arch and

Marriott Executive Apartments Johannesburg Melrose Arch.

Buying into Protea Hotels has also given Marriott access to

other African countries.

A three-billion-year-old micro-fossil found in the Makhonjwa

Mountains in Mpumalanga is thought to be the oldest sign of life

on the planet. The Makhonjwa Mountains were declared a World

Heritage Site by UNESCO in 2018. Culture and heritage accounts for

40% of world tourism and is one of the fastest-growing subsectors.

In Durban, a joint venture between MSA Cruises SA and Africa

Armada Consortium is spending R175-million on the financing‚

construction‚ maintenance and operation of a cruise terminal for a

25-year concession period.

The Port of Cape Town has launched its dedicated cruise-ship

terminal, and the area between the terminal and the Cape Town

International Convention Centre is being developed as a multi-use

precinct called the Yacht Club.

On the western edge of Cape Town’s Foreshore, an ambitious

plan envisages two new hotels, flats, retail space and offices rising out


African Business Travel Association: www.abta.co.za

South African Golf Tourism Association: www.sagta.co.za

South African National Parks: www.sanparks.co.za

South African Tourism: www.southafrica.net

South African Tourism Services: www.satsa.com

Credit: Buckler’s Africa Lodge

of ground currently occupied

by three car dealerships and

a roadworthy station on

Christiaan Barnard Street. The

Harbour Arch concept is based

on Johannesburg’s Melrose

Arch, with seven tower blocks to

be constructed on 200 000m²,

roughly half the footprint of the

V&A Waterfront.

Peermont Hotels, Casinos

and Resorts has added the

Emerald Resort & Casino to

its portfolio of properties.

Peermont purchased the

Vanderbijlpark property from US

company Caesars Entertainment

Corporation, which brings to 11

the number of casino resorts it

runs on the subcontinent.

There are 711 745 people

employed in the tourism

industry nationally, with

road transport (29%), food

and beverages (20%) and

accommodation (19%)

absorbing the largest numbers.

The sector contributes 9% to

South Africa’s gross domestic

product (GDP). ■



Banking and

financial services

Investors are getting behind fintech.

Naspers Foundry is one of several investment funds

looking for opportunities in the financial sector.

Insurance technology is of particular interest, together

with credit services and payment systems.

The appointment by mobile operator Vodacom of a new

Chief Financial Officer (CFO) in 2020 gave further insight into

the growing link between the digital world and the world of

finance. The new executive, Raisibe Morathi, was for 10 years

CFO of Nedbank.

Morathi also served on the board of Sanlam, a giant in

the South African financial sector. In 2019, Sanlam, which

has 20 319 South African employees, distributed R190-billion

between employees, shareholders, government and clients.

Capital Appreciation, which is part-owned by the Public

Investment Corporation, is already invested in a software

developer, a credit card payment terminal provider and has

R500-million available for further investments.

African Rainbow Capital, with about 5%, has a stake in the

investment company and is the owner of TymeBank, which

received a banking licence in 2017.

Tyme stands for Take Your Money Everywhere and refers to

the bank not having a branch network. Perhaps the lockdown

encouraged customers to think in digital terms because Tyme

reported in October 2020 that it had 2.4-million customers, up

from 1.4-million at the end of March. A 400% increase in the

use of services such as airtime and electricity purchases was

also noted.

Discovery Bank officially launched in March 2019 and is

experiencing rapid growth with deposits of R3.7-billion. Discovery

Bank is applying the behavioural model it uses in its health

business to reward good financial behaviour.

Another relatively new bank is Capitec, which is steadily increasing

its customer base by providing banking for business and

individual customers in what it describes as a simple manner. In


PSG is selling a big stake

in Capitec Bank.

May 2020, investment holding

company PSG announced that

it would reduce its holding in

Capitec Bank from 32% to 4%,

earning about R4-billion by

selling those shares.

South Africa’s financial

services sector has expanded

by the opening of several

new stock exchanges.

Pharmaceutical company

Aspen Pharmacare has taken a

second listing on A2X.

Of the four new exchanges,

Equity Express Securities

Exchange (EESE) trades in Black

Economic Empowerment

(BEE) while ZARX and 4AX

are targeting companies

that are not listed elsewhere.

ZARX has agricultural holding

companies like TWK and

Senwes among its clients.

The JSE is the world’s 19th

biggest exchange and nearly

400 companies are listed

on the JSE or AltX, the JSEowned

exchange for smaller

companies. ■


Financial Sector Conduct Authority: www.fsca.co.za

Insurance Institute of South Africa: www.iisa.co.za

South African Institute for Chartered Accountants: www.saica.co.za





“ Attending CIGFARO Training

and webinars has allowed me to

earn CPD points while

participating in Technical

discussions to help improve my

professional capacity. This is a

great time to be associated with

a SAQA recognised Professional

Body. ”

Ms Zanele Malaza

(PGFO), CFO City of




Development finance and

SMME support

A new fund aims to make R5-billion available at a fair price.

Anew fund for SMMEs was launched in 2020 with the

aim of providing capital at a fair price. Former SA Post

Office CEO Mark Barnes, who previously worked in

investment banking and private equity, is heading the

Kisby Investment Fund. Partners in the fund are Arena Holdings

(media), 4AX Africa Exchange, 4AX Debt Services and Rainfin

(online credit). Barnes told Business Day that the fund would be

compensated for the risk in supporting companies that have to

“hunt around in the overpriced debt market” by taking equity in

the firm. Kisby is aiming for a R5-billion fund to support companies

in the R10-million to R1-billion revenue bracket.

Funding is available for technology start-ups in many

forms but getting funding early in the process can be difficult

because the concept is not proven. For asset management

company Futuregrowth, ring-fencing some funding for

allocation to early-stage development is a way of ensuring

that potential is not overlooked. The company has put 10% of

its development equity fund (or R280-million) into businesses

such as payment devices (Yoco), infrastructure platform

(Rubicon), fintech (LifeCheq) and an app for domestic workers


Data company 5M2T (5Minutes2Town) has started offering

sophisticated information about the township market. From how

many spazas in Soweto have refrigeration units (4 700) to brand

loyalty, 5M2T covers 60 000 spazas, salons, barbers and other

informal trade outlets an “in-market audit”. This allows for better

ordering and planning for suppliers and logistics operators.

The Covid-19 lockdown had a severe impact on many small

businesses. A survey conducted by risk finance company Business

Partners Limited found that 95% of SMME respondents thought they

would not survive without help. The company’s packages in response

included a Repayment Relief Programme and a Financial Assistance

Programme capitalised at R100-million.

Most big companies in South Africa have two main

programmes to support SMMES: enterprise development (ED) and


Futuregrowth has a focus

on early stage start-ups.

local supplier development (or

procurement). Venetia Mine in

northern Limpopo, a De Beers

Group mine, has more than 50

SMMEs enrolled in incubation

programmes and 34 locallyowned

companies are doing

business with the mine.

The National Department

of Small Business Development

(DSBD) has several programmes

to assist SMMEs and cooperatives.

The Small Enterprise

Development Agency (Seda),

a subsidiary of the DSDB,

has 42 incubation centres in

South Africa under its Seda

Technology Programme (STP).

The National Department of

Trade, Industry and Competition

(the dtic) is trying to stimulate

township and rural economies.

Programmes include the

Enterprise Investment

Programme (EIP).

The South African SME

Finance Association (SASFA) is a

national, self-regulating body for

alternative finance companies. ■


National Department of Small Business Development: www.dsbd.gov.za

National Small Business Chamber: www.nsbc.org.za

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

South African SME Finance Association: www.sasfa.net




Coega Development


a.co.zaPromoting small business as a way of sparking economic growth, creating jobs

and tackling inequality.

, Arcadia,

In championing socio-economic development,

the Coega Development Corporation (CDC)

places the interests of small businesses at the

centre of economic growth. Small business development

and support is crucial as a catalyst for

addressing poverty, unemployment and inequalities

in the society.

The National Development Plan 2030 encourages

Small, Medium and Micro Enterprise (SMME)

support through procurement and developing


ISO 9001:2015 ISO 14001:2015 ISO 45001:2018

The CDC has a ISO dedicated 20000-1:2011 SMME ISO Business 27001:2013

Unit that prioritises empowerment to unlock

opportunities particularly www.coega.co.za

in the built environment

such as infrastructure development and facilities

maintenance. “The billions of rands to be spent

on infrastructure development in the country to

revive our economy should also benefit SMMEs,”

says Dr Ayanda Vilakazi, CDC’s Head of Marketing,

Brand and Communications.

SMME participation on large contracts is

black and female managers and professionals.

Between 2015 and 2020, SMME-procurement

spend achieved by the CDC was 29%. In 2019,

R461.77-million benefited small businesses in all

areas where the organisation has operations.

Contact details

Head Office: Coega SEZ Business Centre,

Corner Alcyon Road and Zibuko Street, Zone 1,

Coega SEZ, Port Elizabeth 6100

Tel: (RSA only): 08610 COEGA | 08610 26342

Tel: +27 41 403 0400 | Fax: +27 41 403 0401

Email: info@coega.co.za

Website: www.coega.co.za

Coega has offices in Pretoria, East London,

Cape Town and Durban.

increasing, a sign of the success of the CDC’s SMME

development programme. Some highlights:

• SMME involvement in the construction of the fourstar

Bluewater Bay Sunrise Hotel, Port Elizabeth.

• As of March 2020, 383 SMMEs benefited from

training, 178 CETA accredited.

• In 2019/20 CDC, SARS and CIDB held compliance

workshops for 652 SMMEs.

• 72 SMMEs successfully upgraded on CIDB

through CDC intervention and support.

A key organisational objective of the CDC is

to facilitate, promote and drive the inclusion of

SMMEs in procurement opportunities. The CDC is

also working at improving its B-BBEE status. The

organisation improved its B-BBEE status from level

4 in 2019 to level 2 in 2020. ■





Air Products............................................................................................................................................................................... 59

Chartered Institute of Government Finance Audit and Risk Officers (CIGFARO)...................... 85

Coega Development Corporation (CDC)....................................................................................................2-3, 87

Council for Geoscience (CGS)................................................................................................................................47-49

DNG Energy.............................................................................................................................................................................. 57

Futuregrowth Asset Management...............................................................................................................9, 24-25

Gert Sibande District Municipality.............................................................................................................21, 68-69

Musina-Makhado Special Economic Zone (MMSEZ)............................................................................26-31

Northern Cape Tourism Authority (NCTA)........................................................................................................... 19

Invest Durban ........................................................................................................................................................................IFC

Ivanhoe Mines..................................................................................................................................................................54-55

Kemtek.............................................................................................................................................................................77, OBC

National Metrology Institute of South Africa (NMISA)................................................................................... 7


Petroleum Agency SA.................................................................................................................................................64-65

Pilanesberg Platinum Mines...................................................................................................................................50-51

South African Bureau of Standards (SABS)............................................................................................................. 5

South African Mohair Industries Limited (SAMIL)....................................................................................42-43

South African National Space Agency (SANSA).......................................................................................14-15

Vedanta Zinc International......................................................................................................................................52-53




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