North West Business 2021-22
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NORTH WEST<br />
BUSINESS<br />
<strong>2021</strong>/<strong>22</strong> EDITION<br />
THE GUIDE TO BUSINESS AND INVESTMENT IN<br />
THE NORTH WEST PROVINCE<br />
JOIN US ONLINE<br />
WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHWESTBUSINESS.CO.ZA
Inspiring hope and enabling dreams<br />
A brief history of Standard Bank in the <strong>North</strong> <strong>West</strong> Province.<br />
Standard Bank has had an uninterrupted connection<br />
of 135 years with the region now known as the <strong>North</strong><br />
<strong>West</strong> Province, created in 1994 by the merger of the<br />
former <strong>West</strong>ern Transvaal area with the homeland<br />
territory of Bophuthatswana.<br />
Although Standard Bank had initially opened a<br />
branch in Potchefstroom in 1877, following the British<br />
annexation of the then Zuid-Afrikaansche Republiek<br />
(Transvaal), it had to close the branch again after the<br />
Transvaal regained its independence in 1881 as it<br />
could only, in terms of its original Memorandum and<br />
Articles of Association, operate in areas under British<br />
control. Rather than leaving the Transvaal completely,<br />
the bank amended its Memorandum and<br />
Articles of Association to allow it to operate in<br />
areas outside direct British jurisdiction.<br />
Until the establishment of the Nationale<br />
Bank der Zuid-Afrikaansche Republiek in<br />
1891 Standard Bank was also the banker of<br />
the Transvaal government. By the late 19th<br />
century, the <strong>West</strong>ern Transvaal was primarily<br />
a good farming area, especially known for<br />
the high-quality wheat it produced. The<br />
discovery of gold throughout the Transvaal<br />
in the early and mid-1880s boded well for its<br />
economic prospects and gold fever spread to<br />
<strong>Business</strong> Leadership Team, <strong>North</strong> <strong>West</strong><br />
Rishaad Webster -<br />
Head, Client Coverage <strong>Business</strong><br />
Clients <strong>North</strong> <strong>West</strong><br />
Yonash Naidoo - Head, Sectors<br />
Specialist, <strong>North</strong> <strong>West</strong> and Head,<br />
<strong>Business</strong> Centre, Rustenburg<br />
Otto Lessing -<br />
Head, <strong>Business</strong> Centre (Client<br />
Coverage), Klerksdorp<br />
Image by Caspar Camille Ruben on Unsplash
semi-tropical fruit-growing area. The soil was<br />
also well-suited to the cultivation of cereals,<br />
tobacco, sugar and coffee. After the end of<br />
the Second Anglo-Boer War in 1902, reports<br />
that the railway line was to be extended<br />
from Krugersdorp to Rustenburg boosted<br />
the area’s prospects. Consequently, Standard<br />
Bank opened a branch there on 11 February<br />
1903. From the 1920s onwards the town and<br />
district prospered further with the mining of<br />
platinum, iron, nickel and other rare minerals.<br />
The modern era<br />
Following the 1994 general election the country’s<br />
four former provinces were split to create<br />
the current nine provinces. In 1995 Standard<br />
Bank restructured its operations to create nine<br />
provincial structures, including one for <strong>North</strong><br />
<strong>West</strong>, whose geographic boundaries largely<br />
corresponded to the country’s new provinces.<br />
Potchefstroom following discoveries at Zeerust<br />
and Lichtenburg.<br />
Many farms in the Potchefstroom area were<br />
also gold bearing. Standard Bank recognised<br />
that a small safe business could be undertaken<br />
at Potchefstroom and duly reopened there on<br />
21 July 1886.<br />
Rustenburg potential<br />
Standard Bank had been interested in the<br />
development of Rustenburg; the second Dutch<br />
Reformed parish established in the Transvaal<br />
in 1851. The town was in the centre of a good<br />
Proudly <strong>North</strong> <strong>West</strong><br />
Over the years Standard Bank has been the banker<br />
to several municipalities in the province. The bank<br />
has also partnered with the <strong>North</strong> <strong>West</strong> Provincial<br />
Government to help provide mentorship and<br />
funding for entrepreneurs and viable SMEs.<br />
We at Standard Bank are highly invested in<br />
the <strong>North</strong> <strong>West</strong> and committed to driving her<br />
growth. We strive to create value for our clients<br />
through our regional knowledge and industry<br />
expertise. It’s about more than just banking. It’s<br />
about being a trusted partner, understanding<br />
your business and unlocking value. ■<br />
<strong>Business</strong> Leadership Team, <strong>North</strong> <strong>West</strong><br />
Nqobile Zondi -<br />
Manager, Enterprise Direct,<br />
<strong>North</strong> <strong>West</strong><br />
Dawood Kabelo Seleka -<br />
Manager, Entrepreneur,<br />
Klerksdorp<br />
Melvyn Edmunds -<br />
Manager, Entrepreneur,<br />
Rustenburg
Bank on Standard Bank Trade<br />
to grow your business<br />
Giving peace of mind to traders and exporters.<br />
With Trade by Standard Bank, we aim to be a partner in<br />
your growth journey and can help create a secure and<br />
trusted environment for you to trade by providing an<br />
end-to-end trade solution ecosystem.<br />
This includes the following:<br />
• Introductions to new vetted potential buyers, locally<br />
and around the globe.<br />
• Assistance with diversifying your supplier base and<br />
products through access to new international, vetted<br />
suppliers.<br />
• The provision of working capital finance.<br />
• Mitigation of risks of non-delivery and non-payments<br />
and foreign currency fluctuations.<br />
• A single point of contact to assist in all your importing<br />
needs, including all-in costing, logistics facilitation,<br />
product track-and-trace services, payments, foreign<br />
exchange covers and customs clearing.<br />
Banks play a critical role in helping small and medium<br />
businesses trade both in the local and international<br />
markets. The impact of Covid on trade in SA has<br />
been complicated and layered. The restriction on the<br />
movement on goods has taken its toll on various sectors.<br />
What the pandemic has shown is the importance of<br />
innovation from both an infrastructure and business<br />
model point of view.<br />
Digital transformation in trade creates efficiencies and<br />
breaks down barriers to entry, linking suppliers and<br />
customers and allowing for the creation of new supply<br />
chains. Trade by Standard Bank has devised new and<br />
differentiated solutions for customers:<br />
Trade Club<br />
The Standard Bank Trade Club is an innovative<br />
networking platform to enable business customers<br />
to find new opportunities both locally and globally<br />
through exclusive access to an online networking<br />
platform with over 15 000 pre-vetted members from 15<br />
international banks and across 43 countries.<br />
Trade Finance<br />
Standard Bank’s Trade Finance allows you to expand<br />
and mitigate risks that could stand in your way. This<br />
service will help to maximise your profit by bolstering<br />
your cash flow, collecting outstanding payments, and<br />
strengthening your working capital cycle.<br />
Trade Suite<br />
Local regulations and compliance issues can be<br />
inhibitors to trade. The Trade Suite offering gives<br />
Standard Bank the ability to advise a client on the<br />
movement of their goods, manage the movement of<br />
their goods and even calculate the landed cost of each<br />
item imported.<br />
These solutions allow Standard Bank to play a vital<br />
strategic role in our clients’ sustainable business<br />
growth. Trade by Standard Bank is well positioned<br />
to understand its clients’ business and to assist them<br />
in navigating the pathway of both domestic and<br />
international trade. ■<br />
Image by Ian Taylor on Unsplash
CONTENTS<br />
<strong>North</strong> <strong>West</strong> <strong>Business</strong> Edition <strong>2021</strong>/<strong>22</strong> edition<br />
Introduction<br />
Foreword 7<br />
A unique guide to business and investment in the <strong>North</strong> <strong>West</strong>.<br />
Message 9<br />
A message from the <strong>North</strong> <strong>West</strong> Development Corporation.<br />
Special features<br />
A regional overview of the <strong>North</strong><br />
<strong>West</strong> Province 10<br />
Global prices are supporting rising production for miners and<br />
farmers but governance issues at local level need to be addressed.<br />
The <strong>North</strong> <strong>West</strong> has the metals and<br />
minerals to help the world go green 14<br />
Palladium is more valuable than gold, and not only in dollars.<br />
Economic sectors<br />
Mining 18<br />
Many mining companies are thinking of expansion.<br />
Agriculture 28<br />
Training in agriculture is in the spotlight.<br />
Water 32<br />
A cross-provincial irrigation scheme is a national priority.<br />
Manufacturing 36<br />
An Integrated Manufacturing Strategy aims to stimulate the sector.<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
6
FOREWORD<br />
<strong>North</strong> <strong>West</strong> <strong>Business</strong><br />
A unique guide to business and investment in the <strong>North</strong> <strong>West</strong>.<br />
Credits<br />
Publishing director:<br />
Chris Whales<br />
Editor: John Young<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 />
Shiko Diala<br />
Administration & accounts:<br />
Charlene Steynberg<br />
Kathy Wootton<br />
Distribution and circulation<br />
manager: Edward MacDonald<br />
Printing: FA Print<br />
DISTRIBUTION<br />
<strong>North</strong> <strong>West</strong> <strong>Business</strong> is distributed internationally on outgoing and<br />
incoming trade missions, through trade and investment agencies;<br />
to foreign offices in South Africa’s main trading partners around the<br />
world; at top national and international events; through the offices<br />
of foreign representatives in South Africa; as well as nationally and<br />
regionally via chambers of commerce, tourism offices, airport lounges,<br />
provincial government departments, municipalities and companies.<br />
The <strong>2021</strong>/<strong>22</strong> edition of <strong>North</strong> <strong>West</strong> <strong>Business</strong> marks the 11th<br />
publication of this highly successful journal that, since its<br />
launch in 2009, has established itself as the premier business<br />
and investment guide for the <strong>North</strong> <strong>West</strong> Province.<br />
The boom in commodity prices that accompanied the international<br />
slowdown that resulted from the Covid-19 pandemic was a boon to the<br />
<strong>North</strong> <strong>West</strong>’s mining companies and helped to offset some of the hardship<br />
in the province during 2020 and <strong>2021</strong>. This topic is covered extensively in<br />
the mining overview and in a special feature on the new uses to which<br />
platinum group metals (PGMs) are being put in the service of the rising<br />
cleaner energy movement.<br />
<strong>North</strong> <strong>West</strong> <strong>Business</strong> includes news and analysis of the most important<br />
sectors. Best known for its platinum mines, grain and livestock farming<br />
and tourism, the province is making a concerted effort to bolster its<br />
manufacturing capacity through a dedicated new strategy.<br />
To complement the extensive local, national and international<br />
distribution of the print edition, the full content can also be viewed online<br />
at www.globalafricanetwork.co.za. Updated information on the <strong>North</strong><br />
<strong>West</strong> is also available through our monthly e-newsletter, which you can<br />
subscribe to online at www.gan.co.za, in addition to our complementary<br />
business-to-business titles that cover all nine provinces, our flagship South<br />
African <strong>Business</strong> title and the new addition to our list of publications, African<br />
<strong>Business</strong>, which was launched in 2020. ■<br />
Chris Whales<br />
Publisher, Global Africa Network | Email: chris@gan.co.za<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 />
Member of the Audit Bureau<br />
of Circulations ISSN 1996-10<strong>22</strong><br />
COPYRIGHT | <strong>North</strong> <strong>West</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 | Aurecon; Bushveld Minerals; De Wildt Solar; Juanita<br />
Swart on Unsplash (boats on Hartbeespoort Dam); Implats; Mafikeng<br />
Digital Innovation Hub; <strong>North</strong>-<strong>West</strong> University; Pilanesberg Platinum<br />
Mine; Sun City; Tourism <strong>North</strong> <strong>West</strong>; Vuselela TVET College; John Young.<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 <strong>North</strong> <strong>West</strong> <strong>Business</strong> is accurate and up-to-date, the<br />
publishers make no representations as to the accuracy, quality,<br />
timeliness, or completeness of the information. Global Africa Network<br />
will not accept responsibility for any loss or damage suffered as a result<br />
of the use of or any reliance placed on such information.<br />
7 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
CONTENTS<br />
Energy 37<br />
Solar plants are proliferating in the <strong>North</strong> <strong>West</strong>.<br />
Tourism 38<br />
Biodiversity protection is expanding.<br />
Education and training 40<br />
A new vocational stream is being introduced at schools.<br />
Development finance and SMME support 43<br />
The Mafikeng Digital Innovation Hub will assist small businesses.<br />
Banking and financial services 44<br />
Smartphone banking is catching on.<br />
Reference<br />
Municipal map 13<br />
A guide to <strong>North</strong> <strong>West</strong>’s district and local municipalities.<br />
Key sector contents 26<br />
Overviews of the main economic sectors of <strong>North</strong> <strong>West</strong>.<br />
Locator map<br />
Index<br />
IBC<br />
IBC<br />
ABOUT THE COVER:<br />
Credit: <strong>North</strong> <strong>West</strong> Provincial<br />
Government. The <strong>North</strong> <strong>West</strong> is<br />
responsible, together with the Free<br />
State, for 80% of sunflower seed<br />
production in South Africa. In 2018/19<br />
the crop was 681 000 tons. The<br />
Agricultural Research Council’s oil and<br />
protein seed research farm is located<br />
in Potchefstroom. According to the<br />
Southern African Grain Laboratory, there<br />
are nearly 100 grain silos in the province.<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
8
Key catalytic investment<br />
projects are available<br />
MESSAGE<br />
The Musina-Makhado Special Infras<br />
Economic Zone is a flagship project<br />
drive<br />
Limpopo Premier Chupu Stanley Mathabatha invites<br />
private investors to work with the public sector in devel<br />
The <strong>North</strong> <strong>West</strong> Province is the ideal place for commercial<br />
ventures and the <strong>North</strong> <strong>West</strong> Development Corporation<br />
guides building the infrastructure way a valuable and business growing partner. the economy.<br />
MESSAGE<br />
Iwant to start by thanking Global Africa Network for sustaining the<br />
Limpopo Prem<br />
The publication <strong>North</strong> of <strong>West</strong> this important Development magazine, Corporation Limpopo <strong>Business</strong>. The NWDC’s I also wish strategic to join thrust is to drive an<br />
in celebrating priorities in w<br />
welcomes this the 12th publication edition of of what <strong>North</strong> I consider <strong>West</strong> a inclusive premier strategy business towards and economic growth and<br />
investment guide for our beautiful Limpopo Province.<br />
already receiv<br />
<strong>Business</strong> <strong>2021</strong>/<strong>22</strong> and invites all potential transformation in the province in line with the<br />
Indeed, investors Limpopo to engage <strong>Business</strong> with the is an NWDC important relating partner provincial the priorities. continued<br />
to endeavour the myriad to opportunities market and which position our Limpopo province offers. as a leading and The most NWDC’s attractive purpose is to contribute towards<br />
business The <strong>North</strong> and investment <strong>West</strong> Development destination. Corporation the growth and transformation of the economy<br />
We<br />
by<br />
(NWDC) This is informative an agency edition of the Provincial once again Government affords us an opportunity positioning the to take <strong>North</strong> you <strong>West</strong> Province as a competitor t<br />
of through the <strong>North</strong> the <strong>West</strong> plentiful Province. business It was and investment established offerings to in of the our SADC province, region, from Africa A<br />
Bela-Bela to Musina.<br />
Premier<br />
and the<br />
Chupu<br />
globe in<br />
plan, finance, coordinate, promote and carry out the investment attraction.<br />
a<br />
Through this publication, you will also learn about great private-public Stanley Mathabatha<br />
economic development of the <strong>North</strong> <strong>West</strong> Province The NWDC aims to demonstrate its leadership successful natio<br />
and partnership its people. investments that are the pulse of our provincial by implementing economy. key programmes and providing general electio<br />
The As you NWDC will focuses come to on learn, the commerce, Limpopo is finance, home to a support thriving mining for the development sector, of key sectors of election the which w<br />
mining, tantalising tourism, tourism manufacturing, offerings and a agriculture, limitless potential retail for economy the agricultural in line with sector. the conventional economic and<br />
enterprise-related The construction activities industry and is one other of the business booming sectors industrial of policies the Limpopo of the <strong>North</strong> <strong>West</strong>.<br />
resulting economy, in the wealth inherited and legacy job of creation an infrastructure while backlog means that the<br />
taking sector cognisance has a longer of future. aims and Investment objectives in this of the sector is Key an investment strategic programmes<br />
in the<br />
Reconstruction future. Limpopo and Province Development has also moved Programme to embrace of the new digital economy<br />
• SMMEs and co-operative development (financial<br />
the through Republic competitive of South Africa. support It is infrastructure.<br />
listed a Schedule and non-financial support)<br />
3D provincial The Musina-Makhado government entity Special in Economic terms of the Zone (MMSEZ) remains our<br />
• Project management services<br />
PFMA flagship of 1994, economic Act 01 development of 1999 and project. reports Through to the this initiative, and through<br />
• Special Economic Zone (SEZ)<br />
Provincial partnerships Department with the of private Economic sector, Development,<br />
we hope to stimulate economic growth,<br />
• Property development and management<br />
Environment, create much-needed Conservation employment and Tourism opportunities (DEDECT). and reduce the ballooning<br />
• Mining<br />
gap of inequality.<br />
• Agro-processing<br />
Vision <strong>Business</strong> opportunities in this SEZ project are limitless. These opportunities<br />
• Tourism<br />
To range be the from cornerstone manufacturing, of promoting agroprocessing, trade, attracting automotives, steel, pharmaceutical,<br />
• Trade and Investment<br />
investment logistics and and many ensuring more. inclusive economic growth<br />
and transformation What is even in more the <strong>North</strong> tantalising <strong>West</strong> Province. is the fact that this CONTACT project DETAILS enjoys the<br />
overwhelming support of our National Government.<br />
Head Office<br />
Mission As the Limpopo Provincial Government, we have placed this Musina-<br />
<strong>22</strong> James Watt Crescent, Industrial Site, Mahikeng<br />
To Makhado contribute SEZ to Project the inclusive at the economic apex of our growth priorities. and We<br />
Tel:<br />
believe<br />
+27<br />
that<br />
18 381<br />
the<br />
3663<br />
only<br />
Chupu Stanley<br />
transformation available option of the for us <strong>North</strong> is to <strong>West</strong> make Province this project through: a resounding Fax: success. +27 86 503 4391<br />
Premier of Lim<br />
Limpopo is open for business!<br />
• Industrial development ■<br />
Rustenburg branch and Trade Invest<br />
• Commercial investment<br />
209 Beyers Naude Drive, Rustenburg<br />
• Property development and management<br />
Tel: +27 14 594 2570<br />
Fax: +27 86 559 6549<br />
• Development of sustainable enterprises<br />
Email: info@nwdc.co.za<br />
• Trade and investment attraction<br />
Website: www.nwdc.co.za<br />
• Programme management.<br />
9 7 NORTH LIMPOPO<br />
WEST BUSINESS BUSINESS <strong>2021</strong>/<strong>22</strong><br />
2020/21 LIMPOPO BUSIN
A REGIONAL OVERVIEW OF<br />
NORTH WEST<br />
PROVINCE<br />
The <strong>North</strong> <strong>West</strong> has massive mineral resources. Credit: Implats<br />
Global prices are supporting rising production for miners and<br />
farmers but governance issues at local level need to be addressed.<br />
By John Young<br />
There was good news for South African<br />
taxpayers in the first half of <strong>2021</strong>:<br />
expected income tax increases did<br />
not materialise. This was because the<br />
mining industry, many of whose key players have<br />
operations in the <strong>North</strong> <strong>West</strong>, delivered R99.6-<br />
billion more than expected to National Treasury.<br />
With many global prices for commodities rising<br />
to record levels in 2020 and <strong>2021</strong>, mining companies<br />
were able to pay down debt, reward shareholders<br />
and dust off feasibility studies for expansion projects<br />
that had previously been shelved. This also helped<br />
to ameliorate the effects of the global pandemic in<br />
terms of job losses in the <strong>North</strong> <strong>West</strong>.<br />
The other sector in good shape – and in which<br />
the <strong>North</strong> <strong>West</strong> excels for variety and quality – is<br />
agriculture. The grain sector, one of the province’s<br />
strongest, experienced an unusual bonanza of nearrecord<br />
harvests and good prices on the international<br />
market. The good prices are driven by drought in other<br />
parts of the world and increasing demand from China.<br />
Logistical challenges, not all of which were<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
10
SPECIAL FEATURE<br />
related to Covid-19, somewhat hampered the<br />
amount of product that miners and farmers were<br />
able to export through the country’s ports.<br />
At local level, Clover announced in <strong>2021</strong> that it<br />
was to close down its cheese factory in Lichtenburg<br />
because of unreliable water and power supply.<br />
The ability of local authorities to manage the<br />
infrastructure of towns and districts has been under<br />
scrutiny for some time and national government<br />
has signalled its intention to intervene.<br />
The African National Congress, the province’s<br />
biggest political party and the party of national<br />
government, announced a new premier four<br />
months before local government elections were<br />
due to be held.<br />
The <strong>North</strong> <strong>West</strong> Provincial Government<br />
announced a series of steps taken within its<br />
administration which showed that accountability<br />
for bad behaviour was being implemented. Among<br />
the measures were the firing of the head of the<br />
Department of Health, the cancellation of an ICT<br />
contract and a restructuring process undertaken in<br />
conjunction with the National Department of Public<br />
Service and Administration.<br />
The establishment of the Mafikeng Digital<br />
Information Hub, a co-working 4IR hub in the<br />
centre of Mahikeng, is an indicator that the province<br />
is intent of joining the digital movement. The hub<br />
is led by Joseph Ndaba, who is serving on the<br />
Presidential Commission on 4IR.<br />
The aim of the hub is to unearth and cultivate<br />
innovative solutions that will assist communities to<br />
acclimatise to the digital world and to help incubate<br />
new businesses.<br />
Geography and economy<br />
The <strong>North</strong> <strong>West</strong> is bordered on the west by the<br />
Republic of Botswana and on the east by Gauteng,<br />
the engine of the South African economy.<br />
The <strong>North</strong> <strong>West</strong> province makes up 6.8% of the<br />
population of South Africa (3.6-million), 8.7% of the<br />
land mass (105 076km²) and accounts for 5.8% of<br />
economic output in terms of gross value added.<br />
The Vaal River runs along the province’s southeastern<br />
border with the Free State, and the province<br />
also shares borders with the <strong>North</strong>ern Cape to the<br />
south and Limpopo in the north.<br />
AI 4 Rural Development at the Mafikeng Digital<br />
Innovation Hub.<br />
The mineral reserves in the province are<br />
enormous. Platinum group metals (PGMs)<br />
predominate but there are significant deposits<br />
of gold, uranium, diamonds, copper, vanadium,<br />
fluorspar and nickel. Stone and limestone are also<br />
found in large quantities.<br />
Mining beneficiation takes place at many<br />
places, with Rustenburg being particularly strong<br />
in this sector. The economy of the town is closely<br />
linked to the fortunes of platinum mining, with the<br />
sector contributing about 70% of the city’s gross<br />
geographic product.<br />
Automotive components firms are clustered<br />
in Brits, which in turn is close to the automotive<br />
manufacturing hub of Rosslyn (Pretoria) in<br />
Gauteng. Towns like Klerksdorp (agro-processing<br />
and engineering) and Potchefstroom (food and<br />
beverages) also have manufacturing capacity.<br />
The <strong>North</strong> <strong>West</strong> is a major producer of maize<br />
and sunflower seeds and many other agricultural<br />
products. About 20% of South Africa’s maize comes<br />
from the province, as does 15% of its wheat.<br />
The dry western part of the province is home<br />
to beef cattle, game ranching and hunting. The<br />
normally well-watered eastern and north-eastern<br />
regions carry varied crops, many of which are sold in<br />
Johannesburg and Pretoria.<br />
The agricultural sector also generates largescale<br />
storage and logistics operations, particularly<br />
in Klerksdorp, Vryburg and Brits, together with a<br />
number of agro-processing plants. Senwes is one of<br />
the biggest with extensive silo infrastructure while<br />
Suidwes has 17 retail outlets and MGK makes full-fat<br />
soy at its manufacturing plant. Lichtenburg-based<br />
NWK makes liquid fertiliser and animal feed, processes<br />
sunflower seeds and runs 37 silos and three grain mills.<br />
11<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
The Valley of Waves at Sun City. Credit: Sun City<br />
The province’s three Technical and<br />
Vocational Education and Training (TVET)<br />
colleges and the well-respected <strong>North</strong>-<strong>West</strong><br />
University all have several campuses catering<br />
to a wide range of educational disciplines.<br />
The university has a strong reputation as a<br />
research institution.<br />
Major towns<br />
Mahikeng<br />
The capital city of the <strong>North</strong> <strong>West</strong> Province lies<br />
on the banks of the Molopo River. Situated in<br />
the north-west sector of the province near the<br />
Botswana border, the city has a strong services<br />
sector and a population of approximately 300 000.<br />
The city’s main sectors are financial services,<br />
services, transport and trade. The Garona District<br />
houses the <strong>North</strong> <strong>West</strong> parliament and government<br />
buildings. The arts are promoted by the Mmabana<br />
Cultural Centre, while the <strong>North</strong> <strong>West</strong> Institute<br />
of Hotel and Tourism Management is one of<br />
three tertiary institutions in the city. <strong>North</strong>-<strong>West</strong><br />
University’s Graduate School of <strong>Business</strong> and<br />
Government Leadership is located in the city, and<br />
Unisa has a presence. Other institutions are the<br />
Taletso TVET College and the International School<br />
of South Africa.<br />
The town is well served by hotels such as the<br />
Mmabatho Palms, Hotel and Casino Convention<br />
Resort. White rhino and giraffe can be found at<br />
the Mahikeng Game Reserve.<br />
Tlokwe<br />
The city of Potchefstroom is administered by the<br />
Tlokwe Local Municipality. A large campus of<br />
<strong>North</strong>-<strong>West</strong> University and its business school is<br />
located in the city, as is the Vuselela TVET College<br />
and the Potchefstroom College of Agriculture.<br />
More than 120 000 people regularly attended<br />
the annual Aardklop Festival before Covid. The<br />
city has a population of about 173 000.<br />
The sports facilities of <strong>North</strong>-<strong>West</strong> University<br />
are world-class and have been the base for<br />
Spain’s soccer team and Australia’s cricket team<br />
in world cups. Tlokwe is a hub for the strong<br />
commercial agriculture of the region and has<br />
several food and beverage manufacturers<br />
including Nestlé. Some of the bigger enterprises<br />
include fertiliser companies such as Kynoch,<br />
munitions manufacturers, and food processors<br />
like King Food. An army base contributes to the<br />
economy, and the airfield formerly used by the<br />
military is now run by the municipality.<br />
The N12 Treasure Route passes through the<br />
city and holds potential for further development<br />
of tourist highlights such as Boskop Dam and the<br />
Mooi River on which the town is located.<br />
Rustenburg<br />
Rustenburg is a local municipality within the<br />
Bojanala Platinum District Municipality and the<br />
headquarters of both bodies are in the city of<br />
about 625 000 residents.<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
12
an important regional centre and the town where<br />
several important companies' headquarters are<br />
located. These include Senwes, through whose silos<br />
a large proportion of South Africa's grains move<br />
every year, and a number of engineering enterprises<br />
which serve the mining industry.<br />
areas. The Bloemhof Bonanza is the biggest and<br />
most lucrative inland-angling event in South<br />
Africa, with more than 2 000 anglers trying to<br />
win R1.5-million in prize money. SPECIAL The nearby FEATURESA<br />
Lombard Nature Reserve has a fine herd of black<br />
wildebeest.<br />
Municipalities in <strong>North</strong> <strong>West</strong> Province<br />
Limpopo<br />
BOTSWANA<br />
Ramotshere<br />
Moiloa<br />
Moses Kotane<br />
Bojanala<br />
Madibeng<br />
Moretele<br />
Molopo<br />
Mafikeng<br />
Kgetlengrivier<br />
Rustenburg<br />
Kagisano<br />
Ratlou<br />
Ngaka Modiri Molema<br />
Ditsobotla<br />
JB Marks<br />
Gauteng<br />
Dr Ruth Segomotsi Mompati<br />
Tswaing<br />
Dr Kenneth Kaunda<br />
Naledi<br />
Matlosana<br />
Mamusa<br />
Maquassi Hills<br />
<strong>North</strong>ern Cape<br />
Greater Taung<br />
Lekwa-Teemane<br />
Free State<br />
Metropolitan/District Municipality<br />
Boundary<br />
Local Municipality Boundary<br />
District Municipality<br />
Local Municipality<br />
Bojanala<br />
Naledi<br />
NORTH WEST BUSINESS 2019<br />
Rustenburg straddles the N4 “Platinum<br />
Highway” about 120km west of the cities of Pretoria<br />
and Johannesburg in the Gauteng Province, the<br />
economic hub of South Africa. The N4 stretches<br />
across South Africa from Mozambique in the east,<br />
to the Botswana border in the west and, as the Trans<br />
Kalahari Route, ultimately to Namibia.<br />
At the foot of the Magaliesberg Mountain<br />
Range, Rustenburg is only 50km from one of the<br />
country’s premier tourist resorts, Sun City, which in<br />
turn is adjacent to the 550km² Pilanesberg National<br />
Park and Game Reserve which has a small airport.<br />
Orbit TVET College has a campus in Rustenburg,<br />
Unisa has a regional office and the Agricultural<br />
Research Institute’s Industrial Crops Division is also<br />
located in the city. The Royal Bafokeng Sports Palace<br />
hosted five group matches in the 2010 World Cup.<br />
Platinum mining began in 1929 and has driven the<br />
city’s growth ever since. ■<br />
30
SPECIAL FEATURE<br />
The <strong>North</strong> <strong>West</strong> has the metals<br />
and minerals to help the world<br />
go green<br />
Palladium is more valuable than gold, and not only in dollars.<br />
Finding new uses for platinum is one of the<br />
biggest priorities exercising the minds of the<br />
leaders of the South African mining industry<br />
as it moves to adapt to a world anxious to<br />
distance itself from fossil fuels.<br />
Among the innovators and investors looking<br />
for new solutions and applications for platinum<br />
group metals (PGMs) and other commodities are<br />
companies operating in the <strong>North</strong> <strong>West</strong>.<br />
A neat symbol of the shift in thinking can be<br />
found in central Johannesburg where the head<br />
office of the Minerals Council South Africa is<br />
powered by 40 ounces of platinum and natural gas.<br />
The fuel cell (pictured) of the national mine owners’<br />
association is South Africa and Africa’s first base<br />
load installation.<br />
While there is broad agreement that the world<br />
needs to steer away from minerals that pollute<br />
the environment, the supply of materials used in<br />
electric car manufacture, such as nickel and cobalt,<br />
is also finite.<br />
Electric vehicles<br />
A key reason for a surge in palladium prices at the<br />
start of <strong>2021</strong> was increased demand for the metal<br />
in the creation of catalytic converters on motor<br />
vehicles. The price went past $2 000 per ounce,<br />
surpassing the price of gold.<br />
Stricter emissions rules in Europe and the<br />
US are driving demand. China is planning<br />
to impose similar rules. Hybrid cars also<br />
need catalytic converters but the supply<br />
of palladium is not able to keep up with<br />
demand. One of the results of this is that car<br />
manufacturers are looking at alternatives such<br />
as rhodium or platinum.<br />
Speaking at the 2019 Investing in African<br />
Mining Indaba, Ford’s head of Energy Storage<br />
Strategy and Research, Ted J Miller, said that the<br />
motor industry was “uncomfortable driving these<br />
commodities”. He noted that Ford has already<br />
reduced cobalt production by two-thirds, but<br />
the challenge is scale.<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
14
SPECIAL FEATURE<br />
hydrogen technology. What is true for Germany<br />
will be true of other European nations as they<br />
pivot from carbon.<br />
An Atlas of Green Hydrogen Generation<br />
Potentials in Africa already exists and areas<br />
with good solar coverage and steady winds<br />
have great potential. Many parts of South Africa<br />
qualify. Germany’s Federal Research Ministry will<br />
fund the first phase of the partnership to the<br />
tune of €40-million. If a kilogram of hydrogen<br />
can be produced in Namibia for less than €2, as<br />
is envisaged, it will be the cheapest hydrogen in<br />
the world.<br />
The editor of the respected Mining Weekly<br />
publication, Martin Creamer, has published a<br />
series of articles and editorials extolling the virtues<br />
of what he calls the “best of two new carbonreducing<br />
technology worlds”.<br />
Creamer notes that South Africa’s abundant<br />
supplies of platinum group metals and<br />
manganese ore can make the country a leader in<br />
battery electric vehicles (BEV) and fuel cell electric<br />
vehicles (FCEV). He further points to the work<br />
being done by Hydrogen South Africa (HySA) at<br />
three universities and the Council for Scientific<br />
and Industrial Research (CSIR). South Africa’s good<br />
supplies of sunshine and wind make it ideally<br />
suited to generate hydrogen and if the country<br />
could capture 25% of the world market, it would<br />
be worth $600-million (Mining Weekly).<br />
The German government is reaching out<br />
to African countries in its search for sources of<br />
“green hydrogen”. PGMs can play an important<br />
role in the creation and application of this<br />
cleaner product and Germany has signed an<br />
agreement with Namibia to partner on green<br />
Cleaner processing<br />
Platinum has proven benefits and applications as<br />
a catalyst in the creation of hydrogen fuel cells but<br />
if the method used to mine the platinum is itself<br />
carbon-emitting and “dirty” then the processes<br />
could be said to be cancelling one another out.<br />
Pilanesberg Platinum Mines has introduced<br />
a method of processing that itself is cleaner<br />
than traditional methods. The result is that<br />
sulphur dioxide emissions are eliminated from<br />
the smelting process. The Kell plant also reduces<br />
electricity usage (by more than 80%), improves<br />
recovery rates and can extract cobalt, the chemical<br />
element which is another important element for<br />
batteries for electric vehicles. Sedibelo Platinum<br />
Mines, which owns Pilanesberg, is a partner in<br />
Kell South Africa with the Industrial Development<br />
Corporation (IDC), together with another partner.<br />
Credit: Bushveld Minerals<br />
15 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
SPECIAL FEATURE<br />
In 2012, Anglo Platinum launched an<br />
underground locomotive powered by a fuel cell.<br />
Platinum coating greatly enhances the hydrogen<br />
absorption capacity of fuel cells. In 2016 Impala<br />
Platinum Refinery unveiled a fuel cell forklift and a<br />
hydrogen refuelling station in Springs.<br />
Bushveld Minerals has two arms: Bushveld<br />
Vanadium, which mines and processes vanadium,<br />
and Bushveld Energy, which is working on<br />
Vanadium Redox Flow Batteries (VRFB). Energy<br />
storage is the focus of much research across<br />
the globe and Bushveld Energy intends its solar<br />
installation at its Vametco mine, supported by<br />
VRFB, to answer many questions.<br />
Bushveld Vanadium is one of three vanadium<br />
producers in the world. Vanadium has traditionally<br />
been used mainly in steel production, but its newage<br />
uses are becoming more and more important.<br />
World supply is below 100 000 tons per annum.<br />
Bushveld Vanadium has three assets: the<br />
Vametco mine and processing plant, the Brits<br />
vanadium project and the Mokopane vanadium<br />
project where feasibility studies are underway (in<br />
Limpopo Province).<br />
Bushveld Minerals estimates that, when<br />
energy storage applications in the electric<br />
transport sectors are considered, total demand for<br />
batteries is forecast to reach 4 584GWh by 2040.<br />
The company believes that South Africa is well<br />
positioned build an industry that will play a critical<br />
role in Africa and beyond.<br />
To that end, it is partnering with the Industrial<br />
Development Corporation (IDC) to build a<br />
$10-million plant in East London (Eastern Cape)<br />
to produce vanadium electrolytes from the ore<br />
mined in the <strong>North</strong> <strong>West</strong>. The electrolytes are a<br />
vital component of the redox flow battery.<br />
Lithium batteries need nickel sulphate and<br />
nickel sulphate is a byproduct of platinum<br />
production. A new company has been formed,<br />
Thakadu Group, to buy and sell nickel offtake from<br />
Lonmin. The deal will see Thakadu handle 25 000<br />
tons of nickel offtake to sell to battery makers.<br />
Sibanye-Stillwater, which started its life as a<br />
gold company in South Africa and swiftly became<br />
a global leader in mining PGMs, bought a share<br />
in a Finnish mining and chemicals company<br />
Keliber in early <strong>2021</strong> with the aim of producing<br />
battery-grade lithium hydroxide in that country.<br />
The partnership will invest in lithium mines, a<br />
concentrator plant and a lithium hydroxide plant.<br />
Sibanye-Stillwater is the world’s largest primary<br />
producer of platinum, second-largest primary<br />
producer of palladium, third-largest producer<br />
of gold and the world’s leading global recycler<br />
and processor of spent PGM catalytic converter<br />
materials. Two of the company’s three South<br />
African PGM assets are in the <strong>North</strong> <strong>West</strong>, Marikana<br />
and Rustenburg, and it is the majority shareholder<br />
in the Platinum Mile tailings retreatment facility<br />
near Rustenburg, which recovers PGMs from the<br />
tailings of the Rustenburg operations.<br />
Impala Platinum (Implats) has assets on both<br />
limbs of the Bushveld Complex. Impala Rustenburg<br />
near Rustenburg in the <strong>North</strong> <strong>West</strong> comprises a<br />
multi-shaft mining complex and concentrating<br />
and smelting plants. The base and precious metal<br />
refineries are in Springs, east of Johannesburg.<br />
<strong>North</strong>am has invested heavily in a smelter<br />
expansion project at its Zondereinde mine. ■<br />
Green mobility. Electric cars need the minerals and metals that the <strong>North</strong> <strong>West</strong> has. Credit: John Young
Creating a better future<br />
…through the way we do business<br />
Developing and caring<br />
for host communities<br />
Caring for and<br />
supporting<br />
our environment<br />
Bringing<br />
long-term growth<br />
and opportunity<br />
Providing meaningful<br />
employment<br />
Creating value for<br />
our stakeholders<br />
This is our PURPOSE<br />
To improve the lives of<br />
future generations<br />
Coolead 18725
SPECIAL FEATURE<br />
Mining<br />
Many mining companies are thinking of expansion.<br />
SECTOR INSIGHT<br />
Energy plants are being<br />
constructed on mines.<br />
Credit: Implats<br />
Commodity prices buoyed the mining sector in <strong>2021</strong>.<br />
Impala Platinum (Implats) posted a 125% increase<br />
in headline earnings in September <strong>2021</strong>. The group<br />
allocated 70% of free cashflow to shareholder returns<br />
through convertible bond repurchases and cash dividends. This<br />
came about because of record rand prices for the PGM basket,<br />
increased sales and improved operations. Work has been done<br />
at Implats’ Rustenburg to<br />
enhance mine flexibility and<br />
the company expects this to<br />
deliver further growth.<br />
Pilanesberg Platinum Mines<br />
has been active 80km north-west<br />
of Rustenburg since 2009. Mining<br />
operations are conducted by<br />
contractors while PPM manages<br />
the concentrator (screen, crush,<br />
mill, float, thicken and dry). The<br />
operation has annually achieved<br />
an average of about 150 000<br />
ounces of platinum group metal<br />
(PGM) concentrate.<br />
RBPlat declared an interim<br />
dividend of R1.5-billion in August<br />
of <strong>2021</strong> and was expecting to<br />
have similar good news at yearend,<br />
despite reduced production<br />
volumes because of the Covid-19<br />
pandemic. The four metals<br />
that make up the bulk of Royal<br />
Bafokeng Platinum’s portfolio<br />
increased in price by more<br />
than 50% in the course of <strong>2021</strong>.<br />
Rhodium earns RBPlat 45% of its<br />
income, followed by palladium,<br />
platinum and gold.<br />
Even though the Rustenburg<br />
furnace 5 was put on care and<br />
maintenance, Merafe Resources<br />
reported a small improvement in<br />
ferrochrome production for the<br />
first quarter of its financial year.<br />
The joint with Glencore, Glencore<br />
Merafe Chrome Venture, apparently<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
18
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Page | 2<br />
19<br />
SOUTH AFRICAN BUSINESS 2020
SPECIAL FEATURE<br />
achieved efficiencies which helped it to increase production by 3% for<br />
the three months to the end of March <strong>2021</strong>, compared to the same<br />
period in 2020. The total produced was 103 000 tons.<br />
Platinum group metals (PGM) miner Sibanye Stillwater will spend<br />
a further R3.9-billion on an expansion project at its Marikana mine, after<br />
previous owners Lonmin spent more than R4-billion on it. The aim is to be<br />
producing 250 000oz per year of platinum, gold, palladium and rhodium<br />
in 2028.<br />
It is not only PGMs that are sparking interest in expanded<br />
operations. Harmony Gold is at an advanced stage of a feasibility study<br />
to determine the viability of expanding the Kalgold open-pit operation<br />
(Windmill zone). Kalgold is an open-pit gold mine situated on the<br />
Kraaipan Greenstone Belt, 55km south-west of Mahikeng. In 2020, 1<br />
153kg of gold was produced, against 1 249kg in the previous year.<br />
Small business support<br />
Pilanesberg Platinum Mines created Community Crusher as a nonprofit<br />
enterprise but with 14 employees and a steady set of orders for<br />
building projects run by the company, the small business is starting to<br />
show signs of becoming a bigger business.<br />
Many mines run similar programmes, sourcing goods and<br />
services from local community-based companies and sometimes<br />
providing mentoring and advice on how to improve as businesses.<br />
Implats has a programme of procurement in which it supports<br />
local business and black-owned businesses through enterprise and<br />
supplier development programmes.<br />
The Provincial Government of the <strong>North</strong> <strong>West</strong> is in talks with several<br />
mining companies in the Matlosana Local Municipality area (which<br />
includes Klerksdorp and Orkney) as some mines are being closed<br />
down. One of the initiatives to extract more value from mining is the<br />
proposed Platinum Valley Special Economic Zone. Creating a base<br />
for companies to supply the mining industry is one of the key drivers<br />
behind the scheme.<br />
The SEZ is intended for Mogwase in the Bojanala District, north of<br />
Rustenburg and east of Sun City. When fully developed, 200ha of land<br />
will be taken up by three infrastructure facilities comprising Logistics,<br />
Light Manufacturing and Heavy Manufacturing.<br />
The Seda Platinum Incubator (SPI) is an initiative of the<br />
Platinum Trust of South Africa and is funded by the Small Enterprise<br />
Development Agency (Seda) through its Seda Technology Programme<br />
(Stp) with the support of the <strong>North</strong> <strong>West</strong> Provincial Government and<br />
private companies.<br />
Mineral resources<br />
The <strong>North</strong> <strong>West</strong> Province is aligned with the <strong>West</strong>ern Limb of the<br />
Bushveld Igneous Complex, a remarkably rich minerals formation.<br />
Mines in the province produce 50% of the platinum produced in the<br />
world, and 65% of South Africa’s PGMs.<br />
Laboratory testing being done at<br />
Pilanesberg Platinum Mines. Credit: PPM<br />
Chromite is the other major<br />
mineral mined throughout the<br />
province, and there are several<br />
ferrochrome smelters and other<br />
processing plants. South Africa<br />
produces about 70% of the<br />
world’s chrome.<br />
Gold and uranium are found<br />
along the border of the province<br />
with Gauteng and the Free State<br />
(in Klerksdorp and Orkney).<br />
Diamonds are mined at Christiana,<br />
Bloemhof and Lichtenburg.<br />
Other minerals include<br />
fluorspar, vanadium, rhodium,<br />
uranium, copper, limestone,<br />
slate, phosphate, manganese,<br />
coal and nickel. Limestone<br />
quarries run by G&W Base and<br />
Industrial Minerals in the Marico<br />
District are located next to a PPC<br />
cement factory.<br />
One of the last economically<br />
viable limestone deposits in<br />
South Africa is mined and<br />
processed by Sephaku Cement.<br />
Sephaku runs a 6 000-ton-per-day<br />
clinker plant near Lichtenburg.<br />
AfriSam, PPC and Lafarge<br />
are active in the Mahikeng/<br />
Lichtenburg area, but Sephaku<br />
is confident that its clinker and<br />
cement-production facilities will<br />
be supported by raw materials<br />
for at least 30 years. AfriSam<br />
has taken measures to reduce<br />
carbon emissions at its Dudfield<br />
cement plant. ■<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
20
SPECIAL FEATURE<br />
SPECIAL FEATURE<br />
South African economy at a glance<br />
Insight into the South African ecomomy.<br />
SPECIAL FEATURE<br />
ZIMBABWE<br />
NAMIBIA<br />
BOTSWANA<br />
Limpopo<br />
7%<br />
MOZAMBIQUE<br />
<strong>North</strong> <strong>West</strong><br />
6%<br />
Gauteng<br />
Mpumalanga<br />
35%<br />
7%<br />
SWAZI-<br />
LAND<br />
<strong>North</strong>ern Cape<br />
2%<br />
Free State<br />
5%<br />
LESOTHO<br />
KwaZulu-<br />
Natal<br />
16%<br />
<strong>West</strong>ern Cape<br />
14%<br />
Eastern Cape<br />
8%<br />
Percentage contribution of each province to national GDP.<br />
SOURCE: STATS SA WWW.STATSSA.GOV.ZA<br />
Credit: Impala Platinum<br />
secured tens of thousands of new seats on direct<br />
Trends Table: South African mining production<br />
flights to and from the city).<br />
• Companies are successfully trading into Africa.<br />
Good Increased signs for the economy by 116.5% include: year-on-year • Niche in agricultural April markets <strong>2021</strong>. are booming with<br />
• Several provincial governments and investment macadamia nuts being the most successful.<br />
agencies are establishing trade relations and Pecan nuts have done well and wine and grape<br />
study Largest programmes contributors with BRICS countries. State % increase exports to China % contribution<br />
are growing.<br />
visits to and from China immediately before and • Private education at school and tertiary level is<br />
after a major BRICS summit in 2018 gave an indication<br />
that Ramaphosa holds high hopes for • New banking licences have been issued and<br />
growing as a sector.<br />
Platinum Group Metals 276.1% 39.2%<br />
increased trade with the biggest of the BRICS several more are in the pipeline.<br />
nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and<br />
2017 was worth $39.1-billion. South Africa wants more are expected.<br />
to Gold grow tourist numbers from China. South Africa 177.9% • Investment 16.6% in infrastructure (especially ICT and<br />
became the first country in the world to export railways) is strong. Nedbank’s report on capital<br />
beef to China in 2017, to go with existing exports expenditure in South Africa stated that the<br />
of<br />
Manganese<br />
iron ore, platinum<br />
ore<br />
and fruit and wine.<br />
208.2%<br />
29 large projects<br />
14.2%<br />
announced in the first half<br />
• Tourists are visiting South Africa in record numbers<br />
(Cape Town’s Air Access programme has Mail). The renewable energy<br />
of 2018 were valued at R63.9-billion (Financial<br />
programme<br />
Iron ore 149.1% 13.3%<br />
Source: StatsSA.com<br />
17 SOUTH AFRICAN BUSINESS 2019<br />
Source: world exports.com<br />
Table: South African mineral sales<br />
Mineral sales increased by 152.7%<br />
year-on-year in April <strong>2021</strong>.<br />
Largest contributors % increase % contribution<br />
PGMs 465.9% 103<br />
Iron ore 115.6% 19.5<br />
Gold 40.9% 6.5<br />
Source: StatsSA.com<br />
Source: world exports.com
ADVERTORIAL<br />
Money experts serving the<br />
<strong>North</strong> <strong>West</strong> business community<br />
additional support that is most needed in times<br />
of change and uncertainty.’<br />
‘<br />
We know that success in business is<br />
about partnerships, so we put the<br />
building of deep, lasting,<br />
value-adding relationships at the<br />
centre of everything we do.<br />
‘<br />
Nedbank knows that navigating your business<br />
through a challenging economic landscape is<br />
hard enough, and that taking care of your daily<br />
business-banking needs shouldn't add to that<br />
load. 'With this in mind, we’ve designed the<br />
Nedbank <strong>Business</strong> Hub with convenience,<br />
security and control in mind. The Nedbank<br />
<strong>Business</strong> Hub boasts 130 different services and<br />
enables you to bank and transact, get finance,<br />
invest and insure – it's hassle-free banking at<br />
your fingertips,’ says Swanepoel.<br />
Johann Swanepoel, Regional Manager for<br />
<strong>Business</strong> Banking, says that a deep commitment<br />
to partnership is what governs the team's<br />
personal and professional values.<br />
‘Our bigger-picture banking approach enables<br />
us to not only offer solutions that our clients<br />
need, but also a holistic view of how our<br />
products are connected to create a framework<br />
that yields maximum impact across every facet<br />
of their businesses and beyond,’ he says. ‘We<br />
know that success in business is about<br />
partnerships, so we put the building of deep,<br />
lasting, value-adding relationships at the centre<br />
of everything we do. This means your goals are<br />
our goals, your vision is our vision, and your<br />
success is our success – while you rely on our<br />
‘Ultimately, our philosophy is to partner with our<br />
clients to grow their businesses, so we’re always<br />
finding ways to support them in this quest. Our<br />
aim is to use our financial expertise to do good<br />
to help build a strong, resilient economy for the<br />
betterment of all,’ he says.<br />
To take your business to the next level or for<br />
more information about Nedbank’s specialised<br />
service offering, please email Johann Swanepoel<br />
at JohannEu@nedbank.co.za or visit<br />
www.nedbank.co.za/business.<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
see money differently<br />
<strong>22</strong><br />
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services<br />
and registered credit provider (NCRCP16).
ADVERTORIAL<br />
Nedbank <strong>Business</strong> Banking<br />
helps the public sector<br />
see money differently<br />
‘<br />
We understand that the various<br />
spheres of government and their<br />
agencies face unique challenges...<br />
‘<br />
But the bank's role goes beyond offering<br />
banking solutions to these vital entities. As<br />
money experts who do good, Nedbank strives to<br />
empower the people behind the public sector by<br />
saving them time, money and helping them<br />
manage their money better.<br />
'We help them save time by offering on-site<br />
help from dedicated teams and through our<br />
market-leading Nedbank Money app and other<br />
digital solutions. We also help them save money<br />
through our preferential banking solutions and<br />
our award-winning Financial Fitness and<br />
Consumer Education Programme. The latter<br />
helps them manage their money better by<br />
providing budgeting and money management<br />
training, equipping their employees to deal with<br />
everyday money management challenges,' says<br />
Seleho.<br />
Nedbank is committed to delivering easy and<br />
innovative banking solutions to government,<br />
municipalities, state-owned enterprises and<br />
academic institutions, including TVET colleges<br />
and universities, throughout South Africa.<br />
Monei Seleho, Nedbank's Provincial Manager for<br />
the Public Sector in the <strong>North</strong> <strong>West</strong>, says that<br />
given the strategic importance of the public<br />
sector to the economy and the country at large,<br />
Nedbank has a dedicated team to offer financial<br />
solutions that enable the broader mandate of<br />
service delivery. ‘We understand that the<br />
various spheres of government and their<br />
agencies face unique challenges. They are ready<br />
and able to draw on the bank’s innovative,<br />
seamless and hassle-free products to help build<br />
a greater nation.’<br />
To find out more about how Nedbank can<br />
partner with your organisation to grow a<br />
greater South Africa, please email Monei Seleho<br />
on MoneiS@Nedbank.co.za or visit<br />
www.nedbank.co.za/business.<br />
see money differently<br />
23 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services<br />
and registered credit provider (NCRCP16).
ADVERTORIAL<br />
Nedbank offers specialist<br />
support for a post-Covid-19<br />
world<br />
informational access while not compromising on<br />
security. For example, with the award-winning<br />
Nedbank Money app, clients can manage<br />
accounts and investments, make payments and<br />
set savings goals and budgets, all from their<br />
smartphones. They can also make instant<br />
payments to anyone on their contact list, even if<br />
the recipient isn’t a Nedbank client,’ he says.<br />
‘<br />
This is all while staying true to<br />
Nedbank's brand promise to use its<br />
financial expertise to do good for<br />
individuals, families, businesses and<br />
the communities in which it operates.<br />
One of the solutions the bank has added to its<br />
portfolio, specifically with Covid-19 safety in<br />
mind, is appointment banking. ‘For your<br />
convenience and to limit the time you spend in<br />
public spaces, you can now make an appointment<br />
with a dedicated relationship banker<br />
directly via the Money app or Online Banking.<br />
Just choose the date, time and branch that suits<br />
you,’ says Makinita.<br />
‘<br />
Daniel Makinita, Regional Manager for Retail<br />
<strong>Business</strong> Banking in the <strong>North</strong> <strong>West</strong>, says that as<br />
South Africa progresses through the various<br />
stages of Covid-19, Nedbank is working through<br />
recovery scenarios with existing and<br />
prospective clients. This is all while staying true<br />
to Nedbank's brand promise to use its financial<br />
expertise to do good for individuals, families,<br />
businesses and the communities in which it<br />
operates.<br />
To find out more about banking from the<br />
comfort of your home or for more information<br />
about Nedbank’s specialised service offering,<br />
please email Daniel Makinita at<br />
DanielMak@Nedbank.co.za or visit<br />
www.nedbank.co.za.<br />
‘Throughout the pandemic, we have elevated<br />
our client engagement and extended<br />
tailor-made relief to many of our clients,<br />
equipping and enabling them to benefit from<br />
various digital and remote solutions. This<br />
ensures uninterrupted transactional and<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
see money differently<br />
24<br />
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services<br />
and registered credit provider (NCRCP16).
ADVERTORIAL<br />
Small-business solutions aimed<br />
at creating jobs and growing<br />
the economy<br />
Nedbank’s Regional Manager of Retail<br />
Relationship Banking in the <strong>North</strong> <strong>West</strong>,<br />
Pieter Naudé, explains how brand values built on<br />
the bank’s expertise can benefit Nedbank<br />
clients, especially during what is now considered<br />
‘the new normal’.<br />
Naudé says that for small-business clients,<br />
Nedbank continues to deliver end-to-end<br />
solutions through a dedicated business<br />
manager. ‘Our bigger-picture business<br />
approach enables us to have a holistic view of<br />
each business by understanding the vision,<br />
cashflow cycle, and transactional and capital<br />
expenditure needs. This way, we become trusted<br />
advisors to business owners who strive to grow<br />
their businesses.’<br />
Small businesses often lack formalisation, as<br />
seen in many not qualifying for Covid-19<br />
assistance because of outdated records and not<br />
meeting regulatory requirements. Naudé says<br />
that Nedbank’s experts are available to offer all<br />
the support small businesses need, which goes<br />
beyond affordable banking solutions. ‘We offer<br />
value-added services to get and keep your<br />
business going, like our free-to-join networking<br />
portal, SimplyBiz.co.za, The Essential Guide for<br />
Small-business Owners, business registration<br />
services and free small-business seminars.’<br />
‘<br />
Our bigger-picture business<br />
approach enables us to have a<br />
holistic view of each business by<br />
understanding the vision, cashflow<br />
cycle, and transactional and capital<br />
expenditure needs.<br />
Naudé adds that Nedbank’s Professional<br />
Banking solution is built on five pillars. ‘We<br />
provide our professional clients with banking at<br />
their fingertips; benefits that matter; expert<br />
savings and investment advice; and a unique<br />
household banking approach that allows them<br />
and their families to finance their dreams and<br />
growth.<br />
‘With dedicated relationship bankers, tailored<br />
financing options and 24/7 service, the banking<br />
experience we offer is seamless, enables our<br />
clients’ financial aspirations and is flexible to<br />
grow as your needs grow,’ says Naudé.<br />
If you want to tap into our small-business or<br />
professional banking expertise to reach your<br />
business goals, please email Pieter Naudé at<br />
PieterN@Nedbank.co.za or visit<br />
www.nedbank.co.za.<br />
‘<br />
see money differently<br />
25 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
Nedbank Ltd Reg No 1951/000009/06. Authorised financial services<br />
and registered credit provider (NCRCP16).
KEY SECTORS<br />
Overviews of the main economic<br />
sectors of <strong>North</strong> <strong>West</strong><br />
Mining 18<br />
Agriculture 28<br />
Water 32<br />
Manufacturing 36<br />
Energy 37<br />
Tourism 38<br />
Education and training 40<br />
Banking and financial services 42<br />
Development finance and SMME support 46<br />
The South African National Roads Agency (SANRAL) opened the R512 Pampoennek road<br />
in 2020, improving the interprovincial link between Brits in the <strong>North</strong> <strong>West</strong> and Randburg<br />
in Gauteng. Credit: SANRAL
OVERVIEW<br />
Agriculture and<br />
agro-processing<br />
Training in agriculture is in the spotlight.<br />
With more agricultural subjects being offered in<br />
schools and more spaces being created for students<br />
of agriculture, it comes as no surprise to learn that a<br />
large new agricultural farm school at is to be built at<br />
Rysmierbult, near Ventersdorp.<br />
The idea behind the institution (a “mega farm school”) is that it<br />
will provide support to smaller farm schools and not only raise the<br />
numbers of young people educated in agriculture, but also raise the<br />
quality of tuition. Existing infrastructure is also receiving attention, by<br />
way of the construction of a 6km access road being built to serve the<br />
Kgora Farmer Training Centre in Mahikeng.<br />
Although cattle and maize crops feature strongly in any<br />
discussion of <strong>North</strong> <strong>West</strong> agriculture, a black-owned company has<br />
succeeded on the back of hard work in the citrus market. Batlhako<br />
Temo Services, a former co-operative which started life cultivating<br />
sunflowers, is now a Brits-based company exporting to the Middle<br />
East and Taiwan. Over the years, the group of farmers has received<br />
support from the Department of Agriculture, Rural Development and<br />
Land Reform and from the Small Enterprise Development Agency<br />
(Seda) which has enabled them to invest in equipment and expand<br />
their workforce.<br />
Another provincial government initiative will see 12 000ha of<br />
fallow land that around the Springbokpan grain silos infrastructure<br />
in Ditsobotla revived for the cultivation of grain.<br />
For those who know the <strong>North</strong> <strong>West</strong> as a water-scarce region, it<br />
may be surprising to learn that a priority in <strong>2021</strong> has been the repair<br />
SECTOR INSIGHT<br />
More than 20% of South<br />
Africa’s maize crop is produced<br />
in the <strong>North</strong> <strong>West</strong>.<br />
of earthen dams and fences<br />
damaged by flooding.<br />
As part of a drive to help more<br />
farmers get connected to the<br />
more profitable end of the value<br />
chain, a beef beneficiation project<br />
is under consideration. To be<br />
located in the Dr Ruth Segomotsi<br />
Mompati District, a feasibility<br />
study is investigating whether<br />
a public-private partnership for<br />
constructing abattoirs and other<br />
relevant infrastructure would work.<br />
Various agro-processing<br />
plants are under consideration<br />
for the city of Mahikeng: a<br />
feedlot and a meat-processing<br />
plant, including an abattoir and<br />
packaging facilities. In Taung the<br />
plan is to establish an animal<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
28
OVERVIEW<br />
feed-manufacturing plant. A 10ha vineyard in Ventersdorp is to be<br />
expanded to 40ha and a black-owned logistics co-operative has<br />
been signed to distribute products from the farm.<br />
Regional variety<br />
The dry western region of the province is home to large beef-cattle<br />
herds, and this is where the growing game-ranching and hunting<br />
industry has its base. The eastern and north-eastern parts of the<br />
province receive relatively good rainfall and are suitable for the<br />
cultivation of crops.<br />
The <strong>North</strong> <strong>West</strong> has approximately 1.6-million beef cattle,<br />
representing 12% of South Africa’s herd. Major breeds include<br />
Simmental, Brahman, Bonsmara and Simbra, a cross between the<br />
Brahman and Simmental breeds. Kalahari Red and Boerbok goats<br />
are found in large numbers in the dry west. The number of goats for<br />
the province is estimated at 701 587 which is 12% of South Africa’s<br />
total. There are estimated to be 318 843 pigs, which is 20% of South<br />
Africa’s total drove.<br />
Nearly two-million hectares is planted with summer cereals,<br />
with about 50 000ha given over to winter cereals. The <strong>North</strong> <strong>West</strong><br />
produces about 20% of South Africa’s maize and about 15% of<br />
its wheat. The central and southern sections of the province are<br />
dominated by maize and wheat farming. When it comes to sunflower<br />
seed, <strong>North</strong> <strong>West</strong> is responsible for 33% of South Africa’s stock, and<br />
23% of the nation’s groundnuts. The <strong>North</strong> <strong>West</strong> supplies 5.4% of<br />
South Africa’s potatoes, but parts of the Kalahari are ideally suited to<br />
the cultivation of seed potatoes.<br />
The <strong>North</strong> <strong>West</strong> is sometimes called “The Texas of South Africa”<br />
because of its superb cattle herds but the province also produces<br />
good crops of onions and other vegetables. Proximity to the large<br />
urban concentrations of Pretoria and Johannesburg are advantages<br />
for the horticulture subsector.<br />
Companies<br />
Senwes has a strong grain division and it controls 68 silos. Its<br />
headquarters are in Klerksdorp and in 2019 it increased its stake<br />
in KLK so that it now controls 57.44% of the company most<br />
strongly associated with the<br />
<strong>North</strong>ern Cape.<br />
Suidwes is based south of<br />
Klerksdorp in Leeudoringstad.<br />
More than 90% of the shares in<br />
the company are held by farmers.<br />
Grain handling is the main<br />
business and there are divisions for<br />
retail (17 outlets and one animalfeed<br />
depot), mechanisation,<br />
finance and research and<br />
agricultural economics (Terratek).<br />
Brits is the location of the<br />
headquarters of the MGK<br />
Group. The company runs five<br />
divisions and a plant that makes<br />
full fat soy, a component in<br />
animal feed. NWK is another<br />
company with manufacturing<br />
capacity. The Lichtenburgbased<br />
enterprise makes liquid<br />
fertiliser (up to 10 tons per<br />
month), animal feed (Opti<br />
Feeds), processes sunflower<br />
seeds (Epko), and runs three<br />
grain mills. Another subsidiary,<br />
Opti Chicks, has a capacity of<br />
600 000 chicks per week.<br />
NWK also deals in grain, runs<br />
several retail outlets and has<br />
a half-share (with Senwes) in<br />
CertiSure Brokers. The company<br />
has 37 silos with a capacity of<br />
2.5-million tons.<br />
AgriNW is the mouthpiece<br />
of its affiliated farmers and<br />
keeps an eye on policy and<br />
laws affecting the sector. It also<br />
acts as a supportive network<br />
to help its members achieve<br />
optimal results. ■<br />
ONLINE RESOURCES<br />
Agri NW: www.agrinw.co.za<br />
Grain SA: www.grainsa.co.za<br />
<strong>North</strong> <strong>West</strong> Department of Agriculture and Rural Development: www.dard.nwpg.gov.za<br />
Red Meat Producers Organisation: www.rpo.co.za<br />
29 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
The future of smart<br />
farming in South Africa<br />
Standard Bank is finding innovative ways of funding agriculture.<br />
Technology has completely transformed<br />
agriculture. These days, farmers are integrating<br />
everything from drones and satellite sensing<br />
to genetic modification and Artificial<br />
Intelligence to reduce costs and enhance yield.<br />
In the South African context, a dualistic agricultural<br />
economy exists with highly developed commercial<br />
players on the one side and those that practise farming<br />
for subsistence on the other.<br />
Technology has already been successfully applied<br />
in the commercial sector. The implementation of<br />
smart-farming technologies has helped farmers and<br />
growers to achieve the highest potential. Take South<br />
African maize production. Back in the 1970s, the<br />
country was producing an average of two tons of<br />
maize per hectare. Fast forward to today and South<br />
Africa produces more than four tons per hectare.<br />
South African farmers now apply everything from<br />
regenerative agriculture, which relates to the use<br />
of smart technologies to improve efficiency, right<br />
through to gene technology. Genetically-modified<br />
maize now makes up about 80% to 90% of the total.<br />
Meanwhile, GPS technology is making an impact in<br />
livestock farming by making it possible to identify,<br />
track and trace an animal through the value chain.<br />
Standard Bank recently financed a citrus producer<br />
that is now using robotics in its packhouse. There<br />
are also technologies being applied to make sure<br />
the quality and quantity of what is to be produced<br />
for a specific market is at the correct standards.<br />
Climate-monitoring technology is also being used<br />
to ensure that produce for export markets meets<br />
the relevant standards.<br />
The application of technology across South<br />
Africa’s agriculture sector is at significant levels.<br />
The challenge is to extract the data and integrate<br />
it into other areas of the economy such as<br />
financial services.<br />
Technology and data in finance<br />
Standard Bank is currently assessing the extent<br />
to which we can better track and trace the<br />
development of a crop. If treatment needs to be<br />
given, we then know about it and can finance it.<br />
Affordability is a barrier for emerging farmers, but<br />
the cost factor could be addressed with greater<br />
collaboration. The bank could find value in data<br />
generated out of satellite technology. The same<br />
would be the case for an insurance provider or a<br />
pesticides provider. Joining forces can make those<br />
technologies more affordable.<br />
Standard Bank is currently enabling financing for<br />
appropriate farming technologies while working<br />
with its enterprise development unit to make<br />
specialists available to small-scale farmers to prepare<br />
farmers for a digital future. ■<br />
Image by Jan Kopřiva on Unsplash
OVERVIEW<br />
Water<br />
A cross-provincial irrigation scheme is a national priority.<br />
SECTOR INSIGHT<br />
A Provincial Water Master<br />
Plan is delivering projects.<br />
Lush fields made possible by the huge Vaalharts-Taung Irrigation<br />
Scheme. Credit: Aurecon<br />
The revitalisation of the Vaalharts-Taung Water Irrigation<br />
Scheme will double the land available to emerging farmers,<br />
create more than 10 000 jobs during its implementation,<br />
resolve water shortages in local municipalities and provide<br />
certainty for producers of fresh produce.<br />
The project was gazetted as one of the Strategic Integrated<br />
Projects (SIPs) in July 2020 and falls under the Presidential<br />
Infrastructure Coordinating Commission (PICC). The existing<br />
Vaalharts Irrigation Scheme is one of the largest irrigation schemes<br />
in the world, covering 39 000ha under irrigation, and extending it to<br />
Taung in the <strong>North</strong> <strong>West</strong> will give it even greater reach. The scheme<br />
currently has 1 000km of concrete-lined canals and more than 300km<br />
of concrete drainage.<br />
The Vaalharts Water User Association is headquartered in Jan<br />
Kempdorp, a town in the <strong>North</strong>ern Cape right on the border of the<br />
<strong>North</strong> <strong>West</strong> and at the centre of the scheme’s area of operations.<br />
Infrastructure development company Bigen Group is engaged<br />
in the irrigation scheme upgrade and is also involved in treating and<br />
recycling water for mining companies in the province. At the Bafokeng<br />
Masimone mine local effluent resources are converted to a product<br />
which is suitable for a variety of mine-water applications.<br />
Municipalities<br />
Large infrastructure has been the focus of national and provincial<br />
initiatives in recent years. Municipalities are charged with delivering<br />
water and handling wastewater<br />
but many municipalities have<br />
not been equal to the task.<br />
Magalies Water is the Water<br />
Services Authority (WSA) serving<br />
two of the local municipalities<br />
in the Bojanala Platinum District<br />
Municipality, Moses Kotane and<br />
Rustenburg. It also supplies water<br />
to five mines in the province<br />
and is active in the provinces of<br />
Gauteng and Limpopo.<br />
When a crisis situation<br />
emerged in the neighbouring<br />
municipality of Madibeng<br />
(which includes the large<br />
manufacturing town of Brits), the<br />
National Minister of Water and<br />
Sanitation called on Magalies<br />
Water to tackle the problems.<br />
The Brits Water Treatment Plant<br />
was fixed and boreholes were<br />
dug to service rural areas.<br />
A new body has been<br />
formed to help municipalities<br />
deliver services. The Municipal<br />
Infrastructure Support<br />
Agency (MISA) falls under<br />
the National Department of<br />
Cooperative Governance and<br />
Traditional Affairs and will assist<br />
municipalities to plan for, provide<br />
and maintain infrastructure.<br />
The first action of MISA was to<br />
commission 81 engineers and<br />
town planners.<br />
Municipalities in the <strong>North</strong><br />
<strong>West</strong> have been instructed<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
32
OVERVIEW<br />
to submit specific plans to feed in to the Provincial Water Master<br />
Plan in an effort to get an overview of the sewerage and sanitation<br />
problems facing communities. Several projects have recently been<br />
completed. These include Dinokana Water Augmentation project,<br />
the Ganalaagte Boreholes and Sewer Pump Station Refurbishment<br />
project, the Naledi Water Augmentation Phase 1 and 2 projects and<br />
the Tshing Cent Fall Sewer Line project. Various wastewater treatment<br />
plants have been refurbished and the last phase of the Taung/Naledi<br />
Bulk Water Supply project was tackled in the second half of <strong>2021</strong>. This<br />
will improve water supply to 55 villages in the Dr Ruth Segomotsi<br />
Mompati District Municipality.<br />
Progress has been made towards supplying water to the 79<br />
schools in the province which were identified as having inadequate<br />
water facilities. This includes the drilling of boreholes and construction<br />
of storage tanks. All new schools built in the <strong>North</strong> <strong>West</strong> are supplied<br />
with kitchens in line with the National Schools Nutrition Programme.<br />
The province has 83 sewage-treatment plants, and the national<br />
Blue Drop award system has found most of them need improvement.<br />
JB Marks Local Municipality, which has Potchefstroom as its main<br />
town, is one of only three municipalities in the country that acts as a<br />
water-service authority and as a service provider. It has won awards<br />
for its levels of service. The biggest service providers active in the<br />
<strong>North</strong> <strong>West</strong> are:<br />
• Rand Water.<br />
• Magalies Water.<br />
• Sedibeng Water (which has taken over the service area of<br />
Botshelo Water).<br />
• Midvaal Water Company, which supplies water to Matlosana<br />
(Klerksdorp).<br />
South Africa is a waterscarce<br />
country and water<br />
management is critical to<br />
economic planning. The<br />
western part of <strong>North</strong> <strong>West</strong><br />
Province is particularly dry.<br />
In the eastern part of the<br />
province, national government<br />
has sent water tanks to some<br />
parts, and has upgraded the<br />
treatment plants upstream<br />
from the Hartbeespoort Dam.<br />
Three of South Africa’s six<br />
major catchment areas are<br />
located in the province: the<br />
Limpopo, the Orange and the<br />
Vaal. Within these catchment<br />
areas, only the Vaal River has<br />
a strong-enough flow to<br />
allow for significant amounts<br />
of water to be taken from it<br />
directly to support irrigation or<br />
industry. There are four watermanagement<br />
areas in the<br />
province, three of which are<br />
linked to the Vaal River. Water<br />
is imported into the provincial<br />
system through transfers<br />
between water basins. ■<br />
Credit: Unsplash<br />
ONLINE RESOURCES<br />
Blue Drop Awards: www.ewisa.co.za<br />
National Department of Water and Sanitation: www.dwa.gov.za<br />
South African Association of Water Utilities: www.saawu.org.za<br />
Vaalharts Water Users Association: www.vaalhartswua.com<br />
Water Research Commission: www.wrc.org.za<br />
33<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
FOCUS<br />
Magalies Water responds to<br />
urgent water needs<br />
Infrastructure expansion projects will bring relief to<br />
Rustenburg and the Royal Bafokeng Administration.<br />
Magalies Water Chief Executive, Sandile Mkhize<br />
Magalies Water, which is one of South<br />
Africa’s nine water boards, has<br />
proved to be a worthy contributor<br />
in the water sector. The water<br />
utility, which services local municipalities in<br />
the <strong>North</strong> <strong>West</strong>, Limpopo and Gauteng, also<br />
supplies bulkwater to mining operations within<br />
its area of service as well as other industries.<br />
The Rustenburg-based state-owned entity has<br />
over the last few years made an intentional and<br />
targeted effort to address the bulkwater supply<br />
challenges plaguing Rustenburg, the hub of<br />
industry in the <strong>North</strong> <strong>West</strong>.<br />
Even though the local economy of Rustenburg<br />
has faced many challenges, mainly due to the<br />
protracted mining sector industrial actions the<br />
demand for bulkwater in Rustenburg and the<br />
surrounding areas has been on a steady rise.<br />
Mining, which is the economic backbone of<br />
the town, also relies on the availability of water for<br />
operations which run on a 24-hour cycle. Allied to<br />
this is the region’s expanding population growth<br />
which increases through rural-to-urban migration<br />
as people come to Rustenburg in search for<br />
economic opportunities.<br />
Small-to-medium scale farming and industries<br />
have also been identified as some of the major<br />
activities that influence migration of people to<br />
Rustenburg. This movement of people has a direct<br />
bearing on the municipality’s ability to provide<br />
clean drinking water to all communities.<br />
All of this contributes to making Rustenburg<br />
the economic hub of the province. The Rustenburg<br />
Local Municipality’s Integrated Development Plan<br />
(IDP) reflects an urgent need for intervention on<br />
water augmentation.<br />
Rolling out Phase 2<br />
Magalies Water Chief Executive, Sandile<br />
Psychology Mkhize, says that Phase 2 of the<br />
Pilanesberg South Bulkwater Supply project will<br />
bring relief to Rustenburg and the Royal Bafokeng<br />
Administration (RBA). Phase 1 of the Pilanesberg<br />
project was completed in 2016.<br />
He continued, “The proposed bulkwater<br />
scheme is also in line with Magalies Water’s<br />
regional bulkwater master planning and the Royal<br />
Bafokeng Nation’s Water Services Development<br />
Plan. As part of its Bulk Infrastructure Capital<br />
Expenditure Programme, Magalies Water has<br />
identified numerous extensions to the existing<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
34
FOCUS<br />
Bulkwater Supply Schemes from the Vaalkop<br />
Water Treatment Works. This Pilanesburg Bulkwater<br />
Supply System (PBWSS) project is anticipated to be<br />
completed in early 2023,” Mkhize remarked.<br />
He also provided technical details on how the<br />
second phase will be rolled out. “Phase 2 of the<br />
PBWSS, which will cost about R900-million, will<br />
be approached in three stages that will be funded<br />
through multi-year funding by the Regional<br />
Infrastructure Grant of the Department of Water<br />
and Sanitation and the capital funding allocation<br />
of Magalies Water.”<br />
Packages involve the following:<br />
Stage 1: Construction of Tlhabane Reservoir. This<br />
will involve earthworks where large excavation<br />
will be done, concrete structures, pipe-work<br />
comprising large-diameter steel/uPVC and<br />
stainless-steel pipes and large-bore valves in<br />
variable sizes.<br />
Stage 2: Construction of Mafenya to Tlhabane<br />
bulkwater pipeline, mainly of steel/uPVC to<br />
withstand high pressures in the system.<br />
Stage 3: Construction of the pumping station<br />
next to the existing Mafenya reservoir to pump<br />
water all the way to the Tlhabane reservoir with a<br />
combination of gravity feed.<br />
Some 55km east of the Vaalkop Dam, which<br />
is home to the 270 megalitres-per-day (ML/d)<br />
Magalies Water Treatment Works, another project<br />
is at concept stage. This project, once completed,<br />
is intended to increase the bulk capacity of water<br />
to the communities of Bethanie and Modikwe<br />
through an upgrade of the Kortbegrip pipeline.<br />
Early financial expenditure projections are<br />
estimated to the tune of R88-million and will make<br />
use of the Modikwe reservoir in achieving the<br />
increased water supply to the region.<br />
CONTANCT DETAILS<br />
Address: 38 Heystek St, Rustenburg 0300<br />
Tel: +27 14 597 4636<br />
Email: info@magalieswater.co.za<br />
customerservices@magalieswater.co.za<br />
Customer Care Line: 0860 000 720<br />
Whatsapp: 060 966 7994<br />
Website: www.magalieswater.co.za<br />
Vaalkop water treatment works<br />
The project will be co-funded with the<br />
participation of Magalies Water and Rustenburg<br />
Local Municipality as well as Rhoven Glencore<br />
Mine through its social labour plan (SLP) as part<br />
of the licence conditions where mining companies<br />
are to implement social impact projects within<br />
their host communities.<br />
Currently four villages (Bethanie, Modikwe,<br />
Berseba and Makolokwe) are experiencing water<br />
challenges with their source of water coming<br />
from boreholes and bulkwater supplied from<br />
the Vaalkop Water Treatment Works through<br />
the Kortbegrip pipeline to Modikwe reservoir.<br />
While the project is still at its infancy stages,<br />
small, micro and medium enterprises (SMMEs)<br />
from the locality stand to benefit by way of skills<br />
transfer through subcontracting opportunities.<br />
This will help to achieve local economic<br />
development objectives.<br />
While the economy of Rustenburg and<br />
the surrounding areas seems to be reviving,<br />
Magalies Water remains steadfast in fulfilling its<br />
important constitutional mandate, which seeks to<br />
ensure that within its area of operation, through<br />
existing relationships with local municipalities,<br />
communities have access to clean drinking water<br />
compliant to the SANS 241:2015 drinking water<br />
standard. Local Municipality for the leasing of a<br />
water-tank truck. ■<br />
35 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
OVERVIEW<br />
Manufacturing<br />
An Integrated Manufacturing Strategy aims to stimulate the sector.<br />
SECTOR INSIGHT<br />
<strong>North</strong>-<strong>West</strong> University<br />
now offers mechatronic<br />
engineering.<br />
Credit: Bosch<br />
A<br />
provincial Integrated Manufacturing Strategy has<br />
been compiled. The strategy notes the <strong>North</strong> <strong>West</strong>’s<br />
strategic location near to the industrial hub of<br />
Gauteng and its low input costs and easy access to<br />
busy trade routes.<br />
Chemical processing would be a good proposition for investors. The<br />
province also has easy access to natural resources, especially with regard<br />
to the ingredients necessary for the manufacture of phosphate and<br />
nitrogen-based fertilisers. As one of the country’s biggest producers of<br />
livestock, hides for car seats for the province’s automotive industry could<br />
profitably be sourced locally.<br />
The Centre for Advanced Manufacturing (CFAM) at <strong>North</strong>-<strong>West</strong><br />
University specialises in extruder technology and the recent introduction<br />
by NWU of a new qualification in mechatronic engineering will give<br />
graduates a head start in a wide range of enterprises. A mechatronic<br />
engineer is able to combine computer systems, electronics (such as<br />
sensors) and precision mechanical engineering.<br />
Bridgestone South Africa’s investment in new technology at its plant<br />
in Brits is allowing the company to produce 19-inch tyres for the BMW<br />
X3 being assembled in Pretoria. These tyres would otherwise have to<br />
be imported. Brits’ proximity to Tshwane’s Rosslyn automotive hub is a<br />
competitive advantage for the city.<br />
Bridgestone’s factory is one of only four in the world that produces<br />
runflat tyres. About 850 people are employed at the plant. Also in Brits are<br />
Bosch and Dubigeon Body and Coach. SOS Tie & Die is a manufacturer of<br />
precision pressings, components and press tools.<br />
AVMY Steel Science is the largest supplier of small-quantity steel<br />
in the SADC region. Chassis manufacturer KLT Group has acquired the<br />
Brits plant which comprises a pressing, welding, assembly and e-coating<br />
ONLINE RESOURCES<br />
Automotive Industry Development Centre (AIDC): www.aidc.co.za<br />
National Department Trade, Industry and Competition: www.dtic.gov.za<br />
<strong>North</strong> <strong>West</strong> Development Corporation: www.nwdc.co.za<br />
facility. The KLT Group has four<br />
plants in South Africa and<br />
employs more than 1 000 people.<br />
In addition to Brits<br />
(automotive components and<br />
tyres), other concentrations<br />
include mining equipment<br />
and engineering (Klerksdorp)<br />
and food and beverages<br />
(Potchefstroom).<br />
Rustenburg has a mixture of<br />
enterprises, the biggest of which<br />
are mining-related smelters.<br />
Production of non-metallic<br />
mineral products is concentrated<br />
around Lichtenburg and<br />
Mahikeng (cement), and<br />
Rustenburg (stone). Tough Metals<br />
Toys factory and Totpak are<br />
located in Ventersdorp.<br />
RCL Foods has a large<br />
processing plant at Rustenburg<br />
and Dairybelle (Bloemhof ) has<br />
cheese factories in the province.<br />
Clover’s decision in <strong>2021</strong> to leave<br />
Lichtenburg because of a lack of<br />
reliable services was a blow for<br />
employment opportunities in the<br />
Ditsobotla Local Municipality.<br />
About 30% of the country’s<br />
grain and oil-seed crop pass<br />
through Senwes silos every year.<br />
Sasko operates a white-maize mill<br />
in Klerksdorp. The SAB Rosslyn<br />
Brewery supplies the <strong>North</strong> <strong>West</strong><br />
with most of its beer.. ■<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
36
Energy<br />
Solar plants are proliferating in the <strong>North</strong> <strong>West</strong>.<br />
OVERVIEW<br />
SECTOR INSIGHT<br />
Pilanesberg Platinum Mines<br />
is installing energy-saving<br />
technology.<br />
When De Wildt Solar near Brits (pictured) started<br />
commercial operations in January <strong>2021</strong>, it became,<br />
according to Engineering News, the “fourth<br />
utility-scale plant that has come on line in the<br />
<strong>North</strong> <strong>West</strong> in under five months”. The province was lagging<br />
somewhat in terms of projects undertaken in terms of the national<br />
private producers’ renewable energy programme, but<br />
now it’s making up for lost time.<br />
With 169 140 solar modules, the South African-owned plant delivers<br />
123 186MWh/year and will bring economic benefits to many residents<br />
and businesses of the Madibeng Local Municipality and beyond. A<br />
brickmaking co-operative was involved in the solar farm’s construction<br />
Pilanesberg Platinum Mines introduced its Kell processing plant<br />
in <strong>2021</strong>, a technology that reduces electricity usage and eliminates<br />
sulphur dioxide emissions in smelting. With platinum group metals<br />
(PGMs) attracting good prices partly because of the role they can<br />
play in the hoped-for lower-carbon economy, cleaner and cheaper<br />
methods of extraction and processing offer even sunnier projections<br />
for the miners of PGMs.<br />
Most of South Africa’s energy requirements are met by Eskom’s<br />
coal-fired power stations but the drive to start producing renewable<br />
energy is growing, and researchers and companies in the <strong>North</strong> <strong>West</strong><br />
are investigating several options. Big mining companies are among the<br />
biggest users of energy and many belong to the Energy Intensive Users<br />
Group of Southern Africa.<br />
Bioethanol, biodiesel and methane gas from waste and<br />
renewable resources are among the types of biofuels under<br />
ONLINE RESOURCES<br />
Credit: De Wildt Solar<br />
Energy Intensive Users Group of Southern Africa: www.eiug.org.za<br />
South African Independent Power Producers Association:<br />
www.saippa.org.za<br />
South African Photovoltaic Industry Association: www.sapvia.co.za<br />
South African Renewable Energy Council: www.sarec.org.za<br />
discussion. Sunflower seeds<br />
and sweet sorghum are suitable<br />
for converting into biofuel and<br />
bioethanol. The South African<br />
Energy Resource Institute<br />
(Saneri) Chair in biofuel research<br />
is held by a professor on the<br />
Potchefstroom campus of <strong>North</strong>-<br />
<strong>West</strong> University (NWU).<br />
Silversands Energy is a <strong>North</strong><br />
<strong>West</strong> company that produces<br />
ethanol fuel for an ethanolpowered<br />
bus made by Scania<br />
South Africa for the City of<br />
Johannesburg.<br />
South Africa’s nuclearresearch<br />
centre is located at<br />
Pelindaba near Hartbeespoort<br />
Dam and is run by the South<br />
African Nuclear Energy<br />
Corporation. The NWU Nuclear<br />
Engineering Department is the<br />
only one of its kind in the country,<br />
and the National Department<br />
of Science and Technology has<br />
allocated a chair in Nuclear<br />
Engineering to the university.<br />
One of the key focus areas<br />
for the planned Platinum<br />
Valley Special Economic Zone<br />
(PVSEZ) is the promotion of<br />
renewable energy. The PVSEZ<br />
is in the Mogwase industrial<br />
area in the Bojanala Platinum<br />
District Municipality and has<br />
already attracted the interest<br />
of several investors. ■<br />
37<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
OVERVIEW<br />
Tourism<br />
Biodiversity protection is expanding.<br />
SECTOR INSIGHT<br />
A new licensing act aims to<br />
better regulate business activity.<br />
ULT.X BMX and Skate Championship <strong>2021</strong>, Sun City<br />
An additional 24 000 hectares of land is to be conserved<br />
through a biodiversity stewardship programme<br />
that forms part of the <strong>North</strong> <strong>West</strong> Protected Areas<br />
Expansion Strategy and Implementation Plan.<br />
The <strong>North</strong> <strong>West</strong> Parks Board and the Provincial Government of<br />
<strong>North</strong> <strong>West</strong> aim to protect representative ecosystems in ways that<br />
make them resilient to climate change and create opportunities for<br />
local communities to make a sustainable living. Finding a balance<br />
between agricultural activities and tourism is not the only challenge<br />
in an area that also frequently experiences droughts.<br />
Although the reserve that lies just to the north of Sun City is known<br />
as Pilanesberg National Park, in fact it falls under the <strong>North</strong> <strong>West</strong><br />
Parks Board and is one of many parks and reserves controlled by the<br />
province. Both Pilanesberg and Madikwe have gained international<br />
reputations for the diversity of flora and fauna they have to offer and<br />
the high standard of accommodation at private concessions within<br />
the boundaries of the parks.<br />
The malaria-free Pilanesberg National Park, located in the ecologically<br />
rich transition zone between the Kalahari and the Lowveld,<br />
has more than 7 000 animals, 360 bird species, and more than 200km<br />
of roads.<br />
The <strong>North</strong> <strong>West</strong> Parks and Tourism Board (NWPTB) is investing in<br />
the province’s 12 smaller parks with the intention of creating jobs.<br />
In partnership with the National Department of Tourism, work has<br />
begun on the Manyane Game Lodge in Mahikeng, with a budget<br />
allocation of R43-million. Another project envisages a mega-park in<br />
the north-western sector of the province, the Heritage Park.<br />
The impact of Covid-19 will be<br />
felt for many months to come, and<br />
the tourism sector of the <strong>North</strong><br />
<strong>West</strong> Province will be affected by<br />
the restrictions on travel that were<br />
put in place in 2020.<br />
Provincial authorities are going<br />
ahead with infrastructure projects<br />
in the expectation that tourists<br />
will return in numbers. Among<br />
them are:<br />
• Bloemhof infrastructure project<br />
(R30-million). The second phase<br />
will be completed in the <strong>2021</strong>/<strong>22</strong><br />
financial year.<br />
• Vaalkop Dam (R15-million): plans<br />
approved.<br />
• Borakalalo Tented Camp (R15-<br />
million): plans approved.<br />
A saving grace for the province is the<br />
extremely wide range of activities<br />
that are offered to a high standard.<br />
This makes it more likely than one<br />
or more of these subsectors will be<br />
in a position to lead a recovery. Sun<br />
City (golf, conferencing and hotels)<br />
and several game lodges within<br />
game reserves are world famous.<br />
Birding, fishing, hunting and hotair<br />
ballooning are among other<br />
popular pursuits and Potchefstroom<br />
has outstanding sporting facilities.<br />
Australia and Spain won the cricket<br />
and soccer world cups from their<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
38
OVERVIEW<br />
base in Potchefstroom and international athletes often visit the city<br />
for training camps.<br />
The Mahika-Mahikeng Cultural Festival continues to grow in<br />
popularity. Arts and culture development centres (Mmabana Centres)<br />
are found in three of the province’s districts. Twelve public museums<br />
have been identified together with 400 heritage sites as part of a<br />
census on the province’s cultural assets.<br />
The NWPTB is unique in South Africa in that it is the only provincial<br />
government entity that runs a hotel school. The Institute of Hotel and<br />
Tourism Management (IHTM) has two campuses, one in Mahikeng and<br />
one at Ga-Rankuwa outside Pretoria.<br />
In addition to the provincial tourism authority, there are regional<br />
tourism organisations which market special attractions:<br />
• Harties Tourism Association<br />
• Matlosana Tourism Association<br />
• Mooinooi: Buffelspoort Valley<br />
• N12 Treasure Route Association<br />
• Potch Tourism Association<br />
• Vredefort Dome Tourism Association.<br />
• Taung is the site of the first discovered fossil of Australopithecus<br />
africanus. The Vredefort Dome is a UNESCO World Heritage Site<br />
for its significance as the landing site of a meteorite many millions<br />
of years ago.<br />
The <strong>North</strong> <strong>West</strong> <strong>Business</strong> Licensing Act No. 3 of 2019 has been passed<br />
by the provincial legislature to ensure that business is conducted<br />
ethically and in a way that promotes opportunities for historically<br />
disadvantaged people to fully participate in business.<br />
The Faculty of Economic and Management Sciences at the <strong>North</strong><br />
<strong>West</strong> University offers Tourism Management and the professors and<br />
researchers are at the top of their profession.<br />
Hotels and conferences<br />
Sun City has a range of venues available for hire ranging from a<br />
12-seater Council Room to the Superbowl which can accommodate<br />
6 000, and just about everything in between. With six kinds of<br />
accommodation, two outstanding golf courses, casinos and a choicefilled<br />
entertainment complex, the Sun City Resort is a major tourism<br />
ONLINE RESOURCES<br />
Marico Tourism: www.marico.co.za<br />
<strong>North</strong> <strong>West</strong> Development Corporation: www.nwdc.co.za<br />
<strong>North</strong> <strong>West</strong> Parks Board: www.northwestparks.org.za<br />
Tourism <strong>North</strong> <strong>West</strong>: www.tourismnorthwest.co.za<br />
Pilanesberg National Park,<br />
Credit: Tourism <strong>North</strong> <strong>West</strong><br />
asset and significant employer in<br />
the province.<br />
Sun City is far from being<br />
the province’s only conference<br />
venue. Tourism <strong>North</strong> <strong>West</strong> lists<br />
on its website a range of venues<br />
from small guesthouses with<br />
conference facilities in towns<br />
such as Rustenburg and Brits<br />
to lodges on the banks of the<br />
Hartbeespoort Dam.<br />
In the provincial capital,<br />
Mahikeng, there are several<br />
options: among them are the<br />
Mmabatho Palms Hotel Casino<br />
Convention Resort, part of the<br />
Peermont group, which has hotels<br />
and casinos in six of South Africa’s<br />
provinces. Mmabatho Palms offers<br />
eight gaming tables and slot<br />
machines. Gaming is controlled<br />
in South Africa and licences are<br />
restricted to certain operators.<br />
Mahikeng is also home<br />
to the Protea Hotel and the<br />
Mmabatho Convention Centre<br />
(the main auditorium can seat<br />
3 000 people). The Hotel School<br />
can accommodate up to 200<br />
people. Most of the luxury<br />
lodges in the province can<br />
accommodate conferences,<br />
albeit on a smaller scale. ■<br />
39 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
OVERVIEW<br />
Education and training<br />
A new vocational stream is being introduced at schools.<br />
SECTOR INSIGHT<br />
A Covid-19 vaccine candidate is<br />
being tested at NWU.<br />
Open Day at the Jouberton Campus of Vuselela TVET College.<br />
<strong>North</strong>-<strong>West</strong> University (NWU) is working together with<br />
Walter Sisulu University (WSU) on a new Covid-19<br />
vaccine candidate. The results of preclinical trials in<br />
June <strong>2021</strong> were described as “very promising”.<br />
Prof Markus Depfenhart, who holds extraordinary appointments<br />
as a professor at both universities, developed the vaccine candidate,<br />
the trials for which are being run at the Pre-Clinical Drug Development<br />
Platform at the NWU.<br />
NWU has ambitious aims with regard to accommodating students<br />
in residence: 50% of contact students and 75% of first-year students<br />
is the goal. There are 38 NWU-owned residences on three campuses<br />
and one off-campus residence in Vanderbijlpark. There is also some<br />
rented accommodation which amounts to more than 10 000 beds<br />
managed by the university.<br />
The CHE has announced that the NWU Bachelor of Laws (LLB)<br />
programme has received full accreditation.<br />
A new qualification, Mechatronic Engineering, has been added<br />
to the courses offered by the Faculty of Engineering. The Bachelor<br />
of Mechatronic Engineering programme has been approved by<br />
the Engineering Council of South Africa (ECSA), enabling graduates<br />
to compete internationally. The faculty now offers eight specialities,<br />
including industrial and electromechanical and chemical engineering<br />
(minerals processing). Partnerships include Sasol, Eskom, Denel<br />
Aviation, Telkom and Sappi.<br />
The Faculty of Engineering is a leading department in terms of<br />
innovations and plays a role, together with the NWU Technology<br />
Transfer and Innovation Support Office, in commercialising ideas<br />
by creating companies.<br />
The university and its<br />
researchers are leaders in many<br />
fields, including astrophysics,<br />
tourism, solar energy and extruder<br />
technology.<br />
Among the research entities<br />
at NWU, there are five chairs<br />
allocated by the South African<br />
Research Chairs Initiative (SARChI):<br />
Astrophysics and Space Physics,<br />
Coal Research, Biofuels and other<br />
clean alternative fuels, Nuclear<br />
Engineering and Early Detection<br />
and Prevention of Cardiovascular<br />
Disease in Africa.<br />
The University of South Africa<br />
(Unisa) has three branches in <strong>North</strong><br />
<strong>West</strong>, at Rustenburg, Potchefstroom<br />
and Mmabatho.<br />
Training and skills<br />
A new, third, stream is being piloted<br />
at 11 schools across the province. In<br />
addition to the existing technical<br />
and academic streams, vocational<br />
will be offered. The new option<br />
includes 13 new subjects and is<br />
intended to widen the options<br />
available to young people.<br />
As part of this initiative,<br />
three schools will increase their<br />
enrolment of pupils wanting to<br />
study agricultural subjects. Fifteen<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
40
FOCUS<br />
Education and skills training<br />
are making an impact<br />
Impala Rustenburg’s local economic development<br />
strategy boosts employment potential.<br />
Impala Rustenburg is committed to<br />
delivering a lasting positive contribution to<br />
local communities and those affected by its<br />
activities. Its local economic development<br />
(LED) strategy focuses on collaborating with<br />
government, the Royal Bafokeng and other<br />
mining companies to identify and implement<br />
high employment generating projects<br />
through public-private partnerships.<br />
Since 2018, Impala Rustenburg and the<br />
Royal Bafokeng Nation (RBN) have collaborated<br />
in developing a strategy and project plan to<br />
identify projects that will support job creation<br />
and create sustainable livelihoods beyond<br />
mining. This strategic initiative actively pursues<br />
partnerships with key players in sectors<br />
that have the highest potential of creating<br />
employment opportunities for youth living in<br />
the region of Impala Rustenburg’s operations.<br />
To support this thrust, Implats’ comprehensive<br />
education and skills development programmes<br />
span the entire education value chain, from early<br />
childhood development through to higher levels<br />
of schooling and continuous skills development.<br />
In promoting quality schooling, Impala<br />
Rustenburg supports 33 schools – 21 primary and<br />
12 high schools – in the Bojanala Platinum District<br />
Municipality. To mitigate the impact of months of<br />
schooling missed due Covid-19 lockdowns, the<br />
operation provided academic support to more<br />
than 2 000 matric learners, who received catchup<br />
classes in maths, biology, life sciences and<br />
geography ahead of their final exams.<br />
Impala Rustenburg also implemented a<br />
teacher-mentoring programme, supporting<br />
12 teachers in eight local schools to improve<br />
their teaching skills. Impala Rustenburg<br />
monitors the learners’ performance, which<br />
continues to be encouraging. During<br />
2020, the Impala-supported schools in the<br />
Rustenburg region achieved an average<br />
matric pass rate of 85%, compared to 79%<br />
achieved at other local schools. Platinum<br />
Village and Sunrise View secondary schools,<br />
both constructed by Implats together with its<br />
social partners, achieved 100% and 94% pass<br />
rates, respectively.<br />
Impala Rustenburg also delivered several<br />
infrastructure projects this year in support of<br />
education. These include constructing a new<br />
early childhood development centre, Phase 2<br />
renovations of the Kutlwanong School for the<br />
Deaf, renovating and equipping three libraries<br />
in the Eastern Cape, which is a labour-sending<br />
area for the operation, and constructing 12 new<br />
National School Nutrition Programme kitchens<br />
in Taung and Ganyesa. ■<br />
41 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
OVERVIEW<br />
new schools are under construction in the province in 2020/21 with<br />
a further 25 to enter the planning phase in the <strong>2021</strong>/<strong>22</strong> financial year.<br />
In the annual State of the Province Address in <strong>2021</strong>, Premier<br />
Job Mokgoro acknowledged the contribution to school building<br />
and upgrading of several companies: Glencore, Impala Platinum,<br />
Samancor, Sibanye Gold, <strong>North</strong>am Zondereinde Community Trust and<br />
Sun International Limited.<br />
The PPC Training Centre in Slurry near Mahikeng admitted<br />
25 young people as part of the provincial government’s Artisan<br />
Development Programme in 2020. A further 10 were placed at the<br />
Intelek Training Centre for assessment to resume their apprenticeships.<br />
Another provincial programme, the Automotive Skills<br />
Development Programme, aims to involve 200 young people in<br />
learning all about repairing, welding, panel-beating and the workings<br />
of engines at the Automotive Industry Development Centre (AIDC).<br />
The provincial government has also been training people in<br />
useful digital work. A group of 144 young people were trained and<br />
hired as business regulations data capturers for the SMME Relief<br />
Fund. They are also developing an online provincial database of<br />
liquor traders in the province.<br />
Another programme that has received young people for skills<br />
training is the EPWP Waste Management & Biodiversity Economy<br />
Programme and 100 beneficiaries will get work experience in<br />
tourism businesses.<br />
In an effort to incubate 135 new SMMEs and create 540 jobs over<br />
the next three years, the provincial government is partnering with a<br />
range of entities in manufacturing, engineering services, mine-water<br />
rehabilitation and the reclamation of gold in existing mine tailings.<br />
During the <strong>2021</strong>/<strong>22</strong> financial year, the provincial government will<br />
partner with:<br />
• Lepharo Incubator, a Seda Incubator (R<strong>22</strong>.3-million)<br />
• Harmony Gold’s Kraaipan Operations (R4.5-million)<br />
• Rustenburg Local Municipality (R9.5-million)<br />
• Department of Economic Development, Environment,<br />
Conservation and Tourism, DEDECT (R14.5-million).<br />
Technical Vocational and Educational Training colleges teach skills that<br />
are relevant to the workplace. <strong>North</strong> <strong>West</strong> has three TVET colleges with<br />
several campuses each. Vuselela TVET College has its headquarters<br />
in Klerksdorp, where there is also an accredited trade test centre.<br />
There are a further four campuses: Jouberton Centre for Engineering<br />
ONLINE RESOURCES<br />
Mining Qualifications Authority: www.mqa.org.za<br />
<strong>North</strong> <strong>West</strong> Department of Education: www.desd.nwpg.gov.za<br />
<strong>North</strong>-<strong>West</strong> University: www.nwu.ac.za<br />
NWU <strong>Business</strong> School: www.commerce.nwu.ac.za<br />
NWU aims to have 50% of contact<br />
students and 75% of first-year<br />
students accommodated in<br />
residences. Credit: NWU<br />
Studies; Matlosana Campus;<br />
Potchefstroom Centre for ICT and<br />
Taung Campus.<br />
Orbit TVET College has three<br />
sites, Rustenburg, Mankwe<br />
and Brits, with about 15 000<br />
students overall. The Rustenburg<br />
campus of Orbit College hosts<br />
a Microsoft IT Academy while<br />
the Mankwe campus offers<br />
automotive training, the result<br />
of a partnership between the<br />
Manufacturing, Engineering and<br />
Related SETA (MerSETA), Lelethu<br />
Training and Ford South Africa.<br />
Orbit TVET College hosts an<br />
electronics academy courtesy of<br />
sponsors Samsung Electronics<br />
on the Mankwe campus, and in<br />
partnership with the MerSETA.<br />
Mankwe also offers Automotive<br />
Repair, Maintenance and Transport<br />
and Logistics and is a Centre of<br />
Specialisation in Diesel Trade.<br />
The Taung Agricultural College<br />
is accredited by the Council<br />
on Higher Education (CHE) to<br />
offer the NQF level 6 Diploma<br />
in Agriculture specialising in<br />
Irrigation Technology. ■<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
42
Development finance and<br />
SMME support<br />
The Mafikeng Digital Innovation Hub will assist small businesses.<br />
OVERVIEW<br />
The <strong>North</strong> <strong>West</strong> Provincial Government is investing in<br />
digital infrastructure. SMMEs will be able to use the<br />
newly-established Mafikeng Digital Innovation Hub<br />
(pictured) as a co-working environment and to get<br />
support in using digital tools.<br />
A Digital Covid-19 SMME <strong>Business</strong> Recovery training intervention<br />
was carried out by the Hub in partnership with the Department of<br />
Economic Development, Environment, Conservation and Tourism<br />
(DEDECT). This resulted in more than 180 entrepreneurs from all<br />
four districts of the province receiving training. A Youth Digital<br />
Skilling programme aims to teach skills such as software and app<br />
development, Artificial Intelligence and robotics.<br />
R6-million has been allocated for the <strong>2021</strong>/<strong>22</strong> financial year by<br />
the province to support women co-operatives and SMMEs. Support<br />
includes mentoring, training and buying equipment. Most of the<br />
Cooke’s Lake Information Centre in Mahikeng (excluding the existing<br />
office block) is to become a permanent flea market.<br />
The South African National Roads Agency Limited (SANRAL)<br />
currently has nine contracts covering more than 2 300km in the<br />
province. A set of subcontracts is being negotiated for routine<br />
maintenance such as the patching of potholes, fencing and the<br />
cutting of grass verges.<br />
ONLINE RESOURCES<br />
Mafeking Digital Innovation Hub: www.mafihub.co.za<br />
<strong>North</strong> <strong>West</strong> Development Corporation: www.nwdc.co.za<br />
Small Enterprise Development Agency: www.seda.org.za<br />
Tholoana Enterprise Programme: www.sabfoundation.co.za<br />
SECTOR INSIGHT<br />
An SMME and co-operative<br />
support programme has a<br />
budget of R6-million for <strong>2021</strong>/<strong>22</strong>.<br />
The National Department<br />
of Small <strong>Business</strong> Development<br />
(DSBD) has several programmes<br />
to assist SMMEs and co-operatives.<br />
These include the Black <strong>Business</strong><br />
Supplier Development Programme<br />
and the Cooperative Incentive<br />
Scheme, a 100% grant.<br />
The Small Enterprise<br />
Development Agency (Seda) is an<br />
agency of the DSBD and gives nonfinancial<br />
support to entrepreneurs<br />
through training, assistance with<br />
filling in forms, marketing and<br />
creating business plans.<br />
The Seda Technology<br />
Programme helps potential<br />
businesses become trading entities.<br />
The Industrial Development<br />
Corporation is a strategic lender and<br />
plays a strong role in supporting<br />
small and emerging enterprises.<br />
The SAB Foundation Tholoana<br />
Programme provides grant funding<br />
and business support in the <strong>North</strong><br />
<strong>West</strong>. The programme invests in<br />
entrepreneurs, particularly women,<br />
youth, people in rural areas and<br />
persons with disabilities. The<br />
18-month programme provides<br />
mentorship, business development<br />
tools and workshops, access<br />
to peer networks finance, and<br />
support throughout the time spent<br />
on the programme. ■<br />
43 NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong>
OVERVIEW<br />
Banking and financial services<br />
Smartphone banking is catching on.<br />
SECTOR INSIGHT<br />
Financing is available to<br />
mitigate climate change.<br />
South African banking customers have a wider choice<br />
since Tyme Digital received a licence in 2017 to run a<br />
bank, the first time a new licence had been issued in<br />
decades. By early 2019, TymeBank was available in 500<br />
Pick n Pay and Boxer stores and more than 50 000 customers<br />
had an account. Tyme stands for Take Your Money Everywhere;<br />
the bank does not have a branch network. African Rainbow<br />
Capital began as the venture’s BEE partner but in 2018 bought<br />
out the Commonwealth Bank of Australia.<br />
Tyme reported in October 2020 that it had 2.4-million customers,<br />
up from 1.4-million at the end of March. A 400% increase in the use<br />
of services such as airtime and electricity purchases was also noted.<br />
A recent addition to the market is Standard Bank’s low-cost MyMo<br />
account. With free electronic transactions, unlimited card swipes and<br />
a low monthly fee, the MyMo account is ideal for low-income earners,<br />
micro-entrepreneurs and the poor. Customers can sign up by taking<br />
a selfie.<br />
All of the big banks have agricultural desks where experts can<br />
offer relevant advice. Nedbank is making a point of making funding<br />
available for climate-change mitigation such as more efficient<br />
irrigation and water-use technologies. All of the large agricultural<br />
companies have finance divisions.<br />
All of the country’s major banks and financial institutions are<br />
represented in the <strong>North</strong> <strong>West</strong>. Financial services are available in small<br />
towns, although the bigger cities like Potchefstroom, Rustenburg<br />
ONLINE RESOURCES<br />
Association for Savings and Investment South Africa: www.asisa.org.za<br />
Auditor-General of South Africa: www.agsa.co.za<br />
Chartered Institute for Government Finance, Audit and Risk Officers:<br />
www.cigfaro.co<br />
and Klerksdorp have a greater<br />
concentration and diversity.<br />
Financial services extend<br />
beyond advising rich people<br />
on how to invest their assets<br />
or balance their portfolio. In a<br />
province where there has been<br />
some real financial distress<br />
programmes are in place to<br />
assist people.<br />
Long strikes, volatile global<br />
markets and layoffs have created<br />
tough conditions for some<br />
workers in the platinum sector.<br />
Anglo American Platinum<br />
has teamed up with Summit<br />
Financial Partners to help miners<br />
manage their debt and plan<br />
their finances better through<br />
a scheme called Nkululeko.<br />
Garnishee orders went down<br />
among the Nkululeko group by<br />
80% in a five-year period.<br />
The Association for Savings<br />
and Investment South Africa is<br />
behind another initiative called<br />
Project Qaphela, a financial<br />
literacy programme aimed at<br />
workers in the mining sector.<br />
Partners in the programme<br />
include the National Union<br />
of Mineworkers, Sanlam and<br />
Coronation.<br />
Ubank is owned by a trust<br />
that is managed by the Minerals<br />
Council South Africa and the<br />
National Union of Mineworkers<br />
(NUM). It has several branches in<br />
the <strong>North</strong> <strong>West</strong>. ■<br />
NORTH WEST BUSINESS <strong>2021</strong>/<strong>22</strong><br />
44
INDEX<br />
INDEX<br />
INDEX<br />
INDEX<br />
Africa Biomass Company (ABC) ...............................................................................................................................5, 9<br />
Implats........................................................................................................................................................................17, ..................................................................................................................................................................................24-25 41<br />
Magalies Water...................................................................................................................................................... 34-35<br />
Nedbank ..............................................................................................................................................................................16-19<br />
<strong>North</strong> <strong>West</strong> Development Corporation (NWDC)....................................................................................... 9<br />
Pilanesberg Platinum Mines ........................................................................................................................................IFC<br />
Nedbank.................................................................................................................................................................... <strong>22</strong>-25<br />
Pilanesberg Rustenburg Rapid Platinum Transit Mines...............................................................................................................................IFC<br />
(RRT)..............................................................................................................12-15, OBC<br />
Standard Bank.................................................................................................................................. 2-5, 30-31, OBC<br />
Sibanye-Stillwater .........................................................................................................................................................26-27<br />
SPECIAL FEATURE<br />
NORTH WEST PROVINCE<br />
NAMIBIA<br />
Sishen Sishen<br />
<strong>North</strong>ern Cape<br />
<strong>West</strong>ern Cape<br />
Vorstershoop<br />
Hotazel Hotazel<br />
R31<br />
R31<br />
Kuruman Kuruman<br />
Kathu Kathu<br />
BOTSWANA<br />
Postmasburg<br />
NORTH <strong>North</strong> <strong>West</strong> WEST<br />
Free State<br />
Limpopo<br />
KwaZulu-<br />
Natal<br />
Mpumalanga<br />
Gauteng<br />
SWAZI-<br />
LAND<br />
LESOTHO<br />
ZIMBABWE<br />
Sun Sun City/Lost City/Lost City City<br />
Eastern Cape<br />
N4<br />
N4<br />
Zeerust Zeerust<br />
Moloporivier<br />
Swartruggens<br />
Brits<br />
Brits<br />
Groot-Marico<br />
Mmabatho<br />
Rustenburg<br />
Hartbeespoort<br />
Koster<br />
Mooinooi<br />
N1<br />
MAHIKENG Koster<br />
Mooinooi<br />
N1<br />
Magaliesburg<br />
Gauteng<br />
R49<br />
Lichtenburg<br />
R49<br />
R30<br />
R30<br />
R52<br />
R52<br />
JOHANNESBURG<br />
N14<br />
N14<br />
<strong>West</strong>onaria<br />
Coligny<br />
Sannieshof Coligny<br />
Ventersdorp<br />
N3<br />
Stella<br />
Carletonville<br />
N3<br />
Stella<br />
Delareyville<br />
Potchefstroom<br />
Vereeniging<br />
4 9R<br />
4 9R<br />
N12<br />
Ottosdal<br />
Klerksdorp N12<br />
Vryburg<br />
Ottosdal<br />
Vryburg<br />
Sasolburg<br />
Parys<br />
Orkney Parys<br />
R34<br />
Orkney<br />
R34<br />
R59<br />
N1<br />
R57<br />
Wolmaransstad<br />
R59<br />
N1<br />
R57<br />
Lykso<br />
N18<br />
Lykso<br />
N18<br />
R30<br />
N14<br />
R30<br />
Schweizer-<br />
R82<br />
N14<br />
R82 Heilbron<br />
Reneke<br />
Heilbron<br />
Reneke<br />
Taung Taung<br />
Reivilo Reivilo<br />
<strong>North</strong>ern Cape<br />
Ulco Ulco<br />
MOZAMBIQUE<br />
N<br />
BOTSWANA<br />
Warrenton<br />
N12<br />
N12<br />
Christiana<br />
Bloemhof Bloemhof<br />
Wesselsbron<br />
Bultfontein<br />
R49<br />
R49<br />
Welkom Welkom<br />
Kroonstad<br />
Thabazimbi<br />
Ventersburg<br />
Free State<br />
Vaalwater<br />
Limpopo<br />
Bela-Bela Bela-Bela<br />
Motorway Motorway<br />
Main Main Road Road<br />
Railway Railway<br />
PRETORIA<br />
Reitz Reitz<br />
NORTH The Mahikeng WEST BUSINESS International 2020/21 Airport is served by SA 40Potchefstroom College of Agriculture. More than 120<br />
Express. The city’s main sectors are financial services, 000 people attend the Aardklop Festival every year.<br />
Municipalities in <strong>North</strong> <strong>West</strong> Province<br />
Limpopo<br />
services, transport and trade. The Garona District houses The city has a population of about 173 000.
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