28.01.2022 Views

Free State Business 2022

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

FREE STATE<br />

BUSINESS<br />

<strong>2022</strong> EDITION<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN FREE STATE PROVINCE<br />

JOIN US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.FREESTATEBUSINESS.CO.ZA


Supporting the <strong>Free</strong> <strong>State</strong>’s<br />

fight against COVID-19<br />

Sasol donated World Health Organisationapproved<br />

equipment to the <strong>Free</strong> <strong>State</strong><br />

Department of Health to support the<br />

rollout of COVID-19 vaccines as a further<br />

effort to fight the COVID-19 pandemic.<br />

“In order to deliver on our community<br />

health focus area, and solidify our social<br />

partner status, we recognise the need<br />

to support the provincial government’s<br />

vaccination rollout strategy by donating<br />

essential equipment and resources,”<br />

said Charlotte Mokoena, Sasol Executive<br />

Vice President: Human Resources and<br />

Stakeholder Relations.<br />

The equipment include a Ford Ranger<br />

custom built mobile clinic, a Toyota Hi-Ace<br />

14-seater minibus, five -40 o C World<br />

Health Organisation-approved vaccine<br />

cold storage freezers, 25 vaccine carriers,<br />

25 temperature loggers and 20 laptops.<br />

Information pamphlets and posters were<br />

also included in the donation.<br />

Since the start of the COVID-19 pandemic<br />

in 2020, Sasol contributed vastly to the<br />

fight against the coronavirus. It produced<br />

and distributed more than 1,6 million litres<br />

of alcohol-based sanitiser to frontline<br />

workers in hospitals, clinics, communities,<br />

as well as local and national government.<br />

More than 12 000 masks, 36 000 pairs<br />

of gloves and 5 000 safety suits and<br />

overalls were donated towards responses<br />

in fenceline communities. Mobile science<br />

laboratories, usually used for school<br />

education programmes were converted<br />

into COVID -19 screening and testing units.<br />

The company last year also fast-tracked<br />

the manufacturing of its own handsanitisers<br />

for use at its own operations<br />

and immediate fence line communities in<br />

the <strong>Free</strong> <strong>State</strong> and Mpumalanga. Sasol<br />

furthermore donated a million litres of jet<br />

fuel to the Department of International<br />

Affairs for the repatriation of South<br />

Africans stranded abroad.<br />

“Our COVID-19 response has been multilayered,<br />

consultative and collaborative<br />

to support efforts to flatten the curve<br />

with particular focus on our fence<br />

line communities within <strong>Free</strong> <strong>State</strong>,<br />

Mpumalanga, Gauteng and KwaZulu-<br />

Natal,” Mokoena said.<br />

The <strong>Free</strong> <strong>State</strong> MEC for Health, Montseng Tsiu (right) received the equipment from Sasol’s Senior<br />

Vice President Sasolburg and Ekandustria Operations, Rightwell Laxa (middle) to assist in the fight<br />

against the COVID-19 pandemic. The acting HOD for Health, Godfrey Mahlatsi in on the left.


Programme achieves +25% water saving<br />

Through an extensive partnership between<br />

Sasol, the Metsimaholo Local Municipality,<br />

Rand Water and a German development<br />

agency (GIZ) a 30% water saving was<br />

achieved in the greater Sasolburg area of the<br />

<strong>Free</strong> <strong>State</strong>.<br />

This was achieved through a water demand<br />

managment programme that started in<br />

2016, promoting water conservation and<br />

addressing water losses.<br />

Interventions followed a baseline study<br />

done by WRP engineers that focused on<br />

resources engineering, water conservation<br />

and water demand management, including<br />

lost revenues from water that could<br />

otherwise have been sold.<br />

Interventions included installation of meters<br />

and loggers, repairing of leaks on the main<br />

reticulation system, reconfiguration of<br />

the Harry Gwala reservoir and advanced<br />

pressure management.<br />

The baseline assessment further indicated<br />

that water leaks at hostels, schools and<br />

households should also be addressed.<br />

Aquatrips were installed at 28 township<br />

schools and permanent loggers, supported<br />

by a ZNet monitoring system, now ensures<br />

continuous monitoring. All this is supported<br />

by an extensive education and awareness<br />

programme in local communities that also<br />

make use of techniques such as virtual<br />

industrial theatre and puppet shows to<br />

enhance the learning experience.<br />

Basic leak repairs and retrofitting<br />

at 10 000 homes in Metsimaholo<br />

are done by local plumbers and<br />

water warriors – youth who<br />

received basic plumbing training.<br />

They focus on basic leak repairs<br />

such as in piping, taps and<br />

cisterns.


THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN FREE STATE PROVINCE<br />

CONTENTS<br />

CONTENTS<br />

<strong>Free</strong> <strong>State</strong> <strong>Business</strong> <strong>2022</strong> Edition<br />

Introduction<br />

Regional overview 10<br />

Both the Botshabelo Industrial Park and the Maluti-A-Phofung<br />

Special Economic Zone (MAP SEZ) are attracting investors to the<br />

country’s most centrally-located province. Covid-19 hit the tourism<br />

sector hard, but the province’s miners are enjoying good commodity<br />

prices and the Virginia Gas Project is steaming ahead.<br />

Economic sectors<br />

Agriculture 28<br />

Transnet Freight Rail aims to double grain volumes.<br />

Mining 30<br />

Mining activity is picking up in some sectors.<br />

Oil and gas 38<br />

The Virginia Gas Project will join a small global elite in <strong>2022</strong>.<br />

Manufacturing 42<br />

A steel smelter is under construction.<br />

Tourism 43<br />

The Vredefort Dome is to be marketed internationally.<br />

Education and training 44<br />

Skills development programmes are expanding.<br />

References<br />

Key sector contents 26<br />

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

FREE STATE<br />

BUSINESS<br />

<strong>2022</strong> EDITION<br />

ABOUT THE COVER:<br />

From top left: Sasol One; Golden Gate; industrial parks at Phuthaditjhaba and Botshabelo are<br />

managed by the <strong>Free</strong> <strong>State</strong> Development Corporation; new factories are being built; a shaft at a<br />

Harmony mine; wheat grows widely in the <strong>Free</strong> <strong>State</strong>, Melissa Askew on Unsplash.<br />

JOIN US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.FREESTATEBUSINESS.CO.ZA


FOREWORD<br />

<strong>Free</strong> <strong>State</strong> <strong>Business</strong><br />

A unique guide to business and investment in the <strong>Free</strong> <strong>State</strong>.<br />

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

<strong>Business</strong> development<br />

manager: Shiko Diala<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Aneeqah Solomon<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Jeremy Petersen<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

The <strong>2022</strong> edition of <strong>Free</strong> <strong>State</strong> <strong>Business</strong> is the 12th issue of this successful<br />

publication that, since its launch in 2008, has established itself as the<br />

premier business and investment guide for the <strong>Free</strong> <strong>State</strong>.<br />

The <strong>Free</strong> <strong>State</strong> has varied investment and business opportunities in<br />

a wide range of sectors. Special features on investment incentives and starting<br />

a business are included in this edition.<br />

Significant investments are being attracted into the newly-established Maluti-<br />

A-Phofung Special Economic Zone (MAP SEZ) in the northern part of the province<br />

and a steel mill is under construction at the Botshabelo Industrial Park east of<br />

Bloemfontein. The MAP SEZ is strategically located on South Africa’s busiest road,<br />

the N3 highway that links the economic heartland of South Africa to the coast.<br />

Good progress is being made on the Virginia Gas Project and arrangements are<br />

being made for offtake agreements with companies in the logistics sector (for powering<br />

truck fleets) and manufacturing companies. A distribution network is being rolled out in<br />

conjunction with a company that already runs petrol stations around the country.<br />

In addition, overviews on each of the key economic sectors provide upto-date<br />

information on trends in the mining and tourism sectors, for example.<br />

Regular information about the size and nature of each sector is also included.<br />

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

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

co.za. Updated information on the <strong>Free</strong> <strong>State</strong> is also available through our monthly<br />

e-newsletter, which you can subscribe to online at www.globalafricanetwork.com,<br />

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

provinces, our flagship South African <strong>Business</strong> title and the new addition to our list of<br />

publications, African <strong>Business</strong>, which was launched in 2020. ■<br />

Chris Whales<br />

Publisher, Global Africa Network Media | Email: chris@gan.co.za<br />

DISTRIBUTION<br />

<strong>Free</strong> <strong>State</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

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

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

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

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

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

of commerce, tourism offices, airport lounges, provincial<br />

government departments, municipalities and companies.<br />

Member of the Audit Bureau<br />

of Circulations<br />

PUBLISHED BY<br />

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

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

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

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

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

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

ISSN 1993-0119<br />

COPYRIGHT | <strong>Free</strong> <strong>State</strong> <strong>Business</strong> is an independent publication<br />

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

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

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

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

PHOTO CREDITS | Department of Trade, Industry and Competition,<br />

Francesco Bandarin/UNESCO, <strong>Free</strong> <strong>State</strong> Development Corporation,<br />

Harmony Gold, Renergen, SASKO, Sasol, SA Tourism, Sebedisan Group/<br />

CUT, Emil Widlund on Unsplash, VKB.<br />

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

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

contained in the <strong>Free</strong> <strong>State</strong> is accurate and up-to-date, the publishers<br />

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

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

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

any reliance placed on such information.


MESSAGE<br />

Domestic MESSAGE<br />

Investing and in the international <strong>Free</strong><br />

investors <strong>State</strong> Investing Province are the invited to<br />

invest The<br />

<strong>Free</strong><br />

<strong>Free</strong><br />

<strong>State</strong> in South <strong>State</strong><br />

Province Africa’s most<br />

centrally welcomes located investors province<br />

MESSAGE<br />

MESSAGE<br />

Dr Mbulelo Nokwequ, Head of Department at<br />

DESTEA, outlines some of the <strong>Free</strong> <strong>State</strong>’s<br />

Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the<br />

unique selling propositions.<br />

MEC MEC <strong>Free</strong> for for <strong>State</strong>’s Economic, Economic, unique Small Small selling <strong>Business</strong> <strong>Business</strong> propositions. Development, Development, Tourism Tourism and and Environmental Environmental Affairs, Affairs,<br />

the the Honourable MP MP Mohale, Mohale, outlines relates how how human the province capital formation has supported is at the business heart of the in the<br />

creation Covid-19 of crisis a conducive and how environment investment for can investment spark further in <strong>Free</strong> development. <strong>State</strong> Province.<br />

<strong>Free</strong> <strong>State</strong> Province is situated in the heart of South Africa and<br />

The<br />

shares borders<br />

<strong>Free</strong> <strong>State</strong><br />

with<br />

Province<br />

Lesotho<br />

is<br />

and<br />

situated<br />

six other<br />

in the<br />

provinces.<br />

heart of South<br />

It provides<br />

Africa<br />

and shares borders with Lesotho and six other provinces.<br />

It In is easy with response pleasure access to to and the the gratitude effects main ports of that Covid-19 we, of as Durban, the and department East the London subsequent charged and<br />

It provides easy access to the main ports of Durban, East<br />

with lockdown Port promoting Elizabeth. of the investment economy, into <strong>Free</strong> the <strong>State</strong> <strong>Free</strong> enterprises <strong>State</strong> Province, were introduce invited to<br />

London and Port Elizabeth.<br />

<strong>Free</strong> apply The<br />

The<br />

<strong>State</strong> <strong>Free</strong> for<br />

<strong>Free</strong><br />

<strong>Business</strong> <strong>State</strong> economic is an<br />

<strong>State</strong><br />

2020. attractive recovery<br />

is<br />

We<br />

an<br />

welcome business incentives.<br />

attractive<br />

this and<br />

business<br />

well-known Incentives investment<br />

and<br />

publication’s<br />

and destination. support<br />

investment<br />

The regular<br />

programmes province<br />

destination.<br />

description is at were the centre for<br />

The province<br />

of the<br />

businesses of economic South in Africa the<br />

is at the centre<br />

environment<br />

formal and the and dominant<br />

of South<br />

of<br />

informal<br />

Africa<br />

our province<br />

sectors<br />

and the<br />

and are and agriculture,<br />

dominant<br />

are<br />

were<br />

pleased<br />

focussed mining,<br />

economic<br />

to contribute<br />

on saving manufacturing existing<br />

sectors<br />

to<br />

are<br />

its<br />

agriculture,<br />

pages.<br />

jobs and the and tertiary creating sectors, new ones. making<br />

mining, manufacturing<br />

it ideal<br />

and A<br />

In<br />

brief the<br />

for effort transport overview<br />

to improve<br />

tertiary sectors,<br />

logistics of the<br />

the<br />

making investment and uptake agro-processing.<br />

of<br />

it ideal climate<br />

opportunities<br />

for transport in our<br />

presented<br />

province<br />

by<br />

logistics and is<br />

government,<br />

agro-processing.<br />

Companies<br />

working<br />

locating<br />

with<br />

to <strong>Free</strong><br />

different<br />

<strong>State</strong> not<br />

business<br />

only enjoy<br />

chambers<br />

the opportunity<br />

in the <strong>Free</strong><br />

provided on the facing page.<br />

to<br />

source<br />

<strong>State</strong>, the<br />

The inputs<br />

department<br />

Department at competitive<br />

has assisted<br />

has prices,<br />

businesses<br />

developed but also a to Value benefit<br />

to meet<br />

Chains from<br />

the minimum<br />

Our department also published a dedicated investment prospectus. domestic,<br />

compliance requirements, like business, tax and other Economic licence<br />

The regional Transformation purpose and of international the Approach, <strong>Free</strong> <strong>State</strong> markets which Investment aims for their to Opportunities place products the economy and Prospectus services. on is<br />

registration. We would not like to see anybody left behind. a<br />

to Because path provide of South reconstruction, pertinent Africa has information recovery been engaging and about development with large-scale our economically post investment<br />

the Covid-19 large<br />

It is with pleasure and gratitude that we, as the department<br />

opportunities trading pandemic. partners, Maintaining currently access available to sound international relationships various markets sectors. with is facilitated the These private initiatives through<br />

charged with promoting investment into the <strong>Free</strong> <strong>State</strong> Province, sector<br />

represent various ensures trade that preferences government’s and free-trade economic agreements.<br />

introduce<br />

the<br />

<strong>Free</strong><br />

<strong>Free</strong><br />

<strong>State</strong><br />

<strong>State</strong>’s<br />

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

response<br />

2021. <strong>2022</strong>.<br />

to<br />

We<br />

President<br />

welcome transformation Ramaphosa’s<br />

this well-known<br />

clarion agenda<br />

call remains As far on long-term track. The department is is concerned, engaging with there sectors are industrial<br />

publication’s<br />

for increased<br />

regular<br />

long-term<br />

description<br />

investment<br />

of the<br />

necessary<br />

economic<br />

for<br />

environment<br />

inclusive growth such of our as<br />

and parks<br />

province property job and creation. and<br />

a developers Special<br />

are pleased<br />

Economic to issues contribute<br />

Zone such (SEZ) as to bulk its<br />

that services pages.<br />

are supported and the approval by the<br />

Department of While Our plans. department investment A of development Trade, is has an Industry essential also committee published<br />

and ingredient Competition. made a dedicated to economic up Industrial of government,<br />

investment growth, parks it • <strong>Free</strong> <strong>State</strong> Development<br />

should are prospectus, developers, situated be pointed the financing <strong>Free</strong> Maluti-A-Phofung, out <strong>State</strong> that at Investment institution the centre Botshabelo Opportunities and of the municipalities <strong>Free</strong> <strong>State</strong> and Prospectus. government’s<br />

Thaba will These Nchu. soon • an Corporation idyllic climate (FDC) support<br />

economic Maluti-A-Phofung initiatives be established. represent development SEZ the is <strong>Free</strong> strategy situated <strong>State</strong>’s is in response human Tshiame. capital to President formation Ramaphosa’s and de-<br />

MEC • recreational services for Economic, for and priority Small<br />

lifestyle sectors<br />

velopment clarion The Companies call <strong>Free</strong> through for <strong>State</strong>’s increased relocating strengths universities long-term for and to inward investment <strong>Free</strong> colleges, investment <strong>State</strong> and necessary not various are only boosted for institutions enjoy inclusive by: the<br />

<strong>Business</strong> facilities. such Development, as agro-processing Tourism<br />

and<br />

pursuing • growth opportunity openness and innovation job to to creation. business, source and offering trade inputs and proof-of-concept at foreign competitive investment services, prices, but to name also a to<br />

and manufacturing<br />

Environmental Affairs the the<br />

few. • benefit abundance While Indeed, from investment the of domestic, <strong>Free</strong> natural <strong>State</strong> is resources regional is an poised essential and to become international ingredient a laboratory markets economic for for excellence<br />

• growth, products low in factory education it should and rentals services. outcomes, be pointed research out that and at innovation, the centre particularly of the <strong>Free</strong> in include: • diverse cultures<br />

their<br />

Honourable Select • a large investment labour MP Mohale. pool opportunities<br />

the • <strong>State</strong> Africa’s fields There government’s of leading health, are industrial agriculture, telecommunications economic parks agro-processing, development and a Special network strategy, manufacturing, Economic as well Zone as water (SEZ) the • • Agriculture competitive and land agroprocessing<br />

costs.<br />

and building<br />

management, • Value that incentive Chains are supported packages Economic ICT, pharmaceuticals uniquely by Transformation the developed Department and rural Approach, for development.<br />

Special of Trade, is Economic human Industry capital Zones and<br />

• formation Competition. Domestic incentives and and associated development Industrial potential with parks investors the through revitalised are situated from universities industrial around Maluti-A-Phofung,<br />

the and parks world colleges, are • Tourism Select and property investment<br />

welcome • and Botshabelo <strong>Free</strong> various <strong>State</strong> to contact institutions and Development Thaba<br />

the DESTEA<br />

Nchu. pursuing Corporation The<br />

Head innovation Maluti-A-Phofung<br />

of Department (FDC) and support offering SEZ<br />

at: services is situated proof-ofconcept<br />

Tshiame, priority services, sectors Harrismith. to such name as agro-processing a few. The <strong>Free</strong> <strong>State</strong> and manufacturing<br />

is poised to become • • Medical Agriculture and and pharmaceutical<br />

agriprocessing<br />

for in opportunities developmentinclude:<br />

HoD_office@destea.gov.za.<br />

• a laboratory a large<br />

The <strong>Free</strong><br />

labour for <strong>State</strong>’s excellence pool<br />

strengths in for education inward investment outcomes, are research boosted and by: •<br />

production<br />

tourism<br />

and<br />

and<br />

distribution<br />

property<br />

• innovation, •<br />

diverse<br />

openness<br />

cultures particularly to business, trade in the and fields foreign of health, investment agriculture, agroprocessing,<br />

competitive manufacturing, land and building water management, cost ICT, pharmaceuticals • Renewable and clean energy<br />

• Manufacturing<br />

development<br />

• abundance of natural resources<br />

• medical and pharmaceutical<br />

•<br />

• low factory rentals<br />

production and distribution<br />

• and world-class rural development. transport and telecommunications infrastructure • Medical tourism.<br />

• Africa’s Domestic leading and telecommunications potential investors network from around the world are • manufacturing<br />

welcome • incentive to contact packages the uniquely DESTEA developed Head of Department for Special Economic at: Zones • renewable and clean energy<br />

HoD_office@destea.gov.za.<br />

FREE and STATE industrial BUSINESS parks 2020<br />

6<br />

and medical tourism. ■<br />

7<br />

FREE STATE BUSINESS 2020<br />

FREE STATE BUSINESS 2021<br />

6<br />

7 FREE STATE BUSINESS 2021<br />

5 FREE STATE BUSINESS <strong>2022</strong>


should prospectus, be pointed the <strong>Free</strong> out <strong>State</strong> that at Investment the centre Opportunities of the <strong>Free</strong> <strong>State</strong> Prospectus. government’s These<br />

economic initiatives represent development the <strong>Free</strong> strategy <strong>State</strong>’s is response human capital to President formation Ramaphosa’s and de-<br />

MEC for Economic, Small<br />

velopment clarion call through for increased universities long-term and investment colleges, and necessary various for institutions inclusive<br />

<strong>Business</strong> Development, Tourism<br />

pursuing growth FOCUSand innovation job creation. and offering proof-of-concept services, to name a<br />

and Environmental Affairs the the<br />

few. While Indeed, investment the <strong>Free</strong> <strong>State</strong> is is an poised essential to become ingredient a laboratory economic for excel-<br />

Honourable MP Mohale.<br />

lence growth, education it should outcomes, be pointed research out that and at innovation, the centre particularly of the <strong>Free</strong> in<br />

the <strong>State</strong> Empowering<br />

fields government’s of health, agriculture, economic agro-processing, development young<br />

strategy, manufacturing, as well as water the<br />

management, Value Chains Economic ICT, pharmaceuticals Transformation and rural Approach, development. is human capital<br />

formation Domestic and and development potential investors through from universities around the and world colleges, are<br />

welcome and people various to contact institutions the DESTEA to pursuing work<br />

Head innovation of Department and offering at: proof-ofconcept<br />

services, to name a few. The <strong>Free</strong> <strong>State</strong> is poised to become<br />

HoD_office@destea.gov.za.<br />

a laboratory for excellence in education outcomes, research and<br />

The YES4Youth Programme is creating thousands of work experiences.<br />

innovation, particularly in the fields of health, agriculture, agroprocessing,<br />

manufacturing, water management, ICT, pharmaceuticals<br />

and rural development.<br />

The Domestic and YES4Youth potential investors Programme from is around an the world to be part are of skills development among young<br />

welcome to Empowerment contact the DESTEA Initiative. Head of Launched Department at: individuals, while in turn ensuring that they<br />

HoD_office@destea.gov.za.<br />

FREE STATE in BUSINESS 2018, the 2020 programme has awarded 6 gain BBBEE levels and points.<br />

numerous young individuals an • Focuses on the employability of the youth for<br />

opportunity to gain on-the-job training while economic prosperity.<br />

building their professional profile and at the same<br />

FREE time STATE eliminating BUSINESS unemployment 2021 in the country. 6 Roles and responsibilities<br />

YES is fully focused on collaborating with DESTEA<br />

business to create quality work experiences<br />

for youth. Recruitment of youth into the work<br />

experiences that YES and its corporate clients<br />

create is handled by YES-affiliated implementation<br />

partners and employers. The goal is to create<br />

•<br />

•<br />

•<br />

•<br />

Liaison between SMEs and Standard Bank.<br />

Monitor performance and progress of employees.<br />

Support SMEs.<br />

Report back on SME and employee progress.<br />

thousands of work experiences for youth and to Standard Bank<br />

equip youth with a toolkit to make a life and be<br />

someone they have the potential to be.<br />

The partnership between DESTEA and Standard<br />

Bank continues to run with the aforementioned<br />

vision by supporting both SMEs and their respective<br />

•<br />

•<br />

•<br />

•<br />

Project management of initiative.<br />

Registrations of Youth with YES.<br />

Management administration.<br />

Pay stipends.<br />

employees as agreed upon, while ensuring the SMEs<br />

growth and progress of all participants.<br />

A total of 58 employees from the <strong>Free</strong> <strong>State</strong> have<br />

been placed in various companies where they continue<br />

to carry out their daily tasks and responsibilities resulting<br />

in the acquisition of quality work experience.<br />

The youth are provided with a minimum salary<br />

of R3 500 per month paid by Standard Bank.<br />

•<br />

•<br />

•<br />

•<br />

•<br />

Provide meaningful quality workplace experience.<br />

Provide learning opportunities.<br />

Manage day-to-day tasks and activities.<br />

Provide feedback to employees.<br />

Monthly submissions and documentation<br />

management.<br />

The unemployment rate in South Africa has<br />

risen to alarming levels. This shows the relevance<br />

and need for initiatives such as the YES For Youth<br />

Programme and the strong partnership with<br />

DESTEA and Standard Bank aimed at confronting<br />

the unfavourable aspects of youth unemployment.<br />

Not only does the programme place young<br />

people in spheres of work but it also ensures that<br />

the young employees receive real-time quality<br />

experiences coupled with a boosted professional<br />

profile, thus ensuring the youth’s employability<br />

upon completion of the 12-month placement. ■<br />

The purpose of DESTEA and Standard Bank<br />

• Work hand-in-hand in the continued fight<br />

against the unemployment rate among young<br />

individuals in the <strong>Free</strong> <strong>State</strong>.<br />

• Encourage corporates to contribute to empowerment<br />

in areas of national priority, addressing<br />

youth unemployment and up-skilling young<br />

people through job placement.<br />

• Relieve host employers of stipend payments<br />

(Standard Bank).<br />

• Extend the opportunity to SMEs, allowing them<br />

FREE STATE BUSINESS <strong>2022</strong><br />

6


Investing in the <strong>Free</strong><br />

<strong>State</strong> Investing Province<br />

the<br />

<strong>Free</strong> <strong>State</strong> Province<br />

Dr Mbulelo Nokwequ, Head of Department at<br />

DESTEA, outlines some of the <strong>Free</strong> <strong>State</strong>’s<br />

Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the<br />

unique selling propositions.<br />

<strong>Free</strong> <strong>State</strong>’s unique selling propositions.<br />

MESSAGE<br />

MESSAGE<br />

<strong>Free</strong> <strong>State</strong> Province is situated in the heart of South Africa and<br />

The<br />

shares borders<br />

<strong>Free</strong> <strong>State</strong><br />

with<br />

Province<br />

Lesotho<br />

is<br />

and<br />

situated<br />

six other<br />

in the<br />

provinces.<br />

heart of South<br />

It provides<br />

Africa<br />

and shares borders with Lesotho and six other provinces.<br />

easy access to the main ports of Durban, East London and<br />

It provides easy access to the main ports of Durban, East<br />

Port Elizabeth.<br />

London and Port Elizabeth.<br />

The <strong>Free</strong> <strong>State</strong> is an attractive business and investment destination.<br />

The <strong>Free</strong> <strong>State</strong> is an attractive business and investment<br />

The province is at the centre of South Africa and the dominant sectors<br />

destination. The province is at the centre of South Africa and the<br />

are agriculture, mining, manufacturing and the tertiary sectors, making<br />

dominant economic sectors are agriculture, mining, manufacturing<br />

it ideal<br />

and the<br />

for transport<br />

tertiary sectors,<br />

logistics<br />

making<br />

and agro-processing.<br />

it ideal for transport logistics and<br />

agro-processing.<br />

Companies locating to <strong>Free</strong> <strong>State</strong> not only enjoy the opportunity to<br />

source The inputs Department at competitive has prices, developed but also a to Value benefit Chains from domestic, Economic<br />

regional Transformation and international Approach, markets which aims for their to place products the economy and services. on a<br />

Because path of South reconstruction, Africa has recovery been engaging and development with our economically post the Covid-19 large<br />

trading pandemic. partners, Maintaining access to sound international relationships markets with is facilitated the private through sector<br />

various ensures trade that preferences government’s and free-trade economic agreements. transformation agenda<br />

remains As far as on long-term track. The investment department is is concerned, engaging with there sectors are industrial such as<br />

parks property and a developers Special Economic issues Zone such (SEZ) as bulk that services are supported and the approval by the<br />

Department of plans. A of development Trade, Industry committee and Competition. made up Industrial of government, parks<br />

are developers, situated in financing Maluti-A-Phofung, institution Botshabelo and municipalities and Thaba will Nchu. soon<br />

Maluti-A-Phofung be established. SEZ is situated in Tshiame.<br />

The Companies <strong>Free</strong> <strong>State</strong>’s relocating strengths for to inward <strong>Free</strong> investment <strong>State</strong> not are only boosted enjoy by: the<br />

• opportunity openness to to business, source trade inputs and at foreign competitive investment prices, but also to<br />

• benefit abundance from of domestic, natural resources regional and international markets for their<br />

• products low factory and rentals services.<br />

• Africa’s There leading are industrial telecommunications parks and a Special network Economic Zone (SEZ)<br />

• that incentive are supported packages uniquely by the developed Department for Special of Trade, Economic Industry Zones and<br />

• Competition. incentives associated Industrial with parks the revitalised are situated industrial Maluti-A-Phofung,<br />

parks<br />

• Botshabelo <strong>Free</strong> <strong>State</strong> and Development Thaba Nchu. Corporation The Maluti-A-Phofung (FDC) support SEZ services is situated for in<br />

Tshiame, priority sectors Harrismith. such as agro-processing and manufacturing<br />

• a large<br />

The <strong>Free</strong><br />

labour<br />

<strong>State</strong>’s<br />

pool<br />

strengths for inward investment are boosted by:<br />

•<br />

•<br />

diverse<br />

openness<br />

cultures<br />

to business, trade and foreign investment<br />

• abundance of natural resources<br />

• competitive land and building cost<br />

• low factory rentals<br />

• world-class transport and telecommunications infrastructure<br />

• Africa’s leading telecommunications network<br />

• incentive packages uniquely developed for Special Economic Zones<br />

and industrial parks<br />

7<br />

• <strong>Free</strong> <strong>State</strong> Development<br />

• an Corporation idyllic climate (FDC) support<br />

• recreational services for and priority lifestyle sectors<br />

facilities. such as agro-processing and<br />

manufacturing<br />

Select • a large investment labour pool opportunities<br />

include: • diverse cultures<br />

• • Agriculture competitive and land agroprocessing<br />

costs.<br />

and building<br />

• Tourism Select and property investment<br />

opportunities developmentinclude:<br />

• • Medical Agriculture and and pharmaceutical<br />

agriprocessing<br />

•<br />

production<br />

tourism<br />

and<br />

and<br />

distribution<br />

property<br />

• Manufacturing<br />

development<br />

• medical and pharmaceutical<br />

• Renewable and clean energy<br />

production and distribution<br />

• Medical tourism.<br />

• manufacturing<br />

• renewable and clean energy<br />

and medical tourism. ■<br />

FREE STATE BUSINESS 2020<br />

7 FREE STATE BUSINESS 2021<br />

7 FREE STATE BUSINESS <strong>2022</strong>


PROFILE<br />

<strong>Free</strong> <strong>State</strong> Development<br />

Corporation (FDC)<br />

Driving enterprise development and investment in South Africa’s<br />

most central province, the <strong>Free</strong> <strong>State</strong>.<br />

The FDC contributes to the <strong>Free</strong> <strong>State</strong>’s<br />

economic development through four service<br />

delivery pillars:<br />

SMME/co-operative funding and support<br />

The FDC provides products and services to SMMEs<br />

and co-operatives in the form of financial support<br />

(business loans) as well as business development<br />

support (facilitating training and mentoring service<br />

providers). The principal loan products offered to<br />

<strong>Free</strong> <strong>State</strong> entrepreneurs by the FDC are:<br />

• Start-up loans for recently established businesses<br />

that are mainly at formative stages.<br />

• Expansion loans offering viable and existing<br />

businesses the capital needed to expand.<br />

• <strong>Business</strong> take-over finance to assist potential<br />

clients to acquire a business as a going concern.<br />

• Bridging finance for SMMEs with short-term cashflow<br />

problems with contracts or tenders.<br />

Property management<br />

The FDC administers a diverse property portfolio<br />

and can offer small to medium enterprises suitable<br />

premises at affordable rates. The corporation has<br />

some 253 commercial properties, 290 industrial<br />

properties and a large number of residential and<br />

vacant land for development.<br />

The corporation aims to use them to facilitate<br />

commercial and industrial activity, while assisting<br />

new investors looking for suitable premises.<br />

The FDC offers advice and guidance in terms of<br />

the following incentives:<br />

• Subsidised rental rates.<br />

• Rental holidays of up to three months.<br />

• Special incentives and discounts for BEE<br />

companies or individuals.<br />

FREE STATE BUSINESS 2021 <strong>2022</strong><br />

18 8


is renting out 18 850 sqm standalone factory including Furniture<br />

FDC<br />

Machinery, Equipment, and Furniture for <strong>Business</strong><br />

Manufacturing<br />

PROFILE<br />

I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H<br />

FDC is renting out 18 850 sqm standalone factory including Furniture<br />

I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H<br />

Manufacturing Machinery, Equipment, and Furniture for <strong>Business</strong><br />

Operation..<br />

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on<br />

Operation..<br />

main arterial routes and Quick access onto N3 <strong>Free</strong>way.<br />

This factory offers the following:<br />

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on<br />

Sprinkler System.<br />

main arterial routes and Quick access onto N3 <strong>Free</strong>way.<br />

4 Roller Doors<br />

factory offers the following:<br />

Security Guard House<br />

This<br />

Sprinkler System.<br />

Well fenced and secured<br />

Investor services<br />

Export-related services<br />

parking<br />

Ample<br />

Roller Doors<br />

4<br />

The FDC offers a range of services to investors and The FDC services to exporters include the<br />

with 100 amps<br />

3 phase power<br />

businesses looking to trade in the <strong>Free</strong> <strong>State</strong>. These Export Promotion<br />

Security House<br />

Programme, which aims<br />

Guard<br />

to<br />

boardroom, toilets, reception, kitchen separate warehouse with<br />

8 6 offices ablutions and<br />

fenced and secured<br />

include the following:<br />

grow demand for <strong>Free</strong> <strong>State</strong> products in global<br />

Well<br />

shower<br />

• Project appraisal and packaging.<br />

Ample parking<br />

markets through capacity-building workshops,<br />

• Promotion and facilitation of investment projects the dissemination of trade leads, networking<br />

phase power with 100 amps<br />

Occupation available immediately. Please contact Mr Tefo Matla for more<br />

3<br />

and facilitation of access to finance.<br />

opportunities with inbound trade missions,<br />

and and separate 6 warehouse boardroom, ablutions toilets, with<br />

reception, information offices or kitchen to 8 view:<br />

• Providing access to business and government product promotion through participation in<br />

networks<br />

shower<br />

and 4000 assistance 800 with Email: business tefo@fdc.co.za retention<br />

www.fdc.co.za<br />

outbound group missions and on national Tel: and<br />

051<br />

and expansion.<br />

international exhibitions, access to national exportincentive<br />

• Information Occupation available immediately. Please contact Mr Tefo Matla for more<br />

on statutory<br />

FDC IS ZERO<br />

requirements,<br />

TOLERANCE TO FRAUD AND CORRUPTION.PLEASE<br />

programmes,<br />

REPORT FRAUD<br />

market<br />

AND<br />

access information<br />

investment advice and assistance CORRUPTION with investment<br />

INCIDENTS TO THE and FRAUD technical HOTLINE 0800 advice 212 on 154 exporting procedures. ■<br />

view: to or information<br />

incentive applications and business permits.<br />

www.fdc.co.za<br />

tefo@fdc.co.za Email: 800 4000 051 Tel: • Assisting with the development of local<br />

Contact details<br />

and international markets and facilitating<br />

joint ventures/equity partnerships through <strong>Free</strong> <strong>State</strong> Development Corporation<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE<br />

identification of local partners.<br />

Tel: +27 51 4000 800<br />

REPORT FRAUD AND<br />

CORRUPTION INCIDENTS TO THE Emails: FRAUD HOTLINE wecare@fdc.co.za 0800 212 154| invest@fdc.co.za<br />

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

919 FREE STATE BUSINESS <strong>2022</strong><br />

2021


A REGIONAL OVERVIEW OF<br />

FREE STATE<br />

Both the Botshabelo Industrial Park and the Maluti-A-Phofung<br />

Special Economic Zone (MAP SEZ) are attracting investors to<br />

the country’s most centrally-located province. Covid-19 hit the<br />

tourism sector hard, but the province’s miners are enjoying good<br />

commodity prices and the Virginia Gas Project is steaming ahead.<br />

By John Young<br />

The announcement in 2021 by Renergen,<br />

the owners of the Virginia Gas Project,<br />

that it had signed an agreement with<br />

Consol, one of the country’s leading glass<br />

manufacturers, gave new impetus to the country’s<br />

only onshore gas project.<br />

Having previously targeted the logistics<br />

sector for offtake agreements, and successfully<br />

concluded several agreements together with<br />

a joint venture to roll out gas supplies to filling<br />

stations across the country with TotalEnergies, the<br />

Consol pact marked a significant new customer<br />

for the gas explorers and potentially opens up a<br />

new market.<br />

Renergen said in 2021 that their findings<br />

continued to confirm early reports of substantial<br />

reserves. One of the key facts to emerge is that<br />

the gas contains helium of up to 12%, a good<br />

percentage.<br />

Other good news came in the form of news<br />

that the Maluti-A-Phofung Special Economic Zone<br />

(MAP SEZ), the strategically located area on the N3<br />

highway, is attracting new investment to the <strong>Free</strong><br />

<strong>State</strong> Province.<br />

Sectors prioritised at the MAP SEZ include<br />

logistics, ICT, automotive, pharmaceuticals,<br />

manufacturing and agro-processing. The 1 000ha<br />

site has four zones: agro-processing, light industrial,<br />

heavy industrial and a container terminal. Control<br />

of the project now rests with the provincial<br />

Department of Small <strong>Business</strong> Development,<br />

Tourism and Environmental Affairs (DESTEA).<br />

Infrastructure<br />

Other areas that are being upgraded to provide<br />

infrastructure to encourage manufacturing are the<br />

Phuthaditjhaba Industrial Park and the Botshabelo<br />

Industrial Park, where a foreign firm has started<br />

FREE STATE BUSINESS <strong>2022</strong><br />

10


SPECIAL FEATURE<br />

province which is also well served by rail and air links.<br />

The Bram Fischer International Airport serves the<br />

provincial capital.<br />

Links to the west (Kimberley and on to Namibia)<br />

and east (to Lesotho) underpin the planning<br />

behind the N8 Corridor concept which covers<br />

Bloemfontein, Botshabelo and Thaba Nchu. A plan<br />

for the coordinated development of the N8 Corridor<br />

has been approved by a range of bodies and is being<br />

funded by the Development Bank of Southern Africa<br />

(DBSA) and the Mangaung Metropolitan Municipality.<br />

Sasol’s complex at Sasolburg. Credit: Sasol<br />

construction of a new steel mill (which is covered in<br />

the Manufacturing Overview).<br />

Telecoms company Vodacom is investing<br />

heavily in its infrastructure in the <strong>Free</strong> <strong>State</strong>.<br />

Several new base stations have been established<br />

in villages such as Clocolan, Fauresmith and<br />

Fouriesburg, greatly improving coverage in rural<br />

areas. The Rural Coverage Acceleration Programme<br />

allocated R207-million to the region in 2020/21.<br />

Bloemfontein is the site of one of Vodacom’s<br />

new solar-powered facilities, helping in the<br />

company’s drive to reduce its carbon emissions.<br />

Vodacom saved 11 971MW in 2020 through its<br />

energy management programme.<br />

The N3 is South Africa’s busiest road and the<br />

Highway Junction truckstop at the entrance to<br />

Harrismith claims to be Africa’s biggest. More than<br />

1 500 vehicles pass through every day and three<br />

forecourts cater to three fuel brands. Refuelling,<br />

storage and handling take place here, highlighting<br />

the province’s strengths in logistics as the country’s<br />

most central province.<br />

The country’s two great highways pass through<br />

the province. The N3 links the ports of Richards<br />

Bay and Durban with the industrial heartland and<br />

the N1 provides north-south connectivity. The<br />

provincial capital, Bloemfontein, is another logistics<br />

hub. Three other national highways intersect the<br />

Provincial assets<br />

International fuel, gas and chemicals company<br />

Sasol regularly invests in new technologies and in<br />

expanding production of its many products. Mining<br />

is reduced in importance but remains a significant<br />

employer. Harmony Gold has several assets in the<br />

province and Sibanye-Stillwater has undertaken a<br />

feasibility study on a property adjacent to its existing<br />

Beatrix mine.<br />

In agriculture, the <strong>Free</strong> <strong>State</strong> is looking forward<br />

to the implementation of the African Continental<br />

<strong>Free</strong> Trade Area (AfCFTA), the free trade agreement<br />

that was stalled by the Covid-19 pandemic. The <strong>Free</strong><br />

<strong>State</strong>’s agricultural export basket is well suited to<br />

trading with African states and strategies are being<br />

considered to promote apples, asparagus, cherries,<br />

cut flowers, sorghum, venison and wine.<br />

The <strong>Free</strong> <strong>State</strong> produces significant proportions<br />

of South Africa’s wheat (30%), sunflowers (45%) and<br />

maize (45%) and is ranked third in contribution to<br />

national GDP in agriculture.<br />

The <strong>Free</strong> <strong>State</strong> shares borders with six other<br />

provinces, in addition to the Mountain Kingdom<br />

of Lesotho. A summer-rainfall region with a mean<br />

Commercial agriculture is a key element of the <strong>Free</strong> <strong>State</strong><br />

economy, with companies like VKB farming and storing vast<br />

quantities of grain. Credit: VKB<br />

11 FREE STATE BUSINESS <strong>2022</strong>


SPECIAL FEATURE<br />

annual rainfall of 532mm, the <strong>Free</strong> <strong>State</strong>’s climate,<br />

soil types and topography vary greatly within the<br />

province, with plains in the west and mountains<br />

in the east. The western and southern areas are<br />

semi-desert, with some Karoo vegetation occurring<br />

in the south. The southernmost region of the <strong>Free</strong><br />

<strong>State</strong> is a largely dry area with open grasslands<br />

predominating, although it is also home to the<br />

Gariep Dam, South Africa’s largest dam.<br />

Municipalities in the <strong>Free</strong> <strong>State</strong><br />

The <strong>Free</strong> <strong>State</strong> has one metropolitan municipality<br />

(Mangaung), four district municipalities and 19<br />

local municipalities.<br />

Mangaung Metropolitan Municipality<br />

Mangaung Metropolitan Municipality is a Category<br />

A municipality which governs Bloemfontein,<br />

Botshabelo and Thaba Nchu. The sixth-largest city<br />

in the country, the Mangaung municipal area covers<br />

more than 6 263km² and has a population of about<br />

850 000 people. Bloemfontein is responsible for<br />

about 25% of provincial GDP.<br />

Xhariep District Municipality<br />

Towns: Trompsberg, Zastron, Philipollis, Smithfield,<br />

Wepener<br />

The southernmost region of the <strong>Free</strong> <strong>State</strong> is a largely<br />

dry area with open grasslands predominating,<br />

although it is also home to the Gariep Dam, South<br />

Africa’s largest dam. The dam is also the site of small<br />

hydro-power and aquaculture projects. The nearby<br />

Tussen die Riviere Nature Reserve and the Mynhardt<br />

Game Reserve are popular. Crops are produced in<br />

the northern parts of the district and sheep farming<br />

is the biggest activity in the south. Diamonds, gravel<br />

and clay are mined at Koffiefontein. Jagersfontein is<br />

one of the first places where diamonds were found.<br />

Lejweleputswa District Municipality<br />

Towns: Welkom, Virginia, Boshof, Christiana,<br />

Bultfontein, Bothaville<br />

Mining is the most important economic activity in<br />

this area, also known as the <strong>Free</strong> <strong>State</strong> Goldfields,<br />

but it is also the most important maize-growing<br />

area in South Africa. A large natural gas field has<br />

been discovered on what used to be gold turf.<br />

Bothaville hosts the annual NAMPO maize festival<br />

and the headquarters of Grain SA. Welkom is the<br />

major urban centre in the district.<br />

The area has tourist assets such as a holiday<br />

resort on the Allemanskraal Dam, the Goldfields<br />

Wine Cellar in Theunissen and the Willem Pretorius<br />

Game Reserve.<br />

Fezile Dabi District Municipality<br />

Towns: Sasolburg, Parys, Kroonstad, Frankfort,<br />

Heilbron, Viljoenskroon<br />

The chemical complex at Sasolburg is the economic<br />

driver in the district, which shares a border with<br />

Gauteng province along the Vaal River. Kroonstad is<br />

the district’s second-largest town and has a number<br />

of engineering works and a railway junction.<br />

A good proportion of South Africa’s grain crop<br />

is sourced from this district and when the vast fields<br />

of sunflowers and cosmos flowers are in bloom, a<br />

marvellous vista is created. The Vaal River presents<br />

opportunities for yachting, rafting and resort-based<br />

enterprises. Parys is a charming town and Vredefort<br />

is home to a World Heritage Site – the Vredefort<br />

Dome where a meteor crashed to earth.<br />

Fezile Dabi District Municipality is the biggest<br />

contributor towards the provincial GDP, accounting<br />

for approximately 35%. The Fezile Dabi area is mostly<br />

dominated by the industrial power of Sasol, with<br />

the manufacturing of refined petroleum, coke and<br />

chemical products adding largely to its GDP.<br />

Thabo Mofutsanyana District Municipality<br />

Towns: Phuthaditjhaba, Bethlehem, Ladybrand,<br />

Clarens, Harrismith, Ficksburg<br />

Tourism and fruit farming are the two principal<br />

economic activities of this area which is<br />

characterised by beautiful landscapes: the Maluti<br />

and the Drakensberg mountain ranges, wetlands in<br />

the north, well-watered river valleys and the plains<br />

of the north and west. The most famous asset is the<br />

Golden Gate National Park.<br />

Industrial activity is undertaken at Harrismith and<br />

Phuthaditjhaba, where the <strong>Free</strong> <strong>State</strong> Development<br />

Corporation is promoting investment. The Maluti-<br />

A-Phofung Special Economic Zone (MAP SEZ) at<br />

Harrismith is a multi-modal transport and logistics<br />

hub. The commercial centre of the district is<br />

Bethlehem while Clarens and Ficksburg have become<br />

famous for their artists and cherries respectively. ■<br />

FREE STATE BUSINESS <strong>2022</strong><br />

12


SPECIAL FEATURE<br />

<strong>Free</strong> <strong>State</strong> Gambling,<br />

Liquor and Tourism<br />

Authority<br />

Driving economic transformation in the <strong>Free</strong> <strong>State</strong>.<br />

<strong>Free</strong> <strong>State</strong> Province<br />

Center yourself in the heart of South Africa<br />

Vision<br />

A transformed economy and a prosperous society with an<br />

effective, well-regulated gambling and liquor industry and a vibrant<br />

tourism sector.<br />

Mission<br />

To be a leading developmental institution that drives economic<br />

transformation, regulation and adaptation to the ever-changing<br />

industry dynamics to benefit the <strong>Free</strong> <strong>State</strong>.<br />

CEO of <strong>Free</strong> <strong>State</strong> Gambling,<br />

Liquor and Tourism Authority,<br />

Mr Kenny Dichabe<br />

The <strong>Free</strong> <strong>State</strong> Gambling,<br />

Liquor and Tourism<br />

Authority (FSGLTA)<br />

is one of the two<br />

entities of the Department<br />

of Economic, Small <strong>Business</strong><br />

Development, Tourism and<br />

Environmental Affairs (DESTEA).<br />

The FSGLTA was established by<br />

the FSGLTA Amendment Act 4<br />

of 2017, which was amended<br />

to incorporate the former <strong>Free</strong><br />

<strong>State</strong> Tourism Authority and<br />

<strong>Free</strong> <strong>State</strong> Gambling and Liquor<br />

to form the new entity which is<br />

known as FSGLTA.<br />

Mandate<br />

The mandate of of the the <strong>Free</strong> <strong>Free</strong> <strong>State</strong> <strong>State</strong> Gambling, Gambling, Liquor Liquor and Tourism and Tourism<br />

Authority is is to to regulate the the gambling and and liquor industries within within<br />

the province and to to market and promote tourism in in the the province.<br />

The Authority’s purpose is to promote legally compliant, responsible,<br />

sustainable and transformed gaming and liquor industries through<br />

effective licensing, regulating and and reporting on the on activities the activities of of<br />

the industries, and to to position the the <strong>Free</strong> <strong>Free</strong> <strong>State</strong> <strong>State</strong> Province as a as tourist a tourist<br />

destination of of choice.<br />

The gambling industry<br />

• Invite applications for licences (gambling)<br />

• Consider, grant or refuse applications<br />

• Cancel, suspend, vary, renew or revoke a licence or registration<br />

approved<br />

• Implementation of norms and standards in the gambling industry<br />

as determined by the National Gambling Act<br />

• Ensure that gambling activities are effectively regulated, licensed<br />

and controlled<br />

• Ensure compliance to the act, rules and regulations<br />

The liquor industry<br />

• Receive applications for registrations (liquor)<br />

• Reduce the socio-economic and other costs of alcohol<br />

• Promote the development of a responsible and sustainable liquor<br />

industry in relation to gambling<br />

• Generate revenue for the <strong>Free</strong> <strong>State</strong> Province<br />

FREE STATE BUSINESS 2021 <strong>2022</strong><br />

22 14


SPECIAL FEATURE<br />

Image: iStock<br />

The tourism industry<br />

It is important that the FSGLTA intensifies<br />

its efforts to ensure effective marketing<br />

of the province in order to attract<br />

domestic tourists as well as international<br />

tourists. The province continues to<br />

enhance tourism infrastructure, up-skill<br />

the sector, inculcate the culture of service<br />

excellence and enhance the provision<br />

of world-class visitor experiences. The<br />

Authority has partnered with event<br />

organisers and tour operators to market<br />

and promote the <strong>Free</strong> <strong>State</strong> as a tourist<br />

destination. These are achieved through<br />

the following:<br />

• Forging strategic partnerships with the<br />

public and private sectors to leverage<br />

from each the capability and capacity<br />

to improve the industry<br />

• Streamlining the impact of events<br />

through partnerships and sponsorships<br />

• Improving on Meetings, Incentives,<br />

Conferencing and Events (MICE) as a<br />

focused growth area of the market<br />

• Continuous review of the marketing<br />

plans to stay on par with the industry<br />

trends. ■<br />

GAMBLING AND LIQUOR CONTACT DETAILS<br />

• Mangaung Metro Abraham Classen<br />

classena@fsglta.gov.za | 051 404 0320 | 079 506 0272<br />

• Thabo Mofutsanyana Peter Moleko<br />

molekop@fsglta.gov.za | 078 309 4178<br />

• Lejweleputswa Thabo Tlake<br />

tlaket@fsglta.gov.za | 057 492 0001 | 072 533 6681<br />

• Fezile Dabi Bongakele Nzunga<br />

nzungab@fsglta.co.za | 056 492 0001 | 082 256 5926<br />

• Gariep Abraham Classen<br />

classena@fsglta.gov.za | 051 404 0320 | 079 506 0272<br />

TOURISM ROUTE CONTACT DETAILS<br />

• Cheetah Route Nthabiseng Methola<br />

cheetah@freestatetourism.org | 073 125 1614<br />

• Eagle Route Bonolo Molefe<br />

eagle@freestatetourism.org | 072 056 6090<br />

• Flamingo Route Dineka Lephowane<br />

flamingo@freestatetourism.org | 073 796 8577<br />

• Lion Route Keakabetse Ramokonopi<br />

lion@freestatetourism.org | 084 951 1564<br />

• Springbok Route Kefiloe Molefe<br />

molefek@fsglta.gov.za | 079 496 2999<br />

23 FREE STATE BUSINESS 2021<br />

15 FREE STATE BUSINESS <strong>2022</strong>


FOCUS<br />

Environmental<br />

sustainability<br />

The Environment and Conservation Branch is working to promote a pristine<br />

environment that facilities economic transformation.<br />

FOCUS<br />

Environmental sustainability within the <strong>Free</strong><br />

<strong>State</strong> Province is conducted within the<br />

prescripts of promoting Section 24 of the<br />

South African Constitution, recognising<br />

and promoting environmental rights as contained<br />

in the Bill of Rights. We also recognise our<br />

responsibility to promote a pristine environment<br />

that facilitates a transformative economic agenda<br />

to create jobs and a just society.<br />

The main focus areas are:<br />

• Environmental Quality and Protection:<br />

environmental education and awareness; waste<br />

and air quality management; environmental<br />

impacts and assessments; EPWP. Also promoting<br />

the circular economy with a particular focus on<br />

waste and recycling.<br />

• Biodiversity Conservation and Research:<br />

maintenance of resorts and reserves;<br />

protected areas maintenance and expansion;<br />

biodiversity research; game culling and<br />

auctions including the transformation<br />

and promotion of Biodiversity Economy;<br />

transformative entrepreneurship; development<br />

and promotion of the wildlife economy.<br />

Current considerations<br />

• Ensuring sustainable environmental<br />

management.<br />

• Improve national and provincial state of<br />

environmental reporting.<br />

• Integration of environmental objectives in<br />

national, provincial and instruments and tools.<br />

• Implementation of Chapter 4 of NEMA provisions<br />

in relation to fair decision-making and conflict<br />

management (conciliation, arbitration and<br />

investigations). Responding to EIA complaints<br />

and appeals without compromising on<br />

economic transformation, job creation and the<br />

promotion of spatial integration.<br />

Conservation priorities<br />

The <strong>Free</strong> <strong>State</strong> is 128 000km² in extent, or<br />

12.8-million hectares. This means that it is the<br />

third-largest province in South Africa. Located<br />

in the centre of the country, with ideal soils and<br />

climate, the province is an extremely important<br />

food producer and the environmental health of<br />

the province is therefore vital to the food security<br />

of the country.<br />

The province boasts a strong conservation<br />

mindset, not only from within the DESTEA but<br />

also from land owners generally.<br />

Prior to the adoption of the <strong>Free</strong> <strong>State</strong> Protected<br />

Area Expansion Strategy there were already 240<br />

formally declared Nature Reserves in the province.<br />

Since the inception of the Biodiversity Stewardship<br />

programme an additional 53 000 hectares of<br />

private land have been declared and added to<br />

the conservation estate. Priority focus is now<br />

on extending these conservation areas into the<br />

remaining natural areas of the province thereby<br />

conserving wetlands, rivers, terrestrial ecosystems<br />

and species for future generations.<br />

In addition to the formal conservation areas,<br />

there are over 300 000 hectares of game and<br />

mixed-species ranches. The province generates<br />

over R600-million per annum from the local<br />

hunting industry, which maintains many huntingsupport<br />

businesses such as taxidermists, curio<br />

producers, etc. ■<br />

FREE STATE BUSINESS <strong>2022</strong><br />

29 FREE STATE BUSINESS 2021<br />

16


<strong>State</strong> Province<br />

FOCUS<br />

Growing the<br />

tourism sector<br />

Dr Mbulelo Nokwequ, Head of Department at<br />

DESTEA, outlines some of the <strong>Free</strong> <strong>State</strong>’s<br />

unique selling propositions.<br />

FOCUS<br />

The Tourism Unit of DESTEA is providing market access for local operators.<br />

<strong>Free</strong> <strong>State</strong> Province is situated in the heart of South Africa and<br />

DESTEA’s shares borders with Tourism Lesotho Unit’s and objective six other provinces. is to It provides<br />

easy access grow the tourism sector’s contribution<br />

to <strong>Free</strong> the <strong>State</strong> main economy. ports of In Durban, achieving<br />

East London and<br />

Port Elizabeth.<br />

The <strong>Free</strong> <strong>State</strong> this, is various an attractive activities business and functions and investment are destination.<br />

The performed, province is which at the include: centre of South Africa and the dominant sectors<br />

are<br />

•<br />

agriculture,<br />

Creating a<br />

mining,<br />

conducive<br />

manufacturing<br />

environment<br />

and<br />

for<br />

the<br />

tourism<br />

tertiary<br />

to<br />

sectors, making<br />

it ideal<br />

thrive<br />

for transport logistics and agro-processing.<br />

• Formulating and implementing a Provincial<br />

Companies locating to <strong>Free</strong> <strong>State</strong> not only enjoy the opportunity to<br />

Tourism Sector Strategy to guide tourism activities<br />

source inputs at competitive prices, but also to benefit from domestic,<br />

in the province<br />

regional and international markets for their products and services.<br />

• Providing market access opportunities both<br />

Because South Africa has been engaging with our economically large<br />

locally and internationally to provincial tourism • Promotion of tourism safety through among others,<br />

trading partners, access to international markets is facilitated through<br />

enterprises<br />

programmes such as the Provincial Joint<br />

various<br />

• Roll<br />

trade<br />

out programmes<br />

preferences and<br />

to enhance<br />

free-trade<br />

visitor<br />

agreements.<br />

services Operational and Intelligence Structure (Provjoints),<br />

As<br />

and<br />

far<br />

experience<br />

as long-term investment is concerned, there are<br />

with<br />

industrial<br />

law enforcement agencies, and also through<br />

parks • Facilitate and a Special and promote Economic tourism Zone (SEZ) education that are and supported implementing by the the Tourism Monitors Programme.<br />

Department capacity-building of Trade, for Industry the tourism and sector Competition. Industrial parks<br />

are • Promote situated in the Maluti-A-Phofung, culture tourism Botshabelo and service and Thaba Journey Nchu. to Service • an Excellence idyllic climate<br />

Maluti-A-Phofung excellence SEZ is situated in Tshiame.<br />

The J2SE will focus • recreational nominating and lifestyle a small town<br />

• The Promote <strong>Free</strong> <strong>State</strong>’s transformation strengths of for the inward tourism investment sector for are boosted in the rural by: tourism facilities. nodes and assisting the<br />

•<br />

•<br />

•<br />

•<br />

openness inclusive tourism business, economy, trade and as well foreign as providing investment<br />

abundance support to of youth natural and resources women in tourism<br />

• low Facilitating factory rentals events tourism to reduce seasonality<br />

Africa’s and enhance leading geographic telecommunications spread network<br />

town to develop a service excellence-orientated<br />

culture in their Select organisations investment opportunities<br />

and different<br />

structures with include: strong media attention and focus<br />

during the activation. • Agriculture A town and will agroprocessing<br />

be identified<br />

•<br />

•<br />

•<br />

of Service Excellence will be<br />

• incentive Facilitate packages funding uniquely for initiatives developed that for seek Special to Economic and the Zones principles<br />

incentives develop and associated grow tourism with the in the revitalised province industrial parks communicated • to all Tourism organisations. and property A criterion has<br />

<strong>Free</strong> <strong>State</strong> Development Corporation (FDC) support services been for developed development for the nomination which<br />

priority sectors such as agro-processing and manufacturing has been shared • Medical and discussed and pharmaceutical with relevant<br />

•<br />

•<br />

a large labour pool<br />

diverse cultures<br />

stakeholders. production A number of and activities distribution will be<br />

implemented • Manufacturing<br />

anticipation of the big media<br />

• competitive land and building cost<br />

event to launch • Renewable J2SE Town. and clean energy<br />

• world-class transport and telecommunications infrastructure At its core, • the Medical J2SE aims tourism.<br />

bring together<br />

the entire town including restaurants,<br />

accommodation facilities, tourist attractions,<br />

police, banks and petrol attendants, among<br />

7 others, to be informed, FREE trained STATE and BUSINESS exposed 2020 to<br />

the four components of the SANS 1197:2012.<br />

A secondary objective of this programme is<br />

to establish a local Tourism Service Excellence<br />

structure or to link with existing structures to<br />

build a sustainable service culture. ■<br />

FREE STATE BUSINESS 2021<br />

1728<br />

FREE STATE BUSINESS <strong>2022</strong>


PROFILE<br />

Maluti-A-Phofung SEZ<br />

investment opportunities<br />

The SEZ is booming with investment to the tune of R1.1-billon for 2020.<br />

MAP SEZ CEO Mpho Mgemane<br />

of the traffic to different locations in South Africa and neighbouring<br />

countries such as Lesotho and Swaziland. Through its cross-docking<br />

precinct and its logistics and warehousing sectors the MAP SEZ<br />

presents itself as a solution to lighten the traffic pressure on the N3.<br />

This Special Economic Zone (SEZ) is part of the <strong>Free</strong> <strong>State</strong> leg<br />

of the massive Durban-<strong>Free</strong> <strong>State</strong>-Gauteng logistics and industrial<br />

corridor that is intended to strengthen the logistics and transport<br />

corridor between South Africa’s main industrial hubs to:<br />

• Ignite the economy of the region through industrialisation.<br />

• Attract foreign and direct investment.<br />

• Create access to export and import markets.<br />

• Integrate <strong>Free</strong> <strong>State</strong> industrial strategy activities into the corridor.<br />

• Create job opportunities and grow the economy within the region.<br />

Maluti-A-Phofung<br />

Special Economic<br />

Zone (MAP SEZ) has<br />

been established in<br />

terms of the Special Economic<br />

Zones Act No 16 of 2014. The<br />

programme is intended to<br />

deepen industrial development<br />

and improve manufacturing<br />

competitiveness in the Maluti-<br />

A-Phofung region.<br />

Since the Durban port is<br />

the busiest in the southern<br />

hemisphere, it therefore means<br />

that the N3 carries the majority<br />

Objectives<br />

As part of its mandate, the MAP SEZ is intended to establish<br />

manufacturing opportunities and create a regional and international<br />

trade environment with added value-chain benefits. It has also been<br />

established to simulate social and economic benefits and regional<br />

development and to create<br />

a prosperous trade city and<br />

functional trade ecosystem.<br />

Finally, to encourage<br />

beneficiation activities that<br />

promote value-added benefits<br />

and help to create a prosperous<br />

trade city and functional trade<br />

ecosystem.<br />

FREE STATE BUSINESS <strong>2022</strong> 2021<br />

20 18


PROFILE<br />

Priority sectors<br />

Some of the many MAP SEZ<br />

priority sectors are:<br />

• Automotive<br />

• Agro-processing<br />

• Logistics<br />

• General processing<br />

• ICT<br />

• Pharmaceuticals.<br />

From this pipeline MAP SEZ is proud to<br />

pronounce that it has secured investments<br />

from five investors to the value of R1.1-billion<br />

in various sectors. The operations of<br />

these investors were established in June,<br />

September and November 2020.<br />

These investors are a source of great pride<br />

for the MAP SEZ as they have created 103 137 jobs since the start of their<br />

operations and are projected to create 466 jobs collectively, once<br />

they are fully operational.<br />

The MAP SEZ is now gaining momentum in terms of attracting<br />

local and foreign investors and is supported by its healthy investment<br />

pipeline of approximately R3.2-billion, R2.6-billion in which the next is project-ed five years, which to create will<br />

create 12 000 an work estimated opportunities. 22 130 permanent ■ and temporary jobs. ■<br />

Investor benefits<br />

Some of the many investor<br />

benefits that can be derived<br />

from locating within MAP SEZ<br />

include but are not limited to<br />

the following:<br />

• 15% corporate tax instead of<br />

28% corporate tax.<br />

• Building allowance tax.<br />

• Employment incentive tax.<br />

• 12i tax allowance.<br />

MAP SEZ milestones<br />

Maluti-A-Phofung SEZ was<br />

granted an operator permit in<br />

2017 by the Minister of Trade,<br />

Industry and Competition after<br />

cabinet approval. MAP SEZ was<br />

gazetted as a Special Economic<br />

Zone on 2 June 2017 and its tax<br />

incentives were gazetted on 6<br />

July 2018.<br />

SEZ project pipeline<br />

Since inception the MAP<br />

SEZ has engaged numerous<br />

investors and through these<br />

engagements has built a<br />

pipeline of lucrative local and<br />

international investments to the<br />

tune of R2.3-billion.<br />

Contact details<br />

Any investor interested in establishing their business within<br />

the SEZ can contact:<br />

Ms M Setai, Manager in the Office of the Chief Executive Officer<br />

Maluti-a-Phofung A Special Economic Zone<br />

Tel: +27 51 4000 800 | Cell: +27 73 210 0935<br />

Email: maphoika@mapsez.co.za | Website: www.mapsez.co.za<br />

21 19 FREE STATE BUSINESS <strong>2022</strong> 2021


SPECIAL FEATURE<br />

Establishing a business<br />

in South Africa<br />

South Africa has eased the barriers to doing business for locals as well as<br />

international companies and individuals.<br />

new legislation, no new Close Corporations can<br />

be created but CCs can convert to companies.<br />

Registration of company<br />

The company must be registered with the<br />

Companies and Intellectual Properties<br />

Commission, (CPIC) in Pretoria within 21 days of<br />

the company being started. There are a range of<br />

administrative procedures that need to be fulfilled.<br />

Bank account<br />

A business bank account must be opened in the<br />

company’s name with a bank in South Africa.<br />

South Africa has a sophisticated legal,<br />

regulatory and banking system. Setting<br />

up a business in South Africa is a relatively<br />

straightforward process with assistance<br />

being offered by organisations such as the<br />

Department of Trade, Industry and Competition<br />

and provincial investment agencies like the <strong>Free</strong><br />

<strong>State</strong> Development Corporation (FDC).<br />

South African law regulates the establishment<br />

and conduct of businesses throughout the<br />

country. Tax, investment incentives, regulations<br />

governing imports, exports and visas are uniform<br />

throughout the country.<br />

The particular environment varies from<br />

province to province with regard to the availability<br />

of human and natural resources, the infrastructure<br />

and support services, business opportunities and<br />

the quality of life. In this respect, the FDC can offer<br />

specific advice about the business environment in<br />

the province.<br />

<strong>Business</strong> is regulated by the Companies Act<br />

and the Close Corporation Act, which cover<br />

accounting and reporting requirements. Under<br />

Registration with the receiver of revenue<br />

• As a Provisional Taxpayer<br />

• As a VAT vendor<br />

• For Pay As You Earn (PAYE) income tax payable on<br />

money earned by employees<br />

• For Standard Income Tax on Employees<br />

Registration with the Department of Labour<br />

<strong>Business</strong>es employing staff will have to contact the<br />

Department of Labour regarding mandatory contributions<br />

to the Unemployment Insurance Fund<br />

(UIF). Register with Compensation Commissioner<br />

for Compensation Fund: Files with the Compensation<br />

Fund (in the Department of Labour) for<br />

accident insurance (Workmen’s Compensation).<br />

Registration with the local authority<br />

Relevant only to businesses dealing in fresh<br />

foodstuffs or health matters.<br />

Other procedures<br />

• Checking exchange control procedures (note<br />

that non-residents are generally not subject to<br />

exchange controls except for certain categories<br />

of investment).<br />

FREE STATE BUSINESS <strong>2022</strong> 2021<br />

20 26


is renting out 18 850 sqm standalone factory including Furniture<br />

FDC<br />

Machinery, Equipment, and Furniture for <strong>Business</strong><br />

Manufacturing<br />

SPECIAL FEATURE<br />

• Obtaining approval for building plans<br />

• Applying for industry and export incentives<br />

• Applying for import permits and verifying import<br />

duties payable<br />

• Registering as an exporter if relevant and<br />

applying for an export permit.<br />

<strong>Business</strong> entities<br />

There are a variety of forms which businesses can<br />

take, including private and public companies,<br />

personal liability companies, non-profit companies,<br />

state-owned companies and even branches of<br />

foreign companies (or external companies).<br />

Branches of foreign companies fall under<br />

Section 23 of the Companies Act of 2008 and are<br />

required to register as “external companies” with<br />

the CIPC. An external company is not required<br />

to appoint a local board of directors but must<br />

appoint a person resident in South Africa who<br />

is authorised to accept services of process and<br />

any notices served on the company. It must also<br />

appoint a registered local auditor and establish a<br />

registered office in South Africa.<br />

Patents, trademarks and copyrights<br />

Trademarks (including service marks) are valid for<br />

an initial period of 10 years and are renewable<br />

indefinitely for further 10-year periods. Patents are<br />

granted for 20 years, normally without an option<br />

to renew. The holder of a patent or trademark<br />

must pay an annual fee in order to preserve its<br />

validity. Patents and trademarks may be licensed<br />

but where this involves the payment of royalties<br />

to non-resident licensors, prior approval of the<br />

licensing agreement must be obtained from<br />

the dtic. South Africa is a signatory to the Berne<br />

Copyright Convention.<br />

Permits for foreign nationals<br />

Work permits<br />

In considering whether or not to grant a work<br />

permit, the Department of Home Affairs will first<br />

evaluate the validity of the offer of employment<br />

by conducting a number of checks to confirm the<br />

following:<br />

• Has the Department of Labour been contacted?<br />

• Has the position been widely advertised?<br />

• Is the prospective employer able to prove that he<br />

or she has tried to find a suitably qualified local<br />

employee prior to hiring a foreigner?<br />

• Is the prospective employee appropriately<br />

qualified and do they have the relevant<br />

I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H<br />

FDC is renting out 18 850 sqm standalone factory including Furniture<br />

O P E R T Y T O R E N T I N H A R R I S M I T H<br />

Manufacturing Machinery, Equipment, and Furniture for <strong>Business</strong><br />

R P L A I R T S U D N I<br />

Operation..<br />

experience?<br />

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on<br />

Operation..<br />

main arterial routes and Quick access onto N3 <strong>Free</strong>way.<br />

<strong>Business</strong> permits<br />

Foreign nationals who wish to establish their own<br />

business or a partnership in South Africa must,<br />

apart from having sufficient funds to support<br />

themselves and their family, be able to invest at<br />

least R2.5-million in the business.<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

CORRUPTION The INCIDENTS funds TO THE FRAUD HOTLINE must 0800 212 154 originate overseas, be<br />

transferable to South Africa and belong to the<br />

applicant (ie emanate from the applicant’s own<br />

CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154<br />

bank account). The business must also create<br />

jobs for South African citizens. After six months<br />

to a year, proof will have to be submitted that the<br />

business is employing South African citizens or<br />

permanent residents, excluding family members<br />

of the employer.<br />

Applications for work permits for selfemployment<br />

can only be lodged at the South<br />

African Consulate or Embassy in the applicant’s<br />

country of origin. The processing fee is US$186. The<br />

applicant would also have to lodge a repatriation<br />

guarantee with the consulate/embassy equivalent<br />

to the price of a one-way flight from South Africa<br />

back to his or her country of origin.<br />

This guarantee is refundable once the<br />

applicant has either left South Africa permanently<br />

or obtained permanent residence. Any application<br />

for an extension of a business permit may be<br />

lodged locally. The processing fee per passport<br />

holder is R425. Some countries also need to pay<br />

R108 per return visa.<br />

A list of countries to which this applies is<br />

available from the Department of Home Affairs.<br />

The FDC assists investors in applying for the<br />

relevant work permits to conduct their business.<br />

This factory offers the following:<br />

2277 in Harrismith and close proximity to all amenities, on<br />

Site at Situated is factory The<br />

Sprinkler System.<br />

and Quick access onto N3 <strong>Free</strong>way.<br />

routes arterial main<br />

factory offers the following:<br />

Security Guard House<br />

This<br />

System.<br />

Well fenced and secured<br />

Sprinkler<br />

Ample parking<br />

Doors<br />

Roller 4<br />

3 phase power with 100 amps<br />

House<br />

Guard Security<br />

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with<br />

secured<br />

and fenced Well<br />

Ample parking<br />

phase power with 100 amps<br />

Occupation available immediately. Please contact Mr Tefo Matla for more<br />

3<br />

toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with<br />

information or to view:<br />

8<br />

shower<br />

4 Roller Doors<br />

shower<br />

Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za<br />

Occupation available immediately. Please contact Mr Tefo Matla for more<br />

information or to view:<br />

Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

What can the FDC do for you?<br />

The FDC will help new businesses by assisting in<br />

project appraisal and packaging, putting investors<br />

in touch with relevant agencies and government<br />

departments, alerting investors to investment<br />

incentives and setting up joint ventures where<br />

required. ■<br />

27<br />

FREE STATE BUSINESS 2021 <strong>2022</strong>


SPECIAL FEATURE<br />

South African<br />

investment incentives<br />

The South African government, particularly the Department of Trade, Industry<br />

and Competition, has a range of incentives available to investors, existing<br />

companies, entrepreneurs and co-operatives across many sectors.<br />

South Africa wishes to diversify its economy<br />

and incentives are an important part<br />

of the strategy to attract investors to<br />

the country.<br />

The Department of Trade, Industry and Competition<br />

(the dtic) is the lead agency in the<br />

incentives programme, which aims to encourage<br />

local and foreign investment into targeted<br />

economic sectors, but the Industrial Development<br />

Corporation (IDC) is the most influential funder of<br />

projects across South Africa.<br />

There are a variety of incentives available<br />

and these incentives can broadly be categorised<br />

according to the stage of project development:<br />

• Conceptualisation of the project – including<br />

feasibility studies and research and develop-<br />

ment (grants for R&D and feasibility studies,<br />

THRIP, Stp, etc)<br />

• Capital expenditure – involving the creation<br />

or expansion of the productive capacity of<br />

businesses (MCEP, EIP, CIP, FIG, etc)<br />

• Competitiveness enhancement – involving the<br />

introduction of efficiencies and whetting the<br />

competitive edge of established companies and<br />

commercial or industrial sectors (BBSDP, EMIA,<br />

CTCIP, etc)<br />

• Some of the incentives are sector-specific, for<br />

example the Aquaculture Development and<br />

Enhancement Programme (ADEP), Clothing<br />

and Textile Competitiveness Improvement<br />

Programme (CTCIP) and the Tourism Support<br />

Programme (TSP).<br />

FREE STATE BUSINESS <strong>2022</strong> 2021<br />

22 24


is renting out 18 850 sqm standalone factory including Furniture<br />

FDC<br />

Machinery, Equipment, and Furniture for <strong>Business</strong><br />

Manufacturing<br />

SPECIAL FEATURE<br />

Manufacturing<br />

Key components of the incentive<br />

programme are the Manufacturing<br />

Incentive Programme<br />

(MIP) and the Manufacturing<br />

Competitiveness Enhancement<br />

Programme (MCEP). The initial<br />

MCEP, launched in 2012,<br />

was so successful that it was<br />

oversubscribed with almost 890<br />

businesses receiving funding.<br />

A second phase of the programme<br />

was launched in 2016. The grants are<br />

not handouts as the funding covers a maximum<br />

of 50% of the cost of the investment, with the<br />

remainder to be sourced elsewhere.<br />

The Enterprise Investment Programme (EIP)<br />

makes targeted grants to stimulate and promote<br />

investment, BEE and employment creation in the<br />

manufacturing and tourism sectors.<br />

Aimed at smaller companies, the maximum<br />

grant is R30-million. Specific tax deductions are<br />

permissible for larger companies investing in the<br />

manufacturing sector under Section 12i of the<br />

Income Tax Act.<br />

Other incentives<br />

Other incentives that are available to investors as<br />

well as existing businesses in more than one sector<br />

include the following:<br />

• Technology and Human Resources for Industry<br />

Programme (THRIP)<br />

• Support Programme for Industrial Innovation (SPII)<br />

• Black <strong>Business</strong> Supplier Development Programme<br />

(BBSDP), which is a cost-sharing grant offered to<br />

black-owned small enterprises<br />

• Critical Infrastructure Programme (CIP) that covers<br />

between 10% and 30% of the total development<br />

costs of qualifying infrastructure<br />

• Co-operative Incentive Scheme, which is a<br />

90:10 matching cash grant for registered primary<br />

co-operatives<br />

• Sector Specific Assistance Scheme, which is a<br />

reimbursable 80:20 cost-sharing grant that can be<br />

applied for by export councils, joint action groups<br />

and industry associations.<br />

I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H<br />

FDC is renting out 18 850 sqm standalone factory including Furniture<br />

O P E R T Y T O R E N T I N H A R R I S M I T H<br />

Manufacturing Machinery, Equipment, and Furniture for <strong>Business</strong><br />

R P L A I R T S U D N I<br />

Operation..<br />

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on<br />

Operation..<br />

main arterial routes and Quick access onto N3 <strong>Free</strong>way.<br />

This factory offers the following:<br />

2277 in Harrismith and close proximity to all amenities, on<br />

Site at Situated is factory The<br />

Sprinkler System.<br />

and Quick access onto N3 <strong>Free</strong>way.<br />

routes arterial main<br />

factory offers the following:<br />

Security Guard House<br />

This<br />

System.<br />

Well fenced and secured<br />

Sprinkler<br />

Ample parking<br />

Doors<br />

Roller 4<br />

3 phase power with 100 amps<br />

House<br />

Guard Security<br />

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with<br />

secured<br />

and fenced Well<br />

Ample parking<br />

phase power with 100 amps<br />

Occupation available immediately. Please contact Mr Tefo Matla for more<br />

3<br />

toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with<br />

information or to view:<br />

8<br />

shower<br />

4 Roller Doors<br />

shower<br />

Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za<br />

available immediately. Please contact Mr Tefo Matla for more<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

Occupation<br />

information or to view:<br />

CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154<br />

Incentives for SMMEs<br />

Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za<br />

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND<br />

CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154<br />

A lot of emphasis is placed on the potential<br />

role of small, medium and micro enterprises in<br />

job creation and a number of incentives are<br />

designed to promote the growth of these<br />

businesses. These include:<br />

• Small Medium Enterprise Development Programme<br />

Programme (SMEDP) (SMEDP)<br />

• Isivande Women’s Fund<br />

• Seda Technology Programme (Stp).<br />

• Seda is the Small Enterprise Development Agency,<br />

an agency of the Department of Small <strong>Business</strong><br />

Development that exists to promote SMMEs.<br />

Trade-related incentives<br />

The Export Marketing and Investment Assistance<br />

(EMIA) Scheme includes support for local<br />

businesses that wish to market their businesses<br />

internationally to potential importers and<br />

investors. The scheme offers financial assistance<br />

to South Africans travelling or exhibiting abroad<br />

as well as for inbound potential buyers of South<br />

African goods. ■<br />

Online Resources<br />

De partment of Trade, Industry and Competition:<br />

www.thedtic.gov.za<br />

<strong>Free</strong> <strong>State</strong> Development Corporation:<br />

www.fdc.co.za<br />

Industrial Development Corporation:<br />

www.idc.co.za<br />

Official South African government incentive<br />

schemes: www.investmentincentives.co.za<br />

2523 FREE STATE BUSINESS 2021 <strong>2022</strong>


PROFILE<br />

Lesotho National<br />

Development Corporation<br />

Profiling the endowments of Lesotho in the <strong>Free</strong> <strong>State</strong> neighbourhood.<br />

To fulfil its mandate, LNDC offers<br />

four core services: investment and<br />

trade promotion, investment and<br />

trade facilitation, aftercare and<br />

development financing services.<br />

These core services are offered to<br />

foreign and indigenous investors<br />

primarily through serviced industrial<br />

and commercial sites and buildings.<br />

In addition to serviced sites, LNDC<br />

offers an array of financing solutions.<br />

Ha Belo Industrial Estate Construction Site.<br />

Lesotho National Development Corporation<br />

(LNDC) is a corporate body mandated by<br />

the Government of Lesotho to “initiate,<br />

promote and facilitate the development of<br />

manufacturing and processing industries, mining<br />

and commerce in a manner calculated to raise the<br />

level of income and employment in Lesotho”. LNDC<br />

also promotes Lesotho as an attractive investment<br />

location for both foreign and indigenous investors.<br />

The Government of Lesotho is the sole<br />

shareholder in the Corporation and the Ministry of<br />

Trade and Industry is responsible for providing overall<br />

policy direction on investment and industrialisation.<br />

The Corporation is charged with the implementation<br />

of the country’s industrial development policies and<br />

investment strategy.<br />

The vision of the Corporation is to be “A catalyst<br />

for a diversified, globally competitive economy,<br />

underpinned by manufacturing and high-tech agroprocessing<br />

industries”. Its mission states that “Our<br />

aim is to deliver excellent and speedy services to<br />

our clientele as we partner to achieve inclusive and<br />

sustainable economic growth”.<br />

Organisational structure<br />

In terms of its establishment Act, the<br />

strategic leadership of the Lesotho<br />

National Development Corporation<br />

is vested in the 11-member Board<br />

of Directors appointed by the Minister of Trade and<br />

Industry. The Board provides direction and oversight<br />

over the affairs of the Corporation.<br />

The operations of LNDC are managed by the<br />

Chief Executive Officer, supported by the Executive<br />

Management Team.<br />

The CEO’s office comprises the Internal Audit and<br />

Risk Management Division, Corporate Governance<br />

Division and Public Relations Section.<br />

The Executive Management Team comprises four<br />

General Managers who head four strategic business units:<br />

• Development finance institution<br />

(semi-autonomous)<br />

• Property development and management<br />

(semi-autonomous)<br />

• Investment and trade promotion<br />

• Corporate services.<br />

Investment and Trade Promotion (ITP)<br />

Strategic Unit<br />

ITP is responsible for initiating, promoting and<br />

facilitating investments from foreign and indigenous<br />

investors, promoting and facilitating trade and<br />

FREE STATE BUSINESS <strong>2022</strong><br />

24


PROFILE<br />

exports, facilitating implementation of new and<br />

expansion investments, securing international<br />

buyers, providing technical assistance to new and<br />

existing investors, business expansion and retention<br />

(aftercare services), policy advocacy and investment<br />

climate reforms and Lesotho nation branding and<br />

marketing. ITP is divided into six sub-functions:<br />

investment promotion, trade promotion, investment<br />

climate reforms, nation branding and marketing, and<br />

aftercare services.<br />

Investment and trade promotion relates primarily<br />

to promotional activities and campaigns aimed at<br />

either potential investors or generally promoting<br />

trade and development for Lesotho, generating<br />

leads, and developing prospects until they are ready<br />

for commitment and implementation. Aftercare<br />

services includes investment facilitation, business<br />

expansion and retention. These are meant to elevate<br />

and manage Lesotho’s reputation as a strategic<br />

investment and trading location and to continuously<br />

pursue improvements in efficiencies for service<br />

delivery to investors, hence positioning Lesotho as<br />

the best in Ease of Doing <strong>Business</strong> in the region.<br />

Development Finance (DF) Strategic<br />

<strong>Business</strong> Unit<br />

The LNDC Strategic Plan of 2018-23 instituted the<br />

creation of the Development Finance (DF) Strategic<br />

<strong>Business</strong> Unit with the mandate to “develop a<br />

portfolio of financing solutions to support private<br />

sector led industrial development and economic<br />

diversification”. The unit currently offers four financing<br />

instruments:<br />

• Partial credit guarantee (PCG) – fully operational<br />

• Equity finance<br />

• Quasi-equity finance<br />

• Project preparation facility.<br />

This unit manages LNDC’s equity portfolio of 10<br />

companies. These companies operate in different<br />

sectors ranging from agriculture, construction,<br />

wholesale, retail and services.<br />

The role of DF is extracted from the LNDC Act<br />

No. 20 of 1967 to raise, lend or borrow money;<br />

make advances to any company, form or person;<br />

lend and advance money to companies, firms<br />

or persons owning or engaging in any business<br />

similar to or related to that of the Corporation;<br />

guarantee payment of cash or performance of<br />

contracts by any such company, firm or person<br />

on any terms as maybe agreed upon and to issue<br />

debentures, bills of exchange and other negotiable<br />

or transferrable instruments.<br />

It also can direct expenditure on or towards the<br />

implementation of the project or undertaking or<br />

any of the objectives of the project or undertaking;<br />

make loans or grants for the purposes of the project<br />

or undertaking; invest any moneys belonging to the<br />

Corporation in any project, undertaking or enterprise;<br />

provide technical, advisory or managerial assistance<br />

and services; provide plant or machinery for the<br />

purposes of any project, undertaking or enterprise.<br />

Property Development Management (PDM)<br />

Strategic <strong>Business</strong> Unit<br />

The PDM unit is one of the main cogs that drive<br />

the Corporation, as without property there is no<br />

established investment. Investment prospects look<br />

for globally competitive locations for investment.<br />

The PDM division is responsible for acquiring and<br />

developing LNDC properties in an effort to create work<br />

space for industrialists and other commercial entities.<br />

PDM is primarily responsible for the management<br />

of all LNDC property which include:<br />

• Acquiring and developing LNDC properties<br />

• Managing leases<br />

• Marketing commercial properties<br />

• Providing maintenance support to tenants.<br />

Corporate Services (CS) Strategic <strong>Business</strong> Unit<br />

LNDC’s Corporate Services division contains the<br />

shared support functions of the organisation.<br />

These services include Human Resources and<br />

Administration, Legal Services, IT, Planning and<br />

Research and Finance. The unit is the membrane that<br />

allows the Corporation’s operational processes to run<br />

as smoothly as possible. ■<br />

CONTACT DETAILS<br />

Lesotho National Development Corporation<br />

Email: info@lndc.org.ls<br />

Email: moremoholo@lndc.org.ls<br />

Website: www.lndc.org.ls<br />

FREE STATE BUSINESS <strong>2022</strong>


KEY SECTORS<br />

Overviews of the main economic<br />

sectors of the <strong>Free</strong> <strong>State</strong><br />

Agriculture 28<br />

Mining 30<br />

Oil and gas 38<br />

Manufacturing 42<br />

Tourism 43<br />

Education and training 44<br />

A lake near Clarens in the Eastern <strong>Free</strong> <strong>State</strong>. Credit: SA Tourism


OVERVIEW<br />

Agriculture<br />

Transnet Freight Rail aims to double grain volumes.<br />

Eleven mill workers in Bethlehem shared a celebration with<br />

their place of work in 2021 – all of them started at the<br />

SASKO Bethlehem Mill (pictured) when it opened in 1991.<br />

The mill has a total of 96 employees and mills 144 000 tons<br />

of wheat every year.<br />

Three production lines are responsible for cake flour and whitebread<br />

flour and a blending facility makes brown-bread meal and<br />

complete mixes. Bethlehem was chosen because of its proximity to<br />

excellent wheat-producing areas and for its strategic location in terms<br />

of logistics: the busy N3 freeway is just 90km away.<br />

Engineering News reported in June 2021 that Transnet Freight<br />

Rail (TFR) plans to double volumes of grain transported out of its<br />

Bethlehem facility. VKB Agriculture is one of the companies that<br />

will benefit if TFR can increase its capacity to 550 000 tons for the<br />

season, as it plans.<br />

Veld fires caused serious damage in 2020 in parts of the<br />

Lejweleputswa District. More than 100 farms and 100 000ha were<br />

affected. When these fires were followed by flooding, a disaster was<br />

declared by the Provincial Government of the <strong>Free</strong> <strong>State</strong> in order to<br />

facilitate emergency aid.<br />

Provincial initiatives<br />

Initiatives of the Provincial Government of the <strong>Free</strong> <strong>State</strong> to improve<br />

access to the sector for previously excluded people include:<br />

• The Chicky Piggy piggery in the Xhariep District, which has been<br />

constructed and is operational. The facility has a bio-security facility,<br />

office block, laundry, a reservoir, a tractor and a splitter tanker.<br />

• The <strong>Free</strong> <strong>State</strong> Poultry Hub Investment Plan which is targeting<br />

Virginia, Parys, Frankfort and Reitz.<br />

Five agri-parks are being constructed in each of the <strong>Free</strong> <strong>State</strong>’s<br />

district municipalities. The concept brings together farmers,<br />

traders and agro-processors at convenient sites. Support for rural<br />

smallholders will be available in terms of equipment hire from a<br />

central source, storage facilities, packaging of produce and getting<br />

products to market.<br />

As part of the agri-parks programme a warehouse is under<br />

construction at Springfontein and the Thaba Nchu abattoir is being<br />

upgraded. In Sediba, Farmer Production Support Units supplied<br />

SECTOR INSIGHT<br />

SASKO’s Bethlehem Mill is<br />

celebrating three decades<br />

of milling.<br />

a tractor and implements to<br />

participants.<br />

Key to the growth of these<br />

small-scale operations is access<br />

to finance and the Industrial<br />

Development Corporation<br />

(IDC) is a key role-player in<br />

the <strong>Free</strong> <strong>State</strong>. The launch of<br />

the Maluti-A-Phofung Special<br />

Economic Zone (MAP SEZ) has<br />

created another platform to<br />

boost the agro-processing and<br />

agro-logistics sectors.<br />

Company news<br />

The Agriculture RSA division<br />

of chemical group Omnia has<br />

bought Oro Agri Opportunities, a<br />

producer of agriculture biologicals,<br />

for a reported $100-million.<br />

The purchase of a 21%<br />

stake in BKB by VKB has given<br />

the latter company extended<br />

geographical reach and<br />

opportunities in new markets.<br />

While VKB is strongest in the<br />

<strong>Free</strong> <strong>State</strong> and Limpopo with<br />

a grain focus, BKB is wellestablished<br />

in the Eastern Cape,<br />

deals mainly in wool and mohair<br />

and runs many auctions.<br />

VKB is already a diverse<br />

group, with the capacity to<br />

FREE STATE BUSINESS <strong>2022</strong><br />

28


OVERVIEW<br />

produce soybean meal and soybean cake and flour from its plants,<br />

mills and factories. Grain Field Chickens, a large abattoir in Reitz,<br />

is one of the company’s biggest facilities in the province. The<br />

Industrial Development Corporation (IDC), which has a 23% stake in<br />

the project, aims to help develop the <strong>Free</strong> <strong>State</strong> as the poultry hub<br />

of South Africa. VKB has six agro-processing companies including<br />

VKB Flour Mills and <strong>Free</strong> <strong>State</strong> Oil and is active in auctioning, storage,<br />

packaging and fuel sales, among other activities. VKB’s headquarters<br />

are in Reitz in the eastern part of the province and the group is one<br />

of the province’s largest employers.<br />

The Imbani Homsek Group is an integrated dairy-products<br />

producer with one of the biggest Ayrshire herds in the world. The<br />

head office of Country Bird Holdings is in Bloemfontein: its brands<br />

are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird<br />

Logistics controls 45 chilled and frozen vans.<br />

Clover has three factories in the <strong>Free</strong> <strong>State</strong>: Bethlehem (milk<br />

powder, whey mixtures and creamers); Frankfort (butter, the<br />

largest such factory in the country, where ghee and roller dried<br />

ONLINE RESOURCES<br />

Credit: SASKO<br />

Agricultural Research Council: www.arc.agri.za<br />

Bothaville: www.bothaville.info<br />

<strong>Free</strong> <strong>State</strong> Department of Agriculture and Rural Development:<br />

www.ard.fs.gov.za<br />

Grain SA: www.grainsa.co.za<br />

milk powder is also made)<br />

and in Heilbron (whey,<br />

buttermilk, condensed milk<br />

and packaging).<br />

When lockdown restrictions<br />

are not in place, Bothaville<br />

hosts the country’s largest<br />

agricultural festival, NAMPO<br />

Harvest Day. In 2019, Grain<br />

SA’s big day had 775 exhibitors<br />

catering to 81 345 visitors.<br />

Bothaville is on the<br />

western edge of the <strong>Free</strong><br />

<strong>State</strong> and the town falls<br />

under the North West in the<br />

organisational chart of giant<br />

agricultural company Senwes,<br />

which has its headquarters<br />

in Klerksdorp. The rest of the<br />

<strong>Free</strong> <strong>State</strong> is divided into three<br />

regions by Senwes, which<br />

deals with about 20% of the<br />

country’s oilseeds and grain<br />

through its 68 silos.<br />

The province supplies<br />

significant proportions of<br />

the nation’s sorghum (53%),<br />

sunflowers (45%), potatoes (33%),<br />

groundnuts (32%), dry beans<br />

(26%), wool (24%) and almost all<br />

of its cherries (90%). Red meat<br />

and dairy are other important<br />

products. Game hunting is a<br />

significant sector, and several<br />

large <strong>Free</strong> <strong>State</strong> farms have<br />

been converted from stock to<br />

game farms. Crop production<br />

represents about two-thirds of<br />

the province’s gross agricultural<br />

income. The main crops are maize<br />

and wheat. Sunflowers, sunflower<br />

seeds, sorghum and soy beans are<br />

other major crops. The Mangaung<br />

Fresh Produce Market plays a<br />

vital role in the sector, catering<br />

as it does to householders, bulk<br />

buyers, informal traders, agents<br />

and farmers. ■<br />

29<br />

FREE STATE BUSINESS <strong>2022</strong>


OVERVIEW<br />

Mining<br />

Mining activity is picking up in some sectors.<br />

The Lejweleputswa District Municipality in the northwest<br />

of the province is the site of considerable activity<br />

in the mining of industrial minerals, with six companies<br />

currently active. Matsopa Minerals, for example, runs<br />

a bentonite mine at Koppies between Heilbron and<br />

Vredefort. Sandstone and sand-mining operations are<br />

underway in Qwaqwa, Fouriesburg, Senekal, Sasolburg<br />

and Zastron.<br />

Limestone and calcrete occur in the western <strong>Free</strong> <strong>State</strong><br />

where salt is also panned. Production is concentrated<br />

around the Florisbad salt pan, north-west of Bloemfontein.<br />

Historically, the north-west part of the province<br />

was famous for gold, with Harmony Gold’s Bambanani<br />

mine forming an essential part of Welkom’s economy<br />

for many years. Bambanani is in the final stages of its<br />

life-of-mine but there are other areas where Harmony<br />

Gold is still extracting gold and investigating possible<br />

expansion programmes.<br />

The company is conducting an exploration<br />

programme to confirm the geological model of Target<br />

North and further define a potential block of wellmineralised<br />

Ventersdorp Contact Reef. Tshepong<br />

contributed 19% of the group’s gold production in FY20,<br />

even though production was somewhat down (7 293kg<br />

vs 7 967kg in FY19). Various challenges, not least of which<br />

was the Covid-19 pandemic, caused the reduced volume<br />

but this was outweighed by an increase in the recovered<br />

grade. Harmony Gold has announced that it will build a<br />

30MW solar plant to help power its operations.<br />

AngloGold Ashanti sold most of its assets to Harmony Gold,<br />

two of which, Great Noligwa and Kopanang, are in the <strong>Free</strong> <strong>State</strong>.<br />

The complex includes one uranium plant, four gold plants and one<br />

sulphuric acid plant.<br />

These assets increased Harmony’s underground resource<br />

base in South Africa by nearly 40%. The mines include Tshipong<br />

and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge),<br />

Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at<br />

Welkom. The plant at Joel was closed in 2019 and ore mined there<br />

is now processed at Harmony One. Phakisa has mineral reserves<br />

of just over five-million ounces of gold and Harmony has invested<br />

heavily in the project.<br />

Sibanye-Stillwater is also investigating a possible new project next<br />

to its existing Beatrix mine. Gold prices rose appreciably during the<br />

Covid-19 pandemic. The company’s Beatrix mine, with a life-of-mine<br />

SECTOR INSIGHT<br />

Harmony Gold is investing in<br />

solar power.<br />

Credit: Harmony Gold<br />

projected to 2025, produced<br />

196 698 ounces of gold in 2019.<br />

Beatrix also holds 26.97-million<br />

pounds of uranium resources.<br />

Mining rights to the Southern<br />

<strong>Free</strong> <strong>State</strong> project adjacent to<br />

Beatrix have been approved<br />

and a feasibility study on part of<br />

it, the Bloemhoek decline, has<br />

been completed. The company<br />

reported that the Southern <strong>Free</strong><br />

<strong>State</strong> property had surface and<br />

underground gold reserves<br />

of 2.1-million oz and mineral<br />

resources of 8.2-million oz.<br />

The mining sector makes<br />

FREE STATE BUSINESS 2021/22<br />

30


OVERVIEW<br />

Harmony Gold is exploring new possibilities. Credit: Harmony Gold<br />

up 11% of provincial GDP. A minerals beneficiation strategy has<br />

been developed because this is a key area for potential growth.<br />

Gold mines in the <strong>Free</strong> <strong>State</strong> also supply a substantial portion of<br />

the total silver produced in the country, and large concentrations<br />

of uranium occurring in the gold-bearing conglomerates of the<br />

goldfields are extracted as a by-product.<br />

Petra Diamonds’ Koffiefontein mine is on the western edge of<br />

the province, about 80km from Kimberley. The mine is regarded as<br />

a low-grade deposit, but the diamonds produced are of high value.<br />

White stones of excellent quality are produced, and fancy pink<br />

diamonds are sometimes found. The Voorspoed mine of De Beers<br />

Consolidated Mines closed in 2018.<br />

De Beers, the South African government and the South African<br />

diamond-cutting industry have launched a project to encourage<br />

diamond beneficiators. Among the first companies involved are<br />

Thoko’s Diamonds, African Diamonds, Nungu Diamonds and<br />

Kwame Diamonds.<br />

Coal is mostly found in the northern part of the <strong>Free</strong> <strong>State</strong>. The<br />

Sigma-Mookraal mine is run by Sasol Mining and has the capacity<br />

to supply Sasol Infrachem in Sasolburg with two-million tons of<br />

ONLINE RESOURCES<br />

Minerals Council South Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources: www.dmr.gov.za<br />

South African Mining Development Association: www.samda.co.za<br />

coal per year. Seriti Resources<br />

has purchased the New Vaal<br />

Colliery from Anglo American.<br />

Together with two other mines<br />

in Mpumalanga Province, Seriti<br />

paid R2.3-billion. New Vaal<br />

is in the middle of a triangle<br />

of three towns that play an<br />

important part in industrial<br />

production: Vereeniging,<br />

Sasolburg and Vanderbijlpark.<br />

The mine employs more than<br />

900 people and supplies about<br />

15-million metric tons of coal<br />

to Eskom’s Lethabo power<br />

station annually.<br />

The <strong>Free</strong> <strong>State</strong> Provincial<br />

Government announced in<br />

February 2020 the creation of a<br />

company that will manufacture<br />

mining equipment, to be<br />

called Newco. Small mining<br />

companies have been promised<br />

technical support and with<br />

health and safety and access to<br />

beneficiation opportunities. ■<br />

31<br />

FREE STATE BUSINESS 2021/22


INTERVIEW<br />

Ensuring sustainability<br />

and a positive legacy<br />

PJ Jordaan, Closure Manager of De Beers Voorspoed Mine, gives an overview of the<br />

complex and detailed procedures that have to be followed in closing a mine.<br />

What stage in the mine closure process has been reached?<br />

The mine officially closed in December 2018 and has entered<br />

the decommissioning and rehabilitation phase. The overall<br />

rehabilitation goal is to manage the mine site and continue with<br />

rehabilitation in order to meet the end land use of agricultural and<br />

grazing for stock after final closure. A decision was taken at the end<br />

of 2019 to defer certain closure activities for two to three years, as<br />

further work is required to improve the closure cost estimate to an<br />

acceptable level and to address uncertainty regarding post-closure<br />

monitoring requirements.<br />

Petrus Jordaan, Closure<br />

Manager, De Beers Group,<br />

Voorspoed Mine<br />

BIOGRAPHY<br />

PJ Jordaan is a geologist with more<br />

than 25 years of experience in gold<br />

and diamond mining with Anglo<br />

American and De Beers. He has a<br />

passion for the diamond industry<br />

with a strong interest in all aspects<br />

of diamond mining and mine<br />

closure. In 2018 he took on the<br />

role of Closure Manager, where he<br />

leads the Voorspoed closure team<br />

by managing all closure activities,<br />

focused on reimagining asset<br />

retirement deliverables to improve<br />

communities in the company’s zone<br />

of influence.<br />

What are the remaining timelines?<br />

A three-year period of active closure and rehabilitation is planned<br />

to start in January 2023, provided an environmental authorisation<br />

(EA) has been issued by the DMRE. The intent of the closure and<br />

rehabilitation programme will be to remediate the site to the<br />

approved final closure plan standards. Follow‐up monitoring will<br />

continue beyond the rehabilitation phase, ie until 2031, as required<br />

by the various regulatory authorities.<br />

What are some considerations in a mine closure process?<br />

The key consideration of the mine closure process is to ensure<br />

sustainability beyond mine closure and to leave a positive legacy<br />

behind. Successful closure can further be defined as meeting the<br />

guidelines established by internal corporate requirements with<br />

regard to mine closure (Anglo American Mine Closure Performance<br />

Standard and associated Mine Closure Toolbox), as well as the<br />

statutory requirements in terms of the Mineral and Petroleum<br />

Resources Development Act, 2002.<br />

What are the key environmental standards that have to be<br />

met, and how is Voorspoed executing these requirements?<br />

The overarching framework governing South Africa is the<br />

Constitution of the Republic of South Africa (Act 108 of 1996).<br />

Various rights are entrenched in the Constitution, including the<br />

right to an environment that is not harmful to the health or wellbeing<br />

of the population, otherwise called the environmental right.<br />

The mining industry is further regulated by mining,<br />

FREE STATE BUSINESS <strong>2022</strong><br />

32


INTERVIEW<br />

environmental, human health and safety<br />

legislation. The interaction between various acts<br />

of parliament that deal with the environment<br />

is varied and complex, as is the range of<br />

environmental issues that are regulated. Some<br />

of the applicable legislation includes the Mineral<br />

and Petroleum Resources Development Act 28 of<br />

2002 (MPRDA), and the National Environmental<br />

Management Act 107 of 1998 (NEMA).<br />

The Voorspoed closure plan has been prepared<br />

to give effect to the various legal and corporate<br />

requirements that govern the process and<br />

requirements for the closure of Voorspoed Mine.<br />

Is Voorspoed expected to rehabilitate the area?<br />

Yes. The MPRDA is the main source of rehabilitation<br />

obligations. It requires rights holders to “as<br />

far as reasonably practicable” rehabilitate the<br />

land affected by the operation “to its natural<br />

or predetermined state”, or to a land use which<br />

conforms to the generally accepted principle of<br />

sustainable development.<br />

Concurrent rehabilitation commenced in<br />

2014 when the mine was still in operation and<br />

the mine has already successfully rehabilitated<br />

the Waste Rock Dump (WRD) as per the agreed<br />

commitments in the approved EMPR and<br />

closure plan.<br />

Have you been working with the<br />

Moqhaka and Ngwathe Municipalities<br />

in terms of their Local Economic<br />

Development plans?<br />

Certainly. Delivering lasting positive socioeconomic<br />

change in our mine communities<br />

is fundamental. Thus, we have managed to<br />

maintain a long-standing relationship with<br />

our local municipalities. We have worked<br />

and continue working collaboratively to<br />

contribute towards the effective delivery<br />

of their Local Economic Development plan<br />

needs, including infrastructure, healthcare,<br />

education and Enterprise Development.<br />

That’s why one of the three global pillars<br />

of our Sustainable Mining Plan is Thriving<br />

Communities. We are reimagining mine closure to<br />

improve people’s lives.<br />

Has Voorspoed been involved in training mine<br />

workers for work in other sectors?<br />

The mine introduced a dedicated, fully funded<br />

re-skilling programme from 2017 until closure<br />

(or as agreed), which provided employees with<br />

a range of portable skills allowing them to<br />

meaningfully compete for opportunities post<br />

closure. The programme focussed on nonmining-related<br />

training, entrepreneurial and<br />

other programmes in line with the Workplace<br />

Skills Plan. ■<br />

33 FREE STATE BUSINESS <strong>2022</strong>


FOCUS<br />

Rethink, Restrategise, Reconnect<br />

Focus on SMMEs at Youth Empowerment Week.<br />

From left: Jade Wheelock, Trio-Plus, Lebogang Mphaka, De Beers Group<br />

De Beers Voorspoed Mine, in partnership<br />

with My Arts International, held the<br />

12th Mangaung Youth Empowerment<br />

Week in April 2021. <strong>Free</strong> <strong>State</strong> SMMEs<br />

were invited to the event in order to gain a better<br />

understanding of their challenges within the<br />

business world as well as for them to connect<br />

with other SMMEs.<br />

The theme for the event was to Rethink,<br />

Restrategise and Reconnect. Through the De Beers<br />

Voorspoed Mine’s GODISA Programme, facilitated<br />

by Trio-plus Development, entrepreneurs were<br />

introduced to the programme and its benefits<br />

at the Youth Empowerment week held earlier<br />

in 2021. GODISA, which stands for Growth,<br />

Opportunities, Decision-making, Innovation,<br />

System and Accountability/Action, coaches,<br />

mentors and trains with the aim of creating selfsufficient<br />

businesses.<br />

During the event, one of the De Beers<br />

Zimele entrepreneurs, S’busisiwe Sithebe,<br />

the owner of Buska Foods, was provided an<br />

opportunity to showcase her products and<br />

share her personal growth journey as well as<br />

some of the challenges she has encountered<br />

during this journey. Our commitment and<br />

desire to actively encourage the development<br />

of our local SMMEs has enabled the GODISA<br />

programme to “Make Life Brilliant” in our<br />

communities, especially in addressing the<br />

impact of Covid-19 on small businesses.<br />

Over 40 local SMMEs are enrolled for the<br />

GODISA programme for the 2021 period, as<br />

part of long-term business sustainability plans<br />

beyond Voorspoed’s life-of-mine.<br />

Chief Director Denis Ackulay, from My Arts<br />

International, emphasised that, “The Mangaung<br />

Youth Empowerment Week remains a shining<br />

example of what can be achieved when a group<br />

of young professionals are serious enough<br />

about their futures.” ■<br />

Busi Sithebe Buska Foods and Lebogang Mphaka,<br />

De Beers Group<br />

FREE STATE BUSINESS <strong>2022</strong><br />

34


FOCUS<br />

De Beers Voorspoed Mine hands over<br />

water-testing laboratory<br />

Cleaner and safer water for Parys.<br />

From left: Temba Malunga, Director Technical Support, Ngwathe Local Municipality; Petrus Jordaan, Closure Manager, Voorspoed<br />

Mine; Cllr Philemon Ndayi, Chief Whip and MMC for Infrastructure; CIIr Joey Mochela, Exclusive Mayor; Kalipa Kewuti, Regional<br />

Manager, Department of Mineral Resources and Energy; Lebogang Mphaka, Corporate Affairs Manager, De Beers Voorspoed<br />

Mine; Sellwane Mok, Director SLP, Department of Mineral Resources and Energy.<br />

De Beers Voorspoed Mine, in partnership<br />

with Ngwathe Local Municipality and<br />

the Department of Mineral Resources<br />

and Energy, unveiled a R2.2-million<br />

newly renovated and furnished water-testing<br />

laboratory on 22 September 2021.<br />

The handover of the laboratory is part of the<br />

mine’s efforts through the Social and Labour Plan<br />

to support the municipality with its Integrated<br />

Development Plan (IDP) projects and will play a<br />

vital role in water-quality testing to ensure safer<br />

and cleaner water for the community of Parys.<br />

During the handover, Ngwathe Local<br />

Municipality’s Executive Mayor, Councillor<br />

Joey Mochela, said that one of the common<br />

denominators of service delivery protests was<br />

water and sanitation. She further indicated that, to<br />

date, Parys and Tumahole both have 98 JoJo tanks,<br />

four pump stations, four reservoirs, one water<br />

treatment and a borehole.<br />

“This water-testing laboratory will help us find<br />

lasting solutions to water purification and shortage<br />

challenges in our areas,” she said.<br />

A local small, medium and micro-enterprise,<br />

Ramokgwera Trading & Projects (Pty) Ltd, was<br />

selected as the main contractor for the laboratory<br />

renovations. In contributing to local short-term<br />

employment, eight temporary job opportunities<br />

were offered to community members, who were<br />

able to gain experience and training for future<br />

opportunities on other projects.<br />

Voorspoed Mine’s Corporate Affairs Manager,<br />

Lebogang Mphaka, said, “Water is essential, even<br />

more so during the present pandemic. As De Beers<br />

Group, we recognise how essential it is to collaborate<br />

with our communities and commit to creating a<br />

lasting legacy through sustainable projects like this.”<br />

In delivering a speech during the ceremony,<br />

Department of Mineral Resources and Energy’s<br />

Regional Manager, Kalipa Kewuti, emphasised the<br />

importance of mining companies complying in<br />

terms of achieving their Social and Labour Plan<br />

objectives to benefit the host communities<br />

sustainably, from a regulatory perspective. “We<br />

applaud Voorspoed Mine for being compliant,”<br />

she said. ■<br />

35 FREE STATE BUSINESS <strong>2022</strong>


FOCUS<br />

Harmony builds strong<br />

community relationships<br />

Covid-19 has highlighted the need for collective action.<br />

Environmental, Social and (Corporate)<br />

Governance, or ESG, has come to be one<br />

of the most important indicators which big<br />

firms and groups must factor into business<br />

decisions in every part of the globe.<br />

In both South Africa and Papua New Guinea<br />

where Harmony is active, stakeholder relations<br />

assume the utmost importance. Stakeholders can<br />

include a diverse set of groups and entities, including:<br />

• host communities<br />

• suppliers and business partners<br />

• national and local governments<br />

• investors and shareholders<br />

• industry peers<br />

• local and international media.<br />

Harmony’s Executive Director for Corporate<br />

Affairs, Mashego Mashego, describes the<br />

importance of these relationships. “Harmony<br />

believes it is crucial to build trust and maintain<br />

positive relationships with all its stakeholders,”<br />

says Mashego.<br />

The company’s approach is aimed at<br />

partnering with stakeholders, creating a win-win<br />

situation. Says Mashego, “Stakeholder engagement<br />

is the principal mechanism<br />

through which Harmony manages<br />

and addresses a wide range of<br />

expectations and perceptions.<br />

Through proactive engagement,<br />

we are able to identify, prioritise<br />

and better manage any potential<br />

material socio-economic risks and<br />

opportunities.<br />

“The Covid-19 pandemic<br />

has highlighted the need for<br />

collective action, which revealed<br />

our interdependencies and also<br />

strengthened our relationships<br />

with one another. The quality of<br />

the relationships with stakeholders and how well<br />

these are managed affect our ability to deliver on<br />

our strategy.<br />

“Improving the quality of these relationships<br />

protects our social licence to operate, supports the<br />

success of our business strategy and creates shared<br />

value for all our stakeholders,” Mashego concludes.<br />

Community forums<br />

The issues and concerns raised by communities<br />

are addressed through the established community<br />

forums. The forums are in constant engagement<br />

with Harmony’s dedicated stakeholder engagement<br />

managers and corporate affairs team.<br />

These community forums consist of<br />

representatives from municipalities, traditional<br />

authorities and local business forums. Their purpose<br />

is to share information with communities on<br />

progress being made on project implementation,<br />

to establish their needs and expectations, and to try<br />

to manage their perceptions of what Harmony can<br />

deliver.<br />

“This initiative has had a largely positive impact<br />

on our community stakeholder engagement,”<br />

reports Mashego.<br />

FREE STATE BUSINESS <strong>2022</strong><br />

36


FOCUS<br />

Programmes<br />

Harmony has launched an incubation<br />

programme for businesses in host communities<br />

in South Africa, specifically targeting 100%<br />

black-owned, women-owned and youthowned<br />

businesses for the supply of products<br />

or services. There were106 applications, 34<br />

ultimately being approved for the full threeyear<br />

incubation programme.<br />

Harmony’s health department also supports<br />

the broader company’s strategy for targeted<br />

enterprise supplier development (ESD) by<br />

providing opportunities for companies that<br />

are from the host communities to participate<br />

economically in the operations.<br />

Creating sustainable shared value<br />

Mashego reflects on the concept of shared<br />

value: “We understand that the dynamics and<br />

the needs of communities are ever-evolving<br />

and so any meaningful and sustainable socioeconomic<br />

development we pioneer and<br />

implement requires far more than a onedimensional<br />

approach.<br />

“Our approach to socio-economic<br />

development is multi-faceted and our projects<br />

implemented include:<br />

• Infrastructure, education and skills<br />

development, job creation and entrepreneurial<br />

development<br />

• Enhancing broad-based local and community<br />

economic empowerment and enterprise<br />

development initiatives<br />

• Facilitating socio-economic development in<br />

local communities by means of our social and<br />

labour plans, and our corporate social responsibility<br />

programmes support arts, culture and<br />

sports and recreation, and<br />

• Building relationships based on trust with our<br />

host communities, the basis of which must<br />

be transparent dialogue and the delivery of<br />

mutually agreed promises.<br />

Community projects<br />

Harmony showed compassion and care with<br />

the outbreak of Covid-19 in 2020. Mashego<br />

remembers, “The health and safety of our<br />

people took precedence and as such, we<br />

made decisions that ensured the continued<br />

viability of our company and its stakeholders,<br />

further demonstrating that Harmony has a<br />

positive impact.”<br />

Harmony was at the forefront of delivering<br />

food parcels, washable face masks and care<br />

kits to all host communities in Gauteng, <strong>Free</strong><br />

<strong>State</strong> and North West. In addition, nine local<br />

historically disadvantaged suppliers were<br />

empowered through the procurement of these<br />

essential items.<br />

Community Trust<br />

The Community Trust owns 5% of Tswelopele<br />

Beneficiation Operation (TBO), which is also known<br />

as Phoenix, a mine dump retreatment operation in<br />

the <strong>Free</strong> <strong>State</strong>, and has some 4 400 000 Harmony<br />

preference shares<br />

The Community Trust is involved in similar<br />

projects to those mentioned above and was<br />

formed to properly govern funds allocated to<br />

projects. TBO pays out dividends twice a year.<br />

The preference shares pay R8.8-million each<br />

year for 10 years, starting in 2019. Thereafter,<br />

the preference shares will convert into ordinary<br />

Harmony shares. ■


OVERVIEW<br />

Oil and gas<br />

The Virginia Gas Project will join a small global elite in <strong>2022</strong>.<br />

In 2021 there were 15 places in the world in just seven<br />

countries that produce helium. In <strong>2022</strong> those numbers will<br />

increase to 16 and eight when Renergen’s Virginia Gas Project<br />

(pictured) comes on stream.<br />

The SpaceX rocket that launched in 2021 used 11 tons of<br />

helium to propel itself off the ground. Every computer microchip<br />

in the world is produced in the presence of helium and the world<br />

uses 85 tons of it every day. Although it’s a very useful element,<br />

it’s also a very difficult element. The result of that is that Renergen,<br />

the owner of the Tetra4 company that holds the first and only<br />

onshore petroleum production right issued by the Department<br />

of Mineral Resources and Energy (DMRE), has had to import much<br />

of its equipment and many of the skilled personnel it needs to<br />

commercialise the gas field.<br />

The field covers 187 000ha in the region of Virginia, Theunissen<br />

and Welkom. Hiring has increased rapidly since 2019 as the project<br />

ramps up from the first phase in which a pilot compressed natural<br />

gas (CNG) plant was constructed in 2016. The second phase<br />

encompasses liquid natural gas (LNG) and helium. Production of<br />

helium is expected to grow from 350kg per day to five tons in the<br />

second phase.<br />

The first sector to respond to the potential of this gas find was<br />

the logistics sector. Bulk Hauliers International Transport (BHIT) has<br />

signed an agreement to take LNG to fuel 50 of its trucks, which<br />

should lead to lower operating and maintenance costs. South<br />

African Breweries is another client.<br />

Renergen has signed an agreement with TotalEnergies for<br />

distribution and sales. Renergen intends equipping filling stations<br />

with LNG at strategic locations across South Africa to cater for the<br />

logistics industry. The first two such stations will be Total stations<br />

in Johannesburg and Durban that will be rebranded in green. One<br />

station is planned for Harrismith on the busy N3 highway which<br />

links these two cities.<br />

The potential of a second market was revealed in 2021 when<br />

Renergen agreed to sell LNG to glass manufacturer Consol.<br />

Bespoke depots will be developed to cater to industrial clients<br />

such as Consol.<br />

Tetra4 has a R218-million loan from the Industrial Development<br />

Corporation to build a 107km pipeline network from Virginia and<br />

the Overseas Private Investment Corporation (OPIC), an agency<br />

of the US government, will lend Renergen $40-million (more than<br />

SECTOR INSIGHT<br />

A national gas distribution<br />

network is being established.<br />

R600-million) over 12 years<br />

to build a gas plant in the<br />

<strong>Free</strong> <strong>State</strong>. The area around<br />

Virginia has proven reserves of<br />

25-billion cubic feet.<br />

The chemical complex at<br />

Sasolburg is the economic<br />

driver of the oil and gas sector<br />

for the province. One of the<br />

Sasol companies at Sasolburg,<br />

Sasol New Energy, is moving<br />

the group away from reliance<br />

on fossil fuels. In 2020 Sasol<br />

called for bidders construct<br />

an embedded 10MW solar<br />

PV facility at Sasolburg. The<br />

company’s larger goal across<br />

all its sites is eventually to<br />

procure 600MW of renewable<br />

energy and achieve a 10%<br />

greenhouse-gas (GHG)<br />

emission reduction by 2030.<br />

Sasolburg Operations<br />

is one of the five operating<br />

hubs that forms part of the<br />

Southern African Operations<br />

and is a 100%-owned facility.<br />

Sasolburg Operations includes<br />

all operations on the Sasol One<br />

and the Sasol Midland sites.<br />

The integrated manufacturing<br />

facility is responsible for<br />

the production of base and<br />

performance chemicals. It also<br />

produces electricity and other<br />

FREE STATE BUSINESS <strong>2022</strong><br />

38


OVERVIEW<br />

ONLINE RESOURCES<br />

Petroleum Agency SA: www.petroleumagencysa.com<br />

South African Oil and Gas Alliance: www.saoga.org.za<br />

South African Petroleum Industry Association: www.sapia.co.za<br />

utilities and provides site-support services to enable the manufacturing<br />

processes taking place on site.<br />

Sasol has been running a Research and Technology facility<br />

at the Sasol One Site in Sasolburg for a decade. Comprising<br />

14 laboratories, analytical equipment, pilot plants, offices and<br />

maintenance workshops, the facility is run by Sasol Technology and<br />

offers the group’s scientists and engineers space to work on new<br />

technologies and efficiencies.<br />

Sasol’s technology expertise includes coal and gas-processing<br />

technologies, Fischer-Tropsch catalysis and engineering<br />

research, refinery and fuels technologies, chemical technologies,<br />

environmental sciences and engineering, and alternative energy<br />

and advanced analytical solutions.<br />

The regulator and promoter of oil and gas exploration in South<br />

Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas<br />

exploration rights<br />

in KwaZulu-Natal and natural<br />

gas exploration permits in the<br />

<strong>Free</strong> <strong>State</strong>. Early surveys suggest<br />

that the <strong>Free</strong> <strong>State</strong> has 23-billion<br />

cubic feet of gas underground. If<br />

this is confirmed, then four new<br />

power stations could be built in<br />

the province. Tests have begun in<br />

the Karoo in search of shale gas.<br />

The Natref fuel refinery is<br />

one of only four in South Africa,<br />

and the country’s only inland<br />

refinery. The refinery is a joint<br />

venture between Sasol Oil<br />

(63.6%) and Total SA (36.3%). It<br />

is a technologically advanced<br />

facility, which refines heavy<br />

crude oil into petrol, diesel,<br />

commercial propane, jet fuel<br />

and bitumen. ■<br />

39 FREE STATE BUSINESS <strong>2022</strong>


FOCUS<br />

Gas will put South Africa on<br />

the path to zero emissions<br />

Dr Phindile Masangane, the CEO of Petroleum Agency<br />

South Africa, notes that recent gas discoveries could<br />

support the country’s economic recovery and its<br />

transition to a clean energy future.<br />

Today the biggest threat to humanity is climate<br />

change, and the biggest threat to SA’s<br />

social stability is the high unemployment rate.<br />

As the global economy recovers from<br />

the devastating effects of Covid-19, demand for oil<br />

and gas has gone up significantly. If there was ever<br />

a need for proof that oil and gas still drive the global<br />

economy, recent statistics demonstrate the trend.<br />

The world’s developed economies<br />

industrialised on the back of oil and gas production<br />

and use. Now, just as Africa is on the cusp of being<br />

a significant gas producer and is making plans to<br />

use such gas for power generation, industrialisation<br />

and economic growth, the negative effects of<br />

greenhouse gas emissions on the environment<br />

have become undeniable.<br />

The urgency for action to mitigate the risk of<br />

climate change is no longer debatable. Between<br />

1990 and 2018 the top five emitters have produced<br />

more than 50% of greenhouse gas emissions.<br />

During the same period SA has contributed<br />

1% to global emissions. This is by no measure<br />

Renergen is currently the only onshore petroleum production rights<br />

holder in South Africa. The company’s Virginia Gas Project in the <strong>Free</strong><br />

<strong>State</strong> is ramping up to phase two, based on one of the richest helium<br />

concentrations in the world. Credit: Renergen<br />

insignificant, and as a responsible global citizen SA<br />

must take steps to reduce its carbon footprint.<br />

The UN Framework Convention on Climate<br />

Change was established in 1992 to coordinate the<br />

global response to mitigate the threat of climate<br />

change, and specifically to get countries to commit<br />

to policies and plans that will ensure that the<br />

average global temperature rise is kept less than<br />

1.5°C above pre-industrial levels.<br />

The International Energy Agency (IEA) proposes<br />

that to achieve this goal the world’s energy sector<br />

must reach net zero emissions by 2050. In its<br />

global energy net zero 2050 pathway the IEA<br />

acknowledges that there is no single pathway to<br />

this goal, as developed and developing countries<br />

face different socioeconomic challenges and have<br />

contributed disproportionately to greenhouse gas<br />

emissions to date.<br />

What a number of environmental interest<br />

groups seem to be ignoring in the IEA “Net Zero<br />

by 2050” report is the acknowledgment that there<br />

will be a differentiated approach to a clean energy<br />

future, taking into consideration<br />

the cost of the new clean energy<br />

technologies and the economic<br />

consequences of transitioning for<br />

each country. The IEA emphasises<br />

that each country must develop<br />

its own pathway to a net zero<br />

emission future.<br />

South Africa’s economy has been<br />

predominantly powered by coal,<br />

which is also a significant contributor<br />

to the country’s economy in terms<br />

of GDP as well as employment. Of all<br />

primary energy resources coal is the<br />

FREE STATE BUSINESS <strong>2022</strong><br />

40


"<br />

"<br />

Mafikeng<br />

"<br />

"<br />

"<br />

"<br />

"<br />

"<br />

Molteno<br />

"<br />

Klerksdorp<br />

"<br />

"<br />

Welkom<br />

"<br />

Virginia<br />

"<br />

"<br />

Aliwal North<br />

"<br />

"<br />

Queenstown<br />

"<br />

"<br />

"<br />

Kroonstad<br />

"<br />

"<br />

Indwe<br />

"<br />

" Maseru<br />

"<br />

"<br />

"<br />

" Lephalale<br />

"<br />

"<br />

"<br />

Elliot<br />

"<br />

"<br />

"<br />

Maclear "<br />

Modimolle<br />

"<br />

Bela-Bela<br />

"<br />

"<br />

Bethlehem<br />

"<br />

Frankfort<br />

"<br />

"<br />

"<br />

Evander<br />

Umtata<br />

"<br />

Mokopane<br />

"<br />

"<br />

"<br />

"<br />

Witbank<br />

"<br />

"<br />

Secunda<br />

Standerton<br />

"<br />

Harrismith<br />

"<br />

Polokwane<br />

"<br />

"<br />

"<br />

Tshipise<br />

"<br />

"<br />

Makhado<br />

"<br />

"<br />

Ermelo<br />

Volksrust "<br />

"<br />

" Newcastle<br />

Estcourt<br />

"<br />

"<br />

Musina<br />

"<br />

Dannhauser<br />

"<br />

Utrecht<br />

"<br />

Pietermaritzburg<br />

"<br />

"<br />

"<br />

"<br />

Vryheid<br />

Port Shepstone<br />

"<br />

"<br />

Phalaborwa<br />

"<br />

Mbabane<br />

"<br />

Pafuri<br />

Nongoma<br />

"<br />

"<br />

"<br />

Richards Bay<br />

St. Lucia<br />

"<br />

Locality<br />

most carbon-intensive and fine particulate matter<br />

affects people’s respiratory systems.<br />

In addition to coal, South Africa imports<br />

oil, gas and petroleum products for its energy<br />

needs as the upstream petroleum industry is still<br />

at a nascent stage. The two recent world-class<br />

offshore gas discoveries in the Outeniqua basin<br />

are the biggest petroleum discoveries made in<br />

South Africa.<br />

The development of these discoveries has the<br />

potential to replace more than 2 300MW of dieselfired<br />

electricity generation, thereby reducing<br />

the carbon emissions by more than 50% while<br />

eliminating sulphur oxide and nitrogen oxide<br />

emissions. Gas is therefore an obvious bridge to a<br />

lower carbon future.<br />

The Petroleum Agency SA awaits the licensee<br />

of these gas discoveries submitting its production<br />

right and environmental authorisation applications<br />

when the exploration right expires, or earlier. The<br />

agency expects the licensee to use world-class<br />

technologies and standards to minimise the effects<br />

of the gas and gas condensate production on the<br />

environment, while maximising the in-country<br />

benefit or local content from this development to<br />

support SA’s economic recovery.<br />

These discoveries could indeed support both<br />

the country’s economic recovery and its transition<br />

to a clean energy future.<br />

Onshore exploration opportunities are<br />

represented by unconventional resources such<br />

as shale gas in the south-central Karoo, coalbed<br />

methane in the coalfields of the east and northern<br />

sectors of the country and biogenic gas in the<br />

Virginia and Evander regions. However, geological<br />

analysis is showing that there may well be<br />

significant potential for conventional oil and gas<br />

resources onshore.<br />

Conducive investment environment<br />

South Africa has a history of political stability and<br />

the new UPRD bill (Upstream Petroleum Resources<br />

Development Bill) will assist the Agency in expediting<br />

exploration through close management of acreage<br />

allocation and work programmes. These positive factors<br />

create a conducive environment for PASA to pursue its<br />

mandate of attracting investment into the upstream<br />

petroleum industry.<br />

Coal Field<br />

SOUTH<br />

Gas discovery<br />

Provincial boundary<br />

Karoo Basins<br />

Northern Cape<br />

AFRICA<br />

North West<br />

<strong>Free</strong> <strong>State</strong><br />

Eastern Cape<br />

Bloemfontein<br />

LEPHALALE<br />

BASIN<br />

Waterberg<br />

<strong>Free</strong> <strong>State</strong><br />

MAIN KAROO BASIN<br />

Molteno<br />

Figure 32. Distribution of coal fields in the Karoo-aged basins in South Africa (digital geological data sourced from Council for Geoscience)<br />

Gas and coal-based methane are found in many parts of<br />

South Africa’s interior. Credit: PASA, with digital geological<br />

data sourced from Council for Geoscience.<br />

The draft bill provides greater policy certainty and a<br />

stable environment for investment in the South African<br />

oil and gas sector. It provides security of tenure by<br />

combining the rights for the exploration, development<br />

and production phase under one permit.<br />

As far as the issuing of exploration rights over<br />

the last 18 months is concerned, a total of 21<br />

exploration rights for both onshore and offshore<br />

were issued during this period, including renewals<br />

and new exploration rights.<br />

As of December 2020, there is no longer a<br />

moratorium on applications for rights onshore,<br />

other than those for shale gas in a specified<br />

area covering the central Karoo. Other onshore<br />

applications continue to be received and processed<br />

in terms of the MPRDA. The moratorium for shale<br />

gas rights and new offshore applications remains<br />

in place and is expected to be lifted with the<br />

enactment of the hydraulic fracturing regulations<br />

(for environmental management and water use) for<br />

the shale gas extraction technologies. ■<br />

Pretoria<br />

Johannesburg<br />

Gauteng<br />

Lesotho<br />

TULI BASIN<br />

Tuli<br />

Mopane<br />

Limpopo<br />

SPRINGBOK FLATS BASIN<br />

Springbok Flats<br />

Witbank<br />

Highveld<br />

Tshipise<br />

TSHIPISE BASIN<br />

Ermelo<br />

Utrecht<br />

Klip Rivier<br />

Pafuri<br />

KwaZulu-Natal<br />

Mpumalanga<br />

Kangwane<br />

Swaziland<br />

Vryheid<br />

Nongoma<br />

Somkele<br />

Durban<br />

34<br />

41<br />

FREE STATE BUSINESS <strong>2022</strong>


OVERVIEW<br />

Manufacturing<br />

A steel smelter is under construction.<br />

A<br />

national programme to revitalise industrial parks, led<br />

by the National Department of Trade, Industry and<br />

Competition (dtic), is paying off about 45km east of<br />

Bloemfontein.<br />

Among the biggest new investors in the Botshabelo Industrial<br />

Park is Hangda Trading which has started erecting a R200-million<br />

steel smelter which will employ more than 1 500 people. A dtic<br />

official and a Hangda executive are pictured on a site inspection.<br />

At the end of the first phase of revitalisation, 25 investors had<br />

invested R201-million and 1 360 jobs have been created. A<br />

Digital Hub in the park will provide training to small and medium<br />

enterprises focusing on ICT products.<br />

Further north, the strategically located Maluti-A-Phofung<br />

Special Economic Zone (MAP SEZ) has attracted R1-billion from<br />

investors. Kevali Chemicals became the first beneficiary of the dtic’s<br />

Black Industrialists Scheme (BIS). A grant of R35-million allowed the<br />

company to acquire machinery and equipment to start a new line<br />

of manufacturing in the MAP SEZ.<br />

<strong>Business</strong> hubs in Ficksburg and Koffiefontein are designed to<br />

support SMMEs. The Contractor Development Programme has<br />

signed contracts with 71 small businesses to do road maintenance<br />

in the province.<br />

A 172ha business park in Sasolburg which incubates black<br />

industrialists is a joint venture between the dtic and Sasol. There<br />

are five buildings on the site, training is provided, and companies<br />

have access to Sasol’s diverse supply chains.<br />

Sasolburg in the northern <strong>Free</strong> <strong>State</strong> is a key asset in South<br />

Africa’s chemicals industry. Sasol has the biggest presence but<br />

companies such as Omnia and AECI are other major companies<br />

which give the <strong>Free</strong> <strong>State</strong> the lead in this sector which relies on<br />

advanced technology.<br />

Manufacturing makes up 9% of <strong>Free</strong> <strong>State</strong> gross domestic<br />

product, and this comprises 4% of South Africa’s total. The <strong>Free</strong><br />

<strong>State</strong> Regional Industrialisation Policy is under review to ensure<br />

integration of infrastructure, bulk service provision, industrial sites<br />

and export and tax incentives to attract investment.<br />

The existing manufacturing sector covers chemicals, agroprocessing,<br />

textiles, carpets, engineering, packaging, furniture and<br />

ONLINE RESOURCES<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

<strong>Free</strong> <strong>State</strong> Development Corporation: www.fdc.co.za<br />

South African Textile Federation: www.texfed.co.za<br />

SECTOR INSIGHT<br />

The Malutia-A-Phofung<br />

Special Economic Zone is<br />

attracting investment.<br />

Credit: dtic<br />

jewellery. About 20% of the <strong>Free</strong><br />

<strong>State</strong>’s manufacturing sites are<br />

devoted to food and beverages,<br />

with soft drink giant Coca-<br />

Cola Fortune operating a large<br />

bottling plant in Mangaung.<br />

Landzicht Wine Cellar distributes<br />

2.4-million litres of wine every<br />

year from Jacobsdal.<br />

Harrismith is home to<br />

Nouwens Carpets and Boxmore<br />

Plastics. Boxmore Packaging’s<br />

new PET beer bottles are the first<br />

PET bottles specifically designed<br />

for beer on the SA market.<br />

Empire Gloves makes industrial<br />

gloves. Kroonstad-based Octa<br />

Engineering makes specialised<br />

rail carriages for the mining<br />

sector. In Bloemfontein, Transnet<br />

Engineering manufactures new<br />

wagons for the Transnet group,<br />

including iron ore and cement<br />

wagons and fuel tankers. ■<br />

FREE STATE BUSINESS <strong>2022</strong> 42


Tourism<br />

The Vredefort Dome is to be marketed internationally.<br />

Vredefort Dome is the oldest astrobleme ever found. Credit: Francesco<br />

Bandarin/UNESCO<br />

About 2 000-million years ago a meteorite landed in what is<br />

now the <strong>Free</strong> <strong>State</strong>. The town of Vredefort is approximately in<br />

the middle of the circular area that has been identified as the<br />

dome of that meteorite; its diameter is 300km and extends<br />

from Johannesburg in the north to Welkom in the south. The core zone<br />

is 120km south of Johannesburg on the banks of the Vaal River, and this<br />

is the smaller area that has UNESCO World Heritage Site status.<br />

The site’s boundaries, which has a radius of 190km, are roughly<br />

defined by the roads that link Vredefort, Parys and Potchefstroom.<br />

A meteorite impact structure is called an astrobleme and this is the<br />

oldest, largest and most deeply eroded such structure ever found.<br />

A joint effort to improve and market the area nationally and<br />

internationally is underway, involving the <strong>Free</strong> <strong>State</strong> tourism<br />

authorities, the North West Province, Fezile Dabi District<br />

Municipality and the National Department of Environmental<br />

Affairs, Forestry and Fisheries.<br />

Other sites with potential that are the subject of upgrades include<br />

the Thaba Nchu Airfield and the Phakisa Raceway in Welkom.<br />

The global pandemic closed down the tourism sector and it will<br />

take some time to recover. The provincial government provided<br />

some relief by earmarking tourism venues as sites for quarantine.<br />

Heritage is a sector with growth potential. A Heroes’ Park is<br />

to be constructed at Thaba Nchu and Tumahole with statues<br />

of Oliver Tambo and Fidel Castro. A museum and statue at<br />

ONLINE RESOURCES<br />

Bloemfontein Tourism: www.bloemfonteintourism.co.za<br />

<strong>Free</strong> <strong>State</strong> Department of Economic, Small <strong>Business</strong> Development,<br />

Tourism and Environmental Affairs: www.destea.gov.za<br />

<strong>Free</strong> <strong>State</strong> Gambling, Liquor and Tourism Authority: www.gla.fs.gov.za<br />

SECTOR INSIGHT<br />

OVERVIEW<br />

Tourism venues were used<br />

as quarantine sites during<br />

the pandemic.<br />

Brandfort to commemorate<br />

Winnie Madikizela-Mandela is<br />

planned.<br />

In 2019 the 88-room Splendid<br />

Inn Bloemfontein was opened by<br />

Premier Hotels & Resorts. Protea<br />

Hotels has four properties in the<br />

<strong>Free</strong> <strong>State</strong>, two in Bloemfontein,<br />

one in Harrismith and the Protea<br />

Hotel Clarens.<br />

The Tsogo Group’s properties<br />

include the four-star Southern<br />

Sun Bloemfontein and the<br />

Goldfields Casino in Welkom. The<br />

City Lodge Bloemfontein has 151<br />

rooms, and there is a Road Lodge<br />

at the airport.<br />

The Rantsoareng Group<br />

operates exclusively in the<br />

<strong>Free</strong> <strong>State</strong> and has three<br />

properties, the biggest of<br />

which is the President Hotel in<br />

Bloemfontein.<br />

Sun International runs the<br />

Lesotho Sun and the Maseru<br />

Sun in neighbouring Lesotho.<br />

In Bloemfontein, the Windmill<br />

Casino and Entertainment<br />

Centre offers slot machines<br />

and gaming tables, plus<br />

conference facilities. The<br />

four-star Willow Lodge has 80<br />

rooms. The Naledi Sun Hotel<br />

and Casino is about 65km from<br />

Bloemfontein.<br />

The Golden Gate Highlands<br />

National Park in the Maluti<br />

Mountains is one of South<br />

Africa’s great parks. ■<br />

43<br />

FREE STATE BUSINESS <strong>2022</strong>


OVERVIEW<br />

Education and training<br />

Skills development programmes are expanding.<br />

SECTOR INSIGHT<br />

UFS researchers are doing<br />

advanced work on protein<br />

structure prediction.<br />

The CUT Hotel School has a new roof. Credit: CUT/Sebedisan Group<br />

An extensive Skills Development Programme is giving<br />

young people skills and work experience in a variety of<br />

fields. The Provincial Government of the <strong>Free</strong> <strong>State</strong> spent<br />

about R120-million training 3 367 people in 2020/21 on<br />

various skills programmes.<br />

These were supported by placements with government<br />

departments and with private businesses: 120 unemployed<br />

graduates were specifically supported by the province on<br />

stints at companies. Sector Education and Training Authorities<br />

(SETAs) are involved in the programmes which include graduate<br />

internships, learnerships, short-skills programmes and workintegrated<br />

learning methods. The province’s road-building unit<br />

will link up with TVET college graduates to provide specific<br />

work training.<br />

A national policy of promoting training in critical trades has<br />

been adopted. Two of the three campuses of Flavius Mareka TVET<br />

College are designated Centres of Specialisation, for electrical work<br />

at Sasolburg and plumbing at Kroonstad. The Mphohadi campus of<br />

the college is also in Kroonstad.<br />

The <strong>Free</strong> <strong>State</strong> has about 14 000 students at four Technical and<br />

Vocational Education and Training (TVET) colleges, taught by 400<br />

lecturers. All of the colleges have multiple sites. Maluti TVET College in<br />

Phuthaditjhaba, for example, offers classes at eight sites. Motheo TVET<br />

College operates in Bloemfontein and Thaba Nchu, while Goldfields<br />

TVET College is headquartered in Welkom with some classes offered in<br />

Thabong and a satellite campus at Virginia (Meloding).<br />

The University of the <strong>Free</strong><br />

<strong>State</strong> has 158 researchers<br />

rated by the National Research<br />

Foundation (NRF), two A-rated<br />

scientists and five tier-one<br />

SARChi research chairs. The<br />

university has 18 international<br />

research partnerships and<br />

produces an average of 240<br />

postgraduate research degrees<br />

every year.<br />

A team of undergraduates<br />

from the UFS Department of<br />

Animal Sciences won the 2021<br />

national quiz held at the 52nd<br />

congress of the South African<br />

Society for Animal Science<br />

(SASAS). At the same event,<br />

Andries van der Merwe, a<br />

postgraduate student, received<br />

the SASAS Student Postgraduate<br />

Merit Award for exceptional<br />

academic achievement. Dr<br />

Sinobongo Mdyogolo, a PhD<br />

student, was presented with the<br />

SASAS Bronze Medal in respect<br />

of her PhD achievements in<br />

the research and technology<br />

transfer categories.<br />

A group of academics<br />

from the Department of<br />

Microbiology and Biochemistry<br />

has been involved in an<br />

exciting international<br />

collaboration of researchers<br />

which solved a difficult and<br />

intricate problem in science,<br />

FREE STATE BUSINESS <strong>2022</strong><br />

44


FOCUS<br />

De Beers and Moqhaka<br />

Municipality “Changing Lives”<br />

Learning new skills gives young people employment opportunities.<br />

In efforts to contribute to local skills<br />

development, local employment and<br />

advancing the social and economic role of our<br />

host communities, De Beers Voorspoed Mine<br />

partnered with Moqhaka Local Municipality and<br />

the Department of Employment and Labour to<br />

place trainees in fields of plumbing, welding and<br />

water treatment for a 12-month work-integrated<br />

learning programme.<br />

The programme intends to provide an<br />

opportunity for the youth of Moqhaka to acquire<br />

extra skills in plumbing, welding and water<br />

treatment. The programme will enable the trainees<br />

to develop skills with on-the-job and core training<br />

at Moqhaka Municipality. Despite the low levels<br />

of economic activity in our province, there are<br />

job opportunities in the welding industry and<br />

the need for skills is massive. The youth will be<br />

empowered to maximise their potential along<br />

with a tailored plan to provide them with a future<br />

to make a difference. As they progress through<br />

their learnership programme, we will help them<br />

discover their real capability and develop their<br />

skills as artisans.<br />

At De Beers Group, we are driven by our<br />

purpose to Make Life Brilliant for our people, our<br />

customers and those living in the communities<br />

where we operate. We are working to define a new<br />

world where brilliance is achieved every day. It is<br />

for this reason that we placed talented individuals<br />

to participate in our Learnership Programme for<br />

the benefit of our communities.<br />

The remarkable contribution that diamonds<br />

continue to make even after life-of-mine towards<br />

skills development in Fezile Dabi district, owes a<br />

great deal to the effectiveness of the partnerships<br />

we have forged with local governments and our<br />

empowerment partners. The framework for these<br />

principles is defined in terms of our social licence<br />

to operate.<br />

Young people in the Fezile Dabi District Municipality are learning<br />

new skills in plumbing, welding and water treatment through a joint<br />

programme of De Beers Group and the Department of Employment<br />

and Labour.<br />

About De Beers Group<br />

De Beers Group is a member of the Anglo<br />

American plc group. Established in 1888, De Beers<br />

Group is the world’s leading diamond company<br />

with expertise in the exploration, mining and<br />

marketing of diamonds. Together with its joint<br />

venture partners, De Beers Group employs more<br />

than 20 000 people across the diamond pipeline<br />

and is the world’s largest diamond producer<br />

by value, with mining operations in Botswana,<br />

Canada, Namibia and South Africa. As part of<br />

the company’s operating philosophy, the people<br />

of De Beers Group are committed to “Building<br />

Forever” by making a lasting contribution to<br />

the communities in which they live and work<br />

and transforming natural resources into shared<br />

national wealth. ■<br />

For further information about De Beers Group, visit<br />

www.debeersgroup.com.<br />

45<br />

FREE STATE BUSINESS 2021/22


Credit: Unsplash<br />

accurate protein structure prediction. Their results, which were<br />

reached by using machine-learning, were published in the scientific<br />

journal, Science. The findings could change the way many things are<br />

done, including in molecular replacement and managing diseases.<br />

Having insight into the dimensional structure of a protein has the<br />

potential to enable more advanced drug discovery.<br />

The Central University of Technology (CUT) has four faculties:<br />

Engineering, Built Environment and Information and Technology,<br />

Health and Environmental Sciences, Humanities and Management<br />

Sciences. Researchers at units such as the Centre for Community,<br />

Environmental and Industrial Development tackle important<br />

regional issues. The CUT has started training programmes in<br />

artificial intelligence, 3D cloud computing and data screening.<br />

The first phase of a major upgrade of the Hotel School of the<br />

CUT is complete. The new glass roof in the school’s courtyard<br />

was designed by Hennie Lambrechts Architects of Bloemfontein.<br />

Upgrades were also completed to the boardroom and other<br />

facilities. Future phases will see the main kitchen and training<br />

ONLINE RESOURCES<br />

Central University of Technology: www.cut.ac.za<br />

Flavius Mareka TVET College: www.flaviusmareka.net<br />

<strong>Free</strong> <strong>State</strong> Department of Education: www.education.fs.gov.za<br />

University of the <strong>Free</strong> <strong>State</strong>: www.ufs.ac.za<br />

facilities upgraded and the<br />

conversion of the lounge<br />

service area as a satellite<br />

kitchen for a new solarium as<br />

café venue.<br />

There are 11 new schools<br />

under construction in the<br />

province in all districts. The<br />

<strong>Free</strong> <strong>State</strong> has 39 farm schools<br />

but the aim is to increase this<br />

number to make it possible<br />

for children from rural areas to<br />

have a better chance of getting<br />

good education.<br />

Air Traffic and Navigation<br />

Services (ATNS) handed over its<br />

16th sponsored ICT and Science<br />

laboratory in 2020 to Akademia<br />

High School, Brandfort. The<br />

donation forms part of a five-year<br />

“Back to School” CSI initiative which<br />

has seen ATNS sponsor laboratories<br />

across the country to schools from<br />

impoverished communities. ■<br />

FREE STATE BUSINESS <strong>2022</strong><br />

46


FOCUS<br />

Voorspoed hands over an old-age facility<br />

The community of Ngwathe Local Municipality<br />

benefits from Building Forever strategy.<br />

De Beers Group’s Voorspoed Mine has<br />

handed over a R5-million old-age facility,<br />

in partnership with Ngwathe Local<br />

Municipality, to Ratang Maqheku Centre<br />

for the Aged in Parys.<br />

The project forms part of Voorspoed Mine’s<br />

Social and Labour Plan, specifically its Community<br />

Development Programme, which aims to uplift<br />

communities of the <strong>Free</strong> <strong>State</strong> Province and<br />

develop working partnerships to enhance and<br />

influence economic and social factors.<br />

Through its Building Forever strategy, De Beers<br />

Group is helping communities to access opportunities<br />

and thrive with the aim of leaving a positive and lasting<br />

legacy for mining communities to enjoy sustainable<br />

livelihoods beyond the life of its operations.<br />

Ratang Maqheku Centre previously operated<br />

from three rented backyard rooms in Tumahole,<br />

Parys. The Centre caters for 30 elderly people daily,<br />

and provides food, primary healthcare services<br />

and exercise, as well as access to the local library<br />

to improve their literacy and writing skills.<br />

The new 470m² facility, which was built by<br />

local black female-owned company Tshepo ya<br />

Rona, comprises two bedrooms, sickbay, workshop<br />

area, rest area, consultation room, three offices,<br />

dining area, kitchen with a pantry and laundry<br />

room, two ablution facilities as well as a reception<br />

and waiting area. Ratang Maqheku also received<br />

a brand-new 22-seater vehicle to transport the<br />

elderly to and from the centre.<br />

Speaking at the handover ceremony, Josephine<br />

Pieters, De Beers Social Impact Manager, said, “We<br />

are living in unprecedented times whereby we<br />

have to create a safe haven for our senior citizens<br />

to shield them from a society that should be<br />

protecting them. We are very grateful to Ratang<br />

Maqheku’s management team. We acknowledge<br />

their strength, commitment and perseverance –<br />

it is through their determination that this project<br />

Exec. Mayor Joey Mochela, DMRE Regional Manager, Kalipa<br />

Kewuti and the Senior Impact Manager Josephine Pieters at<br />

the launch of the Old age Day Care<br />

is what it is today. Coming together and fighting<br />

against the social ills that our elders face on a<br />

daily basis and creating a refuge for them, is really<br />

commendable. As De Beers Group, we are proud<br />

to be part of creating a future that is safer, fairer<br />

and healthier for our elderly.”<br />

Executive Mayor Councillor Joey Mochela<br />

thanked Voorspoed Mine for being a valuable<br />

stakeholder in the municipality. “We were sad<br />

to hear that Voorspoed Mine was closing down<br />

because we had built such a remarkable and strong<br />

partnership with them. However, we have been<br />

pleasantly surprised by how they have continued<br />

to support us, and this has brought hope to us and<br />

the people of Ngwathe,” said Cllr Mochela.<br />

Department of Mineral Resources and Energy<br />

Regional Manager, Kapila Kewuti, thanked<br />

Voorspoed Mine for fulfilling its Social Labour Plans<br />

during its Care and Maintenance stage. “As the<br />

regulator, it is beautiful to witness the support that<br />

De Beers continues to provide to our communities.<br />

We are proud of the work they have been able<br />

to do alongside our municipalities, community<br />

leaders and various partners in providing<br />

necessary support to the vulnerable members of<br />

our society,” said Kewuti. ■<br />

47 FREE STATE BUSINESS <strong>2022</strong>


Promoting and developing<br />

small business<br />

The National African Federated Chamber of Commerce<br />

and Industry is active in the <strong>Free</strong> <strong>State</strong>.<br />

NAFCOC’s main objective is to promote,<br />

unite and encourage the development<br />

of small business in South Africa in general<br />

and black entrepreneurs in particular,<br />

thereby drawing the majority from the peripheries<br />

of the consumption-based economy to the frontlines<br />

of production-based economic activity and<br />

decision making processes.<br />

NAFCOC <strong>Free</strong> <strong>State</strong> responded in a special way<br />

to address the distress faced by members during<br />

lockdown. In 2020, the chapter:<br />

• Lobbied for localised provincial funding during<br />

the lockdown.<br />

• Campaigned for the regulation of township businesses<br />

(trading permits and adherence to bylaws).<br />

• Assisted small and informal businesses in applying for<br />

Covid-relief funding.<br />

• Worked with government on a programme to assist<br />

people living with disability to gain access to markets<br />

and procurement opportunities.<br />

• Encouraged youth to be more involved in agriculture<br />

and try to find solutions to the lack of access to<br />

funding.<br />

• Worked with Standard Bank to assist small enterprises<br />

to open business accounts.<br />

Vision To be the leading voice of business in<br />

South Africa.<br />

Mission To develop and promote economic growth<br />

among existing and new businesses.<br />

Values Empowerment, dignity, integrity, hard work<br />

and commitment. ■<br />

NAFCOC members applying for permits.<br />

Contact details<br />

Chairperson: Tshepo Matsaba<br />

Tel: 083 485 7883<br />

Email: matsabat@nafcocfs.org.za<br />

National website: www.nafcoc.org.za<br />

BUSINESS CHAMBERS IN THE FREE STATE<br />

<strong>Free</strong> <strong>State</strong> Black <strong>Business</strong> Chamber<br />

Contact: Mr Lucky Motsamai Cell: 066 204 5295 Email: info@fsbbc.co.za<br />

<strong>Free</strong> <strong>State</strong> Youth Chamber of <strong>Business</strong> and Commerce<br />

Contact: Mr Sam Motlogeloa Cell: 081 442 8928 Email: yccifs@gmail.com<br />

Mangaung Chamber of Commerce and Industry<br />

Contact: The President<br />

Tel: +27 51 522 1710 Email: President@bcci.co.za<br />

Phenomenal Women<br />

Contact: Ms Thato Mokhothu Cell: 071 383 4183<br />

Vredefort Tourism Association<br />

Contact: Ms Renee de Jong Cell: 071 448 4332 Email: vredefortinfo@gmail.com


LISTING<br />

<strong>Free</strong> <strong>State</strong> Provincial Government<br />

A guide to <strong>Free</strong> <strong>State</strong>’s provincial government departments. Visit: www.freestateonline.fs.gov.za<br />

Office of the Premier<br />

Premier: Mrs Sefora Ntombela<br />

4th Floor, OR Tambo Building, Cnr St Andrews and<br />

Markgraaff Streets, Bloemfontein 9300<br />

Tel: +27 51 405 5496 | Fax: +27 51 405 4803<br />

Website: www.freestateonline.fs.gov.za<br />

Department of Agriculture<br />

and Rural Development<br />

MEC: Mr Skully Nxangisa<br />

Main Building, Gielie Joubert Street, Glen,<br />

Bloemfontein 9360<br />

Tel: +27 51 861 8509 | Fax: +27 51 861 8452<br />

Website: www.ard.fs.gov.za<br />

Department of Cooperative Governance<br />

and Traditional Affairs<br />

MEC: Mr Mxolisi Dukwana<br />

7th Floor, OR Tambo House, Cnr St Andrews and<br />

Markgraaf Streets, Bloemfontein 9301<br />

Tel: +27 51 405 5719<br />

Website: www.cogta.fs.gov.za<br />

Dept of Economic, Small <strong>Business</strong> Development,<br />

Tourism and Environmental Affairs<br />

MEC: Mr Makalo Mohale<br />

Bojanala Building, 113 St Andrews Street,<br />

Bloemfontein 9301<br />

Tel: +27 51 404 9600 | Fax: +27 51 400 4732<br />

Website: www.destea.gov.za<br />

Department of Education<br />

MEC: Mr Pule Makgoe<br />

Fidel Castro Building, 55 Miriam Makeba Street,<br />

Bloemfontein 9300<br />

Tel: +27 51 404 8430 | Fax: +27 51 404 8269<br />

Website: www.education.fs.gov.za<br />

Department of Health<br />

MEC: Ms Montseng Ts’lu<br />

Cnr Harvey and Charlotte Maxeke Streets,<br />

Bloemfontein 9300<br />

Tel: +27 51 408 1108 | Fax: +27 51 408 1950<br />

Website: www.health.fs.gov.za<br />

Department of Human Settlements<br />

MEC: Ms Motshidise Agnes Koloi<br />

7th Floor, Lebohang Building, Cnr Markgraaff and<br />

St Andrews Streets, Bloemfontein 9300<br />

Tel: +27 51 405 3379 | Fax: +27 51 403 3699<br />

Website: www.humansettlements.fs.gov.za<br />

Department of Police, Roads and Transport<br />

MEC: Mr Kwekwe Bulwane<br />

4th Floor, Perm Building, 45 Charlotte Maxeke Street,<br />

Bloemfontein 9301<br />

Tel: +27 51 409 8849 | Fax: +27 51 409 8864<br />

Website: www.policeroadstransport.fs.gov.za<br />

Department of Public Works<br />

and Infrastructure<br />

MEC: Ms Motshidise Agnes Koloi<br />

Office 310, OR Tambo House, Cnr Markgraaf and<br />

St Andrews Streets, Bloemfontein 9301<br />

Tel: +27 51 405 3909 | Fax: +27 51 405 4490<br />

Website: www.publicworks.fs.gov.za<br />

Department of Social Development<br />

MEC: Ms Mamiki Qabathe<br />

Civilia Building, 14 Miriam Makeba Street,<br />

Bloemfontein 9300<br />

Tel: +27 51 409 0555 | Fax: +27 51 409 0618<br />

Website: www.socdev.fs.gov.za<br />

Department of Sports, Arts,<br />

Culture and Recreation<br />

MEC: Ms Limakatso Mahase<br />

Civilia Building, 14 Miriam Makeba Street,<br />

Bloemfontein 9300<br />

Tel: +27 51 407 3520 | Fax: +27 51 407 3541<br />

Website: www.fssacr.gov.za<br />

Provincial Treasury<br />

MEC: Ms Gadija Brown<br />

Fidel Castro Building, 55 Miriam Makeba Street,<br />

Bloemfontein 9300<br />

Tel: +27 51 405 4229 | Fax: +27 51 405 4152<br />

Website: www.treasury.fs.gov.za<br />

49 FREE STATE BUSINESS <strong>2022</strong>


Driving<br />

Economic Development<br />

in the <strong>Free</strong> <strong>State</strong> Province<br />

Enterprise<br />

development<br />

Property<br />

management<br />

Investment<br />

facilitation<br />

Export<br />

promotion<br />

Tel: 051 400 0800<br />

Email: wecare@fdc.co.za | invest@fdc.co.za<br />

Web: www.fdc.co.za

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!