Free State Business 2022
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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 />
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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
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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