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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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