South African Business 2023

A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za. A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

A unique guide to business and investment in South Africa. Welcome to the 11th edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa, supported by a website at www. southafricanbusiness.co.za.

A special feature in this journal focusses on the importance of partnerships as the way forward for the country’s growing number of Special Economic Zones. There are now SEZs in eight provinces and collaboration between the private sector and government and its agencies is proving a crucial element in pursuing the goal of industrializing the South African economy. These zones intended as catalysts for economic growth in established sectors and in stimulating new industries.

Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provinces. The fact that South Africa’s law-enforcement agencies are arresting people alleged to have been involved in state capture and the Reserve Bank has started freezing assets in other matters leads the national overview because business can’t function properly without the rule of law.

South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com. These unique titles are supported by a monthly business e-newsletter with a circulation of over 35 000. Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.


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2021 EDITION<br />

<strong>2023</strong> EDITION<br />






GEARED<br />


A truly smart city, Durban, KZN, <strong>South</strong> Africa seamlessly<br />

combines an innovative business environment with an exciting,<br />

contemporary lifestyle.<br />

Connecting continents, here you will fi nd Africa’s busiest<br />

port, the top ranking conferencing city and the home to<br />

the continent’s very fi rst Aerotropolis. Boasting world-class<br />

infrastructure, manufacturing and industrial concentration that<br />

is constantly evolving, isn’t it time to join this progressive society<br />

rich in investment opportunities?<br />

…We can help you make it happen, now.<br />

Tel: +27 31 311 4227<br />

Email: invest@durban.gov.za<br />

web: invest.durban<br />

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Dube<br />

TradePort<br />

and King<br />

Shaka<br />

International<br />

Airport - 60-<br />

year Master<br />

Plan - driving<br />

growth of<br />

aerotropolis,<br />

or airport city<br />

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The city of Durban<br />

(eThekwini Municipality)<br />

is <strong>South</strong> Africa’s<br />

second most important<br />

economic region<br />

Extensive first-world<br />

road, rail, sea and air<br />

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Rated in top 5<br />

‘Quality of Living’<br />

cities in Africa and<br />

Middle East by<br />

Mercer Consulting in<br />

2015<br />

Named one of the<br />

New 7 Wonders Cities<br />

by the Swiss-based<br />

New 7 Wonders<br />

Foundation in 2014<br />

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<strong>South</strong> <strong>African</strong> <strong>Business</strong> <strong>2023</strong> Edition<br />

Introduction<br />

Foreword 5<br />

A unique guide to business and investment in <strong>South</strong> Africa.<br />

Special features<br />

An economic overview of <strong>South</strong> Africa 8<br />

<strong>South</strong> Africa has the minerals that the green economy needs.<br />

Provinces of <strong>South</strong> Africa 12<br />

A snapshot of <strong>South</strong> Africa’s nine provinces.<br />

Partnerships show the way for<br />

Special Economic Zones 18<br />

Collaboration between the private sector and government<br />

and its agencies is paying off in eight provinces.<br />

Economic sectors<br />

Agriculture 42<br />

Citrus exports have finally made it to China.<br />

Mining 46<br />

Platinum’s role in green hydrogen is a boon for miners.<br />

Energy 52<br />

Infrastructure for carrying newly-generated power is a priority.<br />

Oil, gas and petrochemicals 56<br />

The Central Energy Fund has become a shareholder in<br />

a Free State gas project.<br />

Water 62<br />

<strong>South</strong> Africa is investigating how best to use its groundwater.<br />

Engineering 64<br />

A huge bridge in the Eastern Cape is an engineering challenge.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



The Durban International Convention<br />

Centre (Durban ICC) prides itself on<br />

being leading venue for meetings,<br />

business events, conferences and<br />

exhibitions on the <strong>African</strong> continent.<br />

However, this is not their own opinion,<br />

but rather the overwhelming feedback<br />

received from their clients who have<br />

voted it in the top 1% of Convention<br />

Centres worldwide, as well as “Africa’s<br />

Leading Meetings and Convention<br />

Centre” no fewer than 17 times!<br />

The Durban ICC is a versatile venue<br />

of enormous dimensions, flexible<br />

enough to meet any need, no matter<br />

how extraordinary. The Centre offers<br />

the largest column-free, multipurpose<br />

event space on the <strong>African</strong> continent.<br />

International and national conventions,<br />

exhibitions, sporting events, concerts<br />

and special occasions of every kind<br />

can be accommodated. Flexibility and<br />

versatility are key factors in the design<br />

of this state-of-the-art, technologydriven<br />

Centre. The Centre also offers<br />

a range of innovative solutions such<br />

as Live-streaming events, Remotepresentation<br />

events, Hybrid events,<br />

and Video-on-Demand.<br />

The Durban ICC’s highly experienced<br />

and friendly team will ensure that<br />

your event is seamlessly executed<br />

giving you complete peace of mind.<br />

Providing exceptional customer<br />

service remains the heartbeat of the<br />

Durban ICC, striving to ensure that<br />

every delegate who walks through<br />

the five-star facility has a memorable<br />

experience.<br />

Delegates visiting the Centre can<br />

look forward to superb standards of<br />

culinary excellence and hospitality.<br />

As part of the Durban ICC’s gourmet<br />

evolution over the past decades in<br />

the industry, they are completely<br />

reinventing their culinary offering<br />

in order to showcase some of<br />

Durban’s authentic <strong>African</strong> Cuisines.<br />

Furthermore a wide range of new<br />

innovative packages have been<br />

designed to meet the unique needs<br />

of each target market, at the best<br />

possible rates.<br />

Demonstrating its commitment to<br />

quality, the Durban ICC is five-star<br />

graded by the Tourism Grading<br />

Council of <strong>South</strong> Africa and maintains<br />

its ISO9001, ISO14001 and ISO22000<br />

certifications ensuring the highest<br />

international standards in Quality<br />

Management, Environmental<br />

Responsibility, Food Safety and Health<br />

and Safety.<br />

The DURBAN ICC offers you first-world<br />

convenience and a proudly <strong>African</strong><br />

meetings experience. The Centre is<br />

fully Wi-Fi enabled and connectivity<br />

is complimentary to its delegates and<br />

guests.<br />

Durban ICC Fast Facts<br />

• Located in Durban, known as<br />

<strong>South</strong> Africa’s entertainment<br />

“playground”.<br />

• Durban International Convention<br />

Centre (Durban ICC) comprised<br />

of the Durban ICC Arena and the<br />

Durban Exhibition Centre.<br />

• Voted “Africa’s Leading Meetings<br />

and Conference Centre” by the<br />

World Travel Awards no fewer<br />

than 17 times and continuously<br />

strives to deliver excellent service<br />

• Largest flat floor, column-free<br />

multi-purpose event space in<br />

Africa.<br />

• Ranked in the world’s Top 15<br />

Convention Centres by the<br />

International Association of<br />

Congress Centres (AIPC).<br />

• The Centre is located 30-minutes<br />

from the King Shaka International<br />

Airport and over 3,600 Hotel<br />

rooms are within a 10-minute walk<br />

of the Centre.




Manufacturing 66<br />

Innovation and expansion are happening in textiles.<br />

Construction and property 69<br />

The renewable energy sector has opened up new<br />

work workstreams.<br />

Transport and logistics 70<br />

The value of goods transported along the N3 continues to grow.<br />

Tourism 72<br />

Swiss investment may underpin expansion.<br />

ICT 74<br />

Government’s latest mobile contract is shared by four companies.<br />

Banking and financial services 75<br />

<strong>African</strong> Bank is on the acquisition trail.<br />

Development finance and SMME support 76<br />

Expanding small business has become big business.<br />

Education and training 78<br />

Private education companies are growing.<br />

References<br />

Key sector contents 40<br />

Overviews of the main economic sectors of <strong>South</strong> Africa.<br />

Index 84<br />








2021 EDITION<br />

<strong>2023</strong> EDITION<br />


Main picture: Sasol’s octene plant at Secunda is a major contributor to the chemical sector, Sasol.<br />

Bottom left and then left to right: Renergen has started delivering the country’s first liquified<br />

natural gas (LNG) to Ardagh Glass Packaging & Ceramic Industries, Renergen; The Tsitsikamma<br />

Community Wind Farm is one of many such facilities in the Eastern Cape, Cennergi; The Kruger<br />

National Park is a superb tourism asset, Ugurhan/iStock by Getty Images; Anglo American<br />

unveiled a huge truck powered by a hybrid hydrogen fuel cell in 2022, Anglo American; Impala<br />

Platinum is a major producer and refiner of platinum group metals with operations in two <strong>South</strong><br />

<strong>African</strong> provinces and two other countries, Implats.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


<strong>South</strong> <strong>African</strong> <strong>Business</strong><br />

A unique guide to business and investment in <strong>South</strong> Africa.<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: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<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 />


<strong>South</strong> <strong>African</strong> <strong>Business</strong> is distributed internationally on outgoing<br />

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

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

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

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

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

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

government departments, municipalities and companies.<br />

Welcome to the 11th edition of the <strong>South</strong> <strong>African</strong> <strong>Business</strong><br />

journal. First published in 2011, the publication has<br />

established itself as the premier business and investment<br />

guide to <strong>South</strong> Africa, supported by an e-book edition at<br />

www. southafricanbusiness.co.za.<br />

A special feature in this journal focusses on the importance of<br />

partnerships as the way forward for the country’s growing number of<br />

Special Economic Zones. There are now SEZs in eight provinces and<br />

collaboration between the private sector and government and its agencies<br />

is proving a crucial element in pursuing the goal of industrialising the<br />

<strong>South</strong> <strong>African</strong> economy. These zones intended as catalysts for economic<br />

growth in established sectors and in stimulating new industries.<br />

Regular pages cover all the main economic sectors of the <strong>South</strong><br />

<strong>African</strong> economy and give a snapshot of each of the country’s provinces.<br />

The fact that <strong>South</strong> Africa’s law-enforcement agencies are arresting people<br />

alleged to have been involved in state capture and the Reserve Bank<br />

has started freezing assets in other matters leads the national overview<br />

because business can’t function properly without the rule of law.<br />

<strong>South</strong> <strong>African</strong> <strong>Business</strong> is complemented by nine regional publications<br />

covering the business and investment environment in each of <strong>South</strong><br />

Africa’s provinces. The e-book editions can be viewed online at www.<br />

globalafricanetwork.com. These unique titles are supported by a monthly<br />

business e-newsletter with a circulation of over 35 000. Journal of <strong>African</strong><br />

<strong>Business</strong> joined the Global <strong>African</strong> Network stable of publications as an<br />

annual in 2020 and is now published quarterly. ■<br />

Chris Whales<br />

Publisher, Global Africa Network | Email: chris@gan.co.za<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 2221-4194<br />

COPYRIGHT | <strong>South</strong> <strong>African</strong> <strong>Business</strong> is an independent publication<br />

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

the publication vests with Global Africa Network Media (Pty) Ltd.<br />

No part of the publication may be reproduced in any form without<br />

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

PHOTO CREDITS | Air Liquide; Atlantis SEZ; Caspir Camille Ruben<br />

on Unsplash; Cennergi Services; Concor; Citrus Growers’ Association<br />

of <strong>South</strong> Africa; CSIR; De Beers; Defy; Department of Trade, Industry<br />

and Competition (the dtic); Dipuno Fund; Heineken; Lanzerac Hotel;<br />

Mercedes-Benz SA; Raubex; Renergen; SA Investment Conference; Sappi;<br />

Sun International; Stadio; Tetra Pak; Ubank; Kevin Wright/Vedanta Zinc<br />

International; John Young.<br />

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

has used all reasonable efforts to ensure that the information contained in<br />

<strong>South</strong> <strong>African</strong> <strong>Business</strong> is accurate and up-to-date, the publishers make no<br />

representations as to the accuracy, quality, timeliness, or completeness of<br />

the information. Global Africa Network will not accept responsibility for any<br />

loss or damage suffered as a result of the use of or any reliance placed on<br />

such information.<br />

5 SOUTH AFRICAN BUSINESS <strong>2023</strong>

10 REASONS<br />


01.<br />


MARKET<br />

Growing middle class, affluent consumer<br />

base, excellent returns on investment.<br />

02.<br />



<strong>South</strong> Africa (SA) has the most industrialised economy in Africa.<br />

It is the region’s principal manufacturing hub and a leading<br />

services destination.<br />



SA is the location of choice of multinationals in Africa.<br />

03.<br />

Global corporates reap the benefits of doing business in<br />

SA, which has a supportive and growing ecosystem as a<br />

hub for innovation, technology and fintech.<br />

05.<br />





SA has a sophisticated banking sector with a major<br />

footprint in Africa. It is the continent’s financial hub,<br />

with the JSE being Africa’s largest stock exchange by<br />

market capitalisation.<br />

The <strong>African</strong> Continental Free Trade Area will boost<br />

intra-<strong>African</strong> trade and create a market of over one<br />

billion people and a combined gross domestic product<br />

(GDP) of USD2.2-trillion that will unlock industrial<br />

development. SA has several trade agreements in<br />

place as an export platform into global markets.<br />


09.<br />

SA has a number of world-class universities and colleges<br />

producing a skilled, talented and capable workforce. It<br />

boasts a diversified skills set, emerging talent, a large pool<br />

of prospective workers and government support for training<br />

and skills development.<br />

07.<br />

04.<br />

06.<br />

08.<br />





SA has a progressive Constitution and an independent judiciary. The<br />

country has a mature and accessible legal system, providing certainty<br />

and respect for the rule of law. It is ranked number one in Africa for the<br />

protection of investments and minority investors.<br />



SA is endowed with an abundance of natural resources. It is the leading producer<br />

of platinum-group metals (PGMs) globally. Numerous listed mining companies<br />

operate in SA, which also has world-renowned underground mining expertise.<br />




A massive governmental investment programme in infrastructure development<br />

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

networks in Africa, and is ranked number one in Africa in the World Bank’s<br />

Logistics Performance Index.<br />

10.<br />

SA offers a favourable cost of living, with a diversified cultural, cuisine and<br />

sports offering all year round and a world-renowned hospitality sector.<br />


OF LIFE<br />

Page | 2<br />

719<br />




The historic Lanzerac wine estate and hotel was attached by the Reserve Bank in 2022. Credit: Lanzerac Wine Estate<br />

The appearance of alleged fraudsters in court bodes well for the rule<br />

of law, a prerequisite for attracting investment. <strong>South</strong> Africa has the<br />

minerals that the green economy needs.<br />

By John Young<br />

When the accused in the Transnet<br />

fraud and corruption case appeared<br />

in a specialised commercial crimes<br />

court in October 2022, there was<br />

not enough room in the dock for the 11 accused.<br />

The first row of the public benches had to be used<br />

to fit the former staff members and their alleged<br />

accomplices to face more than 50 counts of fraud<br />

and corruption.<br />

In the same month, the <strong>South</strong> <strong>African</strong> Reserve<br />

Bank seized what it understood to be former<br />

Steinhoff CEO Markus Jooste’s assets, including<br />

his house in Hermanus and the Stellenbosch<br />

wine estate and hotel, Lanzerac. Given the nature<br />

of these things, the ownership of the hotel is not<br />

entirely clear (it involves entities registered in the<br />

British Virgin Islands) but the broad strokes of the<br />

bank’s actions are clear – it intends getting to the<br />

bottom of the accounting scandal that led to losses<br />

for investors which may amount to R200-billion.<br />

In 2021 ex-president Zuma’s refusal to appear<br />

before the Zondo (state capture) commission<br />

led to him spending time in jail. His trial on<br />

substantive corruption charges lies ahead.<br />

For the chances of a <strong>South</strong> <strong>African</strong> economic<br />

recovery, these events are seminal. The era of<br />

state capture will take time and forensic effort<br />

to unravel, but the fact that trials are happening<br />

– and that two of the Gupta brothers were<br />

arrested and denied bail in Dubai – means that<br />

the country’s National Prosecuting Authority<br />

seems to be on track again after itself being<br />

buffeted by disruptive forces.<br />

That the Reserve Bank is doing its bit to rein<br />

in the private sector must also be welcomed<br />

by businesses and investors who know that<br />

economies can only grow if there is trust and<br />

respect for the rule of law.<br />

Dutch brewing giant Heineken has signalled<br />

some confidence in the <strong>South</strong> <strong>African</strong> economy<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



with its decision to purchase Distell for a<br />

reported R38.4-billion. Heineken already runs<br />

(and has expanded) the Sedibeng brewery in<br />

southern Gauteng and announced its intention<br />

to take a majority share in its regional partner,<br />

Namibia Breweries.<br />

Distell brands such as Savanna, Three<br />

Ships Whisky, Klipdrift and Amarula will give<br />

the expanded company a much more diverse<br />

portfolio and position it for a drive into other<br />

<strong>African</strong> markets.<br />

Speaking to the Sunday Times after the<br />

release of Distell’s annual results in August<br />

2022, Distell CEO Richard Ruston highlighted<br />

the economic factors that the country<br />

has to get right for the economy to thrive:<br />

“macroeconomic stability, policy certainty and<br />

the big infrastructure and energy initiatives”.<br />

Getting it right<br />

One institution that the state-capture plotters<br />

never succeeding in getting their hands on<br />

was the state Treasury, although there was one<br />

fraught weekend in December 2015 when it was<br />

touch-and-go.<br />

With the Reserve Bank also having managed<br />

to preserve its independence (and now<br />

showing some muscle in the Jooste saga), the<br />

first two items highlighted by the Distell CEO –<br />

macroeconomic stability and policy certainty –<br />

at least have a solid basis on which economic<br />

planners and politicians can build.<br />

And a very positive element is that virtually<br />

everyone agrees that big infrastructure and<br />

energy initiatives are what the country needs.<br />

Quite what, how and when are still being<br />

debated, but at least the need is agreed on.<br />

From government’s side, there is an<br />

initiative to coordinate efforts with regard to<br />

infrastructure. In 2020, Infrastructure <strong>South</strong><br />

Africa (ISA), a programme within the Ministry of<br />

Public Works and Infrastructure, was established.<br />

ISA is headed by Dr Kgosientsho Ramokgopa<br />

and it reports to the Presidential Infrastructure<br />

Coordinating Commission (PICC) Council,<br />

chaired by President Cyril Ramaphosa. The<br />

body is intended as the single point of entry for<br />

accelerated infrastructure investment, with a<br />

Dutch brewer Heineken, which runs a brewery in<br />

Sedibeng, has bought Distell. Credit: Heineken<br />

particular focus on both public and private sector<br />

social and economic infrastructure projects.<br />

Energy and recovery<br />

An excellent programme exists to procure the<br />

energy that <strong>South</strong> Africa needs to expand the<br />

economy, the Renewable Energy Independent<br />

Power Producer Procurement Programme<br />

(REIPPPP). The programme has suffered one<br />

unwarranted interruption since its introduction<br />

in 2012, but generally it has delivered what it was<br />

intended to deliver, cheaper, greener power.<br />

In Round Five of the REIPPPP, the cheapest<br />

solar generation cost was 37.5c/kWh while the<br />

best wind cost was 34.4c/kWh. These represent<br />

remarkably low costs and are lower by an order<br />

of magnitude than the prices that were quoted<br />

when the programme began a decade ago.<br />

When President Ramaphosa announced<br />

that private power investors could create up<br />

to 100MW of power without having to wait for<br />

licensing, he potentially opened up a path to<br />

growth, a path that has been constrained for<br />

some time by the limitations of the national<br />

utility, Eskom.<br />

Eskom’s inability to provide enough electricity<br />

to power the economy (and its huge debt)<br />

rank as the biggest risks to the <strong>South</strong> <strong>African</strong><br />

economy. Opportunities for private consortiums<br />

are expanding and every window of the REIPPPP<br />

9<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

The cost of electricity generated by renewables has dropped enormously since the private<br />

producers’ programme began. Credit: Cennergi Services<br />

has been oversubscribed so there is an appetite<br />

to enter the <strong>South</strong> <strong>African</strong> energy market.<br />

Eskom’s unbundling will be another spur<br />

to growth. The legal separation of transmission<br />

is the first step, with the other two elements,<br />

generation and distribution, to follow. The idea<br />

is not to privatise the entities but to find private<br />

partners and to allow for competition within the<br />

various fields.<br />

The R130-billion pledged at COP26 by the EU,<br />

the US, Germany, France and the UK to assist <strong>South</strong><br />

Africa’s transition from oil and coal to greener<br />

technologies is not straightforward; it comes as<br />

a mixture of grants, risk-sharing instruments and<br />

concessional finance but it will allow <strong>South</strong> Africa<br />

to fund projects that will help the country to move<br />

away from fossil fuels without further stretching<br />

Eskom’s precarious finances.<br />

The mining sector is also paying close<br />

attention to the world’s shifting priorities<br />

in terms of how to power the economy:<br />

commodities attracting the most attention are<br />

those which have the potential to power the<br />

green economy, platinum group metals (PGMs)<br />

and chrome among them. In August 2021,<br />

<strong>South</strong> <strong>African</strong> mineral exports were 44% higher<br />

than the year before. Covid obviously had a lot<br />

to do with that figure, but R166.5-billion still<br />

represented a good return.<br />

Although gold mining is declining in volumes<br />

(even while prices rise), the major investment<br />

of Vedanta Zinc International in a project in<br />

the Northern Cape and Sibanye-Stillwater’s<br />

acquisition drive in the PGM sector are significant<br />

economic drivers. De Beers’ investment in its<br />

Limpopo diamond mine, Venetia, will significantly<br />

expand that facility’s life.<br />

Coal and iron ore continue to be exported<br />

in large volumes through the Richards Bay<br />

Coal Terminal on the east coast and the Port of<br />

Saldanha on the west coast.<br />

The agricultural sector fared fairly well during<br />

the Covid-19 lockdown. Although sectors like<br />

wine suffered badly, a reported increase in<br />

maize exports, as well as greater international<br />

demand for citrus fruits and pecan nuts, helped<br />

the industry expand by 15% (StatsSA). However,<br />

since Covid, there has been the Russian invasion<br />

of Ukraine, which has not only disrupted<br />

markets for <strong>South</strong> <strong>African</strong> produce but upset<br />

logistics chains.<br />

Grain crops such as maize, wheat, barley<br />

and soya beans are among the county’s most<br />

important crops. Only rice is imported. Wine,<br />

corn and sugar are other major exports.<br />

Basing economic growth on a devaluing<br />

currency is not always the best long-term<br />

method of boosting economic growth, but<br />

high-value agricultural exports and increased<br />

numbers of high-spending international tourists<br />

hold some promise for helping to get the<br />

<strong>South</strong> <strong>African</strong> economy back on a growth path.<br />

Horticulture in particular is seen as holding great<br />

potential not only for increased earnings, but for<br />

creating jobs. <strong>South</strong> Africa’s traditional strength<br />

in minerals still holds good. ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Mpumalanga:<br />

a world-class tourism<br />

destination<br />

A <strong>South</strong> <strong>African</strong> province that has everything a tourist could want.<br />

Travellers should prepare to be astounded by the natural attractions<br />

and experiences that are on offer in Mpumalanga. It is <strong>South</strong> Africa’s<br />

most easterly province, endowed with an extraordinary richness<br />

of natural beauty from canyons and waterfalls and with scope<br />

for a huge diversity of adventures and experiences ranging from<br />

encounter-rich game drives to paragliding. Mpumalanga offers a<br />

wide array of activities for the active tourist, ranging from abseiling<br />

to white-water-river rafting, with fly-fishing, paragliding, mountain<br />

biking, bungee jumping, hiking, 4x4 trails and many outdoor<br />

adventure activities in between.<br />

Mpumalanga is undoubtedly the ultimate destination<br />

in terms of wildlife experience. The Kruger National Park,<br />

Manyeleti, Loskop Dam and numerous private game reserves<br />

dotted throughout the region offer an exhilarating experience<br />

that brings visitors closer to nature. Mpumalanga boasts a<br />

conservancy area that is rich with diverse flora and fauna.<br />

The Panorama Route offers spectacular landscapes with<br />

attractions like the Blyde River Canyon (third-largest in the<br />

world and known as a “green canyon” because of its subtropical<br />

vegetation, pictured). The province also boasts majestic waterfalls<br />

and high-altitude scenic drives leading to attractions like God’s<br />

Window, Bourke’s Luck Potholes and the Three Rondavels.<br />

Mpumalanga’s rich heritage is still largely unexplored<br />

but more and more visitors are being exposed to fascinating<br />

history. The many heritage sites in the area include the<br />

Samora Machel monument near Mbuzini and the Barberton<br />

Makhonjwa Mountains World Heritage Site (pictured),<br />

boasting rock formations dating back more than 3.5-billion<br />

years. Other sites not to be missed are the mining village of<br />

Pilgrim’s Rest, the Highveld Heritage Route (which abounds<br />

with adventurous tales from history), the stone circles of<br />

Mpumalanga and Goliath’s footprint to name just a few.<br />

Mpumalanga is rich in culture and boasts the Swazi, Ndebele<br />

and Shangaan people with icons like Dr Esther Mahlangu<br />

who has managed to preserve, package and export the<br />

vibrant geometric art of the Ndebele globally.<br />

Bird watchers can have a glimpse of more than 500<br />

different birds endemic to the Kruger National Park or the town<br />

of Chrissiesmeer, the centre of <strong>South</strong> Africa’s own Lake District<br />

where four river systems start their journeys across the country.<br />

The small tourist town of Dullstroom is referred to<br />

as <strong>South</strong> Africa’s trout-fishing mecca. Mpumalanga is an<br />

ideal sporting destination with several world-class golf<br />

courses and the Mbombela Stadium that was built for<br />

the FIFA World Cup in 2010 and has subsequently hosted<br />

international football and rugby matches. Get off the<br />

beaten track and explore the many other tourism offerings<br />

of the Mpumalanga Province.<br />

For more information:<br />

Email: info@mtpa.co.za and reservations@mtpa.co.za<br />

Website: www.mpumalanga.com<br />

Facebook: Mpumalanga Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism


Provinces of <strong>South</strong> Africa<br />

A snapshot of <strong>South</strong> Africa’s nine provinces.<br />

Eastern Cape<br />

Capital: Bhisho<br />

Main towns: Port Gqeberha Elizabeth, (formerly East<br />

London, Port Elizabeth), Uitenhage, East London, Graaff-<br />

Reinet, Kariega Mthatha, (formerly Grahamstown<br />

Uitenhage),<br />

(Makhanda)<br />

Graaff-Reinet, Mthatha, Makhanda<br />

Population: 6 916 200 (2015)<br />

Area: 168 966km² (13.8%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Lubabalo Oscar Mabuyane (ANC)<br />

Key sectors: Automotive,<br />

agriculture, agri-processing,<br />

agro-processing,<br />

forestry, finance, retail, tourism,<br />

renewable energy.<br />

Infrastructure: Coega Industrial<br />

Development Zone, East London<br />

Industrial Development Zone,<br />

ports of East London, Port<br />

Elizabeth and Ngqura, airports at<br />

Port Gqeberha Elizabeth and and East East London. London.<br />

Notable tourism assets: Addo<br />

Elephant National Park, Mountain<br />

Zebra National Park, Wild Coast,<br />

Jeffreys Bay, National Arts Festival.<br />

Provincial government website:<br />

www.ecprov.gov.za<br />

Eastern Cape Development<br />

Corporation: www.ecdc.co.za<br />

Free State<br />

Capital: Bloemfontein<br />

Main towns: Welkom, Sasolburg,<br />

Parys, Kroonstad<br />

Population: 2 817 900 (2015)<br />

Area: 129 825km² (10.6%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Sefora Hixsonia Ntombela (ANC)<br />

Key sectors: Agriculture,<br />

agri-processing, agro-processing, chemical<br />

manufacturing, mining, transport<br />

and logistics.<br />

Infrastructure: Maluti-A-Phofung<br />

Special Economic Zone, Bram<br />

Fischer International Airport,<br />

University of the Free State,<br />

Central University of Technology,<br />

N8 Corridor.<br />

Notable tourism assets: Vaal<br />

River, Gariep Dam, Golden Gate<br />

Highlands National Park, Cherry<br />

Festival, Mangaung <strong>African</strong><br />

Cultural Festival (Macufe).<br />

Provincial government website:<br />

www.freestateonline.fs.gov.za<br />

Free State Development<br />

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

Gauteng<br />

Capital: Johannesburg<br />

Main towns: Tshwane<br />

(including Pretoria), Ekurhuleni,<br />

Vanderbijlpark, Roodepoort<br />

Population: 13 200 300 (2015)<br />

Area: 18 178km² (1.5%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

David Panyaza Makhura Lesufi (ANC)<br />

Key sectors: Financial and banking,<br />

banking, manufacturing, manufacturing, trade, creative trade,<br />

creative industries, industries, media. media.<br />

Infrastructure: OR Tambo<br />

International Airport, Gautrain, Vaal Special<br />

major Economic universities Zone, Gautrain, and research major<br />

institutions, universities and large research convention institutions,<br />

large FNB convention Stadium (Soccer centres, City).<br />

centres,<br />

FNB Stadium (Soccer City).<br />

Notable tourism assets: Cradle of<br />

Humankind, Notable tourism Apartheid assets: Museum, Cradle of<br />

Constitution Humankind, Hill, Apartheid Magaliesberg, Museum,<br />

Soweto Constitution tours, Hill, Dinokeng. Magaliesberg,<br />

Soweto tours, Dinokeng.<br />

Provincial government website:<br />

www.gauteng.gov.za<br />

Provincial government website:<br />

Gauteng www.gauteng.gov.za<br />

Growth and<br />

Development Gauteng Growth Agency: and Development<br />

Agency: www.ggda.co.za www.ggda.co.za<br />

SOUTH AFRICAN BUSINESS 2021 2020 <strong>2023</strong><br />

16 20 12



KwaZulu-Natal<br />

Capital: Pietermaritzburg<br />

Main towns: Durban, Newcastle,<br />

Ballito, Port Shepstone,<br />

Empangeni, Ulundi<br />

Population: 10 919100 100 (2015)<br />

Area: 125 755km² (7.7% of<br />

of <strong>South</strong> <strong>South</strong> Africa) Africa)<br />

Premier:<br />

Premier: Nomusa Dube-Ncube (ANC)<br />

Sihle Zikalala (ANC)<br />

Key sectors: Chemicals, dissolving<br />

Key pulp sectors: manufacture, Chemicals, sugar, dissolving forestry,<br />

pulp automotive, manufacture, textiles sugar, and forestry, footwear,<br />

automotive, mining, oil textiles and gas, and logistics. footwear,<br />

mining, Infrastructure: oil and gas, King logistics. Shaka<br />

Infrastructure: International King Airport, Shaka Dube<br />

International<br />

TradePort, Richards<br />

Airport, Dube<br />

Bay Industrial<br />

TradePort,<br />

Richards<br />

Development<br />

Bay Industrial<br />

Zone,<br />

Development<br />

ports of<br />

Zone,<br />

Richards<br />

ports<br />

Bay<br />

of Richards<br />

and Durban,<br />

Bay and<br />

Albert<br />

Durban,<br />

Luthuli International<br />

Albert Luthuli International<br />

Convention<br />

Convention<br />

Centre Complex.<br />

Centre Complex.<br />

Notable<br />

Notable<br />

tourism<br />

tourism<br />

assets:<br />

assets:<br />

HluhluweiMfolozi<br />

HluhluweiMfolozi<br />

Park,<br />

Park,<br />

the<br />

the<br />

Drakensberg<br />

Drakensberg<br />

mountains,<br />

mountains,<br />

iSimangilso<br />

iSimangaliso<br />

Wetlands<br />

Wetland<br />

Park,<br />

Park,<br />

Durban<br />

Durban<br />

beaches,<br />

beaches,<br />

<strong>South</strong><br />

<strong>South</strong><br />

Coast,<br />

Zulu<br />

Coast,<br />

cultural<br />

Zulu<br />

heritage,<br />

cultural<br />

historical<br />

heritage,<br />

historical battlefields.<br />

battlefields.<br />

Provincial government website:<br />

Provincial government website:<br />

www.kznonline.gov.za<br />

www.kznonline.gov.za<br />

Trade and Investment KwaZulu-<br />

Trade and Investment KwaZulu-<br />

Natal: www.tikzn.co.za<br />

Natal: www.tikzn.co.za<br />

Limpopo<br />

Capital: Polokwane<br />

Main towns: Musina, Ba-Phalabora,<br />

Ba-Phalabora, Bela-Bela, Steelpoort, Bela-Bela, Tzaneen,<br />

Steelpoort, Thohoyandou Tzaneen, Thohoyandou<br />

Population: 5 726 800 (2015)<br />

Area: 125 755km² (10.2% of<br />

of <strong>South</strong> <strong>South</strong> Africa) Africa)<br />

Premier:<br />

Premier: Chupu Stanley Mathabatha (ANC)<br />

Chupu Stanley Mathabatha (ANC)<br />

Key sectors: Mining, agriculture,<br />

Key tourism, sectors: logistics. Mining, agriculture,<br />

tourism, logistics.<br />

Infrastructure: Musina-Makhado<br />

Infrastructure: Special Economic Musina-Makhado<br />

Zone,<br />

Special<br />

Fetakgomo-Tubatse<br />

Economic Zone,<br />

Special<br />

N1<br />

highway<br />

Economic<br />

and<br />

Zone,<br />

rail<br />

N1<br />

network,<br />

highway<br />

new<br />

and<br />

Medupi<br />

rail network,<br />

power<br />

new<br />

station.<br />

Medupi power<br />

station.<br />

Notable<br />

Notable<br />

tourism<br />

tourism<br />

assets:<br />

assets:<br />

Kruger<br />

Kruger<br />

National<br />

National<br />

Park,<br />

Park,<br />

Mapungubwe<br />

Mapungubwe<br />

Heritage<br />

World Heritage<br />

Site, Makapans<br />

Site, Makapans<br />

Valley,<br />

Marula<br />

Valley, Marula<br />

Festival,<br />

Festival,<br />

Waterberg<br />

Waterberg<br />

Biosphere.<br />

Biosphere.<br />

Provincial government website:<br />

Provincial government website:<br />

www.limpopo.gov.za<br />

www.limpopo.gov.za<br />

Limpopo Economic<br />

Limpopo Economic Development<br />

Development Agency:<br />

Agency: www.lieda.gov.za<br />

www.lieda.gov.za<br />

Mpumalanga<br />

Capital: Mbombela<br />

Main towns: Emalahleni,<br />

Middelburg,<br />

Middelburg, Sabie,<br />

Sabie,<br />

Lydenburg<br />

Lydenburg<br />

Population:<br />

Population: 4<br />

283<br />

283<br />

900<br />

900<br />

(2015)<br />

(2015)<br />

Area: 76 495km² (6.3% of<br />

Area: 76 495km² (6.3%<br />

<strong>South</strong> Africa)<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Refilwe Premier: Mtshweni-Tsipane (ANC)<br />

Refilwe Mtshweni-Tsipane (ANC)<br />

Key sectors: Agriculture, forestry,<br />

mining, steel manufacturing,<br />

petrochemicals,<br />

Key sectors: Agriculture,<br />

pulp and<br />

forestry,<br />

paper,<br />

power mining, generation, steel manufacturing, tourism.<br />

petrochemicals, pulp and paper,<br />

Infrastructure: power generation, Nkomazi tourism. Special<br />

Economic Infrastructure: Zone, Nkomazi Mbombela Special<br />

International Economic Zone, Fresh Mbombela Produce<br />

Market, International Maputo Fresh Development<br />

Produce<br />

Corridor, Market, Maputo Kruger Development<br />

Mpumalanga<br />

International Corridor, Kruger Airport. Mpumalanga<br />

International Airport.<br />

Notable tourism assets: Kruger<br />

National Park, Blyde River Canyon,<br />

Canyon, Barberton Barberton Makhonjwa Makhonjwa Mountains<br />

Mountains (a UNESCO World (a UNESCO Heritage World Site).<br />

Heritage Site).<br />

Provincial government website:<br />

Provincial www.mpumalanga.gov.za<br />

government website:<br />

www.mpumalanga.gov.za<br />

Mpumalanga Economic Growth<br />

Mpumalanga Agency: www.mega.gov.za<br />

Economic Growth<br />

Agency: www.mega.gov.za<br />

21 13<br />

17 SOUTH AFRICAN BUSINESS 2020 2021<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>



Northern Cape<br />

Northern Cape<br />

Capital: Kimberley<br />

Capital: Main towns: Kimberley Douglas, Upington,<br />

Main De Aar, towns: Port Nolloth, Douglas, Colesberg Upington,<br />

De Aar, Port Nolloth, Colesberg<br />

Population: 1 185 600 (2015)<br />

Population: Area: 372 889km² 1 185 600 (30.5% (2015) of<br />

Area: <strong>South</strong> 372 Africa) 889km² (30.5%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Premier: Dr Zamani Saul (ANC)<br />

Dr Zamani Saul (ANC)<br />

Key sectors: Agriculture, mining,<br />

Key renewable sectors: energy, Agriculture, astronomy. mining,<br />

renewable energy, astronomy.<br />

Infrastructure: Upington Industrial<br />

Park, Sol Plaatje University,<br />

Infrastructure: Vaalharts Irrigation Upington Scheme, Special<br />

Economic Square Kilometre Zone, Sol Array Plaatje telescope<br />

University, project, Namakwa Vaalharts Special Irrigation<br />

Scheme. Economic Zone.<br />

Notable tourism assets: Six<br />

national parks including the<br />

Notable Kgalagadi tourism Transfrontier assets: Park, Six<br />

national Orange River, parks spring including flower the<br />

Kgalagadi displays, diamond Transfrontier routes. Park,<br />

Orange River, spring flower<br />

displays, diamond routes.<br />

Provincial government website:<br />

www.northern-cape.gov.za<br />

Department of Economic<br />

Development and Tourism:<br />

www.northern-cape.gov.za/dedat<br />

North West<br />

North West<br />

Capital: Mahikeng<br />

Capital: Main towns: Mahikeng Klerksdorp,<br />

Main Rustenburg, towns: Klerksdorp, Brits, Potchefstroom<br />

Rustenburg, Brits, Potchefstroom<br />

Population: 3 707 000 (2015)<br />

Population: Area: 104 882km² 3 707 000 (8.6%(2015)<br />

of<br />

Area: <strong>South</strong> 104 Africa) 882km² (8.6%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Premier: Bushy Maape Professor (ANC) Tebogo Job<br />

Mokgoro (ANC)<br />

Key sectors: Mining, agriculture,<br />

Key agri-processing, sectors: Mining, automotive agriculture,<br />

agri-processing, components. automotive<br />

components.<br />

Infrastructure: Hartbeespoort<br />

Infrastructure: Dam, Pelindaba Hartbeespoort<br />

nuclear research<br />

Dam, unit, North-West Pelindaba nuclear University, research<br />

unit, Bakwena North Platinum West University, Highway.<br />

Bakwena Platinum Highway.<br />

Notable tourism assets: Sun City,<br />

Mmbatho Palms Hotel Casino<br />

Notable Convention tourism Resort, assets: Pilanesberg Sun City,<br />

Mmbatho National Park, Palms 18 Hotel luxury Casino lodges in<br />

Convention Madikwe Game Resort, Reserve. Pilanesberg<br />

National Park, 18 luxury lodges in<br />

Madikwe Game Reserve.<br />

Provincial government website:<br />

Provincial www.nwpg.gov.za government website:<br />

www.nwpg.gov.za<br />

North West Development<br />

North Corporation: West Development<br />

www.nwdc.co.za<br />

Corporation: www.nwdc.co.za<br />

Western Cape<br />

Western Cape<br />

Capital: Cape Town<br />

Capital: Main towns: Cape Stellenbosch,<br />

Town<br />

Main George, towns: Plettenberg Stellenbosch, Bay, Beaufort<br />

George, West, Oudtshoorn, Plettenberg Worcester, Bay, Beaufort<br />

West, Malmesbury Oudtshoorn, Worcester,<br />

Malmesbury<br />

Population: 6 200 100 (2015)<br />

Population: Area: 129 462km² 6 200 100 (10.6% (2015) of<br />

Area: <strong>South</strong> 129 Africa) 462km² (10.6%<br />

of <strong>South</strong> Africa)<br />

Premier:<br />

Premier: Alan Winde (DA)<br />

Alan Winde (DA)<br />

Key sectors: Agriculture, agriprocessing,<br />

sectors: wine Agriculture, and grapes, agri-<br />

Key<br />

processing, financial services, wine and manufacturing, grapes,<br />

financial tourism, oil services, and gas, manufacturing,<br />

boatbuilding.<br />

tourism, Infrastructure: oil and Ports gas, of boatbuilding. Cape Town,<br />

Infrastructure: Saldanha and Mossel Ports of Bay, Cape Mossgas<br />

Town, oil-to-gas Saldanha refinery, and Cape Mossel Town Bay,<br />

Mossgas International oil-to-gas Airport, refinery, Cape Town Cape<br />

Town International International Convention Airport, Centre, Cape<br />

Town Koeberg International nuclear power Convention station.<br />

Centre, Notable Koeberg tourism nuclear assets: Table power<br />

station. Mountain, Garden Route National<br />

Notable Park, Karoo tourism National assets: Park, Table West<br />

Mountain, Coast National Garden Park, Route Kirstenbosch National<br />

Park, Botanical Karoo Gardens, National Cape Park, Point, West<br />

Coast V&A Waterfront, National Park, Plettenberg Kirstenbosch<br />

Botanical Bay, Route Gardens, 62, Zeitz Cape Museum Point, of<br />

V&A Contemporary Waterfront, Art. Plettenberg<br />

Bay, Route 62, Zeitz Museum of<br />

Contemporary Provincial government Art. website:<br />

www.westerncape.gov.za<br />

Provincial Wesgro: www.wesgro.co.za<br />

government website:<br />

www.westerncape.gov.za<br />

Wesgro: www.wesgro.co.za<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />

14<br />


FOCUS<br />

Sectoral strengths of<br />

<strong>South</strong> <strong>African</strong> provinces<br />



A wide variety of investments are available.<br />

Gauteng:<br />

• Financial and business services<br />

• Information and communications<br />

technology<br />

• Transport and logistics<br />

• Basic iron and steel, steel products<br />

• Fabricated metal products<br />

• Motor vehicles, parts and accessories<br />

• Appliances<br />

• Machinery and equipment<br />

• Chemical products, pharmaceuticals<br />

North West:<br />

• Agro-processing<br />

• Mining<br />

• Agriculture and agro-processing<br />

• Tourism<br />

• Metal products<br />

• Machinery and equipment<br />

• Renewable energy (solar)<br />

Northern Cape:<br />

• Mining<br />

• Agriculture and agro-processing<br />

• Fisheries and aquaculture<br />

• Renewable energy (solar, wind)<br />

• Jewellery manufacturing<br />

Limpopo:<br />

• Mining<br />

• Fertilisers<br />

• Tourism<br />

• Agriculture<br />

• Agro-processing<br />

• Energy, including<br />

renewables (solar)<br />


Mpumalanga:<br />

• Mining<br />

• Tourism<br />

• Forestry, paper and paper<br />

products, wood and wood<br />

products<br />

• Agriculture and agroprocessing<br />

• Metal products<br />

FOCUS<br />

KwaZulu-Natal:<br />

• Transport and logistics<br />

• Tourism<br />

• Motor vehicles, parts and<br />

accessories<br />

• Petrochemicals<br />

• Aluminium<br />

• Clothing and textiles<br />

• Machinery and equipment<br />

• Agriculture and agroprocessing<br />

• Forestry, pulp and paper,<br />

wood and wood products<br />

Western Cape:<br />

• Tourism<br />

• Financial and business services<br />

• Transport and logistics<br />

• ICT<br />

• Agriculture and agro-processing<br />

• Fisheries and aquaculture<br />

• Petrochemicals<br />

• Basic iron and steel<br />

• Clothing and textiles<br />

• Renewable energy (solar, wind)<br />

Free State:<br />

• Agriculture and agro-processing<br />

• Mining<br />

• Petrochemicals<br />

• Machinery and equipment<br />

• Tourism<br />

Eastern Cape:<br />

• Motor vehicles, parts and<br />

accessories<br />

• Forestry, wood and wood products<br />

• Clothing and textiles<br />

• Pharmaceuticals<br />

• Leather and leather products<br />

• Tourism<br />

• Renewable energy (wind)<br />

Page | 40<br />

Source: Industrial Development Corporation (IDC); The Case for Investing in <strong>South</strong> Africa, Executive Summary<br />

Source: Industrial Development Corporation (IDC)<br />

(<strong>South</strong> <strong>African</strong> Investment Conference, 2018).<br />


15<br />


FOCUS<br />

Promoting responsible investment<br />

into the oil and gas sector<br />

Petroleum Agency <strong>South</strong> Africa (PASA), the official agency that<br />

promotes and regulates the country’s onshore and offshore<br />

resources, is busier than ever dealing with international queries.<br />

The decision by TotalEnergies to submit a<br />

production plan for their recent discoveries<br />

off the coast of Mossel Bay coincided with<br />

the beginning of commercial operations of<br />

Tetra4’s natural gas project in the north-eastern Free<br />

State. These two events prove that investors can see<br />

that the <strong>South</strong> <strong>African</strong> resources equation adds up<br />

to something worthwhile.<br />

These are exciting times for exploration in <strong>South</strong><br />

Africa. Both of these projects came about through<br />

the licensing authority of Petroleum Agency <strong>South</strong><br />

Africa (PASA), the agency of national government<br />

which reports to the Minister of Mineral Resources<br />

and Energy (DMRE). PASA regulates and monitors<br />

exploration and production activities and is<br />

the custodian of the national exploration and<br />

production database for petroleum. Its role was<br />

statutorily endorsed in June 2004 in terms of the<br />

Mineral and Petroleum Resources Development<br />

Act of 2002.<br />

In terms of strategy, the agency actively<br />

seeks out technically competent and financially<br />

sound clients to whom it markets acreage, while<br />

ensuring that all prospecting and mining leases<br />

are for the long-term economic benefit of <strong>South</strong><br />

Africa. As custodian, PASA ensures that companies<br />

applying for gas rights are vetted to make sure<br />

they are financially qualified and technically<br />

capable, as well having a good track record in<br />

terms of environmental responsibility. Oil and gas<br />

exploration requires enormous capital outlay and<br />

can represent a risk to workers, communities and the<br />

environment. Applicants are therefore required to<br />

prove their capabilities and safety record and must<br />

carry insurance for environmental rehabilitation.<br />

As part of a drive to create certainty for investors,<br />

a new bill has been introduced to replace old<br />

legislation. The Upstream Petroleum Resources<br />

Development (UPRD) Bill provides for greater<br />

certainty in terms of security of tenure by combining<br />

the rights for the exploration, development and<br />

production phase under one permit.<br />

The draft bill was first published in June 2021<br />

and discussions with industry stakeholders are<br />

ongoing. Organisations such as the <strong>South</strong> <strong>African</strong><br />

Oil and Gas Alliance (SAOGA) will be coordinating<br />

responses to present to parliament. Objectives of<br />

the bill include:<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Credit: Shutterstock<br />

• expanding black participation<br />

• promoting local employment and skills<br />

development<br />

• creating an enabling environment to accelerate<br />

exploration and production of <strong>South</strong> Africa’s<br />

petroleum resources.<br />

Sustainable development: balancing development<br />

with environmental protection<br />

<strong>South</strong> Africa has vast gas and oil resources and<br />

exploration and the exploitation of these resources<br />

has barely scratched the surface. Having to import<br />

oil and gas has a serious impact on the country’s<br />

balance of payments.<br />

This makes it more difficult to industrialise the<br />

country. For the 2021/22 financial year about 50<br />

applications for exploration and production were<br />

received but only about 10% of that number<br />

were approved.<br />

This is because of very stringent licensing and<br />

environmental regulations which must be followed.<br />

As PASA CEO Dr Phindile Masangane explains, “We<br />

assure <strong>South</strong> <strong>African</strong>s that the slow pace is because<br />

we have to make sure that we have a robust<br />

system that incorporates all the aspects of licensing<br />

but importantly, that the environmental impact<br />

assessment is thoroughly undertaken.”<br />

Despite this, planned seismic surveys were halted<br />

after opponents of the process went to court in 2021<br />

and 2022. Proponents of continued exploration<br />

argue that the seismic process being followed is no<br />

different to that which has been followed in the past,<br />

and which is employed all over the world.<br />

Dr Masangane told Bloomberg in August 2022:<br />

“As the Petroleum Agency, we acknowledge that<br />

<strong>South</strong> Africa’s upstream oil and gas industry has<br />

become litigious.” She noted that local consultation<br />

standards are going to be evaluated and improved<br />

if necessary. This aspect of the process has been the<br />

subject of criticism in the court cases.<br />

Investors are still very interested in the <strong>South</strong><br />

<strong>African</strong> proposition, as the TotalEnergies offshore and<br />

the Free State project prove. Most offshore project<br />

exploration interest tends to come from foreign<br />

investors because of the high costs but within<br />

<strong>South</strong> Africa, there is a growing number of local<br />

participants. A women and black-owned company,<br />

Imbokodo, is making a name for itself as a participant<br />

as a shareholder in a number of licensing rounds.<br />

Revised draft regulations related to hydraulic<br />

fracking in the gas-rich Karoo region were<br />

published by the Department of Forestry, Fisheries<br />

and the Environment (DFFE) in July 2022 for public<br />

comment. Fracking is a drilling technique that<br />

is widely used in other jurisdictions such as the<br />

United States, but environmental concerns have<br />

been raised. Dr Masangane further told Bloomberg<br />

that groundwater and geological studies are<br />

being conducted in the biodiversity-rich areas of<br />

the Karoo and that once regulations have been<br />

finalised, seismic activity will be undertaken to<br />

establish which blocks to license.<br />

As part of an attempt to engage in a broader<br />

discussion on policy issues, a joint colloquium was<br />

held in 2022 on the subject of how to balance <strong>South</strong><br />

Africa’s energy needs with the country’s climate<br />

change commitments. The colloquium, and several<br />

online events which prepared for and anticipated<br />

the main event, was jointly hosted by the DMRE, the<br />

DFFE and PASA.<br />

Dr Masangane is convinced that a balance<br />

can be achieved between developing renewables<br />

and continuing to exploit the country’s (and the<br />

continent’s) oil and gas reserves. She points out<br />

that the use of certain fuels for cooking leads to<br />

deforestation: “If they were to use gas, whether<br />

it is LPG or natural gas for cooking that in itself<br />

is decarbonisation because then you arrest the<br />

negative impact of deforestation. We must not buy<br />

into a false narrative and a false choice. It is possible<br />

that we can have a dual strategy.” ■<br />

17 SOUTH AFRICAN BUSINESS <strong>2023</strong>

Partnerships show the way for<br />

Special Economic Zones<br />

Collaboration between the private sector and government and its<br />

agencies is paying off in eight provinces.<br />

The goal of industrialising the <strong>South</strong><br />

<strong>African</strong> economy is a major objective of<br />

the Special Economic Zone programme.<br />

These zones (which include Industrial<br />

Parks) are intended as catalysts for economic<br />

growth in established sectors and in stimulating<br />

new industries.<br />

Collaboration between national government<br />

(through the Department of Trade, Industry<br />

and Competition, the dtic, which oversees<br />

the programme), provincial departments and<br />

municipalities, economic development agencies and<br />

private companies in key sectors is a vital component<br />

in making Special Economic Zones work.<br />

Policy goals<br />

As defined by the dtic, Special Economic Zones<br />

(SEZs) are geographically designated areas set<br />

aside for specifically-targeted economic activities,<br />

supported through special arrangements (laws, tax<br />

rebates) and systems that are often different from<br />

those that apply in the rest of the country.<br />

<strong>South</strong> Africa’s Industrial Policy Action<br />

Plan (IPAP) identifies SEZs as growth engines<br />

towards government’s strategic objectives of<br />

industrialisation, regional development and<br />

employment creation.<br />

The purpose of the SEZ programme is to:<br />

expand the industrialisation focus to cover diverse<br />

regional development needs; provide a clear,<br />

predictable and systemic planning framework<br />

for the development of a wider array of SEZs to<br />

support industrial policy objectives; clarify and<br />

strengthen governance arrangements, expand<br />

the range and quality of support measure<br />

beyond provision of infrastructure; and provide a<br />

framework for a predictable financing framework<br />

to enable long-term planning.<br />

Partnerships<br />

In some parts of the country, an anchor tenant<br />

is central to the concept of the approved or<br />

proposed SEZ.<br />

In East London, the presence of Mercedes-<br />

Benz <strong>South</strong> Africa makes the clustering of<br />

automotive suppliers in the East London IDZ both<br />

logical and cost-effective. The Northern Cape’s<br />

proposed Namakwa SEZ is predicated on the huge<br />

operations of the existing Gamsberg Zinc Mine<br />

(pictured) and the proposed smelter to be built by<br />

international investor Vedanta Zinc International.<br />

In eastern Limpopo, the Mining Supplier Park<br />

run by mining company Glencore is forming the<br />

core around which the Fetakgomo-Tubatse SEZ<br />

is being created. Local and district municipalities<br />

are investing in basic infrastructure, while the<br />

provincial government has allocated staff from<br />

its Department for Economic Development,<br />

Environment and Tourism to drive the process. The<br />

same provincial department has created a stateowned-company<br />

to run the Musina-Makhado SEZ<br />

in the northern part of the province.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



Credit: Kevin Wright/Vedanta Zinc International<br />

The country’s biggest diamond miner, De<br />

Beers, is partnering with the local tertiary college,<br />

the Venda TVET College, by offering engineering<br />

graduates a chance to gain practical experience at<br />

its Musina operations. The decision by the college<br />

to locate its engineering facility within the SEZ is<br />

another example of collaboration.<br />

Part of the value proposition of the Upington<br />

Industrial Park is based on the plans of Airports<br />

Company <strong>South</strong> Africa to develop the local airport<br />

as a base for storage of aircraft and for maintenance<br />

and repairs. The fact that major automotive<br />

manufacturers test their cars in the Northern Cape<br />

on a regular basis is something that the Northern<br />

Cape Economic Development Agency (NCEDA) is<br />

promoting as an opportunity for investors.<br />

Mining is at the heart of another planned<br />

Northern Cape project, the Kathu IDZ. Big<br />

companies such as Sishen Iron Ore Company,<br />

Kumba, Assmang and <strong>South</strong>32 have expressed<br />

support and the project has been submitted by<br />

the NCEDA to Infrastructure <strong>South</strong> Africa to be<br />

registered as a catalytic project.<br />

The OR Tambo International SEZ (Gauteng<br />

IDZ) leverages the advantages of being located<br />

at a major transport hub for access to <strong>African</strong><br />

and international markets. The SEZ’s location<br />

within the Ekurhuleni Metropolitan Municipality<br />

means that there are also many opportunities<br />

for tie-ups with a huge variety of manufacturing<br />

enterprises – Ekurhuleni has the country’s densest<br />

concentration of manufacturing operations. An<br />

interesting example of inter-government partnership<br />

came about in December 2020 when the City of<br />

Cape Town transferred general industrial-zoned<br />

properties worth R56.5-million to the Atlantis Special<br />

Economic Zone Company (SOC) Ltd. In return, the<br />

City became a shareholder in the company.<br />

An earlier cooperative agreement between<br />

the City of Cape Town and the Western Cape<br />

Provincial Government had set out the terms for<br />

the transaction once the Atlantis SEZ Company<br />

was registered.<br />

The signing of this land agreement meant the<br />

ASEZ Company assumed responsibility for the<br />

usage, administration and control of the property.<br />

The total area of proclaimed land is 118 hectares,<br />

of which 25ha has already been developed by<br />

five investors. The difficulty was that the other<br />

94ha of land belonged to the City of Cape Town<br />

and was subject to various conditions about<br />

the rate at which it could be rented out or sold.<br />

By incorporating the City of Cape Town as a<br />

shareholder, the land was unlocked and the SEZ<br />

was in a position to expand.<br />

A few kilometres north of Atlantis, the Saldanha<br />

Bay Industrial Development Zone (SBIDZ) has<br />

to work hand-in-hand with the Saldanha Bay<br />

Municipality (SBM) and the Transnet National<br />

Port Authority (TNPA) as it defines its role and<br />

expands its offering. As an example of the level of<br />

cooperation envisaged for SEZ development, the<br />

R3.5-billion first phase of the expansion of the Port<br />

of Saldanha is described in an SBIDZ press release<br />

as being understood as “a long-term partnership<br />

between the government, its institutions and the<br />

private sector”.<br />

The press release further explains how the<br />

process fits into the national context:<br />

“This transaction model has proven the best<br />

way to fund long-term assets in a competitive<br />

environment. The SBIDZ has begun the formal<br />

process of submitting this project to the Investment<br />

and Infrastructure Office in the Office of the<br />

Presidency, supported by the National Treasury,<br />

for inclusion in the Sustainable Infrastructure<br />

Development Symposium (SIDS).” ■<br />

19 SOUTH AFRICAN BUSINESS <strong>2023</strong>


Geographical focus<br />

SEZs are located in areas with particular resources and historical sectoral strengths. The<br />

relevant SEZ is geared to serve, support and encourage development of those resources<br />

and sectors. There are currently 15 Special Economic Zones in eight provinces. Some of<br />

the zones are in the process of being officially proclaimed as SEZs.<br />

Province: Limpopo<br />

Name: Musina-Makhado SEZ<br />

SEZ status: Approved<br />

Focus: Light industrial, agroprocessing,<br />

metallurgical, mineral<br />

beneficiation, solar power<br />

Province: Limpopo<br />

Name: Fetakgomo-Tubatse SEZ<br />

SEZ status: Pending<br />

Focus: Green energy, hydrogen,<br />

mining inputs, mineral<br />

beneficiation<br />

Province: Gauteng<br />

Name: Vaal SEZ<br />

SEZ status: Pending<br />

Focus: Logistics, agriculture and<br />

agro-processing, tourism, alternate<br />

energy (solar, battery storage,<br />

hydrogen)<br />

Province: Gauteng<br />

Name: OR Tambo International<br />

Airport (Gauteng IDZ)<br />

SEZ status: Approved<br />

Focus: Beneficiation of precious<br />

metals and minerals sector, light,<br />

high-margin, export-oriented<br />

manufacturing<br />

Province: Gauteng<br />

Name: Tshwane Automotive SEZ<br />

SEZ status: Approved<br />

Focus: Automotive, automotive<br />

components, manufacturing,<br />

export manufacturing<br />

Province: Mpumalanga<br />

Name: Nkomazi SEZ<br />

SEZ Status: Approved<br />

Focus: Strategic location on<br />

Maputo Corridor is major selling<br />

point; logistics, agro-processing,<br />

manufacturing, nutraceuticals,<br />

fertiliser products<br />

Province: Free State<br />

Name: Maluti-A-Phofung SEZ<br />

SEZ status: Approved<br />

Focus: Located on N3 highway;<br />

logistics, manufacturing,<br />

agro-processing<br />

Province: KwaZulu-Natal<br />

Name: Richards Bay IDZ<br />

SEZ status: Approved<br />

Focus: Export-oriented<br />

manufacturing, storage and<br />

manufacture of minerals to<br />

boost beneficiation,<br />

techno-parks<br />

Province: KwaZulu-Natal<br />

Name: Dube TradePort<br />

SEZ status: Approved<br />

Focus: Industry, cargo-handling<br />

and logistics, agro-processing,<br />

telecommunications<br />

Province: Eastern Cape<br />

Name: East London IDZ<br />

SEZ status: Approved<br />

Focus: Automotive, agroprocessing,<br />

aqua-culture<br />

Province: Eastern Cape<br />

Name: Coega SEZ<br />

SEZ status: Approved<br />

Focus: Automotive, agroprocessing,<br />

aquaculture, energy,<br />

metals, logistics and business<br />

process services (BPO)<br />

Province: Western Cape<br />

Name: Atlantis SEZ<br />

SEZ status: Approved<br />

Focus: Green Tech, including<br />

automotive components and<br />

components for wind turbines, solar<br />

panels and green building materials<br />

Province: Western Cape<br />

Name: Saldanha Bay IDZ<br />

SEZ status: Approved<br />

Focus: Oil, gas and marine repair,<br />

engineering and logistics services<br />

complex, fabrication<br />

Province: Northern Cape<br />

Name: Namakwa SEZ<br />

SEZ status: Pending<br />

Focus: Downstream activities<br />

from proposed zinc smelter,<br />

mineral beneficiation,<br />

construction, green energy,<br />

petrochemicals, transport<br />

Province: Northern Cape<br />

Name: Upington IDZ<br />

SEZ status: Pending<br />

Focus: Renewable energy, aviation,<br />

automotive, agro-processing





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Promoting the industrialisation<br />

of <strong>South</strong> Africa<br />

The Musina-Makhado Special Economic Zone is ideally placed to bolster national<br />

plans, says CEO Lehlogonolo Masoga, while carrying out an inspiring vision for the<br />

region’s economy and people.<br />

Lehlogonolo Masoga<br />


Lehlogonolo Masoga has more than 20<br />

years of experience as an administrator<br />

and public servant, most recently as<br />

Deputy Speaker of the Limpopo Provincial<br />

Legislature and MEC for Roads and<br />

Transport. He served as the spokesperson<br />

for the former LEDET MEC and Minister of<br />

Public Administration, the late Mr Collins<br />

Chabane. Lehlogonolo holds three Master’s<br />

degrees: Governance and Public Leadership<br />

(Wits), Development Studies (Limpopo) and<br />

an MSc in Leadership and Change (Leeds<br />

Beckett University, UK). He has B-Tech HRM<br />

from UNISA and a professional diploma<br />

in Humanitarian Assistance from the<br />

Liverpool School of Tropical Medicine (UK)<br />

and is currently a registered PhD candidate<br />

in Public Administration.<br />

Please explain the rationale behind Special Economic Zones.<br />

Special Economic Zones (SEZs) are growth engines towards government’s<br />

strategic objectives of industrialisation, regional development,<br />

employment creation, the improvement of existing infrastructure, skills<br />

development and technology transfer by attracting foreign direct<br />

investment and strengthening the export of value-added commodities.<br />

SEZs are geographically-designated areas set aside for targeted economic<br />

and sector-focused activities, supported through special arrangements<br />

(that may include laws) and systems that are often different from those<br />

that apply in the rest of the country. This is a strategic phenomenon<br />

which has transformed economies across the globe by developing<br />

major industrial development zones with ripple effects such as the<br />

development of new towns and smart cities.<br />

How do SEZs fit into national plans such as the Industrial Policy Action<br />

Plan (IPAP)?<br />

IPAP recognises the role of industrial parks and Special Economic<br />

Zones as strategic vehicles for industrial activities which promote<br />

beneficiation and manufacturing. The support which is provided to SEZs<br />

in terms of infrastructure, regulatory framework and incentive schemes<br />

provides a conducive environment to bolster industrialisation. The IPAP<br />

classifies Special Economic Zones into key categories which include<br />

Industrial Development Zones, Free Ports, Free Trade Zones and Sector<br />

Development Zones.<br />

How does the MMSEZ fit into regional and provincial planning<br />

initiatives?<br />

The priorities of the Limpopo Development Plan 2020-2025 and the<br />

Medium-Term Strategic Framework include the following:<br />

• Transformation and modernisation of the provincial economy<br />

• Integrated and sustainable socio-economic infrastructure<br />

development<br />

• Spatial transformation for integrated socio-economic development<br />

• Economic transformation and job creation through regional<br />

integration<br />

These policy priorities reinforce the business case of the Musina-<br />

Makhado Special Economic Zone in line with the vision of the provincial<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



administration. A successful MMSEZ will result in<br />

<strong>South</strong> Africa’s active participation and leadership<br />

in the <strong>African</strong> Continental Free Trade Area (AfCFTA)<br />

and the industrialisation strategy of SADC.<br />

The Limpopo Development Plan articulates an<br />

inspirational vision about the future as follows:<br />

The Limpopo Province of the future will create an<br />

environment that is mutually beneficial, where rural<br />

living and smart cities coexist in harmony, adopting<br />

the future without losing touch with our heritage.<br />

The new Limpopo Province will:<br />

• Develop new smart green cities with integrated<br />

transport systems.<br />

• Embrace renewable energy to reduce the<br />

reliance on fossil fuels.<br />

• Develop and implement new 4IR education<br />

systems that can inspire and prepare the youth<br />

and adults for the future.<br />

• Evolve businesses to embrace the 4IR and be<br />

globally competitive.<br />

• Evolve the provincial economy from being<br />

mostly dependent on the primary sectors, to<br />

a diverse and inclusive economy, with growth<br />

potential to reduce unemployment significantly.<br />

• Have happy, prosperous and connected<br />

communities.<br />

• Have new economic infrastructure that can<br />

enable Limpopo to leap into the future, such<br />

as drone airports to assist in delivering packages<br />

to rural areas.<br />

What underpins the geographic spread of SEZs?<br />

During the early 2000s, government adopted the<br />

Industrial Development Zones, which were mainly<br />

concentrated in the historical economic hubs and<br />

coastal regions. The SEZ model recognised a need<br />

to harness the country’s economic competitive<br />

advantages across the value chains. Our economy<br />

boasts various competitive advantages which span<br />

across various provinces. This new approach has<br />

created an unprecedented opportunity for rural<br />

provinces such as Limpopo to participate in this<br />

magnificent programme.<br />

What measures are undertaken to encourage<br />

investments in SEZs?<br />

The success of a Special Economic Zone is<br />

dependent on its capacity to attract and retain<br />

both domestic and foreign direct investment. The<br />

secret to unlocking investment lies in the readiness<br />

of the infrastructure, packaging of a solid business<br />

case, project preparation, marketing and investment<br />

promotion strategies.<br />

What collaborations is the MMSEZ engaged in?<br />

When the MMSEZ was officially designated in 2017,<br />

among the things that the provincial government<br />

had to start preparing for was skills development<br />

among the youth who will require new and<br />

advanced skills to work in the project. An idea to<br />

establish the Vhembe TVET College Musina Satellite<br />

Campus was mooted and with the support of<br />

Venetia Mine, a start was made. When the college<br />

management were looking for a new piece of<br />

land to build a proper campus around Musina, an<br />

opportunity was identified to relocate the campus<br />

into the North Site of the MMSEZ.<br />

The beauty of the MMSEZ-VTVET partnership lies<br />

in the fusing of skills development and industrial<br />

platforms within the same zone. We are pleased<br />

with the support provided to this pioneering<br />

initiative by both the provincial and national<br />

government. This initiative will also form part of<br />

the foundation and a seed for the development of<br />

a new smart city in Musina.<br />

What is the MMSEZ strategy on SMMEs?<br />

Small, micro and medium-sized enterprises<br />

are the lifeblood of any economy to facilitate<br />

economic empowerment and job creation.<br />

Economic transformation through the<br />

empowerment of SMMEs and historicallydisadvantaged<br />

individuals has undergone<br />

several policy setbacks that threatened the<br />

country’s path for economic transformation.<br />

Among the first steps undertaken by the<br />

MMSEZ SOC to level the playing field for<br />

the empowerment of local enterprise and<br />

entrepreneurs was the development of an<br />

Enterprise Development Strategy, through<br />

which local enterprises and entrepreneurs<br />

will be prioritised in terms of opportunities<br />

presented by the SEZ. They will also receive the<br />

necessary support for them to reach their full<br />

potential and become the integral part of the<br />

MMSEZ ecosystem. ■<br />

23 SOUTH AFRICAN BUSINESS <strong>2023</strong>


The Musina-Makhado Special Economic<br />

Zone is attracting investment<br />

Both private and public institutions have committed funds and a<br />

mining company is engaged in a partnership.<br />

The Musina-Makhado SEZ (MMSEZ) is<br />

intended as a catalyst for massive future<br />

investment in the region and support of<br />

industrialisation and economic growth.<br />

The MMSEZ has already attracted significant<br />

investment from public and private investors and a<br />

strong pipeline of further investment is envisaged.<br />

Government<br />

Major investments in infrastructure are being<br />

provided by the Provincial Government of Limpopo<br />

through the Limpopo Department of Economic<br />

Development, Environment and Tourism (LEDET).<br />

Of R600-billion pledged to develop infrastructure<br />

for the North Site of the MMSEZ over the mediumterm<br />

expenditure framework (MTEF), some R39-<br />

million has been spent to date on engineering work<br />

and the 2022/23 financial year will see a further<br />

allocation of R200-million for items such as security,<br />

water and electricity infrastructure.<br />

The entity which has been created to run the<br />

SEZ, the MMSEZ state-owned-company (MMSEZ<br />

SOC), is responsible for coordinating investments<br />

and guiding the process towards the realisation and<br />

functioning of the Special Economic Zone.<br />

Partnerships<br />

The local Technical Vocational and Educational<br />

and Training college, Vhembe TVET College, is<br />

investing in establishing a campus in Musina to<br />

complement the development of the SEZ.<br />

A satellite campus was originally established<br />

but through a partnership between the MMSEZ<br />

SOC and Vhembe TVET the engineering campus<br />

will relocate to a site within the SEZ site. De<br />

Beers will support the graduates with on-thejob<br />

training.<br />

The SEZ will thus be supporting the skills profile<br />

of the district and combining skills development<br />

and industrial development. Additional investments<br />

in student accommodation and retail outlets to<br />

support the student population will further enhance<br />

the diverse offering within the SEZ.<br />

Having a tertiary college located within the SEZ<br />

will form an important first building block towards<br />

creating a Smart City in Musina.<br />

Private sector<br />

The investment value of the 1 000MW Solar Power<br />

Plan to be constructed in the SEZ is valued by the<br />

provincial government at US$1.5-billion. The project<br />

is being undertaken by Huadian Hong Kong Ltd,<br />

the company that has signed a Memorandum of<br />

Understanding (MoU) with LEDET.<br />

Eskom has started with the inception and<br />

scoping report for bulk electricity infrastructure of<br />

the MMSEZ, which will connect the power plant to<br />

the grid. ■<br />



Real estate<br />

Retail | Hotels<br />

Private hospital<br />

General manufacturing<br />

Agro-processing | Warehousing | Industrial property<br />

Petroleum depot<br />


Renewable energy<br />

Office park | Hotel | Student accommodation<br />

Real estate<br />

ICT<br />

Musina dam<br />

Cross-border trade<br />

Airport development | Education and training<br />


MMSEZ<br />


A world of game-changing opportunities<br />

What is the Musina-Makhado Special Economic Zone?<br />

What is Musina-Makhado Special Economic Zone (MMSEZ)?<br />


The What MMSEZ is the is Musina-Makhado a flagship initiative Special Economic of the Limpopo Economic Zone? Provincial<br />

Zone?<br />


The Musina-Makhado SEZ is a flagship initiative of the Limpopo<br />

• Metallurgy (Minerals Beneficiation)<br />

Government. The Musina-Makhado MMSEZ The is a North flagship SEZ Site is initiative wholly a flagship owned of initiative the and Limpopo operated<br />

of the<br />

• Metallurgy (mineral beneficiation)<br />

Provincial Government implemented through the Musina-Makhado • Energy Generation<br />

by Limpopo Provincial the MMSEZ Provincial Government SOC. The Government <strong>South</strong> implemented Site is implemented operated through by through the through<br />

MMSEZ the<br />

• Energy generation<br />

SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi<br />

the SOC, Musina-Makhado partnership with SEZ with a SOC SEZ Chinese a Chinese MMSEZ partnership operator, Operator, SOC Shenzhen in with partnership Shenzhen a Chinese Hoi Mor<br />

• Manufacturing<br />

• Manufacturing<br />

Resources Operator, with Hoi<br />

Mor<br />

Mor<br />

Resources a Chinese Resources Holding Shenzhen<br />

Holding Operator, Company Holding Hoi<br />

Company<br />

Mor Ltd.<br />

Shenzhen Company Resources<br />

Ltd. The Hoi Ltd. Holding<br />

MMSEZ Mor Resources Company<br />

as an economic<br />

• Agro-processing<br />

• Agro-Processing<br />

Ltd. Holding development The MMSEZ Company tool is as aims an Ltd. economic to The promote MMSEZ tool development national that as aims an economic tool economic<br />

promote aims growth to<br />

• Logistics • Logistics<br />

promote development national and exports economic national by tool using economic growth aims support to and promote growth measures exports and national in by exports order using economic to by support attract using targeted<br />

support growth measures foreign and measures in domestic order exports to in attract by order investments, using to targeted attract support research foreign targeted measures and foreign development<br />

domestic<br />

in order and<br />


domestic to investments, (R&D) attract and investments, targeted technology research foreign and transfer. research development.<br />

and and domestic development.<br />

investments,<br />

research and development.<br />

Where is the MMSEZ located?<br />

• • • Preferential INVESTING corporate IN THE tax MMSEZ?<br />

Building • Preferential allowance corporate and tax tax<br />

relief<br />

Employment • Building tax allowance incentive<br />

and tax relief<br />

Investment The Musina-Makhado opportunities SEZ is located Investment in the vicinity of the Beit<br />

• inside Bridge the Border zones:<br />

zone: Post which is one opportunities of the busiest ports outside of entry in • SA<br />

• and Industrial an undisputable infrastructure gateway to the zones:<br />

zone: <strong>South</strong> <strong>African</strong> Development<br />

• • Community Corporate offices (SADC) countries. The • MMSEZ Real estate has the potential to<br />

• • become Logistics an services inland intermodal terminal, • Retail facilitated and hotels by its anchor<br />

• • along Petroleum the North-<strong>South</strong> supply Corridor, • and Schools directly and connecting airport to the<br />

• Customs-controlled • Employment tax area incentive<br />

tax relief<br />

Rental • Customs-controlled space discounts area tax relief<br />

Readily • Rental available space infrastructure<br />

discounts<br />

Sufficient • Readily land available for greenfield infrastructure projects<br />

Access • Sufficient to agricultural land for and greenfield mineral projects<br />

resources<br />

Easy access • Access to to the agricultural up-north & mineral (SADC) resources market<br />

• country’s Industrial major chemicals ports through both • Health<br />

N1 road and the Johannesburg-<br />

• Accessible • Easy logistics access to support the up-north for the movement (SADC) market<br />

of goods<br />

Musina railway line, for the trans-shipment • Entertainment<br />

of sea cargo and<br />

• Accessible logistics support for the<br />

• Musina Dam<br />

manufactured goods to inland destinations and the SADC markets. movement of goods<br />


ENERGY &<br />


Power Plant<br />

Iron and<br />

Steel Plant<br />

Stainless Steel Plant<br />

Ferromanganese Plant<br />

Ferrochrome Plant<br />

Chrome Plant<br />

Lime Plant<br />


Food Processing Facility<br />

Fresh Produce Market<br />

Canning Facility<br />

Cotton Beneficiation<br />

Timber Processing<br />


Logistics Services<br />

Warehousing<br />

Distribution<br />

Container Yard<br />

Vehicle Distribution<br />

Cold Storage<br />

Bonded Warehouses<br />


Construction Services<br />

Engineering Services<br />

Re al Estate<br />

Development<br />

Retail Property<br />

Hospitality Facilities<br />

Bu ilding Materials<br />

Manufacturing<br />

and Supply<br />


Light Industries<br />

Basic Assembly<br />

Automotive Assembly<br />

Electromechanical Operations<br />

Component Manufacturing<br />

Fertilisers<br />

Agro-chemicals<br />

Petro-chemicals<br />

ICT Solutions<br />

Furniture Manufacturing<br />

Packaging Services<br />




Contact MUSINA-MAKHADO details SEZ SOC<br />

Ms Tshamaano Stakeholder Makuya,<br />

Mr Richard Zitha, Project Executive<br />

Executive<br />

Relations Manager<br />

Project Executive<br />

Musina-Makhado Makhado SEZ SOC<br />

Stakeholder Relations Manager<br />

Cell: Investment +27 071 391 Promotion 391 8188<br />

Address: 29 93 Market Biccard Street,<br />

Street,<br />

Cell: +27 067 Tel: 411 +27(0) 411 9192<br />

15 295 5120<br />

Email: Cell: +27 R.Zitha@mmsez.co.za<br />

Tel: 71 +27(0) 391 8188 15 295 5120<br />

Polokwane, Limpopo Polokwane,<br />

Email: T.Makuya@mmsez.co.za<br />

Cell: +27 (0)67 411 9192<br />

Email: R.Zitha@mmsez.co.za<br />

Cell: +27 (0)71 391 8188<br />

Province, Limpopo RSA Province (RSA)<br />

Tshamaano.Makuya@lieda.co.za<br />

19 LIMPOPO Richard.Zitha@lieda.co.za<br />

BUSINESS 2020/21



A Smart City programme is envisaged for northern Limpopo Province, catalysed by the<br />

development of the multi-sector Musina-Makhado Special Economic Zone.<br />

A<br />

new Smart City is taking shape in Limpopo Province. It<br />

is catalysed by the economic stimulus of the Musina-<br />

Makhado Special Economic Zone (MMSEZ). The new<br />

Smart City will integrate the towns of Musina and<br />

Makhado to become the pre-eminent trade and<br />

industrial centre of <strong>South</strong>ern Africa.<br />

The new Smart City will reignite the rich civilisational heritage<br />

of the Great Mapungubwe, Thulamela and Zimbabwe Kingdoms<br />

which at their height in 1000AD<br />

produced artifacts in gold and traded<br />

globally as far as Arabia, India and<br />

China. This region will once again rise<br />

and become a modernised industrial<br />

and global trade hub, building on<br />

its heritage and embracing the<br />

technology revolution.<br />

The geographic location of<br />

the Smart City in the northern part of <strong>South</strong> Africa bordering<br />

Zimbabwe and connecting into the rest of Africa gives it a critical<br />

comparative advantage, together with the natural endowments<br />

within the surrounds of Musina and Makhado which include<br />

high-value agricultural land, mineral resources and functional<br />

spatial relationships. If harnessed fully these will help to create a<br />

competitive regional economy for <strong>South</strong> Africa and the continent.<br />

“A leading innovative, sustainable and<br />

inclusive high-tech Africa gateway city”<br />

_________________<br />

A leading innovative,<br />

sustainable and inclusive<br />

high-tech Africa gateway city<br />

________________<br />

The advantage of the MMSEZ is that it is part of a national economic<br />

programme, located within the National Transformation Corridor that<br />

links Gauteng with its dynamic economy to the Beitbridge Border Post,<br />

one of the busiest ports in Africa.<br />

The goal of the Smart City is transformational. People’s needs and<br />

aspirations are at the centre of planning. The foundations are proper<br />

sanitation and waste management, 24-hour electricity and water<br />

supply, efficient mobility and public transport with a network of wellconnected<br />

roads and access to reliable<br />

and high-speed telecommunications.<br />

The circular and green economy based<br />

on reuse, recycle, share, low/zero-carbon<br />

footprint meets with the concept of the<br />

Smart City. The MMSEZ, working together<br />

with all three spheres of government<br />

and stakeholders, aims to develop the<br />

designated MMSEZ as a catalytic driver for<br />

a Smart City which is envisioned to be:<br />

A leading innovative, sustainable and inclusive high-tech Africa<br />

gateway city, driven by residents and visionary investment within<br />

a prosperous rural-urban integrated region and operating as a<br />

highly connected – freight/warehousing/ logistics/transport/retail/<br />

manufacturing – industrial hub supporting the SEZ within a superefficient<br />

Gauteng-Limpopo-Zimbabwe economic corridor.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Building the future together<br />

Message from Dr Mofasi Lekota, MMSEZ Board Chairperson<br />

The Board of Directors of Musina-Makhado Special Economic Zone (MMSEZ)<br />

recognises and appreciates the immensity of the challenges and attractive<br />

opportunities that come with the MMSEZ. We understand the mutual and<br />

Antonvilla<br />

interdependent relationship between a successful SEZ and our envisaged<br />

Smart City. We also acknowledge that the long-term nature of this project<br />

and its intergenerational characteristics require long-range planning<br />

and short-term execution. It requires human and capital resources that<br />

are committed in the long term and resilient enough to withstand the<br />

turbulences inherent in these types of projects.<br />

The core triangle of Beitbridge, Musina CBD and Antonvilla (Northern SEZ) will catalyse a region<br />

A vision of the emergence of a Smart City in the land between Musina<br />

This core triangle will catalyse a region of<br />

of smartness smartness and and development development with upgrades with upgrades to roads and connectivity that will create the<br />

and Makhado energises the directors and staff of the MMSEZ company to<br />

to roads and connectivity that will make the<br />

Musina-Makhado corridor.<br />

perform to the best of their abilities from day to day and from year to year. It<br />

Musina-Makhado corridor<br />


is this vision that shines a light on our path to build a platform from which<br />

6<br />

the next generation will derive optimal economic benefits. We continue the<br />

As a long-term developmental approach, this will result in relentless pursuit of this vision, while keeping our promise to do all we can to<br />

a transformed, competitive and spatially integrated regional maintain an environment that our children and their children will happily<br />

economy and this will lead to the upliftment and well-being inherit from us. What will emerge between these two northern-most towns<br />

of people living in Vhembe, its neighbouring districts and the of Limpopo province is a Smart City that will offer endless opportunities for all<br />

Province of Limpopo at large.<br />

our people. It is a Smart City that will offer business, job, skill development and<br />

The development of the Smart City starts with the Northern entertainment opportunities for the people of the Vhembe region, Limpopo<br />

SEZ Site of the MMSEZ as a smart precinct, SMART together with PRECINCT<br />

the Province and the nation. This will be a Smart City we will all be proud of.<br />

upgrading of the Beitbridge border post and the town of Musina<br />

to become an integrated The Northern core Site of of the the new MMSEZ Smart in Antonvilla City. This will core be the first<br />

triangle will catalyse smart a region precinct of in smartness the and city that development will improve with the economy<br />

and create jobs.<br />

upgrades to roads and connectivity that will make the Musina-<br />

• A green industrial estate where one can live, work, play.<br />

Makhado corridor the fastest-developing area in Limpopo, <strong>South</strong><br />

• Investments into light manufacturing, retail, trade, freight and logistics warehousing, and<br />

Africa and <strong>South</strong>ern agro-processing Africa. will be sought.<br />

• Innovation and incubation of new businesses to work on latest technology in electronics<br />

and other industries will be promoted.<br />

• The buildings and management of the precinct will use solar energy and conversion of<br />


waste to energy to ensure sustainability.<br />

Key:<br />

The Smart City Model will be implemented incrementally:<br />

1 Beitbridge border<br />

• First step: integrate the Northern Site of the MMSEZ, the<br />

2 Musina CBD<br />

Beitbridge border and the Musina town to form the Smart City.<br />

3 Antonvilla<br />

• Second step: upgrade the N1 between Makhado and Beitbridge<br />

(Northern SEZ)<br />

as part of the Smart City Corridor.<br />

• Third step: promote strategic developments along the N1<br />

Musina-Makhado Smart City corridor.<br />

• Fourth step: renew and regenerate the towns of Musina and<br />

Makhado.<br />

• Fifth step: implement the corridors, ensuring connectivity to<br />

villages and promote agriculture and tourism, activating the<br />

The Northern Site of the MMSEZ in Antonvilla will be the first smart precinct in the<br />

Smart Region.<br />

Smart City that will improve the economy and create jobs. A green industrial estate<br />

• Parallel steps: development of roads for connectivity; work<br />

where one can live, work, play. Investments into light manufacturing, retail, trade,<br />

on telecommunication coverage; training of communities to<br />

freight and logistics, warehousing and agro-processing will be sought. Innovation<br />


use technology in partnership with the institutions of higher<br />

and incubation of new businesses to work on latest technology in electronics and<br />

learning and through schools; building awareness on zero waste<br />

other industries will be promoted. The buildings and management of the precinct<br />

and low-carbon living. The work on the metallurgy complex at<br />

will use solar energy and conversion of waste to energy to ensure sustainability.<br />

the <strong>South</strong>ern SEZ site will also be undertaken in parallel.<br />

A vibrant partnership with the University of Venda in co-creating<br />

the Smart City was launched on 16 September 2021, when the model Contact Details:<br />

was unveiled. The next step will be to develop the supply of skills Mr Livhuwani Muligwe: MMSEZ Smart City Model Project Manager<br />

needed for a Smart City and the ongoing operation of the SEZ. Tel: +27 66 174 0798 | 93 Biccard Street, Polokwane, Limpopo Province, RSA<br />

27 SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

To reignite the birthplace of<br />

industrialisation in <strong>South</strong> Africa<br />

The Vaal Special Economic Zone (Vaal SEZ) is intended as a catalytic project to<br />

boost economic growth and create jobs in the Vaal region.<br />

Lesedi<br />

Heidelberg is the seat of the<br />

municipality. Emfuleni in the west is<br />

home to the towns synonymous with<br />

steel, Vanderbijlpark and Vereeniging<br />

and the Sasol Petrochemical complex<br />

to the south of Sedibeng in the Free<br />

State Province.<br />

The Sedibeng District, host of the proposed Vaal SEZ, comprises three<br />

local municipalities and is strategically located both in terms of highways<br />

and railways and in relation to three economically-powerful<br />

metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.<br />

A<br />

considerable amount of planning has<br />

already gone into the concept which ties<br />

in to development goals and frameworks<br />

at local, regional and national level.<br />

The area<br />

The three local municipalities which make up the<br />

Sedibeng District Municipality are predominantly rural.<br />

Midvaal is the most rural of the three local municipalities,<br />

with urban development concentrated along routes<br />

R59 and R82 in the north-western parts of the municipal<br />

area. Midvaal has strong regional linkages to major<br />

economic cores.<br />

Lesedi is also primarily rural, with the major urban<br />

concentration located in Heidelberg/Ratanda nodes,<br />

along the N3 freeway at its intersection with Provincial<br />

Route R42, east of the Suikerbosrand Nature Reserve.<br />

Vision<br />

By 2030, an industrialised, globally<br />

competitive, export-driven regional<br />

economy.<br />

Mission<br />

Our Mission is our tagline: To Reignite the<br />

Birthplace of Industrialisation in <strong>South</strong> Africa.<br />

Key outcomes<br />

• The Vaal SEZ will leverage existing assets and<br />

infrastructure<br />

• It will pursue opportunities in the green economy,<br />

decarbonisation, hydrogen and net-zero emission sectors<br />

• To become the go-to investment destination<br />

• To be a multi-tier (multiple sites, multiple sectors),<br />

anchor SEZ hub, spatially dispersed within the region<br />

• To achieve a seamless, integrated, socially-cohesive<br />

society, with sustained economic growth and quality<br />

jobs for the people of the Vaal region.<br />

Process<br />

The Vaal SEZ Master Plan was completed at the<br />

end of June 2022. Site analyses of secured sites has<br />

been completed.<br />

A pipeline of firm investment commitments is being<br />

established. Township establishment processes will<br />

be initiated for land parcels to service current highpriority<br />

investors.<br />

The SEZ designation application will be submitted<br />

by the end of October 2022.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


FOCUS<br />


Enabling framework<br />

Strong government support, robust legal and<br />

regulatory framework.<br />

Strong commercial and significant economic and<br />

social returns, including incentives and rebates.<br />

Locational benefit<br />

<strong>South</strong> Africa’s economic hub, sound logistics<br />

networks and infrastructure.<br />

Infrastructure services<br />

One-stop shop services and the Vaal SEZ’s Shared<br />

Services and investor access to serviced land and<br />

funding options.<br />

Management capability<br />

Independent management body, cooperation<br />

between dedicated bodies, local, regional and<br />

national government.<br />

Logistics<br />

Sedibeng District Municipality is traversed by<br />

extensive national and provincial major railway and<br />

road mobility infrastructure:<br />

Route N1: the major national north/south freeway<br />

linking Musina at the northern border of <strong>South</strong><br />

Africa to Cape Town in the south<br />

Route N3: the major transport link between<br />

Gauteng Province and eThekwini, passes through<br />

Sedibeng District’s Lesedi Municipality<br />

Route N17: the main link between Johannesburg,<br />

Secunda, eSwatini and the Richards Bay harbour<br />

Route R103: the old Johannesburg-Durban road<br />

runs parallel to Route N3<br />

LESEDI<br />

Two land parcels earmarked by the municipality<br />

for SEZ development (one of 20ha and another<br />

of 149ha). Access to the N3 to allow good<br />

connections to Johannesburg and KwaZulu-<br />

Natal. Three-way collaboration between the<br />

Municipality, MTP Aviation Solutions and the Vaal<br />

SEZ to widen the SEZ area to include parts of the<br />

Heidelberg Aerodrome.<br />


Land has been secured adjacent to the Klipriver<br />

<strong>Business</strong> Park (500ha) with access to the R59 via<br />

the R550. Also, 100ha secured next to SA Steel<br />

Mill off the Pierneef Road offramp, as well as 9ha<br />

in DeDeur, zoned for agricultural purposes and<br />

earmarked for agro-procressing. Council has<br />

approved the land classification.<br />


The Emfuleni Local<br />

Municipality Council has<br />

resolved to make two<br />

adjoining land parcels<br />

available, totalling 697ha.<br />

The site is bordered<br />

by the N1 highway<br />

and is close to the<br />

ArcelorMittal factory. This<br />

site is also earmarked<br />

for the development<br />

of a Hydrogen Valley<br />

Concept.<br />

29 SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

Multi-site Special Economic<br />

Zone will be game-changer<br />

Vaal SEZ aims to build on region’s strengths to create<br />

sustainable businesses<br />

The Vaal SEZ is to be created within the Sedibeng<br />

District Municipality, which already has several attractive<br />

assets for would-be investors:<br />

• An existing manufacturing base (eg, Heineken,<br />

ArcelorMittal, SASOL, SA Steel Mills) and a history of<br />

industrial activity<br />

• Agricultural land available for development<br />

• affordable industrial and commercial land earmarked<br />

for development<br />

• Vaal River, tourism<br />

• Vaal Dam, tourism<br />

• Existing university and graduates<br />

• Young population with huge potential<br />

• Skilled artisans<br />

• Excellent rail and road connections<br />

• Proximity to three of <strong>South</strong> Africa’s largest<br />

metropolitan markets, namely Johannesburg,<br />

Ekurhuleni and Tshwane<br />

The Vaal region is a historic cluster<br />

of capital-intensive and heavilyindustrialised<br />

manufacturing which was<br />

underpinned by a globally-competitive<br />

mining and iron and steel sector.<br />

These experienced a marked decline from the<br />

1990s, but plans are underway to revive the region,<br />

using the tried and tested method of creating a<br />

Special Economic Zone (SEZ) as a hub for business<br />

activity. Where the Vaal SEZ is unique is that<br />

various satellite hubs will work out from a central<br />

hub like spokes in a wheel, thus exploiting the<br />

existing strengths of particular sites and spreading<br />

economic benefits across the area more widely.<br />

Regenerate the Vaal area and support economic activity<br />

The Vaal region presents a compellingly unique<br />

value proposition of a thriving regional value-adding<br />

industrial economy which effectively leverages<br />

its comparative locational attributes and resource<br />

endowments. In addition to spearheading the revival<br />

of the existing industrial manufacturing base, it will also<br />

facilitate the creation of new growth and differentiation<br />

opportunities which include low-carbon manufacturing,<br />

energy, agriculture and agro-processing.<br />

Despite the ongoing challenges that have faced Vaal<br />

businesses over the years, it has been found that existing<br />

businesses have continued to support communities<br />

and explore ways to be more sustainable. Significant<br />

investment continues to be made by existing businesses<br />

and this bodes well for how the region is viewed by its<br />

residents – a vote for the future.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


FOCUS<br />

Cannabis<br />

• The cannabis economy is projected to grow quickly.<br />

• Available land<br />

• Land is available for future development.<br />

• Land is affordable<br />

Low-carbon economy clusters<br />

• Solar and battery storage<br />

• The circular economy<br />

• Biomass<br />

• Carbon capture<br />

• The hydrogen economy: aim to be <strong>South</strong> Africa’s<br />

preeminent hub for the hydrogen economy<br />

Agro-processing<br />

Investment as transformation<br />

There is a strong case for investors to join<br />

and benefit from a green energy-fuelled reindustrialisation<br />

of the Vaal region. This will<br />

transform this industrial basin into the country’s<br />

preeminent hub for low-carbon manufacturing<br />

and renewable energy production.<br />

The Vaal SEZ is connected to other national<br />

and provincial initiatives in Gauteng. This<br />

regional development aims to create linkages<br />

and the integration of the host province’s growth<br />

strategies with the local economic development<br />

strategies of the host municipalities to national<br />

economic initiatives.<br />

Targeted investment strategy<br />

• High-impact investments into the food,<br />

agriculture and agro-industries value chain<br />

• Investment in gateway logistics (air, road, rail,<br />

river) to exploit the locational advantages of<br />

the Sedibeng District<br />

• Investment in the Blue Economy and the<br />

Tourism Sector using the advantages of the<br />

Vaal River<br />

• Building a Smart City along the Vaal River to<br />

enable SEZ development and to drive urban<br />

regeneration<br />

• Building strong local linkages between<br />

township/rural economies with the value chains<br />

that the Vaal SEZ will develop and strengthen<br />

• Food, beverages, agro-processing and agribusiness<br />

• Agro-processing – plant products and value chains<br />

• Agro-processing – livestock and value chains<br />

Logistics<br />

Mark Stebnicki on Pexels<br />

• Warehousing and storage – packaging<br />

• Expansion of gateway logistics and infrastructure<br />

• Logistics – exploiting locational advantages<br />

Skills development and training<br />

• Formalised relationship with tertiary educational<br />

institutions<br />

• Development with a purpose<br />

• Pool of skilled resources for industry<br />

• Training for future skills<br />

Light manufacturing and infrastructure<br />

• Maintenance of existing assets<br />

• Creating new and sustainable infrastructure to<br />

support targeted industrial activities<br />

• The Vaal Dam is a significant asset<br />

31 SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

Invest in the Free State<br />

Excellent location, resources and incentives combine to make <strong>South</strong> Africa’s most<br />

central province an attractive investment proposition for businesses of all sorts.<br />

Situated in the heart of <strong>South</strong> Africa and<br />

sharing borders with Lesotho and six<br />

other provinces, the Free State’s location<br />

provides easy access to the main ports<br />

of Durban, East London and Gqeberha and is<br />

therefore ideal for logistics, manufacturing and<br />

agro-processing operations.<br />

The main economic sectors are agriculture,<br />

mining and manufacturing. The concentration of<br />

large chemical companies in the town of Sasolburg<br />

is testimony to the influence of global chemicals and<br />

energy company Sasol.<br />

Companies relocating not only enjoy the<br />

opportunity to source inputs at competitive<br />

prices, but also to benefit from domestic,<br />

regional and international markets for their<br />

products and services.<br />

There are industrial parks and a Special<br />

Economic Zone (SEZ) that are supported by the<br />

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

Industrial parks are situated in Maluti-A-Phofung,<br />

Botshabelo and Thaba Nchu.<br />

The Free State’s strengths for inward investment<br />

are boosted by:<br />

• openness to business, trade and investment<br />

• abundance of natural resources<br />

• low factory rentals<br />

• Africa’s leading telecommunications network<br />

• incentive packages uniquely developed for<br />

Special Economic Zones and industrial parks<br />

• Free State Development Corporation (FDC)<br />

support services for priority sectors such as<br />

agro-processing and manufacturing<br />

• a large labour pool<br />

• diverse cultures<br />

• competitive land and building costs.<br />

Select investment opportunities include:<br />

agriculture and agro-processing; tourism and<br />

property development; medical and pharmaceutical<br />

production and distribution; manufacturing; renewable<br />

and clean energy and medical tourism.<br />


The Free State Development Corporation (FDC)<br />

contributes to the Free State’s economic development<br />

through four service delivery pillars: SMME/co-operative<br />

funding and support; export-related services; property<br />

management; investor services.<br />

FDC services to investors and business include:<br />

• Project appraisal and packaging.<br />

• Promotion and facilitation of investment projects<br />

and facilitation of access to finance.<br />

• Providing access to business and government networks<br />

and assistance with business retention and expansion.<br />

• Information on statutory requirements, investment<br />

advice and assistance with investment incentive<br />

applications and business permits.<br />

• • Assisting with the development of local and international<br />

markets and facilitating joint ventures/equity<br />

partnerships through identification of local partners.<br />

FDC property management<br />

The FDC ovesees 253 commercial properties and 290<br />

industrial sites, which it uses to:<br />

• Facilitate commercial and industrial activity<br />

• Assist new investors looking for suitable premises<br />

• Facilitate SMME development, particularly in rural areas<br />

The substantial property portfolio makes FDC one<br />

of the biggest property owners in the province with<br />

industrial, residential and commercial properties in excess<br />

of 900 000m² situated in the Mangaung Metro and Thabo<br />

Mafutsanyana District.<br />

FDC industrial properties are located in<br />

• Thaba Nchu<br />

• Botshabelo<br />

• Industriqwa – Harrismith<br />

• Phuthadithjaba<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />







| | The Botshabelo Industrial Park is situated approximately<br />

60km from the economic hub on the eastern side of the<br />

Mangaung Metro.<br />

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

The main objective of the MAP SEZ is to attract<br />

foreign and direct investment and to stimulate the<br />

local economy as well as to create meaningful work<br />

opportunities for people of the Free State as a whole<br />

and in particular the Maluti-A-Phofung region.<br />

The MAP SEZ is nestled on 1 038ha of land which<br />

is divided into four precincts that include the crossdocking<br />

and container-terminal precincts. The MAP<br />

SEZ is a multi-sector processing, manufacturing,<br />

engineering, logistics services and transport complex,<br />

serving the needs of the upstream value-adding,<br />

beneficiation, processing and production service<br />

companies operating across sectors and geographic<br />

areas in <strong>South</strong>ern Africa.<br />

A number of incentives are available to ensure MAP<br />

SEZ’s growth, revenue generation and international<br />

competitiveness. These incentives include:<br />

• 15% corporate tax instead of 28% corporate tax<br />

• Building allowance tax<br />

• Employment incentive tax<br />

Contact details for investors:<br />

Free State Development Corporation<br />

Tel: +27 51 4000 800<br />

Emails: wecare@fdc.co.za | invest@fdc.co.za<br />

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

Free State Province Free State Province<br />

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

Free State Province Free State Province<br />

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

FOCUS<br />

Tourism investment<br />

From the impressive rock formations of the Golden Gate<br />

Highlands National Park to the country’s biggest dam,<br />

Gariep Dam, with cultural, historical and adventure<br />

experiences in between, the Free State caters to every<br />

tourist’s taste.<br />

There are also multiple investment opportunities.<br />

The Free State Gambling, Liquor and Tourism Authority<br />

(FSGLTA) is doubling up on efforts to attract international<br />

tourists and to create new markets domestically through<br />

programmes such as “Travelling Differently”.<br />

Tourism infrastructure is being enhanced and new<br />

skills taught to prospective employees in the sector.<br />

Bloemfontein’s newest investment is the R95-million<br />

Premier Splendid Inn.<br />

All of the major hotel brands have a presence in the<br />

Free State. Protea Hotels has properties in Bloemfontein,<br />

Harrismith and the popular resort town of Clarens while<br />

Sun International, the Tsogo Group and City Lodge are<br />

well represented. ■<br />


MEC for Economic, Small<br />

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

and Environmental Affairs, the<br />

Honourable MP Mohale, has been<br />

supportive of various publications<br />

designed to attract investment to<br />

the province. In addition, he notes:<br />

While investment is an essential<br />

ingredient to economic growth,<br />

it should be pointed out<br />

that at the centre of the Free<br />

State government’s economic<br />

development strategy, as well as the Value Chains Economic<br />

Transformation Approach, is human capital formation and<br />

development through universities and colleges, and various<br />

institutions pursuing innovation and offering proof-ofconcept<br />

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

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

research and innovation, particularly in the fields of health,<br />

agriculture, agro-processing, manufacturing, water<br />

management, ICT, pharmaceuticals and rural development.<br />

Domestic and potential investors from around the world<br />

are welcome to contact the DESTEA Head of Department<br />

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

SOUTH AFRICAN BUSINESS <strong>2023</strong>

The Northern Cape is<br />

attracting new-age investments<br />

Limitless renewable-energy resources, a new port, a Special Economic<br />

Zone and green-hydrogen investments make the province the ideal<br />

destination for forward-thinkers.<br />

The Northern Cape is now – and<br />

will in the future – be the best<br />

global investment destination for<br />

investors in mining, agriculture<br />

or energy. These are the primary sectors.<br />

However, there is the added benefit<br />

for the province and for investors of<br />

renewable energy being scaled up across<br />

the province. This puts the Northern<br />

Cape in a good position to have an aggressive<br />

industrialisation agenda.<br />

To this end, the 2022/23 financial year began with<br />

a positive start as the Northern Cape recorded the<br />

lowest unemployment rates in the country together<br />

with an improved GDP figure of R130-billion, up from<br />

R98-billion in 2019. The key drivers for the Northern<br />

Cape’s sterling performance were investments in<br />

the mining and energy sectors. These were made<br />

possible through good governance and investment<br />

facilitation on top of a good resource base.<br />

The Northern Cape is a key contributor towards<br />

<strong>South</strong> Africa’s Just Energy Transition (JET). The<br />

Northern Cape Provincial Government, in line with<br />

the Green Hydrogen Strategy that was launched in<br />

November 2021 at COP26 in Glasgow, has initiated<br />

pre-feasibility studies that are championed by its<br />

strategic partner and anchor investor, Sasol.<br />

Since the introduction of the national<br />

Renewable Energy Independent Power Producer<br />

Procurement Programme (REIPPPP), the Northern<br />

Cape has attracted a disproportionate percentage<br />

of solar and wind projects, worth billions of rands to<br />

the local and national economy.<br />

The advent of the green-hydrogen economy<br />

has given the Northern Cape the opportunity to hold<br />

a key position in this new field as a contributor to<br />

country’s green economy. This is enabled by the natural<br />

endowments that are available in the province.<br />

The <strong>South</strong> <strong>African</strong> response and offer to the global<br />

village is well articulated via the <strong>South</strong> <strong>African</strong> Green<br />

Hydrogen Roadmap that is based on the following<br />

tangible references that provide a first-class competitive<br />

advantage:<br />

• A well-developed strategy and an existing<br />

regulatory and implementation structure that has<br />

been developed since 2007<br />

• Having the world’s largest grey-hydrogen producer<br />

in the world, Sasol, as the lead investor<br />

• The REIPPPP that has been in existence for more than<br />

10 years, generating more than 5GW of electricity<br />

The Northern Cape has exceptional renewable energy<br />

resources. As the biggest <strong>South</strong> <strong>African</strong> province by<br />

land mass, the province is sparsely populated, has little<br />

alternate use for the land and has an uncomplicated<br />

topography. Collectively, this amounts to an exceedingly<br />

supportive environment for renewable-energy<br />

generation and green-hydrogen development.<br />

The renewable energy capacity of the Northern<br />

Cape is more than sufficient for what <strong>South</strong> Africa<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Credit: Pexels<br />

would require based on its projections, but farreaching<br />

consideration is being given as to how the<br />

renewable capacity is developed and scaled up.<br />


The significant support the Boegoebaai project is<br />

receiving from both the public and private sectors<br />

is highlighting its promise.<br />

Ultimately, an extensive value chain for<br />

investment exists, ranging from desalination and<br />

electrolyser production, the renewable energy<br />

resource required, grid capacity, auxiliary services<br />

and ultimately the possibly of manufacturing<br />

opportunities for the industry and value addition to<br />

local mineral resources.<br />

Part of the feasibility study, Sasol’s final master<br />

plan report, will be made public and this will entail<br />

more elaborate detail about the value chain. A<br />

green-hydrogen-specific Special Economic Zone (SEZ) is<br />

envisaged to host the extensive value chain that stems<br />

from the production of green hydrogen. The site will<br />

be 30 000ha in extent. This will be the world’s leading<br />

investment destination for green hydrogen within a<br />

green SEZ.<br />

In addition, the existing mining, agriculture, transport and<br />

energy sectors need to be transitioned and incorporated into<br />

this JET-driven Northern Cape Green Hydrogen Strategy. For<br />

the future, plans must be made for heavy-hauling trucks in<br />

the mines and on roads and for green-hydrogen fuelling<br />

stations and the like. The array of investment potential within<br />

this green economy does not conclude here, though. A<br />

range of other demands must be provided for, including<br />

extensive developments, infrastructure, logistics and the<br />

demand for human capital. Investors are urged to opt in<br />

and to secure for themselves a slot in this prime, once-in-alifetime<br />

investment opportunity.<br />


Riaan Warie<br />

Director: Trade & Investment<br />

Promotion<br />

Northern Cape Department of<br />

Economic Development and<br />

Tourism<br />

Tel: +27 (0)87 310 7683<br />

Fax: +27 (0)53 831 3668<br />

Cell: +27 (0)79 877 2828<br />

Email: RWarie@ncpg.gov.za/<br />

warieriaan@gmail.com<br />

Hendrik Louw<br />

Acting CEO<br />

NCEDA<br />

Tel: +27 (0)53 802 1638<br />

Cell:+27 (0)60 997 7222<br />

Email: hlouw@nceda.co.za

FOCUS<br />

Newlyn’s First-in-World Bulk Minerals<br />

Storage Solution<br />

Proposed back-of-port manganese terminal in Ngqura<br />

Newlyn is a home-grown company that has invested and continues to invest in long term<br />

capital intensive transformational infrastructure in <strong>South</strong> Africa. We believe in the economic<br />

promises potential near-zero of the country and dust don’t have any emissions investments outside and <strong>South</strong> Africa. high Our future efficiency<br />

is<br />

inextricably linked to and fully aligned with the success of SA Incorporated. We proactively<br />

contribute to the success of our country by investing for the long term, securing leading<br />

global supply chain technology, facilitating technology and skills transfer to <strong>South</strong> Africa, to<br />

raise the standards across the entire bulk materials logistics supply chain ecosystem. In so<br />

doing, we have demonstrated that we contribute to meaningful socio-economic development<br />

in all the regions in which Newlyn operates.<br />

Contact us:<br />

031 313 6500<br />

Firdhose Coovadia<br />

firdhosec@newlyngroup.com<br />

The future of sustainable, operationally-efficient<br />

Sagie Chetty<br />

mineral export logistics sagiec@newlyngroup.com<br />

https://newlyngroup.com<br />

ESG and Supply Chain Optimisation<br />

• Near zero dust emissions<br />

• Rapid unloading of trains (6,500tph)<br />

• High speed shiploading of up to 10,000 tph<br />

• Vessel turnaround sub 20 hours<br />

• No product degradation<br />

• Catalyst for jobs and economic development<br />

• Common User Infrastructure: market access<br />

for emerging miners<br />

• Significant financial benefits to miners,<br />

Transnet and the fiscus<br />


As part of its vision to deliver continuous<br />

innovation in offering sustainable and<br />

efficient logistics solutions to its clients,<br />

Newlyn has, together with global<br />

OEMs Eurosilo and Bruks Siwertell, developed<br />

proprietary technology for what will become<br />

the world’s first near-zero dust emissions mineral<br />

ore back-of-port export terminal with superior<br />

operating efficiencies.<br />

Open stockpiling of manganese in the Port<br />

of Port Elizabeth and in back-of-port facilities in<br />

Markman and Ngqura has created significant<br />

issues. Apart from the serious public health and<br />

environmental concerns, the enormous impact of<br />

these increased volumes on the region’s already<br />

burdened infrastructure, roads, traffic, tourism and<br />

ecosystems is immeasurable. It has, for example,<br />

resulted in expensive and inefficient watering to<br />

reduce dust storms over the popular Kings Beach,<br />

smart spaces. transformational infrastructure<br />

while also stymieing attempts to create a touristfriendly<br />

waterfront around the small boats harbour<br />

within the port.<br />

Transnet intends moving the manganese<br />

bulk export terminal to the Port of Ngqura within<br />

the Coega SEZ, 20km to the north of the city of<br />

Gqeberha. Newlyn’s proposed back-of-port solution<br />

for manganese in Coega will perfectly dovetail with<br />

Transnet’s proposed plans. It will serve to accelerate<br />

the relocation of manganese exports from<br />

Gqeberha to Ngqura and is designed to augment<br />

Transnet’s proposed manganese export terminal in<br />

Ngqura to ensure a sustainable solution is offered to<br />

the manganese miners.<br />

Back of Port Manganese<br />

Terminal – Ngqura<br />

Closed design<br />

The Newlyn design for The the future back-of-port sustainable storage<br />

and handling of mineral operationally ore is entirely efficient closed export to the logistics<br />

environment, hence near-zero dust emissions and<br />

associated product losses.<br />

The efficient design involves rapid unloading of<br />

the train and movement of manganese via piped<br />

conveyor to specialised silos which are equipped<br />

with mechanical systems for soft handling of ore.<br />

Thereafter, ore is accurately discharged from the<br />

silos via pipe conveyors to the ship-loaders at a<br />

loading rate of up to 10 000 tons per hour. As a result,<br />

ship-loading can be achieved in less than a day<br />

compared to the current 5-6 days. This significantly<br />

reduces demurrage for miners, improves train<br />

turnaround times and most importantly will serve<br />

to debottleneck the existing heavy-haul rail line from<br />

the Northern Cape. Incremental rail capacity created<br />

by the system can be made available to emerging<br />

miners currently unable to secure sufficient rail<br />

export allocations for manganese.<br />

The Newlyn design is first-in-the-world for<br />

export of mineral ore and has a footprint of one<br />

third of conventional back-of-port storage.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Meeting national objectives<br />

Simulation models have demonstrated that<br />

Newlyn’s project can coexist with Transnet’s planned<br />

manganese export terminal, to ensure that export<br />

logistics infrastructure can meet the forecasted<br />

export potential from <strong>South</strong> <strong>African</strong> miners.<br />

The project will address several objectives in<br />

the national strategic and economic interest of<br />

<strong>South</strong> Africa including:<br />

• Cargo migration from road to rail;<br />

• Technology and skills transfer of the best available<br />

global technology;<br />

• Private sector participation in infrastructure<br />

development;<br />

• Enabling market access for emerging manganese<br />

miners;<br />

• Stimulating regional and provincial socio-economic<br />

development; and<br />

Bayhead multi-modal rail facility is the<br />

largest of its kind in Africa<br />

• Delivering environmentally sustainable solutions<br />

to communities.<br />

The project has received overwhelming support<br />

from manganese miners and environmental NGOs.<br />

Newlyn is planning a similar project in Saldanha to<br />

address environmental challenges and efficiencies<br />

associated with iron ore and manganese back-ofport<br />

operations there. ■<br />

About the Newlyn Group<br />

Developers of transformational logistics and storage infrastructure<br />

The Newlyn Group was established in 1996 to<br />

engage in opportunities for black participation<br />

within the port logistics sector, a sector which<br />

previously excluded people of colour.<br />

Initially, Newlyn targeted potentially prime<br />

industrial properties and created value by<br />

rejuvenating ageing infrastructure.<br />

Today, Newlyn is a leading private developer<br />

of land close to or within port precincts along<br />

strategic high-value/volume trade corridors.<br />

Newlyn adopts an innovative design approach<br />

transforming these land parcels into highlyefficient<br />

logistics facilities that offer bespoke<br />

solutions to leading multinational and<br />

national clients. Newlyn’s tried and trusted<br />

design approach and in-house construction<br />

capabilities and equipment ensures a bespoke<br />

solution that enhances our clients’ businesses.<br />

Newlyn’s growth is driven by a highly credible<br />

team of experts with over 150 years of cumulative<br />

experience at the highest level. Newlyn is a proudly<br />

<strong>South</strong> <strong>African</strong>, homegrown Level One BBBEE entity<br />

committed to investing in <strong>South</strong> Africa for the<br />

long term. The Newlyn Group’s current developed<br />

portfolio includes 26 properties in three provinces<br />

with a GLA of c. 1 300 000 square metres and a<br />

land bank of c. 1 700 000 square metres. Newlyn’s<br />

portfolio includes some of the most sophisticated<br />

storage facilities on the continent with landmark<br />

developments including Africa’s largest multimodal<br />

rail terminal in Bayhead, Durban, a specialised<br />

sulphur import facility in Richards Bay and a stateof-the-art<br />

chemicals storage facility in Durban.<br />

Newlyn’s macro vision is to make <strong>South</strong> <strong>African</strong><br />

businesses more competitive by reducing the cost<br />

of logistics through the development of more<br />

efficient and environmentally sustainable logistics<br />

infrastructure solutions. ■<br />

Contact details:<br />

Tel: +27 31 313 6500<br />

Firdhose Coovadia: Chief Value Officer | firdhosec@newlyngroup.com<br />

Sagie Chetty: Group Engineer | sagiec@newlyngroup.com<br />

Website: https://newlyngroup.com


Newlyn is a home-grown company that has invested and continues to invest in long term<br />

capital intensive transformational infrastructure in <strong>South</strong> Africa. We believe in the economic<br />

potential of the country and don’t have any investments outside <strong>South</strong> Africa. Our future is<br />

inextricably linked to and fully aligned with the success of SA Incorporated. We proactively<br />

Going<br />

contribute<br />

beyond<br />

to the success of our country by investing<br />

the<br />

for the long term, securing leading<br />

global supply chain technology, facilitating technology and skills transfer to <strong>South</strong> Africa, to<br />

raise the standards across the entire bulk materials logistics supply chain ecosystem. In so<br />

doing, we have demonstrated that we contribute to meaningful socio-economic development<br />

in all the regions in which Newlyn operates.<br />

conventional to achieve the exceptional<br />

CEO and founder Raj Balmakhun ESG and Supply explains Chain Optimisation how the Newlyn Group’s bespoke and<br />

innovative solutions are aligned • Near zero dust with emissionsthe growth and development of <strong>South</strong> Africa<br />

Contact us:<br />

031 313 6500<br />

Firdhose Coovadia<br />

firdhosec@newlyngroup.com<br />

Sagie Chetty<br />

sagiec@newlyngroup.com<br />

Newlyn CEO and founder,<br />

Raj Balmakhun<br />

https://newlyngroup.com<br />

• Rapid unloading of trains (6,500tph)<br />

• High speed shiploading of up to 10,000 tph<br />

• Vessel turnaround sub 20 hours<br />

• No product degradation<br />

• Catalyst for jobs and economic development<br />

• Common User Infrastructure: market access<br />

for emerging miners<br />

• Significant financial benefits to miners,<br />

Transnet and the fiscus<br />

smart spaces. transformational infrastructure<br />

What is the mission of Newlyn?<br />

We are proudly <strong>South</strong> <strong>African</strong> and Afri-optimists. While our country has<br />

many challenges and complexities, this spawns innovative solutions.<br />

The cost of logistics significantly impacts the competitiveness of an<br />

economy. Our mission is to make <strong>South</strong> <strong>African</strong> businesses more<br />

competitive by developing innovative logistics storage infrastructure<br />

focused on greater efficiencies anchored in sustainable design,<br />

construction and operations. We fully subscribe Back of to Port the spirit Manganese of Ubuntu,<br />

“I am because you are”. This guides our Terminal value system – Ngqura and we believe in<br />

making a difference socially as well as<br />

The<br />

economically.<br />

future of sustainable<br />

operationally efficient export logistics<br />

When was the company established?<br />

The Newlyn Group was established in 1996 to engage in opportunities<br />

for black participation within the Port Logistics sector, a sector which<br />

previously precluded people of colour.<br />



Raj began his career practicing<br />

law, but he has always been an<br />

entrepreneur at heart. This led him to<br />

founding the Newlyn Group in 1996.<br />

Under his stewardship Newlyn has<br />

become a leading private developer<br />

of transformational logistics storage<br />

infrastructure and the group is<br />

synonymous with innovation, speed<br />

of execution and world-class quality.<br />

Raj is the visionary and dealmaker<br />

for the Group. He is a firm advocate<br />

of social entrepreneurship, which<br />

aims to uplift the communities<br />

within which Newlyn operates.<br />

To what do you ascribe the growth the company has enjoyed?<br />

Dogged perseverance, speed of decision making and implementation<br />

as well putting clients first. Whilst we have faced many challenges,<br />

including the formidable disadvantage of starting from a zero capital<br />

base, we remain committed to the logistics investment theme in and<br />

around ports and major trade corridors and focus on delivering a topquality<br />

logistics solution to our clients.<br />

How do you define “bespoke storage and logistical solutions”?<br />

One of my core principles is “you cannot do the conventional<br />

and expect the exceptional”. Our design approach addresses the<br />

logistical issues common to traditional warehousing including<br />

inter-modal optionality, truck reticulation and optimum stacking<br />

densities. These specifications differ from client to client depending<br />

on the type of product being handled in the facility, how product<br />

is received or special regulatory requirements. Examples are our<br />

sulphur storage facility in Richards Bay and the Ashgate Chemical<br />

Storage facility in Durban.<br />

How do you see your company’s mission as linked to the success<br />

of <strong>South</strong> Africa Inc?<br />

<strong>South</strong> Africa has a development problem. We desperately need<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


investment in infrastructure, but these are long<br />

gestation investments that will underpin a<br />

sustainable economy for decades to come. We<br />

believe we cannot leave it to government – we<br />

as business have to be part of the solution. Our<br />

projects speak to capacity building, technology<br />

and skills transfer, community engagement and<br />

upliftment, innovation and long-term investment.<br />

We are ready to collaborate with government,<br />

with communities and with our clients to<br />

deliver transformational infrastructure projects<br />

that address national objectives including the<br />

migration of cargo from road to rail, environmental<br />

sustainability, job creation and fixed capital<br />

investment. The work we do needs to be judged<br />

by its criticality to the economy – for example our<br />

PX development in Durban or the planned Coega<br />

back-of-port manganese development unlock<br />

value in the mining sector, a major contributor to<br />

the <strong>South</strong> <strong>African</strong> economy.<br />

What is Newlyn doing in terms of running<br />

sustainable operations?<br />

The Newlyn Group is committed to “leaving the<br />

planet in better health than we found it”. We<br />

will deliver our projects in a sustainable manner,<br />

by systematically reducing our environmental<br />

impact and improving the quality of life for<br />

communities. Newlyn projects are designed to<br />

reduce water consumption and carbon footprint.<br />

We deploy translucent sheeting in warehouse<br />

design to maximise natural light, we use LED<br />

lighting in all new builds and we deploy sisalation<br />

to enhance cooling.<br />

Nowhere is our commitment to sustainability<br />

more evident than our joint development, with<br />

two global OEMs, of near-zero dust emission<br />

mineral storage and handling solutions for<br />

manganese and iron ore. The first such project<br />

is currently under development in the Coega<br />

Special Economic Zone. The global engineering<br />

firm undertaking the EPCM work on our behalf<br />

has hailed the solution as a global game changer<br />

in sustainable, operationally-efficient bulk<br />

mineral storage.<br />

In addition, Newlyn has invested in its own<br />

internationally experienced energy team which<br />

has developed proprietary process technology<br />

Silo-based; manganese back-of-port facility<br />

planned for Port of Ngqura<br />

that results in a lower cost of electricity<br />

generation coupled with significantly lower CO2<br />

and NOx emissions.<br />

Is Newlyn exploring power generation projects?<br />

We are leveraging our substantial rooftop space<br />

to generate solar power where we act as the<br />

promoter and developer. For example, our roof at<br />

the PX project in Durban is capable of generating<br />

30MW of solar power, sufficient to meet our<br />

clients’ needs but also ensure the entire Durban<br />

port can been powered by green energy. In<br />

addition, we have an EIA-approved land parcel<br />

for a gas to power project which we intend to<br />

develop as part of a consortium led by a Tier 1<br />

power block developer.<br />

What is the Boegoeibaai project?<br />

The proposed Boegoebaai Port with dedicated<br />

new rail connectivity to the mines of the Northern<br />

Cape is an exciting project which speaks to<br />

government’s objectives to migrate road to rail,<br />

optimise cargo distribution, reduce dependency<br />

on single ports and facilitate access to export<br />

markets for emerging miners. The development<br />

of this port is also key to unlocking <strong>South</strong> Africa’s<br />

immense green hydrogen potential and further<br />

paves the way for in-country mineral beneficiation.<br />

It will also result in great job creation and billions<br />

of dollars of fixed-capital investment.<br />

Newlyn has teamed up with an international<br />

consortium with global credentials in port and<br />

rail infrastructure development, to pre-qualify as<br />

a potential developer of the Boegoebaai Project.<br />

This collaboration is an example of another one<br />

of our core principles – harnessing the power of<br />

collective effort and collective intellect. ■<br />

39<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>


Overviews of the main economic<br />

sectors of <strong>South</strong> Africa<br />

Agriculture 42<br />

Mining 46<br />

Energy 52<br />

Oil and gas 56<br />

Water 62<br />

Engineering 64<br />

Manufacturing 66<br />

Construction and property 69<br />

Transport and logistics 70<br />

Tourism 72<br />

ICT 74<br />

Banking and finance 75<br />

Development finance and<br />

SMME development 76<br />

Education and training 78<br />

A giraffe in the Pilanesberg National Park in North West Province has a close look at how giraffes have<br />

been depicted on a passing hot-air balloon. Credit: Sun International


Agriculture<br />

Citrus exports have finally made it to China.<br />


Agriculture employs about<br />

844 000 people.<br />

The first consignment of Eastern Cape lemons destined for China is<br />

given a last inspection at Maydon Wharf Fruit Terminal in Durban.<br />

Credit: Citrus Growers’ Association of <strong>South</strong>ern Africa<br />

National citrus exports have grown by more than 40% in<br />

the past decade to about R20-billion per year. The Citrus<br />

Growers’ Association of <strong>South</strong>ern Africa forecasts an<br />

increase from the current 150-million 15kg cartons to<br />

200-million in the next five years, and this is projected to grow<br />

still further to 255-million by 2030.<br />

February 2022 marked an important milestone for the citrus industry<br />

because it was in that month that a first shipment of lemons was loaded<br />

onto ships from the fruit terminal in Durban harbour en route to China.<br />

The long and complicated procedure of becoming compliant<br />

with health and import procedures started with work done by Citrus<br />

Research International (CRI) scientists in 2013. CRI and the National<br />

Department Agriculture, Land Reform and Rural Development<br />

hosted scientists from China in 2015 and negotiations have<br />

continued ever since.<br />

<strong>South</strong> <strong>African</strong> citrus growers spend R150-million annually on<br />

research which is then used by the DALRRD in their international<br />

negotiations. In this case, it paid off with a R325-million deal which<br />

has the potential to grow exponentially. <strong>South</strong> Africa hopes to eclipse<br />

Argentina and Chile as suppliers of lemons to China, targeting 25 000<br />

tons of lemons to that country by 2024.<br />

Exports of grapefruit, oranges<br />

and soft citrus to China totalled<br />

130 000 tons in 2020. More good<br />

news from <strong>South</strong>-East Asia came<br />

in the form of a first consignment<br />

of citrus fruit being accepted into<br />

the Philippines.<br />

The citrus industry has<br />

been identified in the National<br />

Development Plan as a priority<br />

sector because it employs many<br />

people and it can improve the<br />

country’s balance of payments.<br />

<strong>South</strong> Africa is the world’s<br />

second-largest exporter of<br />

citrus fruit. A national export<br />

record was achieved in 2020,<br />

with 146-million cartons of fresh<br />

citrus being exported (second<br />

only to Spain). The CGA’s Grower<br />

Development Company has<br />

pledged to invest R141-million<br />

to empower growers struggling<br />

to break even between 2021<br />

and 2024 through its Enterprise<br />

Development Grant Fund.<br />

This year, R40-million was<br />

allocated to 72 recipients<br />

across the country to mostly<br />

help with the procurement<br />

of key production inputs,<br />

including fertiliser and other<br />

agrochemicals. There are many<br />

opportunities in Africa for<br />

exports of fruits which do not<br />

quite match EU standards but<br />

which are nonetheless perfectly<br />

good products.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



International pressures<br />

Agriculture, forestry and fishing made good progress in terms of<br />

GDP growth for two years. The fourth quarter of 2021 showed 12.2%<br />

growth and the year-on-year figure for 2020 was 13.4%, followed in<br />

2021 by 8.3%.<br />

The soybean harvest in 2020/21 was the country’s best ever, and<br />

maize had its second-best harvest on record.<br />

But the hope that post-Covid would result in even better results<br />

has not come to pass. Unusually heavy rains, the Russian invasion<br />

of Ukraine, the bad performance of the railways and ports in terms<br />

of exporting <strong>South</strong> <strong>African</strong> produce and Eskom’s inability to supply<br />

a reliable stream of electricity, are some of the headwinds that the<br />

sector had to deal with in 2022.<br />

Russia used to take 7% of <strong>South</strong> <strong>African</strong> citrus exports, and 12% of<br />

the country’s exported apples and pears.<br />

Omnia reported in June 2022 that it had sufficient stocks of<br />

fertilisers to sell to farmers, despite the disruption in supply caused<br />

by the Russian invasion of Ukraine and the sanctions which followed<br />

against Russia, the world’s biggest exporter of fertilisers. Omnia,<br />

which owns a fleet of trucks and rail transport which allows it to<br />

control the supply chain process, is experiencing a growth in sales of<br />

its biological and organic products as an alternative to fertilisers.<br />

While agriculture’s contribution to national GDP is variously given<br />

in the range of 2.0%-2.5%, the upstream and downstream links to<br />

agriculture through processing and logistics mean that the real<br />

contribution is more like 15%.<br />

AgriSA states that the amount of agricultural land in <strong>South</strong> Africa<br />

in 2016 stood at 93.5-million hectares. This represents 76.3% of <strong>South</strong><br />

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

than in 1994.<br />

A total of 70% of <strong>South</strong> Africa’s grain production is maize, which<br />

covers 60% of the cropping area of the country. KwaZulu-Natal and<br />

Mpumalanga produce sugar, but volumes are down.<br />

The Free State Province supplies significant proportions of the<br />

nation’s sorghum, sunflower, potatoes, groundnuts, dry beans, and<br />

almost all of its cherries.<br />

<strong>South</strong> Africa is famous for its fruit, of which 35% is citrus, 23%<br />

subtropical and nuts, 26% pome fruit, 11% stone fruit and 9% table<br />

grapes. Most of <strong>South</strong> Africa’s citrus and subtropical fruit comes from<br />

the eastern part of Limpopo. There are about 3 500 wine producers in<br />


Agricultural Research Council: www.arc.agric.za<br />

Grain SA: www.grainsa.co.za<br />

SA Table Grape Industry: www.satgi.co.za<br />

<strong>South</strong> <strong>African</strong> Berry Producers’ Association: www.berriesza.co.za<br />

Dairy equipment to cope with<br />

increased milk volumes.<br />

Credit: Tetra Pak Group<br />

<strong>South</strong> Africa, with the majority<br />

located in the Western Cape.<br />

The Eastern Cape is the largest<br />

livestock province, which<br />

includes Angora goats, from<br />

whom mohair is taken. The<br />

province is the centre of the<br />

country’s mohair value chain.<br />

<strong>South</strong> Africa has a beef herd of<br />

14-million.<br />

<strong>South</strong> Africa’s milk producers<br />

normally produce about<br />

3.3-billion litres of milk every year<br />

(Milk Producers Association).<br />

The decision by processing<br />

and packaging company Tetra<br />

Pak to spend R500-million<br />

on expanding capacity at its<br />

packaging material plant in<br />

Pinetown indicates an uptick in<br />

agricultural production.<br />

The new plant allows the<br />

company to increase its local<br />

content to 80% and to make<br />

the Pinetown plant a production<br />

hub for the region. Among the<br />

companies clients are dairy<br />

companies such as Clover and<br />

Woodlands Dairy which package<br />

milk for major retailers. ■<br />

43<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

The Responsible<br />

Mohair Standard<br />

has restored trust<br />

<strong>South</strong> <strong>African</strong> mohair is once again<br />

popular with global fashion brands.<br />

The mohair industry has embraced the Responsible<br />

Mohair Standard as we are all aware that the consumer<br />

of today is rightfully far more conscious, not only of<br />

the impact of their purchases on the environment, but<br />

also the impact their purchases have on the people<br />

producing the goods.<br />

The Responsible Mohair Standard is all-inclusive and is very<br />

specific as to its requirements in respect of the environment<br />

and welfare of the animals and all individuals employed in the<br />

production of mohair products.<br />

There is no doubt that having Samil’s manufacturing operations<br />

certified under the Responsible Mohair Standard has opened new<br />

opportunities for trade throughout the world.<br />

However, the dynamic team at Samil feels compelled to ensure<br />

that not just the Samil manufacturing operations but all mohair<br />

operations owned or run in partnership with Samil, must also be<br />

RMS certified. Samil therefore embarked on a concerted drive to<br />

have all the Angora goat farms which are either owned or run in<br />

partnership with Samil Farming were also certified as RMS.<br />

This was no mean task as there are more than 30 farming<br />

operations in the Samil Farming portfolio in and around the Karoo<br />

region. However, the Samil Farming Manager, Andries Coetsee, and<br />

his very able assistant, Nienke Scholtz, embraced the challenge and<br />

Samil is proud to announce that, as of the end of August 2021, all<br />

Samil mohair operations are proudly RMS certified.<br />

Through the determined efforts of Mohair <strong>South</strong> Africa, in<br />

conjunction with The Textile Exchange, in ensuring the development<br />

of the Responsible Mohair Standard, the mohair industry has been<br />

able to regain the trust, not only of the big fashion brands, but also<br />

of the world.<br />

This can clearly be seen in the record mohair prices currently being<br />

achieved as brands the world over are scrambling to reintroduce RMScertified<br />

mohair articles into their product ranges.<br />

The knock-on effect is that jobs that had previously been in jeopardy<br />

are now secured and, due to the new-found appetite for mohair, more<br />

jobs have been created.<br />

The benefits of RMS certification<br />

After the PETA exposé in 2018, the <strong>South</strong> <strong>African</strong> mohair industry<br />

became a pariah and many of the top fashion brands vowed to no<br />

longer use mohair in their products. This put nearly 30 000 people<br />

at risk of being unable to earn a living and feed their families.<br />

68 SOUTH | www.opportunityonline.co.za<br />

AFRICAN BUSINESS <strong>2023</strong><br />


yarns@samil.co.za | sales@samil.co.za | www.samil.co.za


Mining<br />

Platinum’s role in green hydrogen is a boon for miners.<br />


An Australian company has<br />

listed on the JSE.<br />

Platinum prices have buoyed the <strong>South</strong> <strong>African</strong> economy<br />

through tough times. Credit: Implats<br />

Australia has one of the world’s most dynamic mining sectors so<br />

it was good news for <strong>South</strong> <strong>African</strong> mining and the JSE when<br />

<strong>South</strong>ern Palladium listed in Johannesburg in June 2022.<br />

With a primary listing on the ASE, <strong>South</strong>ern Palladium has<br />

a majority share in Miracle Upon Miracle Investments Propriety Limited<br />

(MUM), a local company which has prospecting rights south of Modikwa<br />

mine in Limpopo, a joint venture run by Anglo American and <strong>African</strong><br />

Rainbow Minerals. The balance of equity in MUM is owned by a company<br />

owned by the Bengwenyama-you-Maswazi community.<br />

The new-age minerals that miners are increasingly paying attention<br />

to are copper, bauxite and magnesium.<br />

Sibanye-Stilwater is increasing its exposure to minerals and<br />

technology that will be needed in the greener future. Two of the <strong>South</strong><br />

<strong>African</strong> firm’s board have joined the board of Finnish lithium company<br />

Keliber and Sibanye’s stake in the company was raised to 80% in October<br />

2022. The Keliber project is expected to supply about 15 000 tons a year<br />

of lithium hydroxide, the product which is used in the manufacture of<br />

lithium-ion batteries for electric vehicles.<br />

As the world tries to decouple<br />

from the carbon economy,<br />

miners and energy planners are<br />

increasingly turning to green<br />

hydrogen to solve mankind’s<br />

biggest problem. Green<br />

hydrogen is hydrogen created<br />

using renewable resources, and<br />

the Northern Cape has those in<br />

abundance. The Northern Cape<br />

Green Hydrogen strategy was<br />

announced in 2021 at COP 26. A<br />

Northern Cape Green Hydrogen<br />

Symposium was held in 2022<br />

and Sasol is in the process of<br />

conducting a pre-feasibility study<br />

on hydrogen for the province. Any<br />

developments in that sphere will<br />

be linked with, and give a boost to,<br />

the Boegoebaai Harbour project.<br />

The National Department of<br />

Mineral Resources and Energy, in<br />

collaboration with the Northern<br />

Cape Provincial Government,<br />

hosted the Northern Cape<br />

Mining and Minerals Investment<br />

Conference in 2022. The<br />

department’s stated goal is that<br />

all <strong>South</strong> <strong>African</strong>s should derive<br />

sustainable benefit from the<br />

country’s resources. The province’s<br />

considerable mineral wealth was<br />

outlined to potential investors<br />

and plans for infrastructure<br />

development (such as industrial<br />

parks and Special Economic<br />

Zones) were highlighted.<br />

Another province to take<br />

advantage of the green hydrogen<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



economy is Limpopo. In May 2022, Anglo American unveiled a prototype<br />

of the world’s largest hydrogen-powered mine haul truck designed to<br />

operate in everyday mining conditions at its Mogalakwena PGMs mine<br />

in <strong>South</strong> Africa. Anglo American intends using green hydrogen which it<br />

will produce at the mine to feed into its green-hydrogen system, which<br />

includes production, fuelling and a haulage system. The 2MW hydrogenbattery<br />

hybrid truck generates more power than its diesel predecessor<br />

and can carry a 290-ton payload. Forty Anglo trucks will be retrofitted,<br />

starting in 2024, and the whole fleet should be green by 2030.<br />

Both Special Economic Zones (SEZs) in Limpopo are showing interest<br />

in green hydrogen. The operating company of the Musina-Makhado<br />

Special Economic Zone (MMSEZ) has signed a partnership agreement<br />

for green hydrogen electricity generation with Australian company<br />

<strong>African</strong> Resources Development Energy (ARD Energy). The Fetakgomo-<br />

Tubatse Special Economic Zone (FTSEZ), on the other hand, has plans<br />

to turn that area’s platinum group metals to good effect in the energy<br />

field. Platinum and iridium are important catalysts in the process which<br />

creates hydrogen, so that has become one of the big selling points of<br />

the FTSEZ. In July 2022, a delegation from the FTSEZ participated in the<br />

UK-RSA partnership mission on Hydrogen Economy Roadmap.<br />

Anglo Platinum’s 75MW solar plant under construction at<br />

Mogalakwena could well become the 320MW plant that the company<br />

wants it to be, as President Ramaphosa has announced the lifting of<br />

restrictions on the scale of private generation.<br />

With ample wind and sun, a long coastline and 75% of the world’s<br />

platinum group metals (PGMs), <strong>South</strong> Africa is well placed to be a leader<br />

in the production of green hydrogen.<br />

Rhodium palladium, platinum and gold collectively rose in price by<br />

more than 50% at one stage during 2021. Increased demand for PGMs<br />

has been a trend for some years, driven by the vital role played by PGMs<br />

in reducing pollution in the automotive sector. This was boosted more<br />

recently by applications for renewable energy and by supply constraints<br />

brought about by Covid-19 with production volumes down and<br />

shipping made more difficult throughout 2020 and into 2021.<br />

For FY2022, Impala Platinum (Implats) announced cash dividends of<br />

R14.8-billion paid to shareholders, R12.8-billion taxes and royalties paid<br />

to government and procurement of R3.2-billion spent on community<br />

businesses. Implats intends expanding production at its Two Rivers PGM<br />

mine by 180 000oz. The project will take four years and cost R5.7-billion.<br />

In the 2021/22 financial year, mining contributed R127-billion in tax<br />

out of a total corporate tax tally of R318-billion. Minerals made up 60%<br />

of exports and royalties came in at R28-billion. High commodity prices<br />


Council for Geoscience: www.geoscience.org.za<br />

Minerals Council <strong>South</strong> Africa: www.mineralscouncil.org.za<br />

Minerals Education Trust Fund: www.metf.co.za<br />

National Department of Mineral Resources and Energy: www.dmr.gov.za<br />

The conversion project to underground<br />

mining will extend the life of<br />

De Beers’ Venetia diamond mine in<br />

northern Limpopo. Credit: De Beers<br />

ensured a R180-million higher<br />

tax bounty for the <strong>South</strong> <strong>African</strong><br />

Revenue Services, amounting<br />

in the end to R1.55-trillion.<br />

This allowed government to<br />

continue with some Covid-relief<br />

programmes for longer than had<br />

been anticipated.<br />

Training<br />

The Minerals Education Trust<br />

Fund (METF) contributes<br />

towards the employment costs<br />

of 254 academic staff at nine<br />

tertiary institutions in scarceskills<br />

subjects such as mine<br />

ventilation, rocks mechanics and<br />

extractive metallurgy.<br />

The 29 members of METF<br />

are among the country’s<br />

biggest mining companies.<br />

Grants are made to institutions<br />

for the purchase of equipment<br />

but the main point of funding is<br />

to support 4 471 undergraduate<br />

students, 76% of whom are<br />

black <strong>African</strong> and 39% of whom<br />

are female. ■<br />

47<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>


New mapping shows that<br />

<strong>South</strong> <strong>African</strong> mining could<br />

have a strong future<br />

Mosa Mabusa, CEO of the Council for Geoscience, strongly believes<br />

that geoscience should not be seen as a cost centre, but rather as an<br />

investment in the country’s future.<br />

Mosa Mabuza, CEO<br />


After qualifying as a geologist from<br />

Wits University, Mosa held various<br />

positions at De Beers and Anglo<br />

American and worked in jurisdictions<br />

as varied as West Africa and<br />

Canada. From his appointment as<br />

the Director of Mineral Economics<br />

in the former Department of Minerals<br />

and Energy, he was promoted to<br />

Deputy Director-General of Mineral<br />

Policies and (Investment) Promotion<br />

in 2012. He has been CEO of CGS<br />

since 2017.<br />

What are the short- and medium-term goals of the Council<br />

for Geoscience?<br />

We are accelerating the organisation’s strategic reorientation. None<br />

of us could have expected the extent of the disasters in KwaZulu-<br />

Natal and the Eastern Cape so we are looking at how far we can<br />

reallocate resources so that we can contribute to that response. In<br />

the main, we continue to map at the scale of 1:50 000.<br />

We are building from a foundation that our forebears have<br />

constructed. We are standing on their shoulders.<br />

We are focused on identifying and confirming the presence of<br />

critical minerals in economic concentrations, to support emerging<br />

industries and the Just Energy Transition Programme.<br />

We have a focus on infrastructure and land-use work<br />

and supporting Eskom with the probabilistic seismic-hazardassessment<br />

study for the application of the extension of Koeberg.<br />

We are working on groundwater and modelling so that we<br />

gain a greater understanding of groundwater as an asset.<br />

There is a national goal of reimagining mineral exploration in<br />

<strong>South</strong> Africa with a target of achieving a share of 5% of the global<br />

expenditure by 2025. To get there, we have to quadruple our<br />

efforts. Our geology confirms that notwithstanding 150 years of<br />

mining history, we have not begun to mine in <strong>South</strong> Africa.<br />

What is the significance of the new mapping?<br />

Higher-intensity mapping provides greater clarity of information<br />

so that the exploration community can make decisions to invest.<br />

We have always known of pegmatite rock in the Northern<br />

Cape. It is a lithium-bearing rock and there are other possible rare<br />

earth elements. With mapping at this scale, we can confirm an<br />

extension of this pegmatite rock by a further 67%.<br />

We published a map in March and we are saying to the<br />

investment community that these critical minerals are a new<br />

centre of focus for investment. This is a test case to demonstrate<br />

that money that goes into geoscience is not a cost centre – it is<br />

an investment.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Please give an update on the carbon capture<br />

storage project.<br />

We are implementing it in partnership with the<br />

World Bank and it is progressing exceptionally well.<br />

Govan Mbeki Local Municipality in Mpumalanga<br />

has been supportive of this research and they have<br />

ceded the land. They are saying to us please do this<br />

research to help us to make appropriate choices.<br />

We are taking a comprehensive stakeholderled<br />

approach. Our message is that in our world of<br />

science we don’t know what we don’t know. Allow<br />

us to do the science so that we can establish the<br />

facts, then we can guide you.<br />

We have already concluded the geophysics<br />

high-resolution survey and geological mapping.<br />

We are excited that basalt is proving to be one<br />

of the sources of environmentally-appropriate<br />

sequestration materials for carbon.<br />

We are finding that once the emissions are<br />

captured, there are numerous applications that,<br />

depending on the volume, could catalyse a range<br />

of economic activities. I have come across the most<br />

interesting technology that suggests that coal could<br />

actually be a reliable source of green hydrogen. This<br />

is something I want to test. Now imagine if this<br />

hypothesis is proven to be correct. Then I can argue<br />

that, through science, we have indeed greened<br />

our coal. Science should not have any ideological<br />

predisposition. The greatest risk is when choices<br />

are made without the scientific interpretation. That<br />

makes me nervous, not only about our country but<br />

about humanity at large.<br />

I am hopeful that this research can prove that<br />

indeed coal can be the most reliable source of<br />

hydrogen. I call it the new gold of renewable energy.<br />

And then coal becomes that which renewable<br />

energy depends on.<br />

What are the main objectives of the CGS Summit?<br />

The key objective is to bring to the fore and<br />

celebrate the contribution of geoscience to <strong>South</strong><br />

Africa’s development.<br />

But we also want to examine the renewables<br />

debate. People talk about renewables very loosely,<br />

but to sustain the current demands of energy (not<br />

including future demands), the existing global<br />

reserves of copper would only cater to 35% of that<br />

– and that is only for renewable energy.<br />

Mapping to the scale of 1:50 000 is revealing new<br />

things about <strong>South</strong> Africa’s mineral resources.<br />

We need to be looking at where are we going.<br />

What are the next sources of copper and other<br />

minerals that will support our strategic choices?<br />

Geoscience plays the key role as a pathfinder to<br />

those types of minerals. Increasingly our role will<br />

become even more important to society as we<br />

advance in line with the choices that we are making.<br />

There are certain things that we need to do<br />

today and in the next five to 10 years that will lay<br />

the new foundation for the next 110 years. This<br />

summit will consider these things.<br />

We will be celebrating the crème de la crème,<br />

the professors of our country who have been<br />

guardians and who have played a critical role in<br />

advancing the body of knowledge of geoscience.<br />

We should never take that for granted.<br />

Is there international participation?<br />

The summit is in a hybrid format to enable physical<br />

and virtual participation. We have a global footprint<br />

of interest that spans all the continents. What makes<br />

us even more excited is that some of our very<br />

distant partners are already packing their bags as<br />

all roads lead to eThekwini to celebrate geoscience.<br />

We have chosen eThekwini because of the<br />

disaster that happened there. Parallel sessions<br />

will focus on the applications of geoscience<br />

such as geo-hazards, infrastructure and optimal<br />

land use. We can begin to demonstrate that<br />

some things can be averted with the preapplication<br />

of geoscience. ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

Building a cleaner, greener world<br />

Implats aims to deliver superior value to all its stakeholders.<br />

Sophisticated refinery complex in Springs, Gauteng.<br />

Impala Platinum Holding Limited (Implats)<br />

is a leading producer of platinum group<br />

metals (PGMs), structured around six mining<br />

operations and a toll refining business, Impala<br />

Refining Services. The Group’s mining operations<br />

span the Bushveld Complex in <strong>South</strong> Africa, the<br />

Great Dyke in Zimbabwe and the Canadian Shield<br />

and include Impala Rustenburg, Zimplats, Marula,<br />

Impala Canada, Mimosa and Two Rivers. The<br />

Group maintains a primary listing on the JSE in<br />

<strong>South</strong> Africa, a secondary listing on <strong>South</strong> Africa’s<br />

A2X and a level one American Depositary Receipt<br />

programme in the USA.<br />

Implats contributes approximately 20% to<br />

annual global primary PGM production and<br />

employs more than 55 000 employees (including<br />

contactors) across its operations – which<br />

presents a complex labour dynamic, specifically<br />

with respect to safeguarding the safety, health<br />

and wellness of employees and sustaining<br />

constructive industrial relations. Our people are<br />

the heartbeat of our Company and though our<br />

values – to respect, care and deliver – we foster<br />

a culture of teamwork and accountability.<br />

The Company’s vision is to be the world’s<br />

best PGM producer, sustainably delivering<br />

superior value to all its stakeholders. Implats<br />

is committed to a value-focused strategy<br />

and places a strong emphasis on developing<br />

a portfolio of long-life, low-cost, shallow,<br />

mechanised or mechanisable mining assets<br />

to sustainably deliver improved returns for all<br />

its stakeholders.<br />

Implats has total attributable resources<br />

of 269-million ounces of PGMs. Our markets<br />

are in <strong>South</strong> Africa, Japan, China, the US and<br />

Europe. The metals we produce are the key<br />

to making many essential industrial, medical<br />

and electronic items and they contribute to a<br />

cleaner, greener world. ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Creating a better future<br />

through the way we do business<br />

Developing and caring for<br />

our host communities<br />

Caring for and<br />

supporting our<br />

environment<br />

Providing meaningful<br />

employment<br />

Creating value for<br />

all our stakeholders<br />

Coolead 18903


Energy<br />

Infrastructure for carrying newly-generated power is a priority.<br />

Showing two phases proposed for the development of Renewable Energy Development Zones (REDZs) and<br />

electricity grid infrastructure corridors where investment in transmission infrastructure is planned. Credit: CSIR<br />

The second phase of the Strategic Environmental Assessment<br />

(SEA) for wind and solar photovoltaic (PV) energy in<br />

<strong>South</strong> Africa proposes three additional Renewable Energy<br />

Development Zones (REDZs) for wind and solar photovoltaic<br />

energy projects, taking the total number to 11 (see map).<br />

The REDZs support the implementation of the Integrated Resource<br />

Plan (IRP 2019). Renewable energy projects that might be developed in<br />

these new REDZs have the potential to make significant contributions to<br />

mine rehabilitation and, by creating jobs, support a just energy transition<br />

in the specified areas including areas where coal power stations are<br />

planned to be decommissioned by 2030.<br />

A most important aspect for <strong>South</strong> Africa as it brings more and<br />

more renewable energy projects on line are the so-called “transmission<br />

corridors”. These have to be beefed up to be able to carry extra capacity<br />

if energy plants are built where transmission infrastructure is close to (or<br />

at) full capacity. This adds to the attractiveness of using existing power<br />

plant sites for new generation.<br />


Komati power station is<br />

become a site for making<br />

mini-grid components.<br />

Part of the equation<br />

for agreeing to new power<br />

generation in the current context<br />

is whether or not there is sufficient<br />

carrying capacity to link the new<br />

solar or wind plant to the grid.<br />

Large investments are needed<br />

to beef up the Northern Cape’s<br />

capacity, but the problem is also<br />

leading planners to find different<br />

solutions, for example, to start<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



exploring more carefully whether other provinces (with under-utilised<br />

infrastructure) might not be sensible locations for new renewable-energy<br />

plants. National utility Eskom has signalled that it wants to move into<br />

the new era, partly through a process whereby the entity will be broken<br />

into three more competitive units, but more immediately through the<br />

announcement in July 2022 of 18 winnings bids from independent power<br />

producers (IPPs) for renewable projects on Eskom land, 4 000ha of which<br />

the utility has made available for this first phase.<br />

Eskom owns 36 000ha in Mpumalanga alone. A total of 1 800MW<br />

will become available to the grid and it will be cheaper to transmit<br />

because the solar or wind plants will be right next to the existing Eskom<br />

transmission lines.<br />

Eskom is undertaking studies to assess the potential impact on<br />

local communities of power plant closures. Options to get these<br />

plants producing energy again include gas, biomass and hydrogen<br />

but it is possible they might be used for something quite different. The<br />

workshops of Komati power station are to be converted into a factory for<br />

the manufacture of components for containerised mini-grids.<br />

Eskom wants to be a net-zero company by 2050<br />

Sasol has announced plans to start producing 1 200MW of renewable<br />

energy by 2030. Sasol is an integrated oil, gas and chemicals company<br />

with more than 30 000 employees and operations in 31 countries.<br />

Products manufactured by Sasol include synthetic fuel, petroleum,<br />

paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary<br />

feedstock for synthetic-fuel production is coal.<br />

The National Cleaner Production Centre (NCPC) is expending<br />

considerable energy (renewable, mostly in the form of brain power)<br />

to help commercial operations use less energy. A programme of the<br />

Department of Trade, Industry and Competition (dtic) housed within<br />

the Council For Scientific and Industrial Research (CSIR), the NCPC also<br />

spent some money in rolling out an aspect of the Industrial Energy<br />

Efficiency Programme to large poultry company Daybreak Farms.<br />

Through improved energy management, the replacement of office<br />

lights with LED, the reduction of idling and heat loads in cold rooms<br />

and training, an overall energy consumption of 0.98% was achieved<br />

and energy savings of 916.85GJ were made.<br />

<strong>South</strong> Africa’s acclaimed Renewable Energy Independent Power<br />

Producer Procurement Programme (REIPPPP) attracted about R200-<br />

billion in committed investments, mostly in solar and wind power, in just<br />


National Cleaner Production Centre: www.industrialefficiency.co.za<br />

National Energy Regulator of <strong>South</strong> Africa: www.nersa.org.za<br />

<strong>South</strong> <strong>African</strong> Independent Power Producers Association: www.saippa.org.za<br />

<strong>South</strong> <strong>African</strong> Wind Energy Association: www.sawea.org.za<br />

five years. The first bidding window<br />

of the REIPPPP was announced in<br />

December 2011. By October 2021,<br />

the programme could boast of 5<br />

423MW of renewable electricity<br />

capacity from 83 IPP projects,<br />

accounting for 7% of the country’s<br />

energy demand. The latest bidding<br />

rounds of <strong>South</strong> Africa’s independent<br />

power producers programme<br />

have revealed astonishing low<br />

costs: in round five the lowest solar<br />

generation bid came in at 37.5c/<br />

kWh while one of the wind power<br />

offerings was priced at 34.4c/kWh.<br />

In June 2021 President Cyril<br />

Ramaphosa announced that<br />

private entities could go ahead<br />

and produce electricity without<br />

a licence, raising the threshold<br />

from 1MW to 100MW at a stroke.<br />

Intensive energy users such as<br />

mining houses had been arguing for<br />

this policy initiative for a long time,<br />

as had manufacturers in the sugar<br />

and timber milling industries, which<br />

produce vast amounts of biomass<br />

which can be turned into energy.<br />

The presidential announcement<br />

was almost universally welcomed<br />

by interested parties, including the<br />

CEO of national utility Eskom, which<br />

is struggling to keep <strong>South</strong> Africa<br />

supplied with sufficient power.<br />

Mining companies such as Sibanye-<br />

Stillwater and Gold Fields want to<br />

marshal renewable energy resources<br />

to power their own operations.<br />

Another big game-changer in the<br />

<strong>South</strong> <strong>African</strong> energy landscape<br />

will be the unbundling of Eskom,<br />

referenced above.<br />

An Independent Transmission<br />

System and Market Operator was<br />

set to be established. Companies<br />

such as Earth & Wire are preparing<br />

to become independent utilities in a<br />

more flexible energy environment. ■<br />

53<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

<strong>South</strong> Africa is on the path to<br />

green hydrogen exports<br />

Thomas Roos, Principal Research Engineer at the Council for Scientific and<br />

Industrial Research (CSIR), reports on cooperation with three German ministries.<br />

Thomas Roos, Principal Research Engineer, CSIR<br />

Under the Just Energy Transition Partnership<br />

announced at COP26 in Glasgow, the governments<br />

of UK, France, Germany, the USA<br />

and the EU have agreed to provide $8.5-billion<br />

in financing in the form of grants and soft loans,<br />

to assist <strong>South</strong> Africa to decarbonise the electricity<br />

sector by early retirement of coal-fired power plants<br />

and expansion of renewables, to accelerate the introduction<br />

of electric vehicles and to facilitate the adoption<br />

of green hydrogen. In February, the Department<br />

of Science and Innovation released the Hydrogen<br />

Society Roadmap. In November at the <strong>South</strong> <strong>African</strong><br />

Green Hydrogen Summit, President Ramaphosa announced<br />

that the Just Energy Transition Investment<br />

Plan, recently released for public comment, has identified<br />

green hydrogen as one of the four “big frontiers”<br />

of a just energy transition, indicating that it has huge<br />

growth and investment potential.<br />

CSIR research is showing ways that <strong>South</strong> Africa<br />

can become a significant exporter of green hydrogen<br />

and the body is already involved in projects with<br />

several German ministries.<br />

It may therefore legitimately be asked: “What<br />

is green hydrogen, and why is it important?” While<br />

the term green hydrogen is often used to describe<br />

hydrogen produced from any non-fossil-fuel-based<br />

source (such as biogenic or nuclear), in this context<br />

it is more strictly defined as hydrogen produced by<br />

splitting water by electrolysis into hydrogen and<br />

oxygen, using electricity from renewable sources.<br />

Green hydrogen may therefore be regarded as<br />

renewable electricity stored in chemical form.<br />

Green hydrogen is important for the<br />

decarbonisation required by the Paris Agreement<br />

(signed and ratified by 193 countries) and the<br />

European Green Deal (which commits the EU to<br />

be carbon-free by 2050). The most efficient and<br />

generally lowest-cost decarbonisation approach<br />

is to convert current fossil-driven processes<br />

to instead be directly driven by renewable<br />

electricity. There are two scenarios, however,<br />

where this direct renewable electrification is not<br />

always possible or feasible.<br />

Geography dictates<br />

The first scenario involves geographic locations<br />

where energy demand exceeds feasible renewableelectricity<br />

supply. This is the case for Japan, the<br />

world’s third-largest economy and a signatory to<br />

both the Kyoto Protocol and the Paris Agreement. It<br />

is also in the top four importers globally of the three<br />

major chemical energy vectors (coal, oil and natural<br />

gas). Its decarbonisation options are constrained: it<br />

has very limited natural energy resources and the<br />

Fukushima disaster significantly dampened public<br />

appetite for nuclear power. As a result, Japan plans<br />

to move its economy towards hydrogen – mobility<br />

by fuel cell electric vehicles, homes powered by<br />

fuel cells (with the waste heat produced providing<br />

domestic water heating) and central power<br />

generation from combined-cycle power stations,<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


FOCUS<br />

Credit: Shutterstock<br />

fired by green ammonia. To allow this, from 2030<br />

Japan will import about 300 000 tons of hydrogen<br />

per year (at a target price of $3 per kilogram), rising<br />

to between five-million and 10-million tons of<br />

hydrogen per year by 2050.<br />

This presents an opportunity for <strong>South</strong> Africa:<br />

CSIR modelling has shown that the combination<br />

of <strong>South</strong> Africa’s excellent solar and wind resources<br />

and the expected cost reductions over time in solar<br />

PV, wind and electrolyser equipment allow green<br />

ammonia produced in <strong>South</strong> Africa to be delivered<br />

to Japan in 2030, meeting the Japanese cost target.<br />

Difficult sectors<br />

The second scenario involves two broad categories<br />

of hard-to-abate economic sectors. The first category<br />

is heavy-duty, long-range transport where the use<br />

of batteries is ruled out by range, power density or<br />

charging time limitations, such as commercial aviation,<br />

maritime shipping and long-distance trucking.<br />

The second category is a subset of carbonintensive<br />

industrial processes, such as iron and<br />

steelmaking, cement manufacture, ammonia<br />

production and the manufacture of plastics.<br />

Green hydrogen, together with its derivatives<br />

such as green ammonia, green methanol and<br />

sustainable aviation fuel, provides a pathway to<br />

decarbonise these sectors.<br />

For Germany to meet its decarbonisation<br />

targets, the National Hydrogen Strategy of<br />

the German Government states that between<br />

2.7-million and 3.3-million tons per year (90-110<br />

TWh/year) of green hydrogen will be required by<br />

2030, but that only a maximum of 420 000 tons per<br />

year (14 TWh/year) can be generated in-country<br />

(14% of this amount). By far the bulk of the green<br />

hydrogen will have to be imported, some from<br />

elsewhere in the EU such as Portugal, Spain and<br />

the Ukraine; and the remainder from renewablerich<br />

countries in a development relationship with<br />

Germany, such as <strong>South</strong> Africa.<br />

Three separate German federal ministries are<br />

funding projects to develop the green hydrogen<br />

economy in <strong>South</strong> Africa: BMWK (Ministry for<br />

Economic Affairs and Climate Action), BMZ<br />

(Economic Cooperation and Development) and<br />

BMBF (Research and Education), and CSIR is<br />

involved in each of these. In a project funded<br />

by BMWK, CSIR and Meridian Economics were<br />

contracted by KfW Development Bank to solicit,<br />

evaluate and rank applications from hydrogen<br />

developers for 200-million euros in concessional<br />

financing to fund green hydrogen projects in<br />

<strong>South</strong> Africa. From 55 initial applications, a longlist<br />

of 20 projects passed the initial filtration<br />

process, leading to a shortlist of between seven<br />

and 12 projects, depending on the breakdown<br />

of grant versus concessional-loan financing.<br />

The oversubscription of the funding shows<br />

significant market appetite.<br />

CSIR is well positioned to support the energy<br />

transition in this way, as the development and<br />

implementation of green hydrogen will draw on<br />

many of CSIR’s capabilities. ■<br />

55 SOUTH AFRICAN BUSINESS <strong>2023</strong>


Oil and gas<br />

The Central Energy Fund has become a shareholder in a Free State gas project.<br />

Renergen’s Virginia Gas Project has passed several significant milestones. Credit: Renergen<br />

<strong>South</strong> Africa’s reserves of shale gas and coal-bed methane<br />

are set to be exploited and in 2022, the Department of<br />

Forestry, Fisheries and the Environment signed off on<br />

the map (see Energy Overview) of where nine strategic<br />

pipelines will go.<br />

The pipelines are consistent with planning for future gas exploration<br />

projects and coincide to some degree with planned Renewable Energy<br />

Development Zones (REDZs) but have caused some consternation<br />

among environmentalists.<br />

Air Liquide Large Industries <strong>South</strong> Africa Air is to start operating 16 air<br />

separation units (ASUs) as a result of an R8-billion purchase of a plant in<br />

Mpumalanga from Sasol. The company’s fleet now comprises 17 ASUs in<br />

Secunda, with the units having the capacity to produce 42 000 tons per<br />

day of oxygen.<br />

Sasol announced in 2021 that it was to sell a 30% stake in the<br />

Romco natural gas pipeline that links Mozambique and <strong>South</strong> Africa.<br />

As part of a global sell-off of assets to reduce debt, Sasol expects to<br />


Routes for nine major<br />

pipelines have been<br />

gazetted.<br />

earn more than R5-billion from<br />

the transaction. The company<br />

will continue to be the pipeline’s<br />

operator and maintains a 20%<br />

stake in the venture.<br />

The Romco pipeline could<br />

carry far more gas in the future<br />

as there have been big finds<br />

of new gas off the coast off<br />

Mozambique which could be<br />

shipped as liquefied natural gas<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



(LNG) to Maputo and continue from there to the Sasol plant at Secunda.<br />

The Liquefied Natural Gas Independent Power Producer Procurement<br />

Programme (LNG IPPPP) is part of the broader programme of the<br />

National Department of Mineral Resources and Energy which encourages<br />

private investment in renewable energy, namely the Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP). The<br />

total allocated to gas-to-power in the national power plan is 3 726MW, of<br />

which 3 000MW is for LNG.<br />

Three natural gas exploration permits have been awarded to Tosaco<br />

Energy for the sandstone-rich area between Amersfoort and Balfour in<br />

the western part of Mpumalanga by Petroleum Agency <strong>South</strong> Africa<br />

(PASA). Tosaco Holdings has a 25% stake in Total SA. Two methane-gas<br />

exploration rights have been granted to Highland Exploration in the<br />

Evander area. PASA regulates exploration and production activities,<br />

and acts as the custodian of the national petroleum exploration<br />

and production database.<br />

Gas is expanding<br />

What to do with redundant power stations is a question testing the<br />

best minds in the country. Eskom has decided that some of its sites<br />

can become locations for renewable energy plants, given that they are<br />

already connected to the grid.<br />

And in 2022 came news that Majuba Power Station is the site of a<br />

successful bid to drill for gas. Australian company Kinetiko Energy aims to<br />

supply Majuba’s 20MW gas generator with fuel. Majuba is one of Eskom’s<br />

many coal-fired power stations which are facing closure in the province<br />

of Mpumalanga and one of several that might be switched to gas.<br />

Kinetiko has a further two sites where it will do exploratory<br />

drilling: one near Sasol’s Secunda synthetic fuel plant and one to<br />

the south of that. A major milestone was achieved in July 2022 for the<br />

Virginia Gas Project, owned by Renergen subsidiary Tetra4. That was<br />

when “natural gas to plant” was achieved. This test allows for the system<br />

to be comprehensively tested, with the inlet line from the gas-gathering<br />

system opened to the process plant and then on to the natural gas<br />

filtration and pre-compression system.<br />

In September, commercial operations of the company’s liquified<br />

natural gas (LNG) plant began. Helium production will follow.<br />

Whereas it took nine years to find the R1.2-billion needed to fund the<br />

first phase of Virginia Project, investors are now looking very keenly at its<br />

prospects. An amount of R3.6-billion has been invested by Ivanhoe Mines<br />


Council for Geoscience: www.geoscience.org.za<br />

Petroleum Agency <strong>South</strong> Africa: www.petroleumagencysa.com<br />

<strong>South</strong> <strong>African</strong> Oil and Gas Alliance: www.saoga.org.za<br />

<strong>South</strong> <strong>African</strong> Petroleum Industry Association: www.sapia.co.za<br />

to secure some offtake rights and the<br />

Central Energy Fund has purchased a<br />

10% stake in Tetra4 for R1-billion.<br />

Sproule, a resources accreditation<br />

agency, has given an updated report<br />

on the helium and methane reserves<br />

in the Virginia gas field. The results<br />

were even more positive than<br />

previous estimates, with helium<br />

reserves up by 620% and methane<br />

reserves by 427%. The field covers<br />

187 000ha in the region of Virginia,<br />

Theunissen and Welkom.<br />

The SpaceX rocket that<br />

launched in 2021 used 11 tons<br />

of helium to propel itself off the<br />

ground. Every computer microchip<br />

in the world is produced in the<br />

presence of helium and the world<br />

uses 85 tons of it every day. Exciting<br />

offshore gas discoveries have also<br />

been made in recent years. Total<br />

and its partners first announced<br />

success at a site called Brulpadda<br />

off the coast of Mossel Bay. The<br />

nearby Luiperd prospect in Block<br />

11B/12B delivered more exciting<br />

news when gas condensate was<br />

also found there.<br />

The block, in the Outeniqua<br />

Basin 175km off the southern coast,<br />

covers an area of about 19 000km² in<br />

water depths of 200m-1 800m.<br />

The two finds raise the odds<br />

of Total investing in what it calls<br />

a “world-class” offshore gas site.<br />

The drilling campaign employed<br />

195 <strong>South</strong> <strong>African</strong>s with specialist<br />

skills but the potential spinoff is<br />

enormous for the Western Cape<br />

and <strong>South</strong> Africa, if the find leads to<br />

drilling and commercialisation.<br />

PASA has noted the significance<br />

of international oil companies<br />

committing to exploration<br />

off <strong>South</strong> Africa’s coast. More<br />

exploration will guarantee that<br />

interest is maintained. ■<br />

57<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

<strong>South</strong> Africa’s oil and gas<br />

sector is open for business<br />

The application by TotalEnergies for the right to<br />

produce signals an exciting new phase.<br />

TotalEnergies has submitted an application to<br />

Petroleum Agency <strong>South</strong> Africa (PASA) to convert<br />

its exploration right into a production right.<br />

The TotalEnergies-led consortium, after<br />

making world-class discoveries off <strong>South</strong> Africa’s<br />

southern coast off Mossel Bay in the Outeniqua Basin,<br />

has now made the decision to proceed to the next<br />

phase, which could have enormous implications for<br />

the local, regional and national economy. The next<br />

phase, a gas-market development period, is not the<br />

same as an immediate decision to start building<br />

pipelines and decks, but it is a step along the way. The<br />

Luiperd and Brulpadda discoveries were made in the<br />

Block 11B/12B areas.<br />

The joint venture has decided to give up a<br />

northern portion of its right, reducing the proposed<br />

area to be worked to 12 000km², whereas the<br />

exploration right extended to more than 18 000km².<br />

TotalEnergies’ joint venture partners in Block 11B/12B<br />

include QatarEnergy and Canadian Natural Resources.<br />

A massive rig travelled from Norway to explore<br />

off <strong>South</strong> Africa’s south coast.<br />

If the process moves further along to the point<br />

where TotalEnergies obtains all the environmental<br />

permits it needs and starts to develop the resource,<br />

some estimates suggest that gas could begin to<br />

flow by 2026.<br />

Petroleum Agency SA plays an important<br />

role in developing <strong>South</strong> Africa’s gas market by<br />

attracting qualified and competent companies<br />

to explore for gas, as in the case of TotalEnergies<br />

and its partners. Another major focus is increasing<br />

the inclusion of historically-disadvantaged <strong>South</strong><br />

<strong>African</strong>s in the upstream industry.<br />

Currently, natural gas supplies just 3% of <strong>South</strong><br />

Africa’s primary energy. A significant challenge<br />

facing the development of a major gas market<br />

is the dominance of coal. Opportunities for gas<br />

lie in the realisation of <strong>South</strong> Africa’s National<br />

Development Plan (NDP) and the Integrated<br />

Resource Plan (IRP).<br />

West coast developments<br />

While the newspaper headlines focussed mainly<br />

on the discoveries off the south-western coast<br />

of <strong>South</strong> Africa, progress was being made off the<br />

west coast too.<br />

Eco Atlantic Oil & Gas and its partners have<br />

hired a rig to start exploring Block 2B, an area which<br />

has been of interest to the oil and gas industries for<br />

many years. Eco Atlantic Oil & Gas is the operator<br />

of Block 2B while Africa Energy, Panoro Energy ASA<br />

and Crown Energy AB are other major investors.<br />

Block 2B is located in the Orange Basin (see<br />

map) where both Total and Shell announced<br />

significant oil and gas discoveries offshore Namibia<br />

in early 2022. The block covers an area of 3 062km²<br />

with water depths from 50 to 200 metres.<br />

<strong>South</strong> Africa shares a geological sedimentary<br />

basin with its western neighbour so the<br />

announcement by Shell that it had made significant<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


oil and gas discoveries in the southernmost sector<br />

was welcome news indeed. The discoveries were<br />

made at the Graff-1 well.<br />

Scientifically, the big takeaway from Shell’s<br />

discovery is related to where the finds were made.<br />

Previously, it was believed that only gas would<br />

be found in one layer of the shelf, known as the<br />

Cretaceous sector; Shell found a working petroleum<br />

system with oil as a component in the Cretaceous<br />

sector. The geological sedimentary basin extends to<br />

offshore Cape Town and out to sea, stretching over<br />

160 000km². The rights to the <strong>South</strong> <strong>African</strong> southern<br />

section of the basin are held by Shell and its partners<br />

TotalEnergies and PetroSA.<br />

TotalEnergies have themselves had promising<br />

early signs of possible oil and gas finds near the Shell<br />

find off Namibia, and in the block adjacent to the<br />

<strong>South</strong> <strong>African</strong> maritime border. This is the Venus-1.<br />

The deepwater sector of the <strong>South</strong> <strong>African</strong> Orange<br />

Basin is unexplored, but similar geology extends<br />

south of Namibia into the <strong>South</strong> <strong>African</strong> sector.<br />

Geological features similar to the Namibian<br />

reservoirs have been identified on seismic data<br />

in the <strong>South</strong> <strong>African</strong> part of the basin, also in the<br />

Cretaceous, but these remain to be tested through<br />

drilling. New seismic data acquired by the survey<br />

planned by the company, Searcher, will assist in<br />

reducing exploration risk and help in identifying<br />

and quantifying possible oil and gas deposits off<br />

<strong>South</strong> Africa’s west coast.<br />

Onshore prospects<br />

The Department of Forestry, Fisheries and the<br />

Environment (DFFE) in 2022 issued draft regulations<br />

to govern the process of hydraulic fracking because<br />

Renergen’s Virginia Gas Project is<br />

barrelling ahead.<br />

the underground resources of the Karoo are again<br />

in the spotlight.<br />

Various environmental studies are being done,<br />

including groundwater and geological studies.<br />

The geo-environmental baseline study for gas<br />

in Beaufort West undertaken by the Council for<br />

Geoscience has been completed and showed<br />

significant resources of shale gas. The study did not<br />

encompass any economic modelling.<br />

PASA will be responsible for the granting of any<br />

licences once the draft regulations are finalised.<br />

The massive resources of natural gas that<br />

Renergen has been working on for the last few<br />

years reached commercial production in October<br />

2022 in the northern Free State. Renergen, through<br />

its subsidiary Tetra4, is the only holder of an<br />

onshore petroleum production licence issued by<br />

the Department of Mineral Resources and Energy<br />

through the PASA.<br />

The production right area covers 187 000<br />

hectares around the towns of Welkom, Virginia<br />

and Theunissen.<br />

Liquid natural gas for the domestic market<br />

and helium for export from this project will<br />

create an entirely new stream of energy options<br />

for <strong>South</strong> Africa. ■<br />

59<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>

FOCUS<br />

Driving socio-economic<br />

growth<br />

Petroleum Agency <strong>South</strong> Africa assigns exploration and<br />

production rights to bolster the country’s economy.<br />

<strong>South</strong> Africa is a net importer of fuel and<br />

the country’s refining capacity has been<br />

reduced in recent years.<br />

To counter this trend, exploration<br />

has been on an upward trajectory. Partly this is<br />

explained by growing certainty in the regulatory<br />

environment and by the good work done by<br />

Petroleum Agency <strong>South</strong> Africa (PASA), the agency<br />

which evaluates, promotes and regulates oil<br />

and gas production in the country. This has seen<br />

increased interest in <strong>South</strong> Africa’s potential as a<br />

destination for investment dollars.<br />

Underpinning PASA’s strategy is the need to<br />

ensure that all prospecting and mining leases are<br />

for the long-term economic benefit of <strong>South</strong> Africa.<br />

This applies to every kind of licence issued by the<br />

agency, be it in old technologies or new.<br />

Just Energy Transition<br />

PASA also has to deal with the global desire to<br />

move away from fossil fuels and to start using<br />

cleaner, renewable energy.<br />

The Mossgas facility at Mossel Bay could be revitalised<br />

if new finds are turned into gas production.<br />

Is it possible to grow the economy by<br />

exploiting the country’s natural resources and start<br />

moving to a greener future? PASA CEO Dr Phindile<br />

Masangane not only thinks it’s possible, she insists<br />

that it’s something <strong>South</strong> Africa must do.<br />

Dr Masangane points out that with <strong>South</strong><br />

Africa’s excellent solar resources it makes<br />

sense to localise the solar value chain to boost<br />

manufacturing but the country should not ignore<br />

what it has. “At the same time, we know that the<br />

gas value chain is well established in the country,<br />

so let’s also capitalise on that.”<br />

The multiple uses of gas could play a major role<br />

in helping <strong>South</strong> Africa transition away from fossil<br />

fuels while at the same time boosting economic<br />

growth. “We need gas not just in electricity and<br />

transport,” noted Dr Masangane, “but importantly<br />

for <strong>South</strong> Africa, which is in desperate need of an<br />

economic turnaround, is for us to use this gas for<br />

our manufacturing industry.”<br />

Referencing a section on gas in a report on<br />

energy in Africa by the International Energy<br />

Agency, Dr Masangane says, “Most of what Africa<br />

produces is actually exported out of the continent.”<br />

The report notes that Africa accounts for less than<br />

3% of the world’s energy-related carbon dioxide<br />

emissions. Says Dr Masangane, “This report calls<br />

for us as Africa to extract the gas and produce it<br />

and use it not just to power the continent but to<br />

reindustrialise the continent and industrialise for<br />

the first time some countries on the continent.”<br />

Potential impact<br />

The gas discoveries that have been made off the<br />

coast of <strong>South</strong> Africa (near Mossel Bay), when linked<br />

with the massive finds off the coast of Mozambique<br />

and the enormous potential that exists in fields off<br />

the west coast, amount to what could become<br />

a massive change in the regional economy.<br />

TotalEnergies and its partners have deployed the<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


FOCUS<br />

Deepsea Stavanger offshore drilling rig and they<br />

have achieved significant successes. The two fields<br />

where finds have been made are called Luiperd<br />

(where 2.1-trillion feet of contingent gas resources<br />

has been found, enough to power a medium-sized<br />

city for five years) and Brulpadda (1.3 Tef ), which are<br />

part of Block 11B/12B.<br />

If this gas were to be piped to the existing<br />

gas-to-liquid plant at Mossel Bay, Mossgas,<br />

then instead of spending about R12-billion on<br />

decommissioning the plant, the facility could<br />

instead start generating R22-billion in taxes and<br />

royalties and save <strong>South</strong> <strong>African</strong> taxpayers R26.5-<br />

billion through not having to import oil and<br />

refined products.<br />

PASA estimates that the gas found in these<br />

blocks could produce 560-million cubic feet per<br />

day of gas for more than 15 years. TotalEnergies’<br />

expenditure on stream phase one could amount<br />

to $3-billion in 2027 and create 1 500 direct jobs, 5<br />

000 indirect jobs and increase the country’s gross<br />

domestic production by R22-billion.<br />

The plan is to run the gas via a pipeline to a<br />

new fixed steel platform, and from there to use<br />

the existing pipeline to get the gas to Mossgas.<br />

Up to 18 000 barrels per day of condensate<br />

and 210-million cubic feet per day (MMcfd)<br />

are expected to be pumped to the facility. Gas<br />

condensate is a hydrocarbon liquid stream<br />

separated from natural gas and is used for making<br />

petrol, diesel and heating oil. ■<br />


The continental shelf of the Republic of <strong>South</strong><br />

Africa covers some 200 000km² and the country<br />

has a coastline approximately 3 000km in length.<br />

Petroleum Agency SA is responsible for<br />

the archive and management of the national<br />

hydrocarbon exploration database on behalf of<br />

the State. It has digitised, indexed and archived all<br />

of the data and reports resulting from the drilling<br />

of more than 300 offshore and some 200 onshore<br />

boreholes. The exploration database also includes<br />

seismic field and processed data for more than 300<br />

000km of 2D and 40 000km² of 3D seismic data<br />

that was acquired offshore and some 9 800km of<br />

seismic processed data that was acquired during<br />

the late 1960s in the Karoo, Algoa and Zululand<br />

onshore basins.<br />

Being the custodian of the National Petroleum<br />

Exploration and Production Database of <strong>South</strong><br />

Africa, the Agency relies on a sustainable and<br />

effective Information Management Infrastructure<br />

in order to comply with its mandate to:<br />

• archive and maintain a database on petroleum<br />

exploration and production data<br />

• provide access to existing data,<br />

cores, well samples, information<br />

and literature on request<br />

• add value and incorporate<br />

new as well as interpreted<br />

data into the database<br />

• maintain records of all<br />

hydrocarbon exploration<br />

and production<br />

activities.<br />

PASA CEO Dr Phindile Masangane


Water<br />

<strong>South</strong> Africa is investigating how best to use its groundwater.<br />

A mural depicting the water goddess Camissa by local artist Nadia Nardstar has been unveiled at<br />

the V&A Waterfront Cruise Terminal. Credit: John Young<br />

Managed aquifer recharge (MAR) might be one of the<br />

answers to the Cape metropole’s enduring water<br />

shortage. The idea of putting excess water into the<br />

Cape Flats aquifer during times of plenty – and then<br />

drawing on that water when drought hits – is the subject of a study<br />

by UCT’s Department of Environmental and Geographical Science.<br />

It’s not a new idea; the smaller Atlantis aquifer has been playing that<br />

role for decades.<br />

A country that is expert at using its groundwater resources has<br />

signed up to cooperate with <strong>South</strong> Africa in investigating how the<br />

much drier <strong>African</strong> country might exploit groundwater. Denmark<br />

gets nearly all of its water from groundwater and the latest intergovernmental<br />

agreement signed by <strong>South</strong> Africa and Denmark<br />

is a strategic green cooperation. Previous memorandums of<br />

understanding have dealt with energy, resilient cities – and water.<br />

Two huge and colourful murals have been created at the V&A<br />

Waterfront Cruise Terminal to publicise the groundwater partnership,<br />

one by a Danish artist and the other by a local artist. Nadia Nardstar<br />

took 15 days, with the help of an assistant, to create a depiction of the<br />

water goddess Camissa. The mural project is a collaboration between<br />

the Danish Embassy, the City of Cape Town, the Table Mountain<br />

Water Source Partnership, WWF and Maersk.<br />

The National Cleaner Production Centre <strong>South</strong> Africa (NCPC) is the<br />

technical partner for the water use part of Phase 2 of the Strategic Water<br />


Councils owe water boards<br />

more than R10-billion.<br />

Sector Cooperation between<br />

the governments of Denmark<br />

and <strong>South</strong> Africa. The NCPC,<br />

which runs the Industrial Water<br />

Efficiency project, has found that<br />

more efficient use of energy (a<br />

key focus area of its work) has also<br />

led to less water being used in<br />

production processes.<br />

Supplying water to<br />

households and businesses<br />

has often been a task beyond<br />

the capabilities of some of<br />

<strong>South</strong> Africa’s municipalities.<br />

As of June 2021, <strong>South</strong> <strong>African</strong><br />

municipalities owed more than<br />

R10-billion to water boards.<br />

Leaking pipes account for a<br />

large portion of the water lost<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



to <strong>South</strong> <strong>African</strong> municipalities in trying to serve their households<br />

and businesses. The simple expedient of reducing water pressure,<br />

which the City of Cape Town introduced during the period of<br />

severe water shortage that raised the spectre of “Day Zero”, reduced<br />

water use by 40%.<br />

The concept of non-revenue water (NRW) is a vital aspect in the<br />

sustainability of any operation or agency in the water sector. NRW<br />

can result from faulty metering and leaky pipes but in <strong>South</strong> Africa,<br />

non-payment is a big contributor to terrible NRW percentages. In<br />

some municipalities it is as high as 70% whereas Denmark’s NRW is<br />

routinely at or below 7%.<br />

The Municipal Infrastructure Support Agency (MISA) falls under<br />

the National Department for Cooperative Governance and Traditional<br />

Affairs and will assist municipalities to plan for, provide and maintain<br />

infrastructure. The first action of MISA was to commission 81<br />

engineers and town planners to get to work in areas that need the<br />

most help.<br />

Improving dams<br />

Water loss in a water-scarce country is a serious business. The National<br />

Department of Water and Sanitation (DWS) has appointed the Water<br />

Research Commission (WRC) to develop and manage the National<br />

Siltation Management Strategy for Large Dams. More than 90% of<br />

the country’s total storage capacity is carried by 321 large state dams,<br />

most of which are subject to serious sedimentation, which greatly<br />

reduces their carrying capacity.<br />

Expectations are that <strong>South</strong> Africa will have a 17% water deficit by<br />

2030 and so the matter is urgent. Three government water schemes<br />

are the target of the pilot plan: Hazelmere Dam in KwaZulu-Natal;<br />

Darlington Dam in the Eastern Cape; and Welbedacht Dam in the<br />

Free State. Key deliverables include creating models for sustainable<br />

dredging and decision-making. The programme is intended to<br />

be complete by <strong>2023</strong>. In the North West, the revitalisation of the<br />

Vaalharts-Taung Water Irrigation Scheme will double the land<br />

available to emerging farmers, create more than 10 000 jobs during<br />

its implementation, resolve water shortages in local municipalities<br />

and provide certainty for producers of fresh produce.<br />


National Cleaner Production Centre <strong>South</strong> Africa: www.ncpc.co.za<br />

National Department of Water and Sanitation: www.dws.gov.za<br />

<strong>South</strong> <strong>African</strong> Water Research Commission: www.wrc.org.za<br />

Water Institute of <strong>South</strong> Africa: www.wisa.org.za<br />

The project was gazetted as<br />

one of the Strategic Integrated<br />

Projects (SIPs) in 2020 and<br />

falls under the Presidential<br />

Infrastructure Coordinating<br />

Commission (PICC). The<br />

existing Vaalharts Irrigation<br />

Scheme is one of the largest<br />

irrigation schemes in the<br />

world, covering 39 000ha under<br />

irrigation, and extending it to<br />

Taung in the North West will<br />

give it even greater reach. The<br />

scheme currently has 1 000km<br />

of concrete-lined canals and<br />

more than 300km of concrete<br />

drainage. The DWS has released<br />

a master plan in response<br />

to the severe droughts that<br />

have affected the country in<br />

recent years. It calls for annual<br />

investment for a decade of<br />

R3.3-billion in infrastructure<br />

to achieve water security. This<br />

is a figure that can only be<br />

achieved with the help of the<br />

private sector.<br />

In an attempt to reduce the<br />

amount of water sucked up by<br />

alien plants, Coca-Cola aims to<br />

recover nearly three-billion litres<br />

of water through the removal of<br />

invasive plants.<br />

Another response to<br />

the municipal problem is a<br />

new national strategy which<br />

gives a bigger role to wellresourced<br />

water boards<br />

such as Umgeni Water and<br />

Sedibeng Water. In terms of<br />

the National Water Resource<br />

Strategy, catchment area<br />

management agencies have<br />

been established to oversee<br />

water resource management<br />

on a regional basis. ■<br />

63<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>


Engineering<br />

A huge bridge in the Eastern Cape is an engineering challenge.<br />

One of the most exciting engineering projects in <strong>South</strong><br />

Africa – and fraught in more ways than one – is the<br />

Msikaba Bridge project that forms part of the new N2 toll<br />

road between Port Edward in KwaZulu-Natal and Umtata<br />

in the Eastern Cape.<br />

The CME JV (Concor – MECSA Construction Joint Venture) is the<br />

main contractor and it has had to stop work more than once because of<br />

protests of various sorts. Environmentalists don’t like the idea of this part<br />

of the Wild Coast becoming more accessible to miners and tourists and<br />

local residents have protested more than once about what they claim<br />

are unfulfilled promises of jobs on the building project.<br />

The project will see the construction of two mega-bridges on the<br />

Msikaba (pictured) and Mtentu Rivers, seven other river bridges and<br />

several interchange bridges, as well as a new intersection, interchanges,<br />

pedestrian walkways and under- and overpasses for the use of farmers<br />

and for their stock.<br />

In addition, sophisticated techniques are required to ensure that the<br />

580m cable-stayed structure, which will span the 198m-deep Msikaba<br />

Gorge, is stable. The deck will be supported by 34 cable tendons<br />

connected to two 128m-high pylons. Winds have been known to blow<br />

at 100km/h at the site.<br />


A call has been made for<br />

consulting engineers to unite.<br />

The CEO of Consulting<br />

Engineers <strong>South</strong> Africa (CESA) has<br />

called for a united front to help<br />

the sector fight its corner. Chris<br />

Campbell has noted that the<br />

country has “countless industry<br />

bodies” including, but not limited<br />


and SAIEE. Campbell referenced<br />

an earlier overarching body,<br />

the <strong>South</strong> <strong>African</strong> Forum for<br />

Engineering (SAFE) as a model.<br />

Such a body would be able to<br />

take an industry-wide position<br />

on issues such as the contentious<br />

issue of Cuban engineers working<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



on <strong>South</strong> Africa’s water system. The Engineering Council of <strong>South</strong> Africa<br />

(ECSA) regulates the industry through professional registration and the<br />

standardisation of tertiary qualifications. <strong>South</strong> Africa is the only <strong>African</strong><br />

member of the International Engineering Alliance (IEA).<br />

An Investment and Infrastructure Office has been created in the<br />

Presidency. It is headed by the former Gauteng MEC for Economic<br />

Development, Dr Kgosientso Ramokgopa. In 2020, 51 infrastructure<br />

projects with a total investment value of more than R340-billion<br />

were gazetted and hopes are high that this initiative will provide a<br />

boost for engineering firms. A study carried out by KMPG found that<br />

spending on infrastructure resulted in additional economic activity<br />

worth R26-billion and created 92 000 direct jobs.<br />

The Renewable Energy Independent Power Producer Procurement<br />

Programme (REIPPPP) has created an entirely new industry in less than<br />

seven years, with investment of about R200-billion in solar parks and<br />

wind farms. This has created many opportunities for engineers.<br />

Marine repair and engineering form a significant sector in the Western<br />

Cape and KwaZulu-Natal, with established companies such as EBH<br />

<strong>South</strong> Africa offering comprehensive services. Both KwaZulu-Natal ports<br />

are expanding and will continue to attract engineers.Dormac, which is<br />


Consulting Engineers <strong>South</strong> Africa: www.cesa.co.za<br />

Engineering Council of <strong>South</strong> Africa: www.ecsa.co.za<br />

<strong>South</strong> <strong>African</strong> Consulting Engineering Firms: www.consultsa.co.za<br />

<strong>South</strong>ern <strong>African</strong> Institution of Civil Engineering: www.civils.org.za<br />

headquartered in the Bayhead<br />

area of the Port of Durban, is best<br />

known for its marine engineering<br />

but it offers specialised services to<br />

the sugar industry and provides<br />

machinery for industrial giants like<br />

Toyota and Defy.<br />

The Engineering Council of<br />

<strong>South</strong> Africa has a programme<br />

where trainees can earn<br />

certificates in specific disciplines<br />

from a range of institutions. The<br />

qualifications are in line with the<br />

council’s Exit Level outcomes. Six of<br />

<strong>South</strong> Africa’s biggest construction<br />

companies have established a<br />

R1.25-billion skills fund. Several<br />

partnerships between the public<br />

and private sectors are trying<br />

to address the skills deficit. The<br />

Skills Development Amendment<br />

Act is intended to improve the<br />

situation. Universities, universities<br />

of technology and companies<br />

are increasing their focus on the<br />

training of engineers. ■<br />






Manufacturing<br />

Innovation and expansion are happening in textiles.<br />


Government master<br />

plans aim to bolster local<br />

production.<br />

Special jeans for a special occasion. Designer Tshepo Mohlala, who<br />

created bespoke Tshepo Jeans for the inauguration of Sappi’s expansion<br />

project made from imported denim containing Sappi’s Verve Lyocell<br />

blend pulp, shakes hands with Ebrahim Patel, Minister of Trade, Industry<br />

and Competition. Looking on are Alex Thiel, CEO of Sappi <strong>South</strong>ern<br />

Africa, the Premier of KwaZulu-Natal, Nomusa Dube-Ncube, and<br />

President Cyril Ramaphosa. Credit: Sappi<br />

Sappi has spent R7.7-billion on expanding its dissolving<br />

pulp plant in KwaZulu-Natal. The project aims to boost<br />

the annual production capacity of dissolving pulp (DP)<br />

at Saiccor Mill by an additional 110 000 tons annually,<br />

taking production to 890 000 tons a year and reinforcing the<br />

company’s position as the world leader in the manufacture of<br />

Lyocell, a cutting-edge material of the future.<br />

Lyocell is a form of rayon consisting of cellulose fibres made from<br />

dissolving pulp that is reconstituted by dry jet-wet spinning. The fully<br />

biodegradable and compostable fibre is used to make textiles.<br />

TFG is ramping up production of clothing and expects to increase<br />

staff from just over 3 000 to more than 5 000 going in to <strong>2023</strong>. TFG,<br />

which counts Foschini, TotalSports and Markhams among its brands,<br />

has been buying up clothing factories for nearly a decade and is now<br />

in a position to respond more quickly to fashion trends than when it<br />

was more dependent on imports.<br />

Among TFG’s acquisitions<br />

were Prestige Clothing Maitland<br />

and Prestige Clothing Caledon.<br />

The group then spent R75-<br />

million on expanding the<br />

factory in Caledon.<br />

TFG plans to significantly<br />

increase the percentage of<br />

locally-made clothing items<br />

from the current level of 35% to<br />

55%. In 2020, the group made<br />

12-million garments and is<br />

aiming for 30-million by 2025/26.<br />

The Manufacturing and<br />

Competitiveness Enhancement<br />

Programme (MCEP) of the<br />

Department of Trade, Industry<br />

and Competition (the dtic)<br />

has disbursed grants which<br />

have resulted in 230 000 jobs<br />

being “sustained”. Because<br />

of the Clothing and Textile<br />

Competitiveness Programme,<br />

that sector currently now<br />

employs around 95 000<br />

workers, contributing 8% to<br />

manufacturing GDP and 2.9%<br />

to overall GDP. In the leather<br />

sector 22 new factories have<br />

been opened, supporting 2 200<br />

jobs. In the Western Cape, this<br />

revival is reflected in member<br />

companies of the Cape Clothing<br />

and Textile Cluster hiring 35%<br />

more staff in four years. About<br />

23 600 people are employed in<br />

the province and exports from<br />

the Cape are on the increase.<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


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The Aspen Pharmacare facility in Gqeberha<br />

readied itself to make hundreds of millions of<br />

doses of the Johnson & Johnson Covid-19 vaccine<br />

for <strong>South</strong> Africa and Africa but the orders didn’t<br />

come. As of April 2022, no orders had been<br />

received and there was a danger that the facility<br />

would close down that section. The Africa Centres<br />

for Disease Control and Prevention was concerned<br />

about that possibility, and urged <strong>African</strong> states to<br />

order vaccines, partly to keep the capacity to make<br />

large volumes of vaccines in a state of readiness. It<br />

was anticipated that as many as 500-million doses<br />

would be made annually.<br />

A consortium of development finance<br />

organisations, including the World Bank’s<br />

International Finance Corporation, made<br />

€600-million in financing available to the <strong>South</strong><br />

<strong>African</strong> company to assist it in ramping up<br />

production of the vaccines.<br />

In Johannesburg, global pharmaceutical<br />

company Mylan has purchased a manufacturing<br />

site, previously used by Ascendis Health, to make<br />

antiretrovirals to cater to the seven-million <strong>South</strong><br />

<strong>African</strong>s living with HIV. The Isando factory will<br />

produce effervescent tablets, semi-solid and hard<br />

capsules and pills.<br />

A new tender for a national supplementary<br />

HIV/Aids drug tender, which was previously<br />

awarded to foreign companies, is to be issued,<br />

opening up opportunities for local manufacturers<br />

such as Cipla Medpro. The three-year tender is<br />

worth R18.3-billion.<br />

Pirates off the west coast of Africa are<br />

driving an increase in boatbuilding in <strong>South</strong><br />

Africa. Companies like Paramount Marine which<br />

specialise in security boats are receiving many<br />

orders. In 2021, the company announced that<br />

its Cape Town facility was making 26 boats for a<br />

contract price of more than R850-million.<br />

PG Bison, a subsidiary of KAP Industrial<br />

Holdings, is investing more than R2-billion<br />

at its plant in Mkhondo in Mpumalanga. With<br />

operations in four provinces ranging from<br />

forestry to the manufacture of medium-density<br />

fibreboard (MDP), particleboard and valueadded<br />

products, PG Bison is also building a new<br />

MDP plant in Mpumalanga to complement its<br />

existing Gauteng facility.<br />

Sectoral master plans<br />

The <strong>South</strong> <strong>African</strong> government believes that<br />

the existing Proudly <strong>South</strong> <strong>African</strong> campaign<br />

– which encourages the purchase of locallymade<br />

goods – is something to be supported<br />

and expanded.<br />

Government has identified 27 sectors in<br />

which government departments will aim to<br />

procure from local suppliers. Speaking at the<br />

Proudly <strong>South</strong> <strong>African</strong> Summit and Expo 2021,<br />

President Ramaphosa said: “There is an express<br />

undertaking to increase local procurement<br />

over the next five years. Apart from its own<br />

commitments, government will also work to<br />

lower the barriers to entry, thereby making<br />

it easier to establish and grow a business in<br />

<strong>South</strong> Africa.”<br />

Government is in the process of rolling out<br />

master plans for various sectors. Some (including<br />

furniture and plastics) are still in the works but<br />

others have been delivered.<br />

Goals include:<br />

Automotive: to double the number of jobs by<br />

increasing local content percentages<br />

Clothing, textile, footwear and leather:<br />

R500-million from the state for expansion of<br />

manufacturing sites<br />

Poultry: more than a million extra chickens<br />

every week for retail<br />

Sugar: soft drink manufacturers to procure 80%<br />

from local growers. ■<br />


Chemical and Allied Industries’ Association: www.caia.co.za<br />

Manufacturing Circle: www.manufacturingcircle.co.za<br />

<strong>South</strong> <strong>African</strong> Textile Federation: www.texfed.co.za<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Construction and property<br />

The renewable energy sector has opened up new workstreams.<br />

The uptick experienced by the building and home<br />

improvement sector during Covid-19 came to an end in<br />

2022 as customers were no longer forced to spend time<br />

at home.<br />

However, Afrimat’s Construction Index showed in the second<br />

half of 2022 that a number of other indicators were trending<br />

upwards: plans passed, buildings completed, wholesale trade<br />

and building materials. Also, a Financial Mail interview with<br />

Raubex CEO Rudolf Fourie in late 2021 produced an upbeat<br />

assessment of the construction industry in <strong>South</strong> Africa.<br />

In response to Giulietta Talevi’s question about “future<br />

prospects”, Fourie said that tender activity was “buoyant” and<br />

that the company’s order book stretching beyond two years was<br />

something they had not seen in three decades.<br />

Raubex is active in infrastructure, roads and earthworks<br />

and materials. Like many <strong>South</strong> <strong>African</strong> companies, Raubex is<br />

now also present in the burgeoning renewable energy market,<br />

offering civil works and electrical installations at projects such as<br />

the Redstone CSP project and Copperton wind farm (pictured) in<br />

the Northern Cape.<br />

For the year ending 28 February 2022, Raubex reported an<br />

increase of 30.9% to R11.58-billion and an increase in operating<br />

profit to R945.3-million.<br />

Covid-19 provided a sharp shock for many business sectors,<br />

but with the move towards working from home accelerated by<br />

the pandemic, none is going to have to look harder at its models<br />

for sustainability than the office rental sector.<br />

Logistics, often taken for granted in normal times, became an<br />

even more important component of the supply chain during the<br />

global lockdown and in the months that followed, with the second<br />


Afrimat Construction Index: www.afrimat.co.za<br />

Construction Industry Development Board: www.cidb.org.za<br />

SA Reit Association: www.sareit.co.za<br />

<strong>South</strong> <strong>African</strong> Property Owners Association: www.sapoa.org.za<br />


Home improvers are not at<br />

home as much as they were<br />

under lockdown.<br />

half of 2021 characterised by<br />

blockages and delays. In that<br />

context, the news that Fortress<br />

REIT had successfully let more<br />

than 100 000m² of logistics<br />

space in KwaZulu-Natal, was<br />

significant. FNB, which publishes<br />

a regular property barometer,<br />

has done an in-depth analysis<br />

of previous crises to help<br />

understand what may occur<br />

in the post-Covid property<br />

market. According to John Loos,<br />

a property strategist at FNB<br />

Commercial Property Finance,<br />

the most vulnerable sector<br />

is likely to be Retail Property.<br />

Smaller neighbourhood centres,<br />

with more essential items and<br />

greater convenience, will be<br />

less vulnerable. Statistics SA has<br />

found that the percentage of<br />

<strong>South</strong> <strong>African</strong>s living in flats<br />

has risen markedly. Whereas 26<br />

out of 100 approved plans in<br />

2013 were for flats, this figure<br />

reached 59 in 2016. Although<br />

the total number of people<br />

living in flats is still relatively<br />

small (5.4%), this figure will rise<br />

as urbanisation increases. ■<br />

69 SOUTH AFRICAN BUSINESS <strong>2023</strong>


Transport and logistics<br />

The value of goods transported along the N3 continues to grow.<br />


Private investors are<br />

sought to improve roads,<br />

railways and ports.<br />

Defy’s new warehousing and distribution centre in Danskraal,<br />

Ladysmith (pictured), is more evidence of the importance<br />

of the N3 Corridor that carries enormous amounts of cargo<br />

between Johannesburg and Durban.<br />

The new facility represents a R170-million investment into the<br />

area and will create more than 130 jobs. The warehouse can process<br />

the loading and unloading of more than 200 trucks per day and has<br />

a storage capacity of 100 000m³ of product. The strategic location<br />

of the distribution centre creates the opportunity to move product<br />

by rail from the Ezakheni manufacturing facility to the Durban port<br />

250km away. Since 2012, Defy has invested approximately R642-<br />

million into the Ladysmith economy.<br />

Studies have shown that up to 45 000 vehicles use the N3<br />

highway on a normal day, and that figure can rise to 130 000 in busy<br />

times. More than 75-million tons worth of freight is carried annually<br />

along the route.<br />

The Harrismith Logistics Hub at the Maluti-A-Phofung SEZ on the<br />

N3 is an inland port that can handle cargo containers and shift cargo<br />

from road to rail, reducing congestion and costs.<br />

State-owned Transnet is expanding its programme to get the<br />

private sector involved in the country’s railways, ports and terminals.<br />

Because of the dynamics of<br />

<strong>South</strong> <strong>African</strong> politics, this<br />

can never be referred to as<br />

“privatisation” in any shape or<br />

form, but the trend towards<br />

having private companies<br />

involved in some way is<br />

increasing.<br />

To run two of biggest<br />

container terminals (in Durban<br />

and at Ngqura), the plan is to<br />

create a special purpose vehicle<br />

that includes new subsidiary<br />

of Transnet National Ports<br />

Authority (TNPA), Transnet<br />

employees and a private<br />

operator. This SPV would run the<br />

terminals on a 25-year contract.<br />

A R100-billion master plan<br />

is intended to underpin the<br />

upgrade of the Port of Durban on<br />

the back of private investments<br />

linked to contracts. <strong>South</strong> Africa<br />

has 8 000km of rail line that is<br />

defined as a “branch line”. These<br />

are typically smaller lines serving<br />

a particular farming or mining<br />

area and transporting a single<br />

commodity, such as wheat.<br />

Transnet Freight Rail<br />

announced in April 2022 that<br />

16 slots would be available for<br />

private operators, including six<br />

between Johannesburg and<br />

Durban and eight between<br />

Springfontein in the Free State<br />

and East London. However, the<br />

suggested contract period – two<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


FOCUS<br />

years – almost guarantees that no investor will touch<br />

the project. The cost of investment would be too<br />

high against the short period in which returns might<br />

be made.<br />

Despite uncertainties such as this, the private<br />

sector seems quite bullish, with trade in shares<br />

of logistics companies (Zeder Investments sold<br />

its share of The Logistics Group to Old Mutual<br />

Infrastructure for R1.6-billion) and interest being<br />

shown in Imperial Logistics by foreign buyers such<br />

as Dubai-based DP World.<br />

Transnet Freight Rail’s operations represent<br />

about 80% of Africa’s rail infrastructure. With<br />

25 000 employees TFR has specialist divisions<br />

for hauling coal and iron ore together with<br />

a general freight division which transports<br />

everything from grain to chemicals.<br />

While there is concern about the performance<br />

of <strong>South</strong> Africa’s ports in getting goods in and<br />

out in the best possible time, a record was set in<br />

2020 by Transnet Freight Rail in transporting 66<br />

train lots and 3 662 FEU reefer containers from<br />

Limpopo and Gauteng to the Port of Durban.<br />

The Citrus Growers Association was very happy<br />

about this, which represented a 20% increase on<br />

the previous year’s volumes and was some way<br />

towards the target of 15 000 reefer containers.<br />

A mandatory automated truck booking<br />

system has been introduced at Durban Container<br />

Terminal Pier 1 and Pier 2, while the Grindrod, FPT<br />

and Bulk Terminal depots have also piloted their<br />

own booking systems.<br />

The building of the Musina-Makhado Special<br />

Economic Zone (SEZ) will boost Limpopo’s role<br />

as a transport and logistics hub. The Musina<br />

Intermodal Terminal is 15km from the busy Beit<br />

Bridge border crossing. It will boost efforts to<br />

move cargo from road to rail.<br />

The Maputo Development Corridor is Africa’s<br />

most advanced spatial development initiative. Run<br />

by the Maputo Development Corridor Logistics<br />

Initiative (MCLI), the corridor runs from near<br />

Pretoria in Gauteng toMaputo in Mozambique.<br />

<strong>South</strong> Africa’s logistics and courier market is<br />

worth R10-billion.<br />

Transport systems<br />

Large amounts of money are to be spent on<br />

various forms of public transport in the short term.<br />

Investments in rapid transit systems in the big<br />

metropolitan areas of Johannesburg and Cape<br />

Town are now being followed by other <strong>South</strong><br />

<strong>African</strong> cities such as Polokwane and Rustenburg,<br />

the Gautrain is looking to expand its routes, and a<br />

taxi infrastructure programme is in place.<br />

In Limpopo’s provincial capital of Polokwane,<br />

operations of the Leeto La Polokwane public<br />

transport system were launched in 2021. In the<br />

North West, the Rustenburg Rapid Transport<br />

Project (Yarona) aims to integrate busses, taxis and<br />

improved pedestrian access throughout the city.<br />

The <strong>South</strong> <strong>African</strong> Department of Transport<br />

has several agencies and businesses reporting<br />

to it: Air Traffic and Navigation Services<br />

Company, Airports Company <strong>South</strong> Africa<br />

(ACSA), National Transport Information System,<br />

Road Accident Fund, <strong>South</strong> <strong>African</strong> Civil<br />

Aviation Authority, <strong>South</strong> <strong>African</strong> Maritime<br />

Safety Authority (SAMSA), <strong>South</strong> <strong>African</strong><br />

National Roads Agency Limited (Sanral) and<br />

Passenger Rail Agency of SA (PRASA).<br />

Several airports are possible future regional<br />

freight nodes: Wonderboom Airport in Pretoria,<br />

Polokwane International Airport in Limpopo<br />

and Mafikeng.<br />

<strong>South</strong> Africa has 22 000km of railway lines and<br />

747 000km of roads, 325 019 heavy-load vehicles<br />

and the road freight industry employs 65 000 drivers.<br />

There are 135 licensed airports in the country, 10 of<br />

which have international status. ■<br />


<strong>African</strong> Rail Infrastructure Association (ARIA): www.aria.org.za<br />

Airlines Association of <strong>South</strong>ern Africa: www.aasa.za.net<br />

<strong>South</strong> <strong>African</strong> Heavy Haul Association: www.saheavyhaul.co.za<br />

71 SOUTH AFRICAN BUSINESS <strong>2023</strong>


Tourism<br />

Swiss investment may underpin expansion.<br />


Marriott International has<br />

sold more properties.<br />

The International Hotel School (HIS), which has campuses<br />

in six <strong>South</strong> <strong>African</strong> cities, is now part of the Swiss group,<br />

Sommet Education, following the acquisition by the<br />

European company of Invictus Education Group. Invictus<br />

also runs the SAE Institute in Cape Town and Johannesburg, where<br />

the focus is animation, audio and film. The Sommet Education<br />

connection, which includes the Gilon Institute of Higher Education<br />

among its brands, will allow for more rapid expansion in other parts<br />

of Africa for the IHS and SAE brands.<br />

Three Gauteng hotels have changed ownership from Marriott<br />

International to Anew Hotels & Resorts. Writing in the Sunday Times,<br />

Arthur Goldstuck ascribed this success for the <strong>South</strong> <strong>African</strong> family<br />

group to “the very fact that it has a local base and focus has given it<br />

an edge”. The three hotels were the Parktonian (Johannesburg), Hotel<br />

Roodepoort and what is now called the Anew Centurion. Anew now has<br />

11 properties in its portfolio.<br />

Earlier, when the Marriott International hotel group closed three<br />

of its <strong>South</strong> <strong>African</strong> hotels during the Covid-19 lockdown, Tsogo Sun<br />

Hotels, which owns a controlling stake in all three hotels, stepped up<br />

its commitment by agreeing to bring them into its portfolio, keep them<br />

open and run them.<br />

Hospitality Property Fund Limited delisted from the JSE in 2021<br />

and became a wholly-owned subsidiary of Tsogo Sun Hotels Limited,<br />


<strong>African</strong> <strong>Business</strong> Travel Association: www.abta.co.za<br />

<strong>South</strong> <strong>African</strong> National Parks: www.sanparks.co.za<br />

<strong>South</strong> <strong>African</strong> Tourism: www.southafrica.net<br />

giving Hospitality shareholders<br />

shares in a more liquid stock and<br />

the hotel group an expanded<br />

property portfolio. Most of<br />

Hospitality’s 54 properties<br />

(with about 9 000 rooms) were<br />

operated by Tsogo Sun.<br />

<strong>South</strong> <strong>African</strong> National Parks<br />

(SANParks), which runs nearly 70%<br />

of <strong>South</strong> Africa’s 509 state and<br />

protected areas, has a number<br />

of public-private partnerships<br />

and held an investment summit<br />

in 2022 to showcased a further<br />

100 opportunities in 12 national<br />

parks. There are currently 60 PPPs<br />

in operation in <strong>South</strong> Africa.<br />

Sun City announced in<br />

October 2022 that it would spend<br />

about R1.1-billion on projects at<br />

its Sun City Resort.<br />

The R295-million Lefika Villas<br />

development will see 58 three<br />

and four-bedroom villas added<br />

to the resort’s accommodation<br />

options for members of Sun<br />

International’s Sun Vacation Club.<br />

The Palace (pictured) will gain a<br />

spa and a gymnasium and 320<br />

bedrooms are to be refurbished.<br />

There are 711 745 people<br />

employed in the tourism industry<br />

nationally, with road transport<br />

(29%), food and beverages (20%)<br />

and accommodation (19%)<br />

absorbing the largest numbers.<br />

The sector contributes 9% to<br />

<strong>South</strong> Africa’s gross domestic<br />

product (GDP). ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



ICT<br />

Government’s latest mobile contract is shared by four companies.<br />

As of 2021, National Treasury has appointed four companies<br />

as service providers to government, through its new mobile<br />

communication services contract, known as RT15-2021. The<br />

contract covers all entities of the state and is expected to<br />

allow for significant cost saving through better controls.<br />

The contract, which was previously held by Vodacom, is<br />

now shared between Cell C, MTN, Telkom and Vodacom. The<br />

transversal contract is for uncapped data for different categories<br />

of employees and includes mobile devices for packages from<br />

all service providers. Nearly 450 organs of state participated in<br />

the previous contract. This included 38 national departments, 99<br />

provincial departments, 106 local government departments and<br />

207 other state institutions.<br />

<strong>South</strong> Africa has not only been home to many pioneering<br />

banking apps on mobile phones, but the country’s operators<br />

continue to offer unprecedented innovation and levels of<br />

service. Arthur Goldstuck noted these trends in September 2022,<br />

further pointing out that the Reserve Bank will also speed up<br />

EFTs between banks with the introduction of a Rapid Payments<br />

Programme. Bank Zero not only uses biometric authentication<br />

for logging in, but offers zero-cost banking. Both MTN and<br />

Vodacom are offering much more sophisticated apps than when<br />

they first ventured into fintech: MTN MoMo has diverse offerings<br />

and VodaPay encompasses payment, lending, insurance and<br />

cash for emergencies.<br />

Invicta Holdings, an investment holdings and management<br />

company, has expanded into the fibre field at a time when working<br />

from home has massively increased the demand for data. Invicta<br />

acquired Dartcom Group for R500-million, giving it a presence in the<br />


<strong>Business</strong> Process Enabling SA: www.bpesa.org.za<br />

Independent Communications Authority: www.icasa.org.za<br />

Technology Innovation Agency: www.tia.org.za<br />

Credit: Caspir Camille<br />

Ruben on Unsplash<br />


<strong>South</strong> <strong>African</strong> banking<br />

apps are world class.<br />

distribution of communication<br />

and renewable technologies<br />

and the manufacture of fibre<br />

optic cables (under licence<br />

from Japan). As <strong>South</strong> Africa<br />

joins the global trend towards<br />

online shopping and with the<br />

first networks rolling out 5G in<br />

2020, data centres are going up<br />

all over the country. The latest<br />

to join the trend is software<br />

company Oracle which has<br />

chosen Johannesburg as the<br />

headquarters of its <strong>African</strong> cloud<br />

region. All of the company’s<br />

cloud regions worldwide will be<br />

100% powered by renewable<br />

energy by 2025.<br />

Teraco stores data in<br />

Johannesburg, Durban and<br />

Cape Town. A second 30MW<br />

site is under construction in<br />

Brackenfell to complement the<br />

existing facility in Rondebosch.<br />

Africa Data Centre (ADC), part of<br />

the Liquid Telecom Group, has<br />

purchased a Tier IV data centre<br />

in Johannesburg, previously<br />

used by Standard Bank.<br />

The Council for Scientific<br />

and Industrial Research (CSIR)<br />

in Pretoria will host a new<br />

body aimed at preparing <strong>South</strong><br />

Africa for the Fourth Industrial<br />

Revolution (4IR), the <strong>South</strong><br />

<strong>African</strong> Affiliate Centre of the<br />

World Economic Forum. ■<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />


Banking and financial services<br />

<strong>African</strong> Bank is on the acquisition trail.<br />


Banking and financ<br />

<strong>African</strong> Bank has signalled that it is ready to grow, with SECTOR INSIGHT<br />

an agreement to buy Grindrod Bank and an R80-<br />

Advisory companies that<br />

million deal to purchase lender Ubank.<br />

enabled state capture are<br />

After going into administration in 2014, Mutual <strong>African</strong> banks facing have sanctions. been granted licences.<br />

Bank took some time to recover and is still half-owned by the<br />

Reserve Bank but it has materially added to its retail client<br />

base and the addition of more than 4.5-million clients with<br />

the purchase of the troubled Ubank, which had as its base<br />

mine workers, will further strengthen its position. The R1.5-<br />

billion purchase of Grindrod Bank gives <strong>African</strong> Bank a stronger<br />

position in business lending.<br />

Consulting company Bain & Company has been excluded<br />

from British government contracts for three years because of<br />

the role the company played in the evisceration of the <strong>South</strong><br />

<strong>African</strong> Revenue Service in the time of state capture. Although<br />

the Zondo Commission on state capture found that KPMG and<br />

McKinsey also enabled state capture, no such strictures have yet<br />

been applied by the <strong>South</strong> <strong>African</strong> government.<br />

Discovery Bank reported in June 2022 that it was signing up 750<br />

new clients every day which puts it on course to achieve more than<br />

600 000 customers by 2024. The bank, which launched in Ubank, 2019, has and with renewable a history energy, of catering a fast-tgrowing by the sector <strong>South</strong> with <strong>African</strong> enormous Reserve Bank<br />

minew<br />

already opened more than one-million accounts. Early in 2022, long-founterm insurer and asset manager Liberty delisted from the JSE and was unacceptable potential. Naspers Foundry is<br />

integrated into the Standard Bank Group.<br />

one of several capital investment adequacy funds<br />

ratio in May 20<br />

consequently placed under curatorship.<br />

The New Development Bank, established to fund infrastructure Teba Trust looking Fund, which for opportunities owns Ubank, in was activ<br />

projects in BRICS countries, had approved loans of $5.1-billion a strategic to investor the financial when sector. the curatorship Insurance was anno<br />

be spent in <strong>South</strong> Africa by July 2022. This included renewable administrators technology of the fund is are of the particular National Union of M<br />

energy projects and the Port of Durban upgrades. (NUM) and Minerals interest, Council together SA. One with of the credit banks being<br />

The launch by Sanlam Investments of a Sustainable Infrastructure the <strong>South</strong> <strong>African</strong> services arm and of Nigeria’s payment Access systems. Bank Group a<br />

Fund is a sign of the times. The <strong>South</strong> <strong>African</strong> state has promised Council SA remains Capital positive Appreciation, about the future which of the ban<br />

a huge infrastructure drive but in the context of climate change Despite the is collapse part-owned of VBS by Mutual the Public Bank in 2018, the<br />

caused by the use of fossil fuels, the investment community mutual banks is is Investment strong, given the Corporation, nature of the is <strong>South</strong> <strong>African</strong><br />

increasingly putting emphasis on sustainability. Sanlam Group Young will Women already in <strong>Business</strong> invested Network in a (YWBN) software has been gran<br />

invest R6-billion in the fund and aims to attract a further R5-billion bank licence and developer, Bank Zero also a intends credit to use card the mutual m<br />

from institutional investors. Investments will be made in housing, Tyme Digital payment went from terminal acquiring provider a licence and to runnin<br />

transport, health, water, waste, communication, conventional with energy services has available R500-million in more than available 500 Pick for n Pay and<br />

in less than two further years. investments. <strong>African</strong><br />


Second to Rainbow market among Capital the has country’s a stake new in banks w<br />

the investment company and is<br />

Financial Sector Conduct Authority: www.fsca.co.za Bank, which officially launched in 2019 and is experie<br />

Insurance Institute of <strong>South</strong> Africa: www.iisa.co.za growth in retail the deposits. owner of Discovery TymeBank, Bank which is applying the<br />

<strong>South</strong> <strong>African</strong> Institute of Chartered Accountants: www.saica.co.za model it uses received in its health a banking business licence to in reward goo<br />

behaviour. The 2017 Discovery and expanding group is already rapidly. ■a giant on t<br />


75 SOUTH AFRICAN BUSINESS <strong>2023</strong><br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Public Investment Corporation: www.pic.gov.za<br />

<strong>South</strong> <strong>African</strong> Reserve Bank: www.resbank.co.za


Development finance and<br />

SMME support<br />

Expanding small business has become big business.<br />


More than 30 small businesses<br />

supply services to a mine in<br />

northern Limpopo.<br />

The number and scope of the <strong>Business</strong> Day Supplier<br />

Development Awards gives an indication of how developed<br />

this aspect of support for small enterprise has become in the<br />

<strong>South</strong> <strong>African</strong> business community. The process of helping<br />

small businesses become bigger businesses has sparked creativity<br />

across sectors such as retail and mining and collaboration with other<br />

companies has become the norm in promoting supplier development.<br />

A fairly new initiative, the HandPicked programme of the Mr Price<br />

Foundation, has no fewer than five partners in <strong>African</strong> Grower, CHEP,<br />

Fresh Life Produce, Veldskoen and Catalyx. These partners cover urban<br />

or vertical farming, logistics, developers and implementers of a growing<br />

system for urban areas, shoe manufacturing and training. Young people<br />

interested in agriculture are trained in innovative farming techniques<br />

and business skills with the goals of tackling food security, eliminating<br />

poverty and hunger and promoting good health and well-being.<br />

The list of winners from 2021 points to how important and varied<br />

supplier development has become in the SMME environment.<br />

2021 Winners<br />

Credit: Dipuno Fund<br />

Overall Winner – award sponsored by Absa: Tiger Brands.<br />

Agri supply-chain development includes agri-procurement access,<br />

import replacement, funding support, land-access support and agrarian<br />

technical support using an aggregator model with strategic partners that<br />

enable small farmers to benefit while developing black mega farmers.<br />

Tiger Brands launched the Dipuno Enterprise and Supplier Development<br />

Fund in 2019, committing R100-<br />

million in investment by 2025 to<br />

black-owned and black womenowned<br />

small enterprises and<br />

smallholder farmers. Initiatives<br />

are underpinned by strong<br />

collaborative partnerships with<br />

government, colleges, mining<br />

houses and their pipeline partners.<br />

There is a focus on technology<br />

investment.<br />

Localisation Award: The Empact<br />

Group, which collaborates with<br />

local agricultural departments<br />

to bring opportunities to local<br />

farmers, straight into their local<br />

and Gauteng supply chain outlets.<br />

Outstanding Growth in a<br />

Small Supplier Award: Exxaro.<br />

In 2019, in response to the<br />

pandemic, Exxaro invested and<br />

allocated R200-million to ESD<br />

transformation. MBR was one of<br />

the companies that benefitted as<br />

Exxaro provided MBR with a zerointerest<br />

loan of R25-million to<br />

acquire mining operations assets.<br />

Newcomer Award: Uyandiswa<br />

Innovation Award: V&A<br />

Waterfront<br />

Youth Focus Award: Anglo<br />

American Zimele<br />

Women Focus Award: sponsored<br />

by Cold Press Media: The Empact<br />

Group<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong> 76


Rural and Township Focus Award: the SPAR Rural Hub model<br />

Emerging Technology Award: Exxaro Resources<br />

Collaboration Award – sponsored by Fetola: Tiger Brands<br />

The Covid-19 Recovery Award: Distell<br />

Small Supplier Award – sponsored by IDC: Distell, in partnership<br />

with supplier Stellar Wines.<br />

Most big companies in <strong>South</strong> Africa have two main programmes<br />

to support SMMES: enterprise development (ED) and local supplier<br />

development (or procurement). Venetia Mine in northern Limpopo,<br />

a De Beers Group mine, has more than 50 SMMEs enrolled in<br />

incubation programmes and 34 locally-owned companies are doing<br />

business with the mine.<br />

Covid scheme<br />

An amount of R15-billion was made available by national government<br />

for businesses adversely affected by Covid-19 and the unrest and<br />

floods that hit KwaZulu-Natal in 2021, but Treasury announced in<br />

August 2022 that only R77-million of this “bounce back” scheme had<br />

been disbursed out of a total of R140-million in loans approved. Any<br />

small business is eligible for the loans, irrespective of whether or not<br />

it was directly harmed by one of the bad events, but a combination<br />

of other events such as loadshedding and higher interest rates had<br />

discouraged uptake.<br />

A R200-billion loan guarantee scheme (LGS) was made available<br />

for firms with a turnover of less than R300-million per year. This<br />

scheme received very few applications and so the criteria were relaxed<br />

although money can still only be used for operations. Treasury will also<br />

now take responsibility for the first 20.5% of default losses, in contrast<br />

to the first iteration whereby banks had to take that loss. While the<br />

“bounce back” scheme allows businesses to change the terms of the<br />

loan (by extending it, for example), the LGS is a fixed-term loan.<br />

National programmes<br />

The National Department of Small <strong>Business</strong> Development (DSBD) has<br />

several programmes to assist SMMEs and co-operatives.<br />


<strong>Business</strong> Day Supplier Development Awards: www.sdawards.co.za<br />

National Department of Small <strong>Business</strong> Development: www.dsbd.gov.za<br />

Small <strong>Business</strong> Institute: www.smallbusinessinstitute.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

The Small Enterprise Development<br />

Agency (Seda), a subsidiary of the<br />

DSBD, has 42 incubation centres<br />

under its Seda Technology Programme<br />

(STP). In Mpumalanga, Seda supports<br />

several incubators: Furntech, furniture<br />

manufacturing, White River; Mobile<br />

Agro-Skills Development & Training,<br />

agricultural training, Nelspruit;<br />

Mpumalanga Stainless Initiative (MSI),<br />

stainless-steel processing, Middelburg<br />

(with Columbus Stainless); Timbali<br />

floriculture, Nelspruit; Ehlanzeni TVET<br />

College Rapid Incubator Renewable<br />

Technologies, Nelspruit.<br />

In the North West, the Provincial<br />

Government is investing in digital<br />

infrastructure. SMMEs will be able to<br />

use the newly-established Mafikeng<br />

Digital Innovation Hub as a co-working<br />

environment and to get support in<br />

using digital tools. The <strong>South</strong> <strong>African</strong><br />

National Roads Agency Limited<br />

(SANRAL) actively supports small<br />

businesses wherever it works in <strong>South</strong><br />

Africa. Subcontracts are routinely<br />

awarded for maintenance such as the<br />

patching of potholes, fencing and the<br />

cutting of grass verges.<br />

Part of the rationale behind a<br />

national programme to revive industrial<br />

parks is to benefit SMMEs. The National<br />

Department of Trade, Industry and<br />

Competition (the dtic) has invested R40-<br />

million in the Nkowankowa Industrial<br />

Park in Limpopo, an initiative which has<br />

helped to create 174 direct jobs. In the<br />

northern reaches of the province, more<br />

than 300 jobs have been created with<br />

the revitalisation of the Thohoyandou<br />

Industrial Park, which has achieved a<br />

91% occupancy rate.<br />

The dtic is trying to stimulate<br />

township and rural economies through<br />

programmes such as the Enterprise<br />

Investment Programme (EIP). ■<br />

77<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>


Education and skills training<br />

Private education companies are growing<br />

JSE-listed companies are doing well in the education<br />

sector. ADvTech reported a 22% increase in operating profit<br />

in the year to December 2021 and Curro Holdings’ revenue<br />

increased by 15.5% to R2.06-billion for the six<br />

months to the end of June 2022.<br />

With brands such as Crawford, Trinity House,<br />

Crawford House, Abbotts College, Varsity College and<br />

Vega in its stable, ADvTech made that operating profit<br />

of R1.1-billion on increased revenues of R5.9-billion.<br />

Enrolments in <strong>South</strong> <strong>African</strong> schools run by the<br />

company rose by 8% (to 29 599) and by just over<br />

7 000 in other <strong>African</strong> countries, or 10%. The group<br />

intends increasing its focus on the rest of Africa in<br />

the years ahead.<br />

Curro Holdings, which runs 181 schools, increased<br />

pupil numbers by 66 167 for the six months to June 2022.<br />

This despite an increase in tuition fees of 13.3%. Curro<br />

has been expanding steadily since its establishment in<br />

1998, and the same trend is evident in the trajectory of its<br />

tertiary offshoot, Stadio Holdings.<br />

Stadio Holdings listed separately for the first<br />

time in 2017 and now has more than 41 000 students registered<br />

across three institutions. Milpark Education is the online offering,<br />

AFDA offers accredited degrees and higher certificates in film,<br />

performance, entertainment, business and technology while Stadio<br />

Higher Education Institution is the result of the merger of <strong>South</strong>ern<br />

<strong>Business</strong> School, Embury Institute for Higher Education, LISOF and<br />

Prestige Academy.<br />

Interim results published by Stadio Holdings in August 2022 reported<br />

that profit after tax rose by 23.5%, to R105-million. A R200-million Stadio<br />

campus was opened in Centurion in Gauteng early in 2022.<br />

Skills<br />

In November <strong>2023</strong>, the Decade of the Artisan Programme will have<br />

run its course. The Department of Higher Education and Training set<br />

targets for skilled graduates and established Centres of Specialisation<br />

at Technical Vocational Education and Training (TVET) colleges around<br />

the country.<br />

For example, False Bay TVET College was appointed as the<br />

Centre of Specialisation in Rigging and Mechanical Fitting, both<br />

skills highly relevant to the maritime industry. The Eastern Cape<br />


The Decade of the Artisan<br />

is drawing to a close.<br />

Stadio’s new campus in Centurion.<br />

Midlands TVET College<br />

specialises in welding and the<br />

Gert Sibande TVET College in<br />

Mpumalanga is the institution<br />

that focusses on the skills of a<br />

millwright.<br />

Centres of Specialisation aim<br />

to produce:<br />

• A skilled and capable workforce<br />

• Increased availability of intermediate-level<br />

technical skills<br />

• Increased delivery of qualified<br />

artisans in 13 priority trades<br />

Speaking at the opening<br />

ceremony of the WorldSkills<br />

<strong>South</strong> Africa (WSZA) National<br />

Competition in KwaZulu-Natal<br />

in June 2022, Higher Education<br />

and Training Minister Dr Blade<br />

Nzimande called on principals<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong><br />



of TVET colleges to prioritise work placements<br />

for students. He said, “We have now incorporated<br />

into our plans that all college principals must have<br />

the issue of work placement and partnership with<br />

industry in their performance agreements. Any<br />

college principal who does not promote work<br />

placement has no place in our TVET college system.”<br />

Venetia Diamond Mine in the far north<br />

of Limpopo is in the process of transitioning<br />

from surface to underground mining and that<br />

requires a new set of skills from employees and<br />

contractors. Six simulators are being installed<br />

at a new training centre for the mine, covering<br />

aspects such as drills and bolters while virtual<br />

reality will be deployed for a virtual blast wall.<br />

More than 300 training modules will be available.<br />

Universities<br />

There are three types of public universities in<br />

<strong>South</strong> Africa: traditional universities, which are<br />

academic in focus and award degrees; universities<br />

of technology (previously “technikons”), which have<br />

a vocational emphasis and can award diplomas and<br />

certificates; and comprehensive universities which<br />

offer a combination of both types of qualification<br />

and can confer degrees and diplomas.<br />

The addition of two universities in the<br />

provinces of Mpumalanga and the Northern Cape<br />

means that every <strong>South</strong> <strong>African</strong> province now has<br />

a university.<br />

In Mbombela, the phase of using old<br />

buildings has come to an end for the University<br />

of Mpumalanga. Now a striking new architectural<br />

addition has been added to the cityscape on a<br />

hill north of the Crocodile River: a complex of<br />

department headquarters and residence buildings<br />


Centres of Specialisation: www.dhet.gov.za<br />

National Department of Science and Innovation:<br />

www.dst.gov.za<br />

Sol Plaatje University: www.spu.ac.za<br />

TVET colleges: www.tvetcolleges.co.za<br />

University of Mpumalanga: www.ump.ac.za<br />

is taking shape as a new home to the province’s<br />

first university. By building on existing institutions<br />

such as teacher training colleges, the university has<br />

progressively offered more courses and taken on<br />

more students over the last few years. The official<br />

launch was in October 2013, with the first cohort of<br />

169 students registered in just three programmes<br />

in 2014. By 2020, the university was offering 26<br />

qualifications to 4 200 students.The university<br />

currently offers 48 programmes in three faculties:<br />

Education; Agriculture and Natural Sciences; and<br />

Economics and <strong>Business</strong> Sciences. There are plans<br />

to add new programmes at both undergraduate<br />

and postgraduate levels and to establish the faculty<br />

of Humanities and Social Sciences and the School of<br />

Law. By 2024, the plan is to offer approximately 70<br />

qualifications to over 8 000 students.<br />

University of Mpumalanga students have<br />

distinguished themselves in competitions run<br />

by ENACTUS, an international organisation<br />

that works with leaders in business and higher<br />

education to mobilise university students to<br />

make a difference in their communities while<br />

developing the skills to become sociallyresponsible<br />

business leaders<br />

The first intake of students at the Kimberley<br />

campus of Sol Plaatje University in 2014 was 124.<br />

At the 2019 graduation ceremony, 319 students<br />

were congratulated and when classes began for<br />

the 2020 academic year, just over 700 first-time<br />

students enrolled. In 2022, the SPU expects to<br />

have in the region of 3 479 students, of which<br />

339 will be new postgraduate students.<br />

The academic programme is housed in four<br />

schools: Education; Humanities; Natural and<br />

Applied Sciences; Economic and Management<br />

Sciences. Bachelor’s degrees are offered in<br />

education, science, science in data, ICT, heritage<br />

studies, commerce and arts. A diploma in retail<br />

business management (three years) and a<br />

one-year higher certificate in heritage studies<br />

completes the prospectus.<br />

In 2022 the university tweaked its brand, with<br />

an internal logo falling away and the colour black<br />

being replaced by navy blue, joining red, orange<br />

and beige as the corporate colours. ■<br />

79<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong>








Sol Plaatje University is still developing as a<br />

university, and faces significant challenges in<br />

meeting the steep student growth targets that<br />

the institution agreed to with the government.<br />

The demographics of both the student body and its graduates<br />

suggest that SPU attracts students from all nine provinces, with<br />

the main concentrations being from the major towns in the<br />

Northern Cape and the North-West Provinces. There is however<br />

a challenge in attracting students from rural areas.<br />

The Northern Cape and North West Province are two of the<br />

largest and most sparsely populated provinces in <strong>South</strong> Africa.<br />

The economic drivers in these provinces are mainly mining and<br />

agriculture, but new economies around the Square Kilometre<br />

Array project and alternative energies are emerging.<br />

Many rural learners are caught in the poverty trap after<br />

finishing their high school education because they cannot find<br />

opportunities within these major or emerging economies.<br />

Therefore, a lot of talent is lost because these learners,<br />

although talented, are precluded from going to University.<br />

In the absence of any sort of stimulus plan for education that<br />

will level the playing field for rural learners regarding access<br />

to higher education, Sol Plaatje University wants to create a<br />

pipeline of academically talented learners from rural areas and<br />

see them register for a tertiary qualification at the University.









The Talent Pipeline Programme (TPP) at Sol<br />

Plaatje University is a pre-university enrichment<br />

programme aimed at increasing the academic,<br />

social, and psychosocial preparation of learners<br />

to enter higher education.<br />

We will identify the top ten performing learners in<br />

grades 10, 11 and 12 from a broad range of underresourced<br />

schools in the Northern Cape Province.<br />

The learners will be accommodated at the University<br />

during their school holidays (one week in March,<br />

two weeks in June and one week in September) and<br />

participate in a programme that focuses on a psychosocial,<br />

educational enrichment curriculum of deep immersion in<br />

ten subject areas: Mathematics, Scientific Thinking,<br />

Science, Molecular Literacy, Computer Science,<br />

Language, Economics and Law, Diversity Studies and<br />

International Relations. The academic instruction will be<br />

accompanied by a personal skills development curriculum<br />

(life skills, sport, art and music) focusing on coping and<br />

success mechanisms.<br />

Programmes such as the TPP which are run elsewhere have<br />

been highly successful in creating a pipeline of excellent<br />

learners from under-resourced schools that enter University<br />

and have already produced several medical doctors, nurses,<br />

actuaries, accountants, economists, and engineers who<br />

have positively impacted their communities.<br />




We take pride in SPU being located within<br />

the Northern Cape Province; thus, we must<br />

play a part in dealing with some of the<br />

general issues in our space.<br />

A priority is to contribute towards improving the quality<br />

of schooling in our province to enable young people<br />

from these parts of the country to access post-secondary<br />

education. We will therefore run an Educators<br />

Enhancement Programme as part of the TPP for<br />

Mathematics and Science Educators from the<br />

participant schools.<br />

This programme will ensure that the learners have<br />

the necessary support in their studies, receive the<br />

appropriate academic interventions at school, and that<br />

their teachers encourage their commitment to success.<br />

Through this enhancement programme, we will assist<br />

educators in teaching and assessing in ways that make<br />

the transition from high school to University smoother,<br />

thereby facilitating access. We also endeavour to ensure<br />

that educators have the appropriate technology, access to<br />

data and connectivity, and gain experience using online<br />

resources for teaching and collaboration. The Educator<br />

Enhancement Programme will be a residential workshop<br />

which runs over two weeks in June on the SPU premises.


One of the most critical assets of any education system<br />

is the solidarity between parents and teachers.<br />

We want to promote the involvement of families and communities in<br />

the education process of the learner. We will host workshops through<br />

which we will explain the role of the family in the success of the<br />

learner in the TPP; and establish sustainable partnership practices<br />

across schools, families, and communities.<br />


For the time in-between the residential sessions at<br />

the University, the TPP learners will be supported by<br />

online tutoring.<br />

This support will be conducted by their teachers who have been<br />

taken through the Educator Enhancement Programme, and we will<br />

assign online tutors that the learners can access at learning centres<br />

that the University will establish across the Northern Cape Province.<br />

“As I embark upon my second five-year<br />

term as the Chancellor of Sol Plaatje<br />

University, I am committed to the SPU<br />

Talent Pipeline Programme’s success<br />

because it speaks to my belief that<br />

academically excellent students who come<br />

from modest means must be given a fair<br />

chance to succeed in higher education.<br />

Sol Plaatje University has a vision of<br />

enhancing democratic practice and<br />

social justice in society. This programme<br />

puts it on a path to achieving that<br />

vision and to making a positive impact<br />

on uplifting rural communities in the<br />

Northern Cape Province.<br />

I hope you will consider supporting this<br />

ambitious but necessary programme at<br />

our University.”<br />


For more information, send an email<br />

to specialprojects@spu.ac.za.<br />

You can also visit our website at<br />


• Light<br />

from Africa<br />

-<br />

for Humanity<br />

• Lesedi<br />

Lig uit Afrika – vir die Mensdom<br />

la Afrika - go Batho •<br />

Sol Plaatje University offers the following<br />

undergraduate and postgraduate qualifications:<br />



Diploma in Retail <strong>Business</strong> Management<br />

Advanced Diploma in Management<br />

Bachelor of Commerce in Accounting<br />

Bachelor of Commerce in Economics<br />

ENQUIRIES: charmell.cardoso@spu.ac.za<br />


Higher Certificate in Court Interpreting<br />

Higher Certificate in Heritage Studies<br />

Bachelor of Arts (Specialisations: Archaeology, Heritage Studies,<br />

Languages and Social Sciences)<br />

ENQUIRIES: humanities@spu.ac.za<br />


Bachelor of Education (Foundation Phase)<br />

Bachelor of Education (Intermediate Phase)<br />

Bachelor of Education (Senior & FET Phase)<br />

ENQUIRIES: jeffrey.thomas@spu.ac.za<br />


Diploma in ICT (Applications Development)<br />

Advanced Diploma in ICT (Applications Development)<br />

Bachelor of Science in Data Science<br />

Bachelor of Science (Specialisations: Mathematical and<br />

Computer Sciences, Biological Sciences and Physical Sciences)<br />

ENQUIRIES: nobulali.mathimba@spu.ac.za<br />

+27 53 491 0000 | information@spu.ac.za | PRIVATE BAG X5008, KIMBERLEY 8300<br />

SolPlaatjeUniv @MySPU sol-plaatje-university Sol Plaatje University<br />

www.spu.ac.za<br />



Postgraduate Diploma in Entrepreneurship<br />

Postgraduate Diploma in Public Management<br />

ENQUIRIES: postgrad.ems@spu.ac.za<br />


Bachelor of Arts Honours in Languages (Specialisations: English<br />

and Afrikaans)<br />

Bachelor of Social Science Honours (Specialisations: Archaeology,<br />

Anthropology, History, Sociology and Heritage Studies)<br />

Master of Arts (Specialisations: Anthropology, History, Sociology<br />

and Heritage Studies)<br />

ENQUIRIES: postgrad.hum@spu.ac.za<br />


Bachelor of Education (Honours) in Curriculum Studies<br />

Postgraduate Diploma in Mathematics Education<br />

Postgraduate Certificate in Education (Senior Phase and FET)<br />

Master of Education<br />

ENQUIRIES: postgrad.edu@spu.ac.za<br />


Bachelor of Science (Honours) in Biological Sciences (Specialisations:<br />

Botany and Zoology)<br />

Bachelor of Science (Honours) in Computer Science<br />

Bachelor of Science (Honours) in Data Science<br />

Bachelor of Science (Honours) in Mathematical Sciences<br />

(Specialisations: Applied Mathematics, Mathematics and Statistics)<br />

Bachelor of Science (Honours) in Physical Sciences (Specialisations:<br />

Chemistry, Geography and Physics)<br />

Master of Science (e-Science) by coursework<br />

ENQUIRIES: postgrad.nas@spu.ac.za

INDEX<br />

INDEX<br />

Air Products............................................................................................................................................................................... 65<br />

Brand <strong>South</strong> Africa.................................................................................................................................................................. 6<br />

Council for Geoscience (CGS) ..............................................................................................................................48-49<br />

Council for Scientific and Industrial Research (CSIR).................................................................................... 54<br />

Durban International Convention Centre (Durban ICC)............................................................................... 3<br />

Free State Development Corporation (FDC)..............................................................................................32-33<br />

Impala Platinum (Implats) .......................................................................................................................................50-51<br />

Indaba Hotel, Spa and Conference Centre.......................................................................................................... 73<br />

Invest Durban.........................................................................................................................................................................IFC<br />

Momentum Financial Planning ................................................................................................................................IBC<br />

Mpumalanga Tourism and Parks Agency (MTPA)........................................................................................... 11<br />

Musina-Makhado Special Economic Zone (MMSEZ)............................................................................22-27<br />

National Cleaner Production Centre <strong>South</strong> Africa.....................................................................................OBC<br />

Newlyn Group .................................................................................................................................................................36-39<br />

Northern Cape Economic Development, Trade and<br />

Investment Promotion Agency (NCEDA) .....................................................................................................34-35<br />

Petroleum Agency <strong>South</strong> Africa .........................................................................................................16-17, 58-61<br />

Sol Plaatje University ..................................................................................................................................................80-83<br />

<strong>South</strong> <strong>African</strong> Bureau of Standards (SABS).......................................................................................................... 67<br />

<strong>South</strong> <strong>African</strong> Mohair Industries Limited (SAMIL)....................................................................................44-45<br />

Standard Bank ........................................................................................................................................................................ 21<br />

Vaal Special Economic Zone .................................................................................................................................28-31<br />

SOUTH AFRICAN BUSINESS <strong>2023</strong> 84

SCAN<br />


20 years of<br />

Industrial Efficiency<br />

National Cleaner Production Centre<br />

<strong>South</strong> Africa<br />

A national industrial support programme that partners with industry<br />

to drive the transition towards a green economy and save money.<br />

Services include:<br />

Green skills development<br />

Industry and sector knowledge-sharing<br />

Company technical support<br />

THA 35-2022<br />

Contact us for a free assessment<br />

www.ncpc.co.za | ncpc@csir.co.za<br />

Funded by the dtic, hosted by the CSIR

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