South African Business 2023
The 2023 Guide to Business and Investment in South Africa.
The 2023 Guide to Business and Investment in South Africa.
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SOUTH AFRICAN
BUSINESS
AFRICAN
THE GUIDE TO BUSINESS AND INVESTMENT
IN SOUTH AFRICA
USINESS
E GUIDE TO BUSINESS AND INVESTMENT
SOUTH AFRICA
2021 EDITION
2023 EDITION
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US ONLINE WWW.GLOBALAFRICANETWORK.CO.ZA |
WWW.SOUTHAFRICANBUSINESS.CO.ZA
WWW.SOUTHAFRICANBUSINESS.CO.ZA
CITY THAT’S
GEARED
FOR GROWTH
A truly smart city, Durban, KZN, South Africa seamlessly
combines an innovative business environment with an exciting,
contemporary lifestyle.
Connecting continents, here you will fi nd Africa’s busiest
port, the top ranking conferencing city and the home to
the continent’s very fi rst Aerotropolis. Boasting world-class
infrastructure, manufacturing and industrial concentration that
is constantly evolving, isn’t it time to join this progressive society
rich in investment opportunities?
…We can help you make it happen, now.
Tel: +27 31 311 4227
Email: invest@durban.gov.za
web: invest.durban
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Dube
TradePort
and King
Shaka
International
Airport - 60-
year Master
Plan - driving
growth of
aerotropolis,
or airport city
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The city of Durban
(eThekwini Municipality)
is South Africa’s
second most important
economic region
Extensive first-world
road, rail, sea and air
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Rated in top 5
‘Quality of Living’
cities in Africa and
Middle East by
Mercer Consulting in
2015
Named one of the
New 7 Wonders Cities
by the Swiss-based
New 7 Wonders
Foundation in 2014
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CONTENTS
CONTENTS
South African Business 2023 Edition
Introduction
Foreword 5
A unique guide to business and investment in South Africa.
Special features
An economic overview of South Africa 8
South Africa has the minerals that the green economy needs.
Provinces of South Africa 12
A snapshot of South Africa’s nine provinces.
Partnerships show the way for
Special Economic Zones 18
Collaboration between the private sector and government
and its agencies is paying off in eight provinces.
Economic sectors
Agriculture 42
Citrus exports have finally made it to China.
Mining 46
Platinum’s role in green hydrogen is a boon for miners.
Energy 52
Infrastructure for carrying newly-generated power is a priority.
Oil, gas and petrochemicals 56
The Central Energy Fund has become a shareholder in
a Free State gas project.
Water 62
South Africa is investigating how best to use its groundwater.
Engineering 64
A huge bridge in the Eastern Cape is an engineering challenge.
SOUTH AFRICAN BUSINESS 2023
2
DURBAN ICC AFRICA’S LEADING CONVENTION CENTRE
The Durban International Convention
Centre (Durban ICC) prides itself on
being leading venue for meetings,
business events, conferences and
exhibitions on the African continent.
However, this is not their own opinion,
but rather the overwhelming feedback
received from their clients who have
voted it in the top 1% of Convention
Centres worldwide, as well as “Africa’s
Leading Meetings and Convention
Centre” no fewer than 17 times!
The Durban ICC is a versatile venue
of enormous dimensions, flexible
enough to meet any need, no matter
how extraordinary. The Centre offers
the largest column-free, multipurpose
event space on the African continent.
International and national conventions,
exhibitions, sporting events, concerts
and special occasions of every kind
can be accommodated. Flexibility and
versatility are key factors in the design
of this state-of-the-art, technologydriven
Centre. The Centre also offers
a range of innovative solutions such
as Live-streaming events, Remotepresentation
events, Hybrid events,
and Video-on-Demand.
The Durban ICC’s highly experienced
and friendly team will ensure that
your event is seamlessly executed
giving you complete peace of mind.
Providing exceptional customer
service remains the heartbeat of the
Durban ICC, striving to ensure that
every delegate who walks through
the five-star facility has a memorable
experience.
Delegates visiting the Centre can
look forward to superb standards of
culinary excellence and hospitality.
As part of the Durban ICC’s gourmet
evolution over the past decades in
the industry, they are completely
reinventing their culinary offering
in order to showcase some of
Durban’s authentic African Cuisines.
Furthermore a wide range of new
innovative packages have been
designed to meet the unique needs
of each target market, at the best
possible rates.
Demonstrating its commitment to
quality, the Durban ICC is five-star
graded by the Tourism Grading
Council of South Africa and maintains
its ISO9001, ISO14001 and ISO22000
certifications ensuring the highest
international standards in Quality
Management, Environmental
Responsibility, Food Safety and Health
and Safety.
The DURBAN ICC offers you first-world
convenience and a proudly African
meetings experience. The Centre is
fully Wi-Fi enabled and connectivity
is complimentary to its delegates and
guests.
Durban ICC Fast Facts
• Located in Durban, known as
South Africa’s entertainment
“playground”.
• Durban International Convention
Centre (Durban ICC) comprised
of the Durban ICC Arena and the
Durban Exhibition Centre.
• Voted “Africa’s Leading Meetings
and Conference Centre” by the
World Travel Awards no fewer
than 17 times and continuously
strives to deliver excellent service
• Largest flat floor, column-free
multi-purpose event space in
Africa.
• Ranked in the world’s Top 15
Convention Centres by the
International Association of
Congress Centres (AIPC).
• The Centre is located 30-minutes
from the King Shaka International
Airport and over 3,600 Hotel
rooms are within a 10-minute walk
of the Centre.
THE GUIDE TO BUSINESS AND INVESTMENT
IN SOUTH AFRICA
CONTENTS
Manufacturing 66
Innovation and expansion are happening in textiles.
Construction and property 69
The renewable energy sector has opened up new
work workstreams.
Transport and logistics 70
The value of goods transported along the N3 continues to grow.
Tourism 72
Swiss investment may underpin expansion.
ICT 74
Government’s latest mobile contract is shared by four companies.
Banking and financial services 75
African Bank is on the acquisition trail.
Development finance and SMME support 76
Expanding small business has become big business.
Education and training 78
Private education companies are growing.
References
Key sector contents 40
Overviews of the main economic sectors of South Africa.
Index 84
SOUTH AFRICAN
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
SOUTH IN AFRICA AFRICAN
BUSINESS
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2021 EDITION
2023 EDITION
ABOUT THE COVER:
Main picture: Sasol’s octene plant at Secunda is a major contributor to the chemical sector, Sasol.
Bottom left and then left to right: Renergen has started delivering the country’s first liquified
natural gas (LNG) to Ardagh Glass Packaging & Ceramic Industries, Renergen; The Tsitsikamma
Community Wind Farm is one of many such facilities in the Eastern Cape, Cennergi; The Kruger
National Park is a superb tourism asset, Ugurhan/iStock by Getty Images; Anglo American
unveiled a huge truck powered by a hybrid hydrogen fuel cell in 2022, Anglo American; Impala
Platinum is a major producer and refiner of platinum group metals with operations in two South
African provinces and two other countries, Implats.
SOUTH AFRICAN BUSINESS 2023
4
South African Business
A unique guide to business and investment in South Africa.
FOREWORD
Credits
Publishing director:
Chris Whales
Editor: John Young
Managing director: Clive During
Online editor: Christoff Scholtz
Designer: Tyra Martin
Production: Yonella Ngaba
Ad sales:
Gavin van der Merwe
Sam Oliver
Gabriel Venter
Vanessa Wallace
Shiko Diala
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
DISTRIBUTION
South African Business is distributed internationally on outgoing
and incoming trade missions, through trade and investment
agencies; to foreign offices in South Africa’s main trading
partners around the world; at top national and international
events; through the offices of foreign representatives in
South Africa; as well as nationally and regionally via chambers
of commerce, tourism offices, airport lounges, provincial
government departments, municipalities and companies.
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 an e-book edition 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 industrialising 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. ■
Chris Whales
Publisher, Global Africa Network | Email: chris@gan.co.za
PUBLISHED BY
Global Africa Network Media (Pty) Ltd
Company Registration No: 2004/004982/07
Directors: Clive During, Chris Whales
Physical address: 28 Main Road, Rondebosch 7700
Postal address: PO Box 292, Newlands 7701
Tel: +27 21 657 6200 | Fax: +27 21 674 6943
Email: info@gan.co.za | Website: www.gan.co.za
Member of the Audit Bureau
of Circulations ISSN 2221-4194
COPYRIGHT | South African Business is an independent publication
published by Global Africa Network Media (Pty) Ltd. Full copyright to
the publication vests with Global Africa Network Media (Pty) Ltd.
No part of the publication may be reproduced in any form without
the written permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Air Liquide; Atlantis SEZ; Caspir Camille Ruben
on Unsplash; Cennergi Services; Concor; Citrus Growers’ Association
of South Africa; CSIR; De Beers; Defy; Department of Trade, Industry
and Competition (the dtic); Dipuno Fund; Heineken; Lanzerac Hotel;
Mercedes-Benz SA; Raubex; Renergen; SA Investment Conference; Sappi;
Sun International; Stadio; Tetra Pak; Ubank; Kevin Wright/Vedanta Zinc
International; John Young.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd,
has used all reasonable efforts to ensure that the information contained in
South African Business is accurate and up-to-date, the publishers make no
representations as to the accuracy, quality, timeliness, or completeness of
the information. Global Africa Network will not accept responsibility for any
loss or damage suffered as a result of the use of or any reliance placed on
such information.
5 SOUTH AFRICAN BUSINESS 2023
10 REASONS
WHY YOU SHOULD INVEST IN SOUTH AFRICA
01.
HOT EMERGING
MARKET
Growing middle class, affluent consumer
base, excellent returns on investment.
02.
MOST DIVERSIFIED
ECONOMY IN AFRICA
South Africa (SA) has the most industrialised economy in Africa.
It is the region’s principal manufacturing hub and a leading
services destination.
LARGEST PRESENCE OF MULTINATIONALS
ON THE AFRICAN CONTINENT
SA is the location of choice of multinationals in Africa.
03.
Global corporates reap the benefits of doing business in
SA, which has a supportive and growing ecosystem as a
hub for innovation, technology and fintech.
05.
FAVOURABLE ACCESS TO
GLOBAL MARKETS
ADVANCED FINANCIAL SERVICES
& BANKING SECTOR
SA has a sophisticated banking sector with a major
footprint in Africa. It is the continent’s financial hub,
with the JSE being Africa’s largest stock exchange by
market capitalisation.
The African Continental Free Trade Area will boost
intra-African trade and create a market of over one
billion people and a combined gross domestic product
(GDP) of USD2.2-trillion that will unlock industrial
development. SA has several trade agreements in
place as an export platform into global markets.
YOUNG, EAGER LABOUR FORCE
09.
SA has a number of world-class universities and colleges
producing a skilled, talented and capable workforce. It
boasts a diversified skills set, emerging talent, a large pool
of prospective workers and government support for training
and skills development.
07.
04.
06.
08.
PROGRESSIVE
CONSTITUTION
& INDEPENDENT
JUDICIARY
SA has a progressive Constitution and an independent judiciary. The
country has a mature and accessible legal system, providing certainty
and respect for the rule of law. It is ranked number one in Africa for the
protection of investments and minority investors.
ABUNDANT NATURAL
RESOURCES
SA is endowed with an abundance of natural resources. It is the leading producer
of platinum-group metals (PGMs) globally. Numerous listed mining companies
operate in SA, which also has world-renowned underground mining expertise.
WORLD-CLASS
INFRASTRUCTURE
AND LOGISTICS
A massive governmental investment programme in infrastructure development
has been under way for several years. SA has the largest air, ports and logistics
networks in Africa, and is ranked number one in Africa in the World Bank’s
Logistics Performance Index.
10.
SA offers a favourable cost of living, with a diversified cultural, cuisine and
sports offering all year round and a world-renowned hospitality sector.
EXCELLENT QUALITY
OF LIFE
Page | 2
719
SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 20232020
AN ECONOMIC OVERVIEW OF
SOUTH AFRICA
The historic Lanzerac wine estate and hotel was attached by the Reserve Bank in 2022. Credit: Lanzerac Wine Estate
The appearance of alleged fraudsters in court bodes well for the rule
of law, a prerequisite for attracting investment. South Africa has the
minerals that the green economy needs.
By John Young
When the accused in the Transnet
fraud and corruption case appeared
in a specialised commercial crimes
court in October 2022, there was
not enough room in the dock for the 11 accused.
The first row of the public benches had to be used
to fit the former staff members and their alleged
accomplices to face more than 50 counts of fraud
and corruption.
In the same month, the South African Reserve
Bank seized what it understood to be former
Steinhoff CEO Markus Jooste’s assets, including
his house in Hermanus and the Stellenbosch
wine estate and hotel, Lanzerac. Given the nature
of these things, the ownership of the hotel is not
entirely clear (it involves entities registered in the
British Virgin Islands) but the broad strokes of the
bank’s actions are clear – it intends getting to the
bottom of the accounting scandal that led to losses
for investors which may amount to R200-billion.
In 2021 ex-president Zuma’s refusal to appear
before the Zondo (state capture) commission
led to him spending time in jail. His trial on
substantive corruption charges lies ahead.
For the chances of a South African economic
recovery, these events are seminal. The era of
state capture will take time and forensic effort
to unravel, but the fact that trials are happening
– and that two of the Gupta brothers were
arrested and denied bail in Dubai – means that
the country’s National Prosecuting Authority
seems to be on track again after itself being
buffeted by disruptive forces.
That the Reserve Bank is doing its bit to rein
in the private sector must also be welcomed
by businesses and investors who know that
economies can only grow if there is trust and
respect for the rule of law.
Dutch brewing giant Heineken has signalled
some confidence in the South African economy
SOUTH AFRICAN BUSINESS 2023
8
SPECIAL FEATURE
with its decision to purchase Distell for a
reported R38.4-billion. Heineken already runs
(and has expanded) the Sedibeng brewery in
southern Gauteng and announced its intention
to take a majority share in its regional partner,
Namibia Breweries.
Distell brands such as Savanna, Three
Ships Whisky, Klipdrift and Amarula will give
the expanded company a much more diverse
portfolio and position it for a drive into other
African markets.
Speaking to the Sunday Times after the
release of Distell’s annual results in August
2022, Distell CEO Richard Ruston highlighted
the economic factors that the country
has to get right for the economy to thrive:
“macroeconomic stability, policy certainty and
the big infrastructure and energy initiatives”.
Getting it right
One institution that the state-capture plotters
never succeeding in getting their hands on
was the state Treasury, although there was one
fraught weekend in December 2015 when it was
touch-and-go.
With the Reserve Bank also having managed
to preserve its independence (and now
showing some muscle in the Jooste saga), the
first two items highlighted by the Distell CEO –
macroeconomic stability and policy certainty –
at least have a solid basis on which economic
planners and politicians can build.
And a very positive element is that virtually
everyone agrees that big infrastructure and
energy initiatives are what the country needs.
Quite what, how and when are still being
debated, but at least the need is agreed on.
From government’s side, there is an
initiative to coordinate efforts with regard to
infrastructure. In 2020, Infrastructure South
Africa (ISA), a programme within the Ministry of
Public Works and Infrastructure, was established.
ISA is headed by Dr Kgosientsho Ramokgopa
and it reports to the Presidential Infrastructure
Coordinating Commission (PICC) Council,
chaired by President Cyril Ramaphosa. The
body is intended as the single point of entry for
accelerated infrastructure investment, with a
Dutch brewer Heineken, which runs a brewery in
Sedibeng, has bought Distell. Credit: Heineken
particular focus on both public and private sector
social and economic infrastructure projects.
Energy and recovery
An excellent programme exists to procure the
energy that South Africa needs to expand the
economy, the Renewable Energy Independent
Power Producer Procurement Programme
(REIPPPP). The programme has suffered one
unwarranted interruption since its introduction
in 2012, but generally it has delivered what it was
intended to deliver, cheaper, greener power.
In Round Five of the REIPPPP, the cheapest
solar generation cost was 37.5c/kWh while the
best wind cost was 34.4c/kWh. These represent
remarkably low costs and are lower by an order
of magnitude than the prices that were quoted
when the programme began a decade ago.
When President Ramaphosa announced
that private power investors could create up
to 100MW of power without having to wait for
licensing, he potentially opened up a path to
growth, a path that has been constrained for
some time by the limitations of the national
utility, Eskom.
Eskom’s inability to provide enough electricity
to power the economy (and its huge debt)
rank as the biggest risks to the South African
economy. Opportunities for private consortiums
are expanding and every window of the REIPPPP
9
SOUTH AFRICAN BUSINESS 2023
The cost of electricity generated by renewables has dropped enormously since the private
producers’ programme began. Credit: Cennergi Services
has been oversubscribed so there is an appetite
to enter the South African energy market.
Eskom’s unbundling will be another spur
to growth. The legal separation of transmission
is the first step, with the other two elements,
generation and distribution, to follow. The idea
is not to privatise the entities but to find private
partners and to allow for competition within the
various fields.
The R130-billion pledged at COP26 by the EU,
the US, Germany, France and the UK to assist South
Africa’s transition from oil and coal to greener
technologies is not straightforward; it comes as
a mixture of grants, risk-sharing instruments and
concessional finance but it will allow South Africa
to fund projects that will help the country to move
away from fossil fuels without further stretching
Eskom’s precarious finances.
The mining sector is also paying close
attention to the world’s shifting priorities
in terms of how to power the economy:
commodities attracting the most attention are
those which have the potential to power the
green economy, platinum group metals (PGMs)
and chrome among them. In August 2021,
South African mineral exports were 44% higher
than the year before. Covid obviously had a lot
to do with that figure, but R166.5-billion still
represented a good return.
Although gold mining is declining in volumes
(even while prices rise), the major investment
of Vedanta Zinc International in a project in
the Northern Cape and Sibanye-Stillwater’s
acquisition drive in the PGM sector are significant
economic drivers. De Beers’ investment in its
Limpopo diamond mine, Venetia, will significantly
expand that facility’s life.
Coal and iron ore continue to be exported
in large volumes through the Richards Bay
Coal Terminal on the east coast and the Port of
Saldanha on the west coast.
The agricultural sector fared fairly well during
the Covid-19 lockdown. Although sectors like
wine suffered badly, a reported increase in
maize exports, as well as greater international
demand for citrus fruits and pecan nuts, helped
the industry expand by 15% (StatsSA). However,
since Covid, there has been the Russian invasion
of Ukraine, which has not only disrupted
markets for South African produce but upset
logistics chains.
Grain crops such as maize, wheat, barley
and soya beans are among the county’s most
important crops. Only rice is imported. Wine,
corn and sugar are other major exports.
Basing economic growth on a devaluing
currency is not always the best long-term
method of boosting economic growth, but
high-value agricultural exports and increased
numbers of high-spending international tourists
hold some promise for helping to get the
South African economy back on a growth path.
Horticulture in particular is seen as holding great
potential not only for increased earnings, but for
creating jobs. South Africa’s traditional strength
in minerals still holds good. ■
SOUTH AFRICAN BUSINESS 2023
10
Mpumalanga:
a world-class tourism
destination
A South African province that has everything a tourist could want.
Travellers should prepare to be astounded by the natural attractions
and experiences that are on offer in Mpumalanga. It is South Africa’s
most easterly province, endowed with an extraordinary richness
of natural beauty from canyons and waterfalls and with scope
for a huge diversity of adventures and experiences ranging from
encounter-rich game drives to paragliding. Mpumalanga offers a
wide array of activities for the active tourist, ranging from abseiling
to white-water-river rafting, with fly-fishing, paragliding, mountain
biking, bungee jumping, hiking, 4x4 trails and many outdoor
adventure activities in between.
Mpumalanga is undoubtedly the ultimate destination
in terms of wildlife experience. The Kruger National Park,
Manyeleti, Loskop Dam and numerous private game reserves
dotted throughout the region offer an exhilarating experience
that brings visitors closer to nature. Mpumalanga boasts a
conservancy area that is rich with diverse flora and fauna.
The Panorama Route offers spectacular landscapes with
attractions like the Blyde River Canyon (third-largest in the
world and known as a “green canyon” because of its subtropical
vegetation, pictured). The province also boasts majestic waterfalls
and high-altitude scenic drives leading to attractions like God’s
Window, Bourke’s Luck Potholes and the Three Rondavels.
Mpumalanga’s rich heritage is still largely unexplored
but more and more visitors are being exposed to fascinating
history. The many heritage sites in the area include the
Samora Machel monument near Mbuzini and the Barberton
Makhonjwa Mountains World Heritage Site (pictured),
boasting rock formations dating back more than 3.5-billion
years. Other sites not to be missed are the mining village of
Pilgrim’s Rest, the Highveld Heritage Route (which abounds
with adventurous tales from history), the stone circles of
Mpumalanga and Goliath’s footprint to name just a few.
Mpumalanga is rich in culture and boasts the Swazi, Ndebele
and Shangaan people with icons like Dr Esther Mahlangu
who has managed to preserve, package and export the
vibrant geometric art of the Ndebele globally.
Bird watchers can have a glimpse of more than 500
different birds endemic to the Kruger National Park or the town
of Chrissiesmeer, the centre of South Africa’s own Lake District
where four river systems start their journeys across the country.
The small tourist town of Dullstroom is referred to
as South Africa’s trout-fishing mecca. Mpumalanga is an
ideal sporting destination with several world-class golf
courses and the Mbombela Stadium that was built for
the FIFA World Cup in 2010 and has subsequently hosted
international football and rugby matches. Get off the
beaten track and explore the many other tourism offerings
of the Mpumalanga Province.
For more information:
Email: info@mtpa.co.za and reservations@mtpa.co.za
Website: www.mpumalanga.com
Facebook: Mpumalanga Tourism and Parks Agency | Twitter: @Mtpatourism | Instagram: @mpumalangatourism
SPECIAL FEATURE
Provinces of South Africa
A snapshot of South Africa’s nine provinces.
Eastern Cape
Capital: Bhisho
Main towns: Port Gqeberha Elizabeth, (formerly East
London, Port Elizabeth), Uitenhage, East London, Graaff-
Reinet, Kariega Mthatha, (formerly Grahamstown
Uitenhage),
(Makhanda)
Graaff-Reinet, Mthatha, Makhanda
Population: 6 916 200 (2015)
Area: 168 966km² (13.8%
of South Africa)
Premier:
Lubabalo Oscar Mabuyane (ANC)
Key sectors: Automotive,
agriculture, agri-processing,
agro-processing,
forestry, finance, retail, tourism,
renewable energy.
Infrastructure: Coega Industrial
Development Zone, East London
Industrial Development Zone,
ports of East London, Port
Elizabeth and Ngqura, airports at
Port Gqeberha Elizabeth and and East East London. London.
Notable tourism assets: Addo
Elephant National Park, Mountain
Zebra National Park, Wild Coast,
Jeffreys Bay, National Arts Festival.
Provincial government website:
www.ecprov.gov.za
Eastern Cape Development
Corporation: www.ecdc.co.za
Free State
Capital: Bloemfontein
Main towns: Welkom, Sasolburg,
Parys, Kroonstad
Population: 2 817 900 (2015)
Area: 129 825km² (10.6%
of South Africa)
Premier:
Sefora Hixsonia Ntombela (ANC)
Key sectors: Agriculture,
agri-processing, agro-processing, chemical
manufacturing, mining, transport
and logistics.
Infrastructure: Maluti-A-Phofung
Special Economic Zone, Bram
Fischer International Airport,
University of the Free State,
Central University of Technology,
N8 Corridor.
Notable tourism assets: Vaal
River, Gariep Dam, Golden Gate
Highlands National Park, Cherry
Festival, Mangaung African
Cultural Festival (Macufe).
Provincial government website:
www.freestateonline.fs.gov.za
Free State Development
Corporation: www.fdc.co.za
Gauteng
Capital: Johannesburg
Main towns: Tshwane
(including Pretoria), Ekurhuleni,
Vanderbijlpark, Roodepoort
Population: 13 200 300 (2015)
Area: 18 178km² (1.5%
of South Africa)
Premier:
David Panyaza Makhura Lesufi (ANC)
Key sectors: Financial and banking,
banking, manufacturing, manufacturing, trade, creative trade,
creative industries, industries, media. media.
Infrastructure: OR Tambo
International Airport, Gautrain, Vaal Special
major Economic universities Zone, Gautrain, and research major
institutions, universities and large research convention institutions,
large FNB convention Stadium (Soccer centres, City).
centres,
FNB Stadium (Soccer City).
Notable tourism assets: Cradle of
Humankind, Notable tourism Apartheid assets: Museum, Cradle of
Constitution Humankind, Hill, Apartheid Magaliesberg, Museum,
Soweto Constitution tours, Hill, Dinokeng. Magaliesberg,
Soweto tours, Dinokeng.
Provincial government website:
www.gauteng.gov.za
Provincial government website:
Gauteng www.gauteng.gov.za
Growth and
Development Gauteng Growth Agency: and Development
Agency: www.ggda.co.za www.ggda.co.za
SOUTH AFRICAN BUSINESS 2021 2020 2023
16 20 12
SPECIAL FEATURE
SPECIAL SPECIAL FEATURE FEATURE
KwaZulu-Natal
Capital: Pietermaritzburg
Main towns: Durban, Newcastle,
Ballito, Port Shepstone,
Empangeni, Ulundi
Population: 10 919100 100 (2015)
Area: 125 755km² (7.7% of
of South South Africa) Africa)
Premier:
Premier: Nomusa Dube-Ncube (ANC)
Sihle Zikalala (ANC)
Key sectors: Chemicals, dissolving
Key pulp sectors: manufacture, Chemicals, sugar, dissolving forestry,
pulp automotive, manufacture, textiles sugar, and forestry, footwear,
automotive, mining, oil textiles and gas, and logistics. footwear,
mining, Infrastructure: oil and gas, King logistics. Shaka
Infrastructure: International King Airport, Shaka Dube
International
TradePort, Richards
Airport, Dube
Bay Industrial
TradePort,
Richards
Development
Bay Industrial
Zone,
Development
ports of
Zone,
Richards
ports
Bay
of Richards
and Durban,
Bay and
Albert
Durban,
Luthuli International
Albert Luthuli International
Convention
Convention
Centre Complex.
Centre Complex.
Notable
Notable
tourism
tourism
assets:
assets:
HluhluweiMfolozi
HluhluweiMfolozi
Park,
Park,
the
the
Drakensberg
Drakensberg
mountains,
mountains,
iSimangilso
iSimangaliso
Wetlands
Wetland
Park,
Park,
Durban
Durban
beaches,
beaches,
South
South
Coast,
Zulu
Coast,
cultural
Zulu
heritage,
cultural
historical
heritage,
historical battlefields.
battlefields.
Provincial government website:
Provincial government website:
www.kznonline.gov.za
www.kznonline.gov.za
Trade and Investment KwaZulu-
Trade and Investment KwaZulu-
Natal: www.tikzn.co.za
Natal: www.tikzn.co.za
Limpopo
Capital: Polokwane
Main towns: Musina, Ba-Phalabora,
Ba-Phalabora, Bela-Bela, Steelpoort, Bela-Bela, Tzaneen,
Steelpoort, Thohoyandou Tzaneen, Thohoyandou
Population: 5 726 800 (2015)
Area: 125 755km² (10.2% of
of South South Africa) Africa)
Premier:
Premier: Chupu Stanley Mathabatha (ANC)
Chupu Stanley Mathabatha (ANC)
Key sectors: Mining, agriculture,
Key tourism, sectors: logistics. Mining, agriculture,
tourism, logistics.
Infrastructure: Musina-Makhado
Infrastructure: Special Economic Musina-Makhado
Zone,
Special
Fetakgomo-Tubatse
Economic Zone,
Special
N1
highway
Economic
and
Zone,
rail
N1
network,
highway
new
and
Medupi
rail network,
power
new
station.
Medupi power
station.
Notable
Notable
tourism
tourism
assets:
assets:
Kruger
Kruger
National
National
Park,
Park,
Mapungubwe
Mapungubwe
Heritage
World Heritage
Site, Makapans
Site, Makapans
Valley,
Marula
Valley, Marula
Festival,
Festival,
Waterberg
Waterberg
Biosphere.
Biosphere.
Provincial government website:
Provincial government website:
www.limpopo.gov.za
www.limpopo.gov.za
Limpopo Economic
Limpopo Economic Development
Development Agency:
Agency: www.lieda.gov.za
www.lieda.gov.za
Mpumalanga
Capital: Mbombela
Main towns: Emalahleni,
Middelburg,
Middelburg, Sabie,
Sabie,
Lydenburg
Lydenburg
Population:
Population: 4
283
283
900
900
(2015)
(2015)
Area: 76 495km² (6.3% of
Area: 76 495km² (6.3%
South Africa)
of South Africa)
Premier:
Refilwe Premier: Mtshweni-Tsipane (ANC)
Refilwe Mtshweni-Tsipane (ANC)
Key sectors: Agriculture, forestry,
mining, steel manufacturing,
petrochemicals,
Key sectors: Agriculture,
pulp and
forestry,
paper,
power mining, generation, steel manufacturing, tourism.
petrochemicals, pulp and paper,
Infrastructure: power generation, Nkomazi tourism. Special
Economic Infrastructure: Zone, Nkomazi Mbombela Special
International Economic Zone, Fresh Mbombela Produce
Market, International Maputo Fresh Development
Produce
Corridor, Market, Maputo Kruger Development
Mpumalanga
International Corridor, Kruger Airport. Mpumalanga
International Airport.
Notable tourism assets: Kruger
National Park, Blyde River Canyon,
Canyon, Barberton Barberton Makhonjwa Makhonjwa Mountains
Mountains (a UNESCO World (a UNESCO Heritage World Site).
Heritage Site).
Provincial government website:
Provincial www.mpumalanga.gov.za
government website:
www.mpumalanga.gov.za
Mpumalanga Economic Growth
Mpumalanga Agency: www.mega.gov.za
Economic Growth
Agency: www.mega.gov.za
21 13
17 SOUTH AFRICAN BUSINESS 2020 2021
SOUTH AFRICAN BUSINESS 2023
SPECIAL FEATURE
SPECIAL FEATURE
Northern Cape
Northern Cape
Capital: Kimberley
Capital: Main towns: Kimberley Douglas, Upington,
Main De Aar, towns: Port Nolloth, Douglas, Colesberg Upington,
De Aar, Port Nolloth, Colesberg
Population: 1 185 600 (2015)
Population: Area: 372 889km² 1 185 600 (30.5% (2015) of
Area: South 372 Africa) 889km² (30.5%
of South Africa)
Premier:
Premier: Dr Zamani Saul (ANC)
Dr Zamani Saul (ANC)
Key sectors: Agriculture, mining,
Key renewable sectors: energy, Agriculture, astronomy. mining,
renewable energy, astronomy.
Infrastructure: Upington Industrial
Park, Sol Plaatje University,
Infrastructure: Vaalharts Irrigation Upington Scheme, Special
Economic Square Kilometre Zone, Sol Array Plaatje telescope
University, project, Namakwa Vaalharts Special Irrigation
Scheme. Economic Zone.
Notable tourism assets: Six
national parks including the
Notable Kgalagadi tourism Transfrontier assets: Park, Six
national Orange River, parks spring including flower the
Kgalagadi displays, diamond Transfrontier routes. Park,
Orange River, spring flower
displays, diamond routes.
Provincial government website:
www.northern-cape.gov.za
Department of Economic
Development and Tourism:
www.northern-cape.gov.za/dedat
North West
North West
Capital: Mahikeng
Capital: Main towns: Mahikeng Klerksdorp,
Main Rustenburg, towns: Klerksdorp, Brits, Potchefstroom
Rustenburg, Brits, Potchefstroom
Population: 3 707 000 (2015)
Population: Area: 104 882km² 3 707 000 (8.6%(2015)
of
Area: South 104 Africa) 882km² (8.6%
of South Africa)
Premier:
Premier: Bushy Maape Professor (ANC) Tebogo Job
Mokgoro (ANC)
Key sectors: Mining, agriculture,
Key agri-processing, sectors: Mining, automotive agriculture,
agri-processing, components. automotive
components.
Infrastructure: Hartbeespoort
Infrastructure: Dam, Pelindaba Hartbeespoort
nuclear research
Dam, unit, North-West Pelindaba nuclear University, research
unit, Bakwena North Platinum West University, Highway.
Bakwena Platinum Highway.
Notable tourism assets: Sun City,
Mmbatho Palms Hotel Casino
Notable Convention tourism Resort, assets: Pilanesberg Sun City,
Mmbatho National Park, Palms 18 Hotel luxury Casino lodges in
Convention Madikwe Game Resort, Reserve. Pilanesberg
National Park, 18 luxury lodges in
Madikwe Game Reserve.
Provincial government website:
Provincial www.nwpg.gov.za government website:
www.nwpg.gov.za
North West Development
North Corporation: West Development
www.nwdc.co.za
Corporation: www.nwdc.co.za
Western Cape
Western Cape
Capital: Cape Town
Capital: Main towns: Cape Stellenbosch,
Town
Main George, towns: Plettenberg Stellenbosch, Bay, Beaufort
George, West, Oudtshoorn, Plettenberg Worcester, Bay, Beaufort
West, Malmesbury Oudtshoorn, Worcester,
Malmesbury
Population: 6 200 100 (2015)
Population: Area: 129 462km² 6 200 100 (10.6% (2015) of
Area: South 129 Africa) 462km² (10.6%
of South Africa)
Premier:
Premier: Alan Winde (DA)
Alan Winde (DA)
Key sectors: Agriculture, agriprocessing,
sectors: wine Agriculture, and grapes, agri-
Key
processing, financial services, wine and manufacturing, grapes,
financial tourism, oil services, and gas, manufacturing,
boatbuilding.
tourism, Infrastructure: oil and Ports gas, of boatbuilding. Cape Town,
Infrastructure: Saldanha and Mossel Ports of Bay, Cape Mossgas
Town, oil-to-gas Saldanha refinery, and Cape Mossel Town Bay,
Mossgas International oil-to-gas Airport, refinery, Cape Town Cape
Town International International Convention Airport, Centre, Cape
Town Koeberg International nuclear power Convention station.
Centre, Notable Koeberg tourism nuclear assets: Table power
station. Mountain, Garden Route National
Notable Park, Karoo tourism National assets: Park, Table West
Mountain, Coast National Garden Park, Route Kirstenbosch National
Park, Botanical Karoo Gardens, National Cape Park, Point, West
Coast V&A Waterfront, National Park, Plettenberg Kirstenbosch
Botanical Bay, Route Gardens, 62, Zeitz Cape Museum Point, of
V&A Contemporary Waterfront, Art. Plettenberg
Bay, Route 62, Zeitz Museum of
Contemporary Provincial government Art. website:
www.westerncape.gov.za
Provincial Wesgro: www.wesgro.co.za
government website:
www.westerncape.gov.za
Wesgro: www.wesgro.co.za
SOUTH AFRICAN BUSINESS 2023
14
SOUTH AFRICAN BUSINESS 2021 2020 18 22
FOCUS
Sectoral strengths of
South African provinces
SECTORAL STRENGTHS OF
SOUTH AFRICA’S PROVINCES
A wide variety of investments are available.
Gauteng:
• Financial and business services
• Information and communications
technology
• Transport and logistics
• Basic iron and steel, steel products
• Fabricated metal products
• Motor vehicles, parts and accessories
• Appliances
• Machinery and equipment
• Chemical products, pharmaceuticals
North West:
• Agro-processing
• Mining
• Agriculture and agro-processing
• Tourism
• Metal products
• Machinery and equipment
• Renewable energy (solar)
Northern Cape:
• Mining
• Agriculture and agro-processing
• Fisheries and aquaculture
• Renewable energy (solar, wind)
• Jewellery manufacturing
Limpopo:
• Mining
• Fertilisers
• Tourism
• Agriculture
• Agro-processing
• Energy, including
renewables (solar)
SPECIAL FEATURE
Mpumalanga:
• Mining
• Tourism
• Forestry, paper and paper
products, wood and wood
products
• Agriculture and agroprocessing
• Metal products
FOCUS
KwaZulu-Natal:
• Transport and logistics
• Tourism
• Motor vehicles, parts and
accessories
• Petrochemicals
• Aluminium
• Clothing and textiles
• Machinery and equipment
• Agriculture and agroprocessing
• Forestry, pulp and paper,
wood and wood products
Western Cape:
• Tourism
• Financial and business services
• Transport and logistics
• ICT
• Agriculture and agro-processing
• Fisheries and aquaculture
• Petrochemicals
• Basic iron and steel
• Clothing and textiles
• Renewable energy (solar, wind)
Free State:
• Agriculture and agro-processing
• Mining
• Petrochemicals
• Machinery and equipment
• Tourism
Eastern Cape:
• Motor vehicles, parts and
accessories
• Forestry, wood and wood products
• Clothing and textiles
• Pharmaceuticals
• Leather and leather products
• Tourism
• Renewable energy (wind)
Page | 40
Source: Industrial Development Corporation (IDC); The Case for Investing in South Africa, Executive Summary
Source: Industrial Development Corporation (IDC)
(South African Investment Conference, 2018).
SOUTH AFRICAN BUSINESS 2021
15
20 23 SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 2020 2023
FOCUS
Promoting responsible investment
into the oil and gas sector
Petroleum Agency South Africa (PASA), the official agency that
promotes and regulates the country’s onshore and offshore
resources, is busier than ever dealing with international queries.
The decision by TotalEnergies to submit a
production plan for their recent discoveries
off the coast of Mossel Bay coincided with
the beginning of commercial operations of
Tetra4’s natural gas project in the north-eastern Free
State. These two events prove that investors can see
that the South African resources equation adds up
to something worthwhile.
These are exciting times for exploration in South
Africa. Both of these projects came about through
the licensing authority of Petroleum Agency South
Africa (PASA), the agency of national government
which reports to the Minister of Mineral Resources
and Energy (DMRE). PASA regulates and monitors
exploration and production activities and is
the custodian of the national exploration and
production database for petroleum. Its role was
statutorily endorsed in June 2004 in terms of the
Mineral and Petroleum Resources Development
Act of 2002.
In terms of strategy, the agency actively
seeks out technically competent and financially
sound clients to whom it markets acreage, while
ensuring that all prospecting and mining leases
are for the long-term economic benefit of South
Africa. As custodian, PASA ensures that companies
applying for gas rights are vetted to make sure
they are financially qualified and technically
capable, as well having a good track record in
terms of environmental responsibility. Oil and gas
exploration requires enormous capital outlay and
can represent a risk to workers, communities and the
environment. Applicants are therefore required to
prove their capabilities and safety record and must
carry insurance for environmental rehabilitation.
As part of a drive to create certainty for investors,
a new bill has been introduced to replace old
legislation. The Upstream Petroleum Resources
Development (UPRD) Bill provides for greater
certainty in terms of security of tenure by combining
the rights for the exploration, development and
production phase under one permit.
The draft bill was first published in June 2021
and discussions with industry stakeholders are
ongoing. Organisations such as the South African
Oil and Gas Alliance (SAOGA) will be coordinating
responses to present to parliament. Objectives of
the bill include:
SOUTH AFRICAN BUSINESS 2023
16
Credit: Shutterstock
• expanding black participation
• promoting local employment and skills
development
• creating an enabling environment to accelerate
exploration and production of South Africa’s
petroleum resources.
Sustainable development: balancing development
with environmental protection
South Africa has vast gas and oil resources and
exploration and the exploitation of these resources
has barely scratched the surface. Having to import
oil and gas has a serious impact on the country’s
balance of payments.
This makes it more difficult to industrialise the
country. For the 2021/22 financial year about 50
applications for exploration and production were
received but only about 10% of that number
were approved.
This is because of very stringent licensing and
environmental regulations which must be followed.
As PASA CEO Dr Phindile Masangane explains, “We
assure South Africans that the slow pace is because
we have to make sure that we have a robust
system that incorporates all the aspects of licensing
but importantly, that the environmental impact
assessment is thoroughly undertaken.”
Despite this, planned seismic surveys were halted
after opponents of the process went to court in 2021
and 2022. Proponents of continued exploration
argue that the seismic process being followed is no
different to that which has been followed in the past,
and which is employed all over the world.
Dr Masangane told Bloomberg in August 2022:
“As the Petroleum Agency, we acknowledge that
South Africa’s upstream oil and gas industry has
become litigious.” She noted that local consultation
standards are going to be evaluated and improved
if necessary. This aspect of the process has been the
subject of criticism in the court cases.
Investors are still very interested in the South
African proposition, as the TotalEnergies offshore and
the Free State project prove. Most offshore project
exploration interest tends to come from foreign
investors because of the high costs but within
South Africa, there is a growing number of local
participants. A women and black-owned company,
Imbokodo, is making a name for itself as a participant
as a shareholder in a number of licensing rounds.
Revised draft regulations related to hydraulic
fracking in the gas-rich Karoo region were
published by the Department of Forestry, Fisheries
and the Environment (DFFE) in July 2022 for public
comment. Fracking is a drilling technique that
is widely used in other jurisdictions such as the
United States, but environmental concerns have
been raised. Dr Masangane further told Bloomberg
that groundwater and geological studies are
being conducted in the biodiversity-rich areas of
the Karoo and that once regulations have been
finalised, seismic activity will be undertaken to
establish which blocks to license.
As part of an attempt to engage in a broader
discussion on policy issues, a joint colloquium was
held in 2022 on the subject of how to balance South
Africa’s energy needs with the country’s climate
change commitments. The colloquium, and several
online events which prepared for and anticipated
the main event, was jointly hosted by the DMRE, the
DFFE and PASA.
Dr Masangane is convinced that a balance
can be achieved between developing renewables
and continuing to exploit the country’s (and the
continent’s) oil and gas reserves. She points out
that the use of certain fuels for cooking leads to
deforestation: “If they were to use gas, whether
it is LPG or natural gas for cooking that in itself
is decarbonisation because then you arrest the
negative impact of deforestation. We must not buy
into a false narrative and a false choice. It is possible
that we can have a dual strategy.” ■
17 SOUTH AFRICAN BUSINESS 2023
Partnerships show the way for
Special Economic Zones
Collaboration between the private sector and government and its
agencies is paying off in eight provinces.
The goal of industrialising the South
African economy is a major objective of
the Special Economic Zone programme.
These zones (which include Industrial
Parks) are intended as catalysts for economic
growth in established sectors and in stimulating
new industries.
Collaboration between national government
(through the Department of Trade, Industry
and Competition, the dtic, which oversees
the programme), provincial departments and
municipalities, economic development agencies and
private companies in key sectors is a vital component
in making Special Economic Zones work.
Policy goals
As defined by the dtic, Special Economic Zones
(SEZs) are geographically designated areas set
aside for specifically-targeted economic activities,
supported through special arrangements (laws, tax
rebates) and systems that are often different from
those that apply in the rest of the country.
South Africa’s Industrial Policy Action
Plan (IPAP) identifies SEZs as growth engines
towards government’s strategic objectives of
industrialisation, regional development and
employment creation.
The purpose of the SEZ programme is to:
expand the industrialisation focus to cover diverse
regional development needs; provide a clear,
predictable and systemic planning framework
for the development of a wider array of SEZs to
support industrial policy objectives; clarify and
strengthen governance arrangements, expand
the range and quality of support measure
beyond provision of infrastructure; and provide a
framework for a predictable financing framework
to enable long-term planning.
Partnerships
In some parts of the country, an anchor tenant
is central to the concept of the approved or
proposed SEZ.
In East London, the presence of Mercedes-
Benz South Africa makes the clustering of
automotive suppliers in the East London IDZ both
logical and cost-effective. The Northern Cape’s
proposed Namakwa SEZ is predicated on the huge
operations of the existing Gamsberg Zinc Mine
(pictured) and the proposed smelter to be built by
international investor Vedanta Zinc International.
In eastern Limpopo, the Mining Supplier Park
run by mining company Glencore is forming the
core around which the Fetakgomo-Tubatse SEZ
is being created. Local and district municipalities
are investing in basic infrastructure, while the
provincial government has allocated staff from
its Department for Economic Development,
Environment and Tourism to drive the process. The
same provincial department has created a stateowned-company
to run the Musina-Makhado SEZ
in the northern part of the province.
SOUTH AFRICAN BUSINESS 2023
18
SPECIAL FEATURE
Credit: Kevin Wright/Vedanta Zinc International
The country’s biggest diamond miner, De
Beers, is partnering with the local tertiary college,
the Venda TVET College, by offering engineering
graduates a chance to gain practical experience at
its Musina operations. The decision by the college
to locate its engineering facility within the SEZ is
another example of collaboration.
Part of the value proposition of the Upington
Industrial Park is based on the plans of Airports
Company South Africa to develop the local airport
as a base for storage of aircraft and for maintenance
and repairs. The fact that major automotive
manufacturers test their cars in the Northern Cape
on a regular basis is something that the Northern
Cape Economic Development Agency (NCEDA) is
promoting as an opportunity for investors.
Mining is at the heart of another planned
Northern Cape project, the Kathu IDZ. Big
companies such as Sishen Iron Ore Company,
Kumba, Assmang and South32 have expressed
support and the project has been submitted by
the NCEDA to Infrastructure South Africa to be
registered as a catalytic project.
The OR Tambo International SEZ (Gauteng
IDZ) leverages the advantages of being located
at a major transport hub for access to African
and international markets. The SEZ’s location
within the Ekurhuleni Metropolitan Municipality
means that there are also many opportunities
for tie-ups with a huge variety of manufacturing
enterprises – Ekurhuleni has the country’s densest
concentration of manufacturing operations. An
interesting example of inter-government partnership
came about in December 2020 when the City of
Cape Town transferred general industrial-zoned
properties worth R56.5-million to the Atlantis Special
Economic Zone Company (SOC) Ltd. In return, the
City became a shareholder in the company.
An earlier cooperative agreement between
the City of Cape Town and the Western Cape
Provincial Government had set out the terms for
the transaction once the Atlantis SEZ Company
was registered.
The signing of this land agreement meant the
ASEZ Company assumed responsibility for the
usage, administration and control of the property.
The total area of proclaimed land is 118 hectares,
of which 25ha has already been developed by
five investors. The difficulty was that the other
94ha of land belonged to the City of Cape Town
and was subject to various conditions about
the rate at which it could be rented out or sold.
By incorporating the City of Cape Town as a
shareholder, the land was unlocked and the SEZ
was in a position to expand.
A few kilometres north of Atlantis, the Saldanha
Bay Industrial Development Zone (SBIDZ) has
to work hand-in-hand with the Saldanha Bay
Municipality (SBM) and the Transnet National
Port Authority (TNPA) as it defines its role and
expands its offering. As an example of the level of
cooperation envisaged for SEZ development, the
R3.5-billion first phase of the expansion of the Port
of Saldanha is described in an SBIDZ press release
as being understood as “a long-term partnership
between the government, its institutions and the
private sector”.
The press release further explains how the
process fits into the national context:
“This transaction model has proven the best
way to fund long-term assets in a competitive
environment. The SBIDZ has begun the formal
process of submitting this project to the Investment
and Infrastructure Office in the Office of the
Presidency, supported by the National Treasury,
for inclusion in the Sustainable Infrastructure
Development Symposium (SIDS).” ■
19 SOUTH AFRICAN BUSINESS 2023
SPECIAL FEATURE
Geographical focus
SEZs are located in areas with particular resources and historical sectoral strengths. The
relevant SEZ is geared to serve, support and encourage development of those resources
and sectors. There are currently 15 Special Economic Zones in eight provinces. Some of
the zones are in the process of being officially proclaimed as SEZs.
Province: Limpopo
Name: Musina-Makhado SEZ
SEZ status: Approved
Focus: Light industrial, agroprocessing,
metallurgical, mineral
beneficiation, solar power
Province: Limpopo
Name: Fetakgomo-Tubatse SEZ
SEZ status: Pending
Focus: Green energy, hydrogen,
mining inputs, mineral
beneficiation
Province: Gauteng
Name: Vaal SEZ
SEZ status: Pending
Focus: Logistics, agriculture and
agro-processing, tourism, alternate
energy (solar, battery storage,
hydrogen)
Province: Gauteng
Name: OR Tambo International
Airport (Gauteng IDZ)
SEZ status: Approved
Focus: Beneficiation of precious
metals and minerals sector, light,
high-margin, export-oriented
manufacturing
Province: Gauteng
Name: Tshwane Automotive SEZ
SEZ status: Approved
Focus: Automotive, automotive
components, manufacturing,
export manufacturing
Province: Mpumalanga
Name: Nkomazi SEZ
SEZ Status: Approved
Focus: Strategic location on
Maputo Corridor is major selling
point; logistics, agro-processing,
manufacturing, nutraceuticals,
fertiliser products
Province: Free State
Name: Maluti-A-Phofung SEZ
SEZ status: Approved
Focus: Located on N3 highway;
logistics, manufacturing,
agro-processing
Province: KwaZulu-Natal
Name: Richards Bay IDZ
SEZ status: Approved
Focus: Export-oriented
manufacturing, storage and
manufacture of minerals to
boost beneficiation,
techno-parks
Province: KwaZulu-Natal
Name: Dube TradePort
SEZ status: Approved
Focus: Industry, cargo-handling
and logistics, agro-processing,
telecommunications
Province: Eastern Cape
Name: East London IDZ
SEZ status: Approved
Focus: Automotive, agroprocessing,
aqua-culture
Province: Eastern Cape
Name: Coega SEZ
SEZ status: Approved
Focus: Automotive, agroprocessing,
aquaculture, energy,
metals, logistics and business
process services (BPO)
Province: Western Cape
Name: Atlantis SEZ
SEZ status: Approved
Focus: Green Tech, including
automotive components and
components for wind turbines, solar
panels and green building materials
Province: Western Cape
Name: Saldanha Bay IDZ
SEZ status: Approved
Focus: Oil, gas and marine repair,
engineering and logistics services
complex, fabrication
Province: Northern Cape
Name: Namakwa SEZ
SEZ status: Pending
Focus: Downstream activities
from proposed zinc smelter,
mineral beneficiation,
construction, green energy,
petrochemicals, transport
Province: Northern Cape
Name: Upington IDZ
SEZ status: Pending
Focus: Renewable energy, aviation,
automotive, agro-processing
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INTERVIEW
Promoting the industrialisation
of South Africa
The Musina-Makhado Special Economic Zone is ideally placed to bolster national
plans, says CEO Lehlogonolo Masoga, while carrying out an inspiring vision for the
region’s economy and people.
Lehlogonolo Masoga
BIOGRAPHY
Lehlogonolo Masoga has more than 20
years of experience as an administrator
and public servant, most recently as
Deputy Speaker of the Limpopo Provincial
Legislature and MEC for Roads and
Transport. He served as the spokesperson
for the former LEDET MEC and Minister of
Public Administration, the late Mr Collins
Chabane. Lehlogonolo holds three Master’s
degrees: Governance and Public Leadership
(Wits), Development Studies (Limpopo) and
an MSc in Leadership and Change (Leeds
Beckett University, UK). He has B-Tech HRM
from UNISA and a professional diploma
in Humanitarian Assistance from the
Liverpool School of Tropical Medicine (UK)
and is currently a registered PhD candidate
in Public Administration.
Please explain the rationale behind Special Economic Zones.
Special Economic Zones (SEZs) are growth engines towards government’s
strategic objectives of industrialisation, regional development,
employment creation, the improvement of existing infrastructure, skills
development and technology transfer by attracting foreign direct
investment and strengthening the export of value-added commodities.
SEZs are geographically-designated areas set aside for targeted economic
and sector-focused activities, supported through special arrangements
(that may include laws) and systems that are often different from those
that apply in the rest of the country. This is a strategic phenomenon
which has transformed economies across the globe by developing
major industrial development zones with ripple effects such as the
development of new towns and smart cities.
How do SEZs fit into national plans such as the Industrial Policy Action
Plan (IPAP)?
IPAP recognises the role of industrial parks and Special Economic
Zones as strategic vehicles for industrial activities which promote
beneficiation and manufacturing. The support which is provided to SEZs
in terms of infrastructure, regulatory framework and incentive schemes
provides a conducive environment to bolster industrialisation. The IPAP
classifies Special Economic Zones into key categories which include
Industrial Development Zones, Free Ports, Free Trade Zones and Sector
Development Zones.
How does the MMSEZ fit into regional and provincial planning
initiatives?
The priorities of the Limpopo Development Plan 2020-2025 and the
Medium-Term Strategic Framework include the following:
• Transformation and modernisation of the provincial economy
• Integrated and sustainable socio-economic infrastructure
development
• Spatial transformation for integrated socio-economic development
• Economic transformation and job creation through regional
integration
These policy priorities reinforce the business case of the Musina-
Makhado Special Economic Zone in line with the vision of the provincial
SOUTH AFRICAN BUSINESS 2023
22
INTERVIEW
administration. A successful MMSEZ will result in
South Africa’s active participation and leadership
in the African Continental Free Trade Area (AfCFTA)
and the industrialisation strategy of SADC.
The Limpopo Development Plan articulates an
inspirational vision about the future as follows:
The Limpopo Province of the future will create an
environment that is mutually beneficial, where rural
living and smart cities coexist in harmony, adopting
the future without losing touch with our heritage.
The new Limpopo Province will:
• Develop new smart green cities with integrated
transport systems.
• Embrace renewable energy to reduce the
reliance on fossil fuels.
• Develop and implement new 4IR education
systems that can inspire and prepare the youth
and adults for the future.
• Evolve businesses to embrace the 4IR and be
globally competitive.
• Evolve the provincial economy from being
mostly dependent on the primary sectors, to
a diverse and inclusive economy, with growth
potential to reduce unemployment significantly.
• Have happy, prosperous and connected
communities.
• Have new economic infrastructure that can
enable Limpopo to leap into the future, such
as drone airports to assist in delivering packages
to rural areas.
What underpins the geographic spread of SEZs?
During the early 2000s, government adopted the
Industrial Development Zones, which were mainly
concentrated in the historical economic hubs and
coastal regions. The SEZ model recognised a need
to harness the country’s economic competitive
advantages across the value chains. Our economy
boasts various competitive advantages which span
across various provinces. This new approach has
created an unprecedented opportunity for rural
provinces such as Limpopo to participate in this
magnificent programme.
What measures are undertaken to encourage
investments in SEZs?
The success of a Special Economic Zone is
dependent on its capacity to attract and retain
both domestic and foreign direct investment. The
secret to unlocking investment lies in the readiness
of the infrastructure, packaging of a solid business
case, project preparation, marketing and investment
promotion strategies.
What collaborations is the MMSEZ engaged in?
When the MMSEZ was officially designated in 2017,
among the things that the provincial government
had to start preparing for was skills development
among the youth who will require new and
advanced skills to work in the project. An idea to
establish the Vhembe TVET College Musina Satellite
Campus was mooted and with the support of
Venetia Mine, a start was made. When the college
management were looking for a new piece of
land to build a proper campus around Musina, an
opportunity was identified to relocate the campus
into the North Site of the MMSEZ.
The beauty of the MMSEZ-VTVET partnership lies
in the fusing of skills development and industrial
platforms within the same zone. We are pleased
with the support provided to this pioneering
initiative by both the provincial and national
government. This initiative will also form part of
the foundation and a seed for the development of
a new smart city in Musina.
What is the MMSEZ strategy on SMMEs?
Small, micro and medium-sized enterprises
are the lifeblood of any economy to facilitate
economic empowerment and job creation.
Economic transformation through the
empowerment of SMMEs and historicallydisadvantaged
individuals has undergone
several policy setbacks that threatened the
country’s path for economic transformation.
Among the first steps undertaken by the
MMSEZ SOC to level the playing field for
the empowerment of local enterprise and
entrepreneurs was the development of an
Enterprise Development Strategy, through
which local enterprises and entrepreneurs
will be prioritised in terms of opportunities
presented by the SEZ. They will also receive the
necessary support for them to reach their full
potential and become the integral part of the
MMSEZ ecosystem. ■
23 SOUTH AFRICAN BUSINESS 2023
INVESTMENT
The Musina-Makhado Special Economic
Zone is attracting investment
Both private and public institutions have committed funds and a
mining company is engaged in a partnership.
The Musina-Makhado SEZ (MMSEZ) is
intended as a catalyst for massive future
investment in the region and support of
industrialisation and economic growth.
The MMSEZ has already attracted significant
investment from public and private investors and a
strong pipeline of further investment is envisaged.
Government
Major investments in infrastructure are being
provided by the Provincial Government of Limpopo
through the Limpopo Department of Economic
Development, Environment and Tourism (LEDET).
Of R600-billion pledged to develop infrastructure
for the North Site of the MMSEZ over the mediumterm
expenditure framework (MTEF), some R39-
million has been spent to date on engineering work
and the 2022/23 financial year will see a further
allocation of R200-million for items such as security,
water and electricity infrastructure.
The entity which has been created to run the
SEZ, the MMSEZ state-owned-company (MMSEZ
SOC), is responsible for coordinating investments
and guiding the process towards the realisation and
functioning of the Special Economic Zone.
Partnerships
The local Technical Vocational and Educational
and Training college, Vhembe TVET College, is
investing in establishing a campus in Musina to
complement the development of the SEZ.
A satellite campus was originally established
but through a partnership between the MMSEZ
SOC and Vhembe TVET the engineering campus
will relocate to a site within the SEZ site. De
Beers will support the graduates with on-thejob
training.
The SEZ will thus be supporting the skills profile
of the district and combining skills development
and industrial development. Additional investments
in student accommodation and retail outlets to
support the student population will further enhance
the diverse offering within the SEZ.
Having a tertiary college located within the SEZ
will form an important first building block towards
creating a Smart City in Musina.
Private sector
The investment value of the 1 000MW Solar Power
Plan to be constructed in the SEZ is valued by the
provincial government at US$1.5-billion. The project
is being undertaken by Huadian Hong Kong Ltd,
the company that has signed a Memorandum of
Understanding (MoU) with LEDET.
Eskom has started with the inception and
scoping report for bulk electricity infrastructure of
the MMSEZ, which will connect the power plant to
the grid. ■
FURTHER INVESTMENT OPPORTUNITIES
OUTSIDE THE ZONE
Real estate
Retail | Hotels
Private hospital
General manufacturing
Agro-processing | Warehousing | Industrial property
Petroleum depot
INSIDE THE ZONE
Renewable energy
Office park | Hotel | Student accommodation
Real estate
ICT
Musina dam
Cross-border trade
Airport development | Education and training
Entertainment
MMSEZ
SPECIAL FEATURE
A world of game-changing opportunities
What is the Musina-Makhado Special Economic Zone?
What is Musina-Makhado Special Economic Zone (MMSEZ)?
MUSINA-MAKHADO SEZ CLUSTERS
The What MMSEZ is the is Musina-Makhado a flagship initiative Special Economic of the Limpopo Economic Zone? Provincial
Zone?
MUSINA-MAKHADO SEZ CLUSTERS
The Musina-Makhado SEZ is a flagship initiative of the Limpopo
• Metallurgy (Minerals Beneficiation)
Government. The Musina-Makhado MMSEZ The is a North flagship SEZ Site is initiative wholly a flagship owned of initiative the and Limpopo operated
of the
• Metallurgy (mineral beneficiation)
Provincial Government implemented through the Musina-Makhado • Energy Generation
by Limpopo Provincial the MMSEZ Provincial Government SOC. The Government South implemented Site is implemented operated through by through the through
MMSEZ the
• Energy generation
SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi
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
• Manufacturing
• Manufacturing
Resources Operator, with Hoi
Mor
Mor
Resources a Chinese Resources Holding Shenzhen
Holding Operator, Company Holding Hoi
Company
Mor Ltd.
Shenzhen Company Resources
Ltd. The Hoi Ltd. Holding
MMSEZ Mor Resources Company
as an economic
• Agro-processing
• Agro-Processing
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
promote aims growth to
• Logistics • Logistics
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
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
domestic
in order and
MMSEZ INVESTMENT WHAT ARE THE INCENTIVES FOR
domestic to investments, (R&D) attract and investments, targeted technology research foreign and transfer. research development.
and and domestic development.
investments,
research and development.
Where is the MMSEZ located?
• • • Preferential INVESTING corporate IN THE tax MMSEZ?
Building • Preferential allowance corporate and tax tax
relief
Employment • Building tax allowance incentive
and tax relief
Investment The Musina-Makhado opportunities SEZ is located Investment in the vicinity of the Beit
• inside Bridge the Border zones:
zone: Post which is one opportunities of the busiest ports outside of entry in • SA
• and Industrial an undisputable infrastructure gateway to the zones:
zone: South African Development
• • Community Corporate offices (SADC) countries. The • MMSEZ Real estate has the potential to
• • become Logistics an services inland intermodal terminal, • Retail facilitated and hotels by its anchor
• • along Petroleum the North-South supply Corridor, • and Schools directly and connecting airport to the
• Customs-controlled • Employment tax area incentive
tax relief
Rental • Customs-controlled space discounts area tax relief
Readily • Rental available space infrastructure
discounts
Sufficient • Readily land available for greenfield infrastructure projects
Access • Sufficient to agricultural land for and greenfield mineral projects
resources
Easy access • Access to to the agricultural up-north & mineral (SADC) resources market
• country’s Industrial major chemicals ports through both • Health
N1 road and the Johannesburg-
• Accessible • Easy logistics access to support the up-north for the movement (SADC) market
of goods
Musina railway line, for the trans-shipment • Entertainment
of sea cargo and
• Accessible logistics support for the
• Musina Dam
manufactured goods to inland destinations and the SADC markets. movement of goods
POTENTIAL INVESTMENT OPPORTUNITIES IN AND OUTSIDE THE MMSEZ
ENERGY &
METALLURGY
Power Plant
Iron and
Steel Plant
Stainless Steel Plant
Ferromanganese Plant
Ferrochrome Plant
Chrome Plant
Lime Plant
AGRO-PROCESSING
Food Processing Facility
Fresh Produce Market
Canning Facility
Cotton Beneficiation
Timber Processing
LOGISTICS
Logistics Services
Warehousing
Distribution
Container Yard
Vehicle Distribution
Cold Storage
Bonded Warehouses
INFRASTRUCTURE
Construction Services
Engineering Services
Re al Estate
Development
Retail Property
Hospitality Facilities
Bu ilding Materials
Manufacturing
and Supply
MANUFACTURING
Light Industries
Basic Assembly
Automotive Assembly
Electromechanical Operations
Component Manufacturing
Fertilisers
Agro-chemicals
Petro-chemicals
ICT Solutions
Furniture Manufacturing
Packaging Services
CONTACTS
MS TSHAMAANO MAKUYA
MR RICHARD ZITHA
Contact MUSINA-MAKHADO details SEZ SOC
Ms Tshamaano Stakeholder Makuya,
Mr Richard Zitha, Project Executive
Executive
Relations Manager
Project Executive
Musina-Makhado Makhado SEZ SOC
Stakeholder Relations Manager
Cell: Investment +27 071 391 Promotion 391 8188
Address: 29 93 Market Biccard Street,
Street,
Cell: +27 067 Tel: 411 +27(0) 411 9192
15 295 5120
Email: Cell: +27 R.Zitha@mmsez.co.za
Tel: 71 +27(0) 391 8188 15 295 5120
Polokwane, Limpopo Polokwane,
Email: T.Makuya@mmsez.co.za
Cell: +27 (0)67 411 9192
Email: R.Zitha@mmsez.co.za
Cell: +27 (0)71 391 8188
Province, Limpopo RSA Province (RSA)
Tshamaano.Makuya@lieda.co.za
19 LIMPOPO Richard.Zitha@lieda.co.za
BUSINESS 2020/21
MUSINA MAKHADO
SMART CITY
A Smart City programme is envisaged for northern Limpopo Province, catalysed by the
development of the multi-sector Musina-Makhado Special Economic Zone.
A
new Smart City is taking shape in Limpopo Province. It
is catalysed by the economic stimulus of the Musina-
Makhado Special Economic Zone (MMSEZ). The new
Smart City will integrate the towns of Musina and
Makhado to become the pre-eminent trade and
industrial centre of Southern Africa.
The new Smart City will reignite the rich civilisational heritage
of the Great Mapungubwe, Thulamela and Zimbabwe Kingdoms
which at their height in 1000AD
produced artifacts in gold and traded
globally as far as Arabia, India and
China. This region will once again rise
and become a modernised industrial
and global trade hub, building on
its heritage and embracing the
technology revolution.
The geographic location of
the Smart City in the northern part of South Africa bordering
Zimbabwe and connecting into the rest of Africa gives it a critical
comparative advantage, together with the natural endowments
within the surrounds of Musina and Makhado which include
high-value agricultural land, mineral resources and functional
spatial relationships. If harnessed fully these will help to create a
competitive regional economy for South Africa and the continent.
“A leading innovative, sustainable and
inclusive high-tech Africa gateway city”
_________________
A leading innovative,
sustainable and inclusive
high-tech Africa gateway city
________________
The advantage of the MMSEZ is that it is part of a national economic
programme, located within the National Transformation Corridor that
links Gauteng with its dynamic economy to the Beitbridge Border Post,
one of the busiest ports in Africa.
The goal of the Smart City is transformational. People’s needs and
aspirations are at the centre of planning. The foundations are proper
sanitation and waste management, 24-hour electricity and water
supply, efficient mobility and public transport with a network of wellconnected
roads and access to reliable
and high-speed telecommunications.
The circular and green economy based
on reuse, recycle, share, low/zero-carbon
footprint meets with the concept of the
Smart City. The MMSEZ, working together
with all three spheres of government
and stakeholders, aims to develop the
designated MMSEZ as a catalytic driver for
a Smart City which is envisioned to be:
A leading innovative, sustainable and inclusive high-tech Africa
gateway city, driven by residents and visionary investment within
a prosperous rural-urban integrated region and operating as a
highly connected – freight/warehousing/ logistics/transport/retail/
manufacturing – industrial hub supporting the SEZ within a superefficient
Gauteng-Limpopo-Zimbabwe economic corridor.
SOUTH AFRICAN BUSINESS 2023
26
Building the future together
Message from Dr Mofasi Lekota, MMSEZ Board Chairperson
The Board of Directors of Musina-Makhado Special Economic Zone (MMSEZ)
recognises and appreciates the immensity of the challenges and attractive
opportunities that come with the MMSEZ. We understand the mutual and
Antonvilla
interdependent relationship between a successful SEZ and our envisaged
Smart City. We also acknowledge that the long-term nature of this project
and its intergenerational characteristics require long-range planning
and short-term execution. It requires human and capital resources that
are committed in the long term and resilient enough to withstand the
turbulences inherent in these types of projects.
The core triangle of Beitbridge, Musina CBD and Antonvilla (Northern SEZ) will catalyse a region
A vision of the emergence of a Smart City in the land between Musina
This core triangle will catalyse a region of
of smartness smartness and and development development with upgrades with upgrades to roads and connectivity that will create the
and Makhado energises the directors and staff of the MMSEZ company to
to roads and connectivity that will make the
Musina-Makhado corridor.
perform to the best of their abilities from day to day and from year to year. It
Musina-Makhado corridor
MMSEZ SMART CITY
is this vision that shines a light on our path to build a platform from which
6
the next generation will derive optimal economic benefits. We continue the
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
a transformed, competitive and spatially integrated regional maintain an environment that our children and their children will happily
economy and this will lead to the upliftment and well-being inherit from us. What will emerge between these two northern-most towns
of people living in Vhembe, its neighbouring districts and the of Limpopo province is a Smart City that will offer endless opportunities for all
Province of Limpopo at large.
our people. It is a Smart City that will offer business, job, skill development and
The development of the Smart City starts with the Northern entertainment opportunities for the people of the Vhembe region, Limpopo
SEZ Site of the MMSEZ as a smart precinct, SMART together with PRECINCT
the Province and the nation. This will be a Smart City we will all be proud of.
upgrading of the Beitbridge border post and the town of Musina
to become an integrated The Northern core Site of of the the new MMSEZ Smart in Antonvilla City. This will core be the first
triangle will catalyse smart a region precinct of in smartness the and city that development will improve with the economy
and create jobs.
upgrades to roads and connectivity that will make the Musina-
• A green industrial estate where one can live, work, play.
Makhado corridor the fastest-developing area in Limpopo, South
• Investments into light manufacturing, retail, trade, freight and logistics warehousing, and
Africa and Southern agro-processing Africa. will be sought.
• Innovation and incubation of new businesses to work on latest technology in electronics
and other industries will be promoted.
• The buildings and management of the precinct will use solar energy and conversion of
THE MODEL
waste to energy to ensure sustainability.
Key:
The Smart City Model will be implemented incrementally:
1 Beitbridge border
• First step: integrate the Northern Site of the MMSEZ, the
2 Musina CBD
Beitbridge border and the Musina town to form the Smart City.
3 Antonvilla
• Second step: upgrade the N1 between Makhado and Beitbridge
(Northern SEZ)
as part of the Smart City Corridor.
• Third step: promote strategic developments along the N1
Musina-Makhado Smart City corridor.
• Fourth step: renew and regenerate the towns of Musina and
Makhado.
• Fifth step: implement the corridors, ensuring connectivity to
villages and promote agriculture and tourism, activating the
The Northern Site of the MMSEZ in Antonvilla will be the first smart precinct in the
Smart Region.
Smart City that will improve the economy and create jobs. A green industrial estate
• Parallel steps: development of roads for connectivity; work
where one can live, work, play. Investments into light manufacturing, retail, trade,
on telecommunication coverage; training of communities to
freight and logistics, warehousing and agro-processing will be sought. Innovation
16 MMSEZ SMART CITY
use technology in partnership with the institutions of higher
and incubation of new businesses to work on latest technology in electronics and
learning and through schools; building awareness on zero waste
other industries will be promoted. The buildings and management of the precinct
and low-carbon living. The work on the metallurgy complex at
will use solar energy and conversion of waste to energy to ensure sustainability.
the Southern SEZ site will also be undertaken in parallel.
A vibrant partnership with the University of Venda in co-creating
the Smart City was launched on 16 September 2021, when the model Contact Details:
was unveiled. The next step will be to develop the supply of skills Mr Livhuwani Muligwe: MMSEZ Smart City Model Project Manager
needed for a Smart City and the ongoing operation of the SEZ. Tel: +27 66 174 0798 | 93 Biccard Street, Polokwane, Limpopo Province, RSA
27 SOUTH AFRICAN BUSINESS 2023
FOCUS
To reignite the birthplace of
industrialisation in South Africa
The Vaal Special Economic Zone (Vaal SEZ) is intended as a catalytic project to
boost economic growth and create jobs in the Vaal region.
Lesedi
Heidelberg is the seat of the
municipality. Emfuleni in the west is
home to the towns synonymous with
steel, Vanderbijlpark and Vereeniging
and the Sasol Petrochemical complex
to the south of Sedibeng in the Free
State Province.
The Sedibeng District, host of the proposed Vaal SEZ, comprises three
local municipalities and is strategically located both in terms of highways
and railways and in relation to three economically-powerful
metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.
A
considerable amount of planning has
already gone into the concept which ties
in to development goals and frameworks
at local, regional and national level.
The area
The three local municipalities which make up the
Sedibeng District Municipality are predominantly rural.
Midvaal is the most rural of the three local municipalities,
with urban development concentrated along routes
R59 and R82 in the north-western parts of the municipal
area. Midvaal has strong regional linkages to major
economic cores.
Lesedi is also primarily rural, with the major urban
concentration located in Heidelberg/Ratanda nodes,
along the N3 freeway at its intersection with Provincial
Route R42, east of the Suikerbosrand Nature Reserve.
Vision
By 2030, an industrialised, globally
competitive, export-driven regional
economy.
Mission
Our Mission is our tagline: To Reignite the
Birthplace of Industrialisation in South Africa.
Key outcomes
• The Vaal SEZ will leverage existing assets and
infrastructure
• It will pursue opportunities in the green economy,
decarbonisation, hydrogen and net-zero emission sectors
• To become the go-to investment destination
• To be a multi-tier (multiple sites, multiple sectors),
anchor SEZ hub, spatially dispersed within the region
• To achieve a seamless, integrated, socially-cohesive
society, with sustained economic growth and quality
jobs for the people of the Vaal region.
Process
The Vaal SEZ Master Plan was completed at the
end of June 2022. Site analyses of secured sites has
been completed.
A pipeline of firm investment commitments is being
established. Township establishment processes will
be initiated for land parcels to service current highpriority
investors.
The SEZ designation application will be submitted
by the end of October 2022.
SOUTH AFRICAN BUSINESS 2023
28
FOCUS
INVESTOR VALUE PROPOSITION
Enabling framework
Strong government support, robust legal and
regulatory framework.
Strong commercial and significant economic and
social returns, including incentives and rebates.
Locational benefit
South Africa’s economic hub, sound logistics
networks and infrastructure.
Infrastructure services
One-stop shop services and the Vaal SEZ’s Shared
Services and investor access to serviced land and
funding options.
Management capability
Independent management body, cooperation
between dedicated bodies, local, regional and
national government.
Logistics
Sedibeng District Municipality is traversed by
extensive national and provincial major railway and
road mobility infrastructure:
Route N1: the major national north/south freeway
linking Musina at the northern border of South
Africa to Cape Town in the south
Route N3: the major transport link between
Gauteng Province and eThekwini, passes through
Sedibeng District’s Lesedi Municipality
Route N17: the main link between Johannesburg,
Secunda, eSwatini and the Richards Bay harbour
Route R103: the old Johannesburg-Durban road
runs parallel to Route N3
LESEDI
Two land parcels earmarked by the municipality
for SEZ development (one of 20ha and another
of 149ha). Access to the N3 to allow good
connections to Johannesburg and KwaZulu-
Natal. Three-way collaboration between the
Municipality, MTP Aviation Solutions and the Vaal
SEZ to widen the SEZ area to include parts of the
Heidelberg Aerodrome.
MIDVAAL
Land has been secured adjacent to the Klipriver
Business Park (500ha) with access to the R59 via
the R550. Also, 100ha secured next to SA Steel
Mill off the Pierneef Road offramp, as well as 9ha
in DeDeur, zoned for agricultural purposes and
earmarked for agro-procressing. Council has
approved the land classification.
EMFULENI
The Emfuleni Local
Municipality Council has
resolved to make two
adjoining land parcels
available, totalling 697ha.
The site is bordered
by the N1 highway
and is close to the
ArcelorMittal factory. This
site is also earmarked
for the development
of a Hydrogen Valley
Concept.
29 SOUTH AFRICAN BUSINESS 2023
FOCUS
Multi-site Special Economic
Zone will be game-changer
Vaal SEZ aims to build on region’s strengths to create
sustainable businesses
The Vaal SEZ is to be created within the Sedibeng
District Municipality, which already has several attractive
assets for would-be investors:
• An existing manufacturing base (eg, Heineken,
ArcelorMittal, SASOL, SA Steel Mills) and a history of
industrial activity
• Agricultural land available for development
• affordable industrial and commercial land earmarked
for development
• Vaal River, tourism
• Vaal Dam, tourism
• Existing university and graduates
• Young population with huge potential
• Skilled artisans
• Excellent rail and road connections
• Proximity to three of South Africa’s largest
metropolitan markets, namely Johannesburg,
Ekurhuleni and Tshwane
The Vaal region is a historic cluster
of capital-intensive and heavilyindustrialised
manufacturing which was
underpinned by a globally-competitive
mining and iron and steel sector.
These experienced a marked decline from the
1990s, but plans are underway to revive the region,
using the tried and tested method of creating a
Special Economic Zone (SEZ) as a hub for business
activity. Where the Vaal SEZ is unique is that
various satellite hubs will work out from a central
hub like spokes in a wheel, thus exploiting the
existing strengths of particular sites and spreading
economic benefits across the area more widely.
Regenerate the Vaal area and support economic activity
The Vaal region presents a compellingly unique
value proposition of a thriving regional value-adding
industrial economy which effectively leverages
its comparative locational attributes and resource
endowments. In addition to spearheading the revival
of the existing industrial manufacturing base, it will also
facilitate the creation of new growth and differentiation
opportunities which include low-carbon manufacturing,
energy, agriculture and agro-processing.
Despite the ongoing challenges that have faced Vaal
businesses over the years, it has been found that existing
businesses have continued to support communities
and explore ways to be more sustainable. Significant
investment continues to be made by existing businesses
and this bodes well for how the region is viewed by its
residents – a vote for the future.
SOUTH AFRICAN BUSINESS 2023
30
FOCUS
Cannabis
• The cannabis economy is projected to grow quickly.
• Available land
• Land is available for future development.
• Land is affordable
Low-carbon economy clusters
• Solar and battery storage
• The circular economy
• Biomass
• Carbon capture
• The hydrogen economy: aim to be South Africa’s
preeminent hub for the hydrogen economy
Agro-processing
Investment as transformation
There is a strong case for investors to join
and benefit from a green energy-fuelled reindustrialisation
of the Vaal region. This will
transform this industrial basin into the country’s
preeminent hub for low-carbon manufacturing
and renewable energy production.
The Vaal SEZ is connected to other national
and provincial initiatives in Gauteng. This
regional development aims to create linkages
and the integration of the host province’s growth
strategies with the local economic development
strategies of the host municipalities to national
economic initiatives.
Targeted investment strategy
• High-impact investments into the food,
agriculture and agro-industries value chain
• Investment in gateway logistics (air, road, rail,
river) to exploit the locational advantages of
the Sedibeng District
• Investment in the Blue Economy and the
Tourism Sector using the advantages of the
Vaal River
• Building a Smart City along the Vaal River to
enable SEZ development and to drive urban
regeneration
• Building strong local linkages between
township/rural economies with the value chains
that the Vaal SEZ will develop and strengthen
• Food, beverages, agro-processing and agribusiness
• Agro-processing – plant products and value chains
• Agro-processing – livestock and value chains
Logistics
Mark Stebnicki on Pexels
• Warehousing and storage – packaging
• Expansion of gateway logistics and infrastructure
• Logistics – exploiting locational advantages
Skills development and training
• Formalised relationship with tertiary educational
institutions
• Development with a purpose
• Pool of skilled resources for industry
• Training for future skills
Light manufacturing and infrastructure
• Maintenance of existing assets
• Creating new and sustainable infrastructure to
support targeted industrial activities
• The Vaal Dam is a significant asset
31 SOUTH AFRICAN BUSINESS 2023
FOCUS
Invest in the Free State
Excellent location, resources and incentives combine to make South Africa’s most
central province an attractive investment proposition for businesses of all sorts.
Situated in the heart of South Africa and
sharing borders with Lesotho and six
other provinces, the Free State’s location
provides easy access to the main ports
of Durban, East London and Gqeberha and is
therefore ideal for logistics, manufacturing and
agro-processing operations.
The main economic sectors are agriculture,
mining and manufacturing. The concentration of
large chemical companies in the town of Sasolburg
is testimony to the influence of global chemicals and
energy company Sasol.
Companies relocating not only enjoy the
opportunity to source inputs at competitive
prices, but also to benefit from domestic,
regional and international markets for their
products and services.
There are industrial parks and a Special
Economic Zone (SEZ) that are supported by the
Department of Trade, Industry and Competition.
Industrial parks are situated in Maluti-A-Phofung,
Botshabelo and Thaba Nchu.
The Free State’s strengths for inward investment
are boosted by:
• openness to business, trade and investment
• abundance of natural resources
• low factory rentals
• Africa’s leading telecommunications network
• incentive packages uniquely developed for
Special Economic Zones and industrial parks
• Free State Development Corporation (FDC)
support services for priority sectors such as
agro-processing and manufacturing
• a large labour pool
• diverse cultures
• competitive land and building costs.
Select investment opportunities include:
agriculture and agro-processing; tourism and
property development; medical and pharmaceutical
production and distribution; manufacturing; renewable
and clean energy and medical tourism.
FREE STATE DEVELOPMENT CORPORATION
The Free State Development Corporation (FDC)
contributes to the Free State’s economic development
through four service delivery pillars: SMME/co-operative
funding and support; export-related services; property
management; investor services.
FDC services to investors and business include:
• Project appraisal and packaging.
• Promotion and facilitation of investment projects
and facilitation of access to finance.
• Providing access to business and government networks
and assistance with business retention and expansion.
• Information on statutory requirements, investment
advice and assistance with investment incentive
applications and business permits.
• • Assisting with the development of local and international
markets and facilitating joint ventures/equity
partnerships through identification of local partners.
FDC property management
The FDC ovesees 253 commercial properties and 290
industrial sites, which it uses to:
• Facilitate commercial and industrial activity
• Assist new investors looking for suitable premises
• Facilitate SMME development, particularly in rural areas
The substantial property portfolio makes FDC one
of the biggest property owners in the province with
industrial, residential and commercial properties in excess
of 900 000m² situated in the Mangaung Metro and Thabo
Mafutsanyana District.
FDC industrial properties are located in
• Thaba Nchu
• Botshabelo
• Industriqwa – Harrismith
• Phuthadithjaba
SOUTH AFRICAN BUSINESS 2023
32
LIMPOPOBUSINESS.CO.ZA
EESTATEBUSINESS.CO.ZA
ONLINE JOIN ONLINE JOIN ONLINE
ONLINEWWW.GLOBALAFRICANETWORK.COM | WWW.FREESTATEBUSINESS.CO.ZA
| WWW.LIMPOPOBUSINESS.CO.ZA
| | The Botshabelo Industrial Park is situated approximately
60km from the economic hub on the eastern side of the
Mangaung Metro.
Maluti-A-Phofung Special Economic Zone
The main objective of the MAP SEZ is to attract
foreign and direct investment and to stimulate the
local economy as well as to create meaningful work
opportunities for people of the Free State as a whole
and in particular the Maluti-A-Phofung region.
The MAP SEZ is nestled on 1 038ha of land which
is divided into four precincts that include the crossdocking
and container-terminal precincts. The MAP
SEZ is a multi-sector processing, manufacturing,
engineering, logistics services and transport complex,
serving the needs of the upstream value-adding,
beneficiation, processing and production service
companies operating across sectors and geographic
areas in Southern Africa.
A number of incentives are available to ensure MAP
SEZ’s growth, revenue generation and international
competitiveness. These incentives include:
• 15% corporate tax instead of 28% corporate tax
• Building allowance tax
• Employment incentive tax
Contact details for investors:
Free State Development Corporation
Tel: +27 51 4000 800
Emails: wecare@fdc.co.za | invest@fdc.co.za
Website: www.fdc.co.za
Free State Province Free State Province
Center yourself in the Center heart yourself of South in Africa the heart of South Africa
Free State Province Free State Province
Center yourself in the Center heart yourself of South in Africa the heart of South Africa
FOCUS
Tourism investment
From the impressive rock formations of the Golden Gate
Highlands National Park to the country’s biggest dam,
Gariep Dam, with cultural, historical and adventure
experiences in between, the Free State caters to every
tourist’s taste.
There are also multiple investment opportunities.
The Free State Gambling, Liquor and Tourism Authority
(FSGLTA) is doubling up on efforts to attract international
tourists and to create new markets domestically through
programmes such as “Travelling Differently”.
Tourism infrastructure is being enhanced and new
skills taught to prospective employees in the sector.
Bloemfontein’s newest investment is the R95-million
Premier Splendid Inn.
All of the major hotel brands have a presence in the
Free State. Protea Hotels has properties in Bloemfontein,
Harrismith and the popular resort town of Clarens while
Sun International, the Tsogo Group and City Lodge are
well represented. ■
MESSAGE FOR INVESTORS
MEC for Economic, Small
Business Development, Tourism
and Environmental Affairs, the
Honourable MP Mohale, has been
supportive of various publications
designed to attract investment to
the province. In addition, he notes:
While investment is an essential
ingredient to economic growth,
it should be pointed out
that at the centre of the Free
State government’s economic
development strategy, as well as the Value Chains Economic
Transformation Approach, is human capital formation and
development through universities and colleges, and various
institutions pursuing innovation and offering proof-ofconcept
services, to name a few. The Free State is poised to
become a laboratory for excellence in education outcomes,
research and innovation, particularly in the fields of health,
agriculture, agro-processing, manufacturing, water
management, ICT, pharmaceuticals and rural development.
Domestic and potential investors from around the world
are welcome to contact the DESTEA Head of Department
at: HoD_office@destea.gov.za.
SOUTH AFRICAN BUSINESS 2023
The Northern Cape is
attracting new-age investments
Limitless renewable-energy resources, a new port, a Special Economic
Zone and green-hydrogen investments make the province the ideal
destination for forward-thinkers.
The Northern Cape is now – and
will in the future – be the best
global investment destination for
investors in mining, agriculture
or energy. These are the primary sectors.
However, there is the added benefit
for the province and for investors of
renewable energy being scaled up across
the province. This puts the Northern
Cape in a good position to have an aggressive
industrialisation agenda.
To this end, the 2022/23 financial year began with
a positive start as the Northern Cape recorded the
lowest unemployment rates in the country together
with an improved GDP figure of R130-billion, up from
R98-billion in 2019. The key drivers for the Northern
Cape’s sterling performance were investments in
the mining and energy sectors. These were made
possible through good governance and investment
facilitation on top of a good resource base.
The Northern Cape is a key contributor towards
South Africa’s Just Energy Transition (JET). The
Northern Cape Provincial Government, in line with
the Green Hydrogen Strategy that was launched in
November 2021 at COP26 in Glasgow, has initiated
pre-feasibility studies that are championed by its
strategic partner and anchor investor, Sasol.
Since the introduction of the national
Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP), the Northern
Cape has attracted a disproportionate percentage
of solar and wind projects, worth billions of rands to
the local and national economy.
The advent of the green-hydrogen economy
has given the Northern Cape the opportunity to hold
a key position in this new field as a contributor to
country’s green economy. This is enabled by the natural
endowments that are available in the province.
The South African response and offer to the global
village is well articulated via the South African Green
Hydrogen Roadmap that is based on the following
tangible references that provide a first-class competitive
advantage:
• A well-developed strategy and an existing
regulatory and implementation structure that has
been developed since 2007
• Having the world’s largest grey-hydrogen producer
in the world, Sasol, as the lead investor
• The REIPPPP that has been in existence for more than
10 years, generating more than 5GW of electricity
The Northern Cape has exceptional renewable energy
resources. As the biggest South African province by
land mass, the province is sparsely populated, has little
alternate use for the land and has an uncomplicated
topography. Collectively, this amounts to an exceedingly
supportive environment for renewable-energy
generation and green-hydrogen development.
The renewable energy capacity of the Northern
Cape is more than sufficient for what South Africa
SOUTH AFRICAN BUSINESS 2023
34
Credit: Pexels
would require based on its projections, but farreaching
consideration is being given as to how the
renewable capacity is developed and scaled up.
BOEGOEBAAI PORT
The significant support the Boegoebaai project is
receiving from both the public and private sectors
is highlighting its promise.
Ultimately, an extensive value chain for
investment exists, ranging from desalination and
electrolyser production, the renewable energy
resource required, grid capacity, auxiliary services
and ultimately the possibly of manufacturing
opportunities for the industry and value addition to
local mineral resources.
Part of the feasibility study, Sasol’s final master
plan report, will be made public and this will entail
more elaborate detail about the value chain. A
green-hydrogen-specific Special Economic Zone (SEZ) is
envisaged to host the extensive value chain that stems
from the production of green hydrogen. The site will
be 30 000ha in extent. This will be the world’s leading
investment destination for green hydrogen within a
green SEZ.
In addition, the existing mining, agriculture, transport and
energy sectors need to be transitioned and incorporated into
this JET-driven Northern Cape Green Hydrogen Strategy. For
the future, plans must be made for heavy-hauling trucks in
the mines and on roads and for green-hydrogen fuelling
stations and the like. The array of investment potential within
this green economy does not conclude here, though. A
range of other demands must be provided for, including
extensive developments, infrastructure, logistics and the
demand for human capital. Investors are urged to opt in
and to secure for themselves a slot in this prime, once-in-alifetime
investment opportunity.
CONTACTS
Riaan Warie
Director: Trade & Investment
Promotion
Northern Cape Department of
Economic Development and
Tourism
Tel: +27 (0)87 310 7683
Fax: +27 (0)53 831 3668
Cell: +27 (0)79 877 2828
Email: RWarie@ncpg.gov.za/
warieriaan@gmail.com
Hendrik Louw
Acting CEO
NCEDA
Tel: +27 (0)53 802 1638
Cell:+27 (0)60 997 7222
Email: hlouw@nceda.co.za
FOCUS
Newlyn’s First-in-World Bulk Minerals
Storage Solution
Proposed back-of-port manganese terminal in Ngqura
Newlyn is a home-grown company that has invested and continues to invest in long term
capital intensive transformational infrastructure in South Africa. We believe in the economic
promises potential near-zero of the country and dust don’t have any emissions investments outside and South Africa. high Our future efficiency
is
inextricably linked to and fully aligned with the success of SA Incorporated. We proactively
contribute to the success of our country by investing for the long term, securing leading
global supply chain technology, facilitating technology and skills transfer to South Africa, to
raise the standards across the entire bulk materials logistics supply chain ecosystem. In so
doing, we have demonstrated that we contribute to meaningful socio-economic development
in all the regions in which Newlyn operates.
Contact us:
031 313 6500
Firdhose Coovadia
firdhosec@newlyngroup.com
The future of sustainable, operationally-efficient
Sagie Chetty
mineral export logistics sagiec@newlyngroup.com
https://newlyngroup.com
ESG and Supply Chain Optimisation
• Near zero dust emissions
• Rapid unloading of trains (6,500tph)
• High speed shiploading of up to 10,000 tph
• Vessel turnaround sub 20 hours
• No product degradation
• Catalyst for jobs and economic development
• Common User Infrastructure: market access
for emerging miners
• Significant financial benefits to miners,
Transnet and the fiscus
CONSTRUCTION & COMMISSIONING – 2 YEARS
As part of its vision to deliver continuous
innovation in offering sustainable and
efficient logistics solutions to its clients,
Newlyn has, together with global
OEMs Eurosilo and Bruks Siwertell, developed
proprietary technology for what will become
the world’s first near-zero dust emissions mineral
ore back-of-port export terminal with superior
operating efficiencies.
Open stockpiling of manganese in the Port
of Port Elizabeth and in back-of-port facilities in
Markman and Ngqura has created significant
issues. Apart from the serious public health and
environmental concerns, the enormous impact of
these increased volumes on the region’s already
burdened infrastructure, roads, traffic, tourism and
ecosystems is immeasurable. It has, for example,
resulted in expensive and inefficient watering to
reduce dust storms over the popular Kings Beach,
smart spaces. transformational infrastructure
while also stymieing attempts to create a touristfriendly
waterfront around the small boats harbour
within the port.
Transnet intends moving the manganese
bulk export terminal to the Port of Ngqura within
the Coega SEZ, 20km to the north of the city of
Gqeberha. Newlyn’s proposed back-of-port solution
for manganese in Coega will perfectly dovetail with
Transnet’s proposed plans. It will serve to accelerate
the relocation of manganese exports from
Gqeberha to Ngqura and is designed to augment
Transnet’s proposed manganese export terminal in
Ngqura to ensure a sustainable solution is offered to
the manganese miners.
Back of Port Manganese
Terminal – Ngqura
Closed design
The Newlyn design for The the future back-of-port sustainable storage
and handling of mineral operationally ore is entirely efficient closed export to the logistics
environment, hence near-zero dust emissions and
associated product losses.
The efficient design involves rapid unloading of
the train and movement of manganese via piped
conveyor to specialised silos which are equipped
with mechanical systems for soft handling of ore.
Thereafter, ore is accurately discharged from the
silos via pipe conveyors to the ship-loaders at a
loading rate of up to 10 000 tons per hour. As a result,
ship-loading can be achieved in less than a day
compared to the current 5-6 days. This significantly
reduces demurrage for miners, improves train
turnaround times and most importantly will serve
to debottleneck the existing heavy-haul rail line from
the Northern Cape. Incremental rail capacity created
by the system can be made available to emerging
miners currently unable to secure sufficient rail
export allocations for manganese.
The Newlyn design is first-in-the-world for
export of mineral ore and has a footprint of one
third of conventional back-of-port storage.
SOUTH AFRICAN BUSINESS 2023
36
Meeting national objectives
Simulation models have demonstrated that
Newlyn’s project can coexist with Transnet’s planned
manganese export terminal, to ensure that export
logistics infrastructure can meet the forecasted
export potential from South African miners.
The project will address several objectives in
the national strategic and economic interest of
South Africa including:
• Cargo migration from road to rail;
• Technology and skills transfer of the best available
global technology;
• Private sector participation in infrastructure
development;
• Enabling market access for emerging manganese
miners;
• Stimulating regional and provincial socio-economic
development; and
Bayhead multi-modal rail facility is the
largest of its kind in Africa
• Delivering environmentally sustainable solutions
to communities.
The project has received overwhelming support
from manganese miners and environmental NGOs.
Newlyn is planning a similar project in Saldanha to
address environmental challenges and efficiencies
associated with iron ore and manganese back-ofport
operations there. ■
About the Newlyn Group
Developers of transformational logistics and storage infrastructure
The Newlyn Group was established in 1996 to
engage in opportunities for black participation
within the port logistics sector, a sector which
previously excluded people of colour.
Initially, Newlyn targeted potentially prime
industrial properties and created value by
rejuvenating ageing infrastructure.
Today, Newlyn is a leading private developer
of land close to or within port precincts along
strategic high-value/volume trade corridors.
Newlyn adopts an innovative design approach
transforming these land parcels into highlyefficient
logistics facilities that offer bespoke
solutions to leading multinational and
national clients. Newlyn’s tried and trusted
design approach and in-house construction
capabilities and equipment ensures a bespoke
solution that enhances our clients’ businesses.
Newlyn’s growth is driven by a highly credible
team of experts with over 150 years of cumulative
experience at the highest level. Newlyn is a proudly
South African, homegrown Level One BBBEE entity
committed to investing in South Africa for the
long term. The Newlyn Group’s current developed
portfolio includes 26 properties in three provinces
with a GLA of c. 1 300 000 square metres and a
land bank of c. 1 700 000 square metres. Newlyn’s
portfolio includes some of the most sophisticated
storage facilities on the continent with landmark
developments including Africa’s largest multimodal
rail terminal in Bayhead, Durban, a specialised
sulphur import facility in Richards Bay and a stateof-the-art
chemicals storage facility in Durban.
Newlyn’s macro vision is to make South African
businesses more competitive by reducing the cost
of logistics through the development of more
efficient and environmentally sustainable logistics
infrastructure solutions. ■
Contact details:
Tel: +27 31 313 6500
Firdhose Coovadia: Chief Value Officer | firdhosec@newlyngroup.com
Sagie Chetty: Group Engineer | sagiec@newlyngroup.com
Website: https://newlyngroup.com
INTERVIEW
Newlyn is a home-grown company that has invested and continues to invest in long term
capital intensive transformational infrastructure in South Africa. We believe in the economic
potential of the country and don’t have any investments outside South Africa. Our future is
inextricably linked to and fully aligned with the success of SA Incorporated. We proactively
Going
contribute
beyond
to the success of our country by investing
the
for the long term, securing leading
global supply chain technology, facilitating technology and skills transfer to South Africa, to
raise the standards across the entire bulk materials logistics supply chain ecosystem. In so
doing, we have demonstrated that we contribute to meaningful socio-economic development
in all the regions in which Newlyn operates.
conventional to achieve the exceptional
CEO and founder Raj Balmakhun ESG and Supply explains Chain Optimisation how the Newlyn Group’s bespoke and
innovative solutions are aligned • Near zero dust with emissionsthe growth and development of South Africa
Contact us:
031 313 6500
Firdhose Coovadia
firdhosec@newlyngroup.com
Sagie Chetty
sagiec@newlyngroup.com
Newlyn CEO and founder,
Raj Balmakhun
https://newlyngroup.com
• Rapid unloading of trains (6,500tph)
• High speed shiploading of up to 10,000 tph
• Vessel turnaround sub 20 hours
• No product degradation
• Catalyst for jobs and economic development
• Common User Infrastructure: market access
for emerging miners
• Significant financial benefits to miners,
Transnet and the fiscus
smart spaces. transformational infrastructure
What is the mission of Newlyn?
We are proudly South African and Afri-optimists. While our country has
many challenges and complexities, this spawns innovative solutions.
The cost of logistics significantly impacts the competitiveness of an
economy. Our mission is to make South African businesses more
competitive by developing innovative logistics storage infrastructure
focused on greater efficiencies anchored in sustainable design,
construction and operations. We fully subscribe Back of to Port the spirit Manganese of Ubuntu,
“I am because you are”. This guides our Terminal value system – Ngqura and we believe in
making a difference socially as well as
The
economically.
future of sustainable
operationally efficient export logistics
When was the company established?
The Newlyn Group was established in 1996 to engage in opportunities
for black participation within the Port Logistics sector, a sector which
previously precluded people of colour.
CONSTRUCTION & COMMISSIONING – 2 YEARS
BIOGRAPHY
Raj began his career practicing
law, but he has always been an
entrepreneur at heart. This led him to
founding the Newlyn Group in 1996.
Under his stewardship Newlyn has
become a leading private developer
of transformational logistics storage
infrastructure and the group is
synonymous with innovation, speed
of execution and world-class quality.
Raj is the visionary and dealmaker
for the Group. He is a firm advocate
of social entrepreneurship, which
aims to uplift the communities
within which Newlyn operates.
To what do you ascribe the growth the company has enjoyed?
Dogged perseverance, speed of decision making and implementation
as well putting clients first. Whilst we have faced many challenges,
including the formidable disadvantage of starting from a zero capital
base, we remain committed to the logistics investment theme in and
around ports and major trade corridors and focus on delivering a topquality
logistics solution to our clients.
How do you define “bespoke storage and logistical solutions”?
One of my core principles is “you cannot do the conventional
and expect the exceptional”. Our design approach addresses the
logistical issues common to traditional warehousing including
inter-modal optionality, truck reticulation and optimum stacking
densities. These specifications differ from client to client depending
on the type of product being handled in the facility, how product
is received or special regulatory requirements. Examples are our
sulphur storage facility in Richards Bay and the Ashgate Chemical
Storage facility in Durban.
How do you see your company’s mission as linked to the success
of South Africa Inc?
South Africa has a development problem. We desperately need
SOUTH AFRICAN BUSINESS 2023
38
investment in infrastructure, but these are long
gestation investments that will underpin a
sustainable economy for decades to come. We
believe we cannot leave it to government – we
as business have to be part of the solution. Our
projects speak to capacity building, technology
and skills transfer, community engagement and
upliftment, innovation and long-term investment.
We are ready to collaborate with government,
with communities and with our clients to
deliver transformational infrastructure projects
that address national objectives including the
migration of cargo from road to rail, environmental
sustainability, job creation and fixed capital
investment. The work we do needs to be judged
by its criticality to the economy – for example our
PX development in Durban or the planned Coega
back-of-port manganese development unlock
value in the mining sector, a major contributor to
the South African economy.
What is Newlyn doing in terms of running
sustainable operations?
The Newlyn Group is committed to “leaving the
planet in better health than we found it”. We
will deliver our projects in a sustainable manner,
by systematically reducing our environmental
impact and improving the quality of life for
communities. Newlyn projects are designed to
reduce water consumption and carbon footprint.
We deploy translucent sheeting in warehouse
design to maximise natural light, we use LED
lighting in all new builds and we deploy sisalation
to enhance cooling.
Nowhere is our commitment to sustainability
more evident than our joint development, with
two global OEMs, of near-zero dust emission
mineral storage and handling solutions for
manganese and iron ore. The first such project
is currently under development in the Coega
Special Economic Zone. The global engineering
firm undertaking the EPCM work on our behalf
has hailed the solution as a global game changer
in sustainable, operationally-efficient bulk
mineral storage.
In addition, Newlyn has invested in its own
internationally experienced energy team which
has developed proprietary process technology
Silo-based; manganese back-of-port facility
planned for Port of Ngqura
that results in a lower cost of electricity
generation coupled with significantly lower CO2
and NOx emissions.
Is Newlyn exploring power generation projects?
We are leveraging our substantial rooftop space
to generate solar power where we act as the
promoter and developer. For example, our roof at
the PX project in Durban is capable of generating
30MW of solar power, sufficient to meet our
clients’ needs but also ensure the entire Durban
port can been powered by green energy. In
addition, we have an EIA-approved land parcel
for a gas to power project which we intend to
develop as part of a consortium led by a Tier 1
power block developer.
What is the Boegoeibaai project?
The proposed Boegoebaai Port with dedicated
new rail connectivity to the mines of the Northern
Cape is an exciting project which speaks to
government’s objectives to migrate road to rail,
optimise cargo distribution, reduce dependency
on single ports and facilitate access to export
markets for emerging miners. The development
of this port is also key to unlocking South Africa’s
immense green hydrogen potential and further
paves the way for in-country mineral beneficiation.
It will also result in great job creation and billions
of dollars of fixed-capital investment.
Newlyn has teamed up with an international
consortium with global credentials in port and
rail infrastructure development, to pre-qualify as
a potential developer of the Boegoebaai Project.
This collaboration is an example of another one
of our core principles – harnessing the power of
collective effort and collective intellect. ■
39
SOUTH AFRICAN BUSINESS 2023
KEY SECTORS
Overviews of the main economic
sectors of South Africa
Agriculture 42
Mining 46
Energy 52
Oil and gas 56
Water 62
Engineering 64
Manufacturing 66
Construction and property 69
Transport and logistics 70
Tourism 72
ICT 74
Banking and finance 75
Development finance and
SMME development 76
Education and training 78
A giraffe in the Pilanesberg National Park in North West Province has a close look at how giraffes have
been depicted on a passing hot-air balloon. Credit: Sun International
OVERVIEW
Agriculture
Citrus exports have finally made it to China.
SECTOR INSIGHT
Agriculture employs about
844 000 people.
The first consignment of Eastern Cape lemons destined for China is
given a last inspection at Maydon Wharf Fruit Terminal in Durban.
Credit: Citrus Growers’ Association of Southern Africa
National citrus exports have grown by more than 40% in
the past decade to about R20-billion per year. The Citrus
Growers’ Association of Southern Africa forecasts an
increase from the current 150-million 15kg cartons to
200-million in the next five years, and this is projected to grow
still further to 255-million by 2030.
February 2022 marked an important milestone for the citrus industry
because it was in that month that a first shipment of lemons was loaded
onto ships from the fruit terminal in Durban harbour en route to China.
The long and complicated procedure of becoming compliant
with health and import procedures started with work done by Citrus
Research International (CRI) scientists in 2013. CRI and the National
Department Agriculture, Land Reform and Rural Development
hosted scientists from China in 2015 and negotiations have
continued ever since.
South African citrus growers spend R150-million annually on
research which is then used by the DALRRD in their international
negotiations. In this case, it paid off with a R325-million deal which
has the potential to grow exponentially. South Africa hopes to eclipse
Argentina and Chile as suppliers of lemons to China, targeting 25 000
tons of lemons to that country by 2024.
Exports of grapefruit, oranges
and soft citrus to China totalled
130 000 tons in 2020. More good
news from South-East Asia came
in the form of a first consignment
of citrus fruit being accepted into
the Philippines.
The citrus industry has
been identified in the National
Development Plan as a priority
sector because it employs many
people and it can improve the
country’s balance of payments.
South Africa is the world’s
second-largest exporter of
citrus fruit. A national export
record was achieved in 2020,
with 146-million cartons of fresh
citrus being exported (second
only to Spain). The CGA’s Grower
Development Company has
pledged to invest R141-million
to empower growers struggling
to break even between 2021
and 2024 through its Enterprise
Development Grant Fund.
This year, R40-million was
allocated to 72 recipients
across the country to mostly
help with the procurement
of key production inputs,
including fertiliser and other
agrochemicals. There are many
opportunities in Africa for
exports of fruits which do not
quite match EU standards but
which are nonetheless perfectly
good products.
SOUTH AFRICAN BUSINESS 2023
42
OVERVIEW
International pressures
Agriculture, forestry and fishing made good progress in terms of
GDP growth for two years. The fourth quarter of 2021 showed 12.2%
growth and the year-on-year figure for 2020 was 13.4%, followed in
2021 by 8.3%.
The soybean harvest in 2020/21 was the country’s best ever, and
maize had its second-best harvest on record.
But the hope that post-Covid would result in even better results
has not come to pass. Unusually heavy rains, the Russian invasion
of Ukraine, the bad performance of the railways and ports in terms
of exporting South African produce and Eskom’s inability to supply
a reliable stream of electricity, are some of the headwinds that the
sector had to deal with in 2022.
Russia used to take 7% of South African citrus exports, and 12% of
the country’s exported apples and pears.
Omnia reported in June 2022 that it had sufficient stocks of
fertilisers to sell to farmers, despite the disruption in supply caused
by the Russian invasion of Ukraine and the sanctions which followed
against Russia, the world’s biggest exporter of fertilisers. Omnia,
which owns a fleet of trucks and rail transport which allows it to
control the supply chain process, is experiencing a growth in sales of
its biological and organic products as an alternative to fertilisers.
While agriculture’s contribution to national GDP is variously given
in the range of 2.0%-2.5%, the upstream and downstream links to
agriculture through processing and logistics mean that the real
contribution is more like 15%.
AgriSA states that the amount of agricultural land in South Africa
in 2016 stood at 93.5-million hectares. This represents 76.3% of South
Africa’s total land mass of 122.5-million hectares and about 3% less
than in 1994.
A total of 70% of South Africa’s grain production is maize, which
covers 60% of the cropping area of the country. KwaZulu-Natal and
Mpumalanga produce sugar, but volumes are down.
The Free State Province supplies significant proportions of the
nation’s sorghum, sunflower, potatoes, groundnuts, dry beans, and
almost all of its cherries.
South Africa is famous for its fruit, of which 35% is citrus, 23%
subtropical and nuts, 26% pome fruit, 11% stone fruit and 9% table
grapes. Most of South Africa’s citrus and subtropical fruit comes from
the eastern part of Limpopo. There are about 3 500 wine producers in
ONLINE RESOURCES
Agricultural Research Council: www.arc.agric.za
Grain SA: www.grainsa.co.za
SA Table Grape Industry: www.satgi.co.za
South African Berry Producers’ Association: www.berriesza.co.za
Dairy equipment to cope with
increased milk volumes.
Credit: Tetra Pak Group
South Africa, with the majority
located in the Western Cape.
The Eastern Cape is the largest
livestock province, which
includes Angora goats, from
whom mohair is taken. The
province is the centre of the
country’s mohair value chain.
South Africa has a beef herd of
14-million.
South Africa’s milk producers
normally produce about
3.3-billion litres of milk every year
(Milk Producers Association).
The decision by processing
and packaging company Tetra
Pak to spend R500-million
on expanding capacity at its
packaging material plant in
Pinetown indicates an uptick in
agricultural production.
The new plant allows the
company to increase its local
content to 80% and to make
the Pinetown plant a production
hub for the region. Among the
companies clients are dairy
companies such as Clover and
Woodlands Dairy which package
milk for major retailers. ■
43
SOUTH AFRICAN BUSINESS 2023
FOCUS
The Responsible
Mohair Standard
has restored trust
South African mohair is once again
popular with global fashion brands.
The mohair industry has embraced the Responsible
Mohair Standard as we are all aware that the consumer
of today is rightfully far more conscious, not only of
the impact of their purchases on the environment, but
also the impact their purchases have on the people
producing the goods.
The Responsible Mohair Standard is all-inclusive and is very
specific as to its requirements in respect of the environment
and welfare of the animals and all individuals employed in the
production of mohair products.
There is no doubt that having Samil’s manufacturing operations
certified under the Responsible Mohair Standard has opened new
opportunities for trade throughout the world.
However, the dynamic team at Samil feels compelled to ensure
that not just the Samil manufacturing operations but all mohair
operations owned or run in partnership with Samil, must also be
RMS certified. Samil therefore embarked on a concerted drive to
have all the Angora goat farms which are either owned or run in
partnership with Samil Farming were also certified as RMS.
This was no mean task as there are more than 30 farming
operations in the Samil Farming portfolio in and around the Karoo
region. However, the Samil Farming Manager, Andries Coetsee, and
his very able assistant, Nienke Scholtz, embraced the challenge and
Samil is proud to announce that, as of the end of August 2021, all
Samil mohair operations are proudly RMS certified.
Through the determined efforts of Mohair South Africa, in
conjunction with The Textile Exchange, in ensuring the development
of the Responsible Mohair Standard, the mohair industry has been
able to regain the trust, not only of the big fashion brands, but also
of the world.
This can clearly be seen in the record mohair prices currently being
achieved as brands the world over are scrambling to reintroduce RMScertified
mohair articles into their product ranges.
The knock-on effect is that jobs that had previously been in jeopardy
are now secured and, due to the new-found appetite for mohair, more
jobs have been created.
The benefits of RMS certification
After the PETA exposé in 2018, the South African mohair industry
became a pariah and many of the top fashion brands vowed to no
longer use mohair in their products. This put nearly 30 000 people
at risk of being unable to earn a living and feed their families.
68 SOUTH | www.opportunityonline.co.za
AFRICAN BUSINESS 2023
44
yarns@samil.co.za | sales@samil.co.za | www.samil.co.za
OVERVIEW
Mining
Platinum’s role in green hydrogen is a boon for miners.
SECTOR INSIGHT
An Australian company has
listed on the JSE.
Platinum prices have buoyed the South African economy
through tough times. Credit: Implats
Australia has one of the world’s most dynamic mining sectors so
it was good news for South African mining and the JSE when
Southern Palladium listed in Johannesburg in June 2022.
With a primary listing on the ASE, Southern Palladium has
a majority share in Miracle Upon Miracle Investments Propriety Limited
(MUM), a local company which has prospecting rights south of Modikwa
mine in Limpopo, a joint venture run by Anglo American and African
Rainbow Minerals. The balance of equity in MUM is owned by a company
owned by the Bengwenyama-you-Maswazi community.
The new-age minerals that miners are increasingly paying attention
to are copper, bauxite and magnesium.
Sibanye-Stilwater is increasing its exposure to minerals and
technology that will be needed in the greener future. Two of the South
African firm’s board have joined the board of Finnish lithium company
Keliber and Sibanye’s stake in the company was raised to 80% in October
2022. The Keliber project is expected to supply about 15 000 tons a year
of lithium hydroxide, the product which is used in the manufacture of
lithium-ion batteries for electric vehicles.
As the world tries to decouple
from the carbon economy,
miners and energy planners are
increasingly turning to green
hydrogen to solve mankind’s
biggest problem. Green
hydrogen is hydrogen created
using renewable resources, and
the Northern Cape has those in
abundance. The Northern Cape
Green Hydrogen strategy was
announced in 2021 at COP 26. A
Northern Cape Green Hydrogen
Symposium was held in 2022
and Sasol is in the process of
conducting a pre-feasibility study
on hydrogen for the province. Any
developments in that sphere will
be linked with, and give a boost to,
the Boegoebaai Harbour project.
The National Department of
Mineral Resources and Energy, in
collaboration with the Northern
Cape Provincial Government,
hosted the Northern Cape
Mining and Minerals Investment
Conference in 2022. The
department’s stated goal is that
all South Africans should derive
sustainable benefit from the
country’s resources. The province’s
considerable mineral wealth was
outlined to potential investors
and plans for infrastructure
development (such as industrial
parks and Special Economic
Zones) were highlighted.
Another province to take
advantage of the green hydrogen
SOUTH AFRICAN BUSINESS 2023
46
OVERVIEW
economy is Limpopo. In May 2022, Anglo American unveiled a prototype
of the world’s largest hydrogen-powered mine haul truck designed to
operate in everyday mining conditions at its Mogalakwena PGMs mine
in South Africa. Anglo American intends using green hydrogen which it
will produce at the mine to feed into its green-hydrogen system, which
includes production, fuelling and a haulage system. The 2MW hydrogenbattery
hybrid truck generates more power than its diesel predecessor
and can carry a 290-ton payload. Forty Anglo trucks will be retrofitted,
starting in 2024, and the whole fleet should be green by 2030.
Both Special Economic Zones (SEZs) in Limpopo are showing interest
in green hydrogen. The operating company of the Musina-Makhado
Special Economic Zone (MMSEZ) has signed a partnership agreement
for green hydrogen electricity generation with Australian company
African Resources Development Energy (ARD Energy). The Fetakgomo-
Tubatse Special Economic Zone (FTSEZ), on the other hand, has plans
to turn that area’s platinum group metals to good effect in the energy
field. Platinum and iridium are important catalysts in the process which
creates hydrogen, so that has become one of the big selling points of
the FTSEZ. In July 2022, a delegation from the FTSEZ participated in the
UK-RSA partnership mission on Hydrogen Economy Roadmap.
Anglo Platinum’s 75MW solar plant under construction at
Mogalakwena could well become the 320MW plant that the company
wants it to be, as President Ramaphosa has announced the lifting of
restrictions on the scale of private generation.
With ample wind and sun, a long coastline and 75% of the world’s
platinum group metals (PGMs), South Africa is well placed to be a leader
in the production of green hydrogen.
Rhodium palladium, platinum and gold collectively rose in price by
more than 50% at one stage during 2021. Increased demand for PGMs
has been a trend for some years, driven by the vital role played by PGMs
in reducing pollution in the automotive sector. This was boosted more
recently by applications for renewable energy and by supply constraints
brought about by Covid-19 with production volumes down and
shipping made more difficult throughout 2020 and into 2021.
For FY2022, Impala Platinum (Implats) announced cash dividends of
R14.8-billion paid to shareholders, R12.8-billion taxes and royalties paid
to government and procurement of R3.2-billion spent on community
businesses. Implats intends expanding production at its Two Rivers PGM
mine by 180 000oz. The project will take four years and cost R5.7-billion.
In the 2021/22 financial year, mining contributed R127-billion in tax
out of a total corporate tax tally of R318-billion. Minerals made up 60%
of exports and royalties came in at R28-billion. High commodity prices
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
Minerals Education Trust Fund: www.metf.co.za
National Department of Mineral Resources and Energy: www.dmr.gov.za
The conversion project to underground
mining will extend the life of
De Beers’ Venetia diamond mine in
northern Limpopo. Credit: De Beers
ensured a R180-million higher
tax bounty for the South African
Revenue Services, amounting
in the end to R1.55-trillion.
This allowed government to
continue with some Covid-relief
programmes for longer than had
been anticipated.
Training
The Minerals Education Trust
Fund (METF) contributes
towards the employment costs
of 254 academic staff at nine
tertiary institutions in scarceskills
subjects such as mine
ventilation, rocks mechanics and
extractive metallurgy.
The 29 members of METF
are among the country’s
biggest mining companies.
Grants are made to institutions
for the purchase of equipment
but the main point of funding is
to support 4 471 undergraduate
students, 76% of whom are
black African and 39% of whom
are female. ■
47
SOUTH AFRICAN BUSINESS 2023
INTERVIEW
New mapping shows that
South African mining could
have a strong future
Mosa Mabusa, CEO of the Council for Geoscience, strongly believes
that geoscience should not be seen as a cost centre, but rather as an
investment in the country’s future.
Mosa Mabuza, CEO
BIOGRAPHY
After qualifying as a geologist from
Wits University, Mosa held various
positions at De Beers and Anglo
American and worked in jurisdictions
as varied as West Africa and
Canada. From his appointment as
the Director of Mineral Economics
in the former Department of Minerals
and Energy, he was promoted to
Deputy Director-General of Mineral
Policies and (Investment) Promotion
in 2012. He has been CEO of CGS
since 2017.
What are the short- and medium-term goals of the Council
for Geoscience?
We are accelerating the organisation’s strategic reorientation. None
of us could have expected the extent of the disasters in KwaZulu-
Natal and the Eastern Cape so we are looking at how far we can
reallocate resources so that we can contribute to that response. In
the main, we continue to map at the scale of 1:50 000.
We are building from a foundation that our forebears have
constructed. We are standing on their shoulders.
We are focused on identifying and confirming the presence of
critical minerals in economic concentrations, to support emerging
industries and the Just Energy Transition Programme.
We have a focus on infrastructure and land-use work
and supporting Eskom with the probabilistic seismic-hazardassessment
study for the application of the extension of Koeberg.
We are working on groundwater and modelling so that we
gain a greater understanding of groundwater as an asset.
There is a national goal of reimagining mineral exploration in
South Africa with a target of achieving a share of 5% of the global
expenditure by 2025. To get there, we have to quadruple our
efforts. Our geology confirms that notwithstanding 150 years of
mining history, we have not begun to mine in South Africa.
What is the significance of the new mapping?
Higher-intensity mapping provides greater clarity of information
so that the exploration community can make decisions to invest.
We have always known of pegmatite rock in the Northern
Cape. It is a lithium-bearing rock and there are other possible rare
earth elements. With mapping at this scale, we can confirm an
extension of this pegmatite rock by a further 67%.
We published a map in March and we are saying to the
investment community that these critical minerals are a new
centre of focus for investment. This is a test case to demonstrate
that money that goes into geoscience is not a cost centre – it is
an investment.
SOUTH AFRICAN BUSINESS 2023
48
Please give an update on the carbon capture
storage project.
We are implementing it in partnership with the
World Bank and it is progressing exceptionally well.
Govan Mbeki Local Municipality in Mpumalanga
has been supportive of this research and they have
ceded the land. They are saying to us please do this
research to help us to make appropriate choices.
We are taking a comprehensive stakeholderled
approach. Our message is that in our world of
science we don’t know what we don’t know. Allow
us to do the science so that we can establish the
facts, then we can guide you.
We have already concluded the geophysics
high-resolution survey and geological mapping.
We are excited that basalt is proving to be one
of the sources of environmentally-appropriate
sequestration materials for carbon.
We are finding that once the emissions are
captured, there are numerous applications that,
depending on the volume, could catalyse a range
of economic activities. I have come across the most
interesting technology that suggests that coal could
actually be a reliable source of green hydrogen. This
is something I want to test. Now imagine if this
hypothesis is proven to be correct. Then I can argue
that, through science, we have indeed greened
our coal. Science should not have any ideological
predisposition. The greatest risk is when choices
are made without the scientific interpretation. That
makes me nervous, not only about our country but
about humanity at large.
I am hopeful that this research can prove that
indeed coal can be the most reliable source of
hydrogen. I call it the new gold of renewable energy.
And then coal becomes that which renewable
energy depends on.
What are the main objectives of the CGS Summit?
The key objective is to bring to the fore and
celebrate the contribution of geoscience to South
Africa’s development.
But we also want to examine the renewables
debate. People talk about renewables very loosely,
but to sustain the current demands of energy (not
including future demands), the existing global
reserves of copper would only cater to 35% of that
– and that is only for renewable energy.
Mapping to the scale of 1:50 000 is revealing new
things about South Africa’s mineral resources.
We need to be looking at where are we going.
What are the next sources of copper and other
minerals that will support our strategic choices?
Geoscience plays the key role as a pathfinder to
those types of minerals. Increasingly our role will
become even more important to society as we
advance in line with the choices that we are making.
There are certain things that we need to do
today and in the next five to 10 years that will lay
the new foundation for the next 110 years. This
summit will consider these things.
We will be celebrating the crème de la crème,
the professors of our country who have been
guardians and who have played a critical role in
advancing the body of knowledge of geoscience.
We should never take that for granted.
Is there international participation?
The summit is in a hybrid format to enable physical
and virtual participation. We have a global footprint
of interest that spans all the continents. What makes
us even more excited is that some of our very
distant partners are already packing their bags as
all roads lead to eThekwini to celebrate geoscience.
We have chosen eThekwini because of the
disaster that happened there. Parallel sessions
will focus on the applications of geoscience
such as geo-hazards, infrastructure and optimal
land use. We can begin to demonstrate that
some things can be averted with the preapplication
of geoscience. ■
SOUTH AFRICAN BUSINESS 2023
FOCUS
Building a cleaner, greener world
Implats aims to deliver superior value to all its stakeholders.
Sophisticated refinery complex in Springs, Gauteng.
Impala Platinum Holding Limited (Implats)
is a leading producer of platinum group
metals (PGMs), structured around six mining
operations and a toll refining business, Impala
Refining Services. The Group’s mining operations
span the Bushveld Complex in South Africa, the
Great Dyke in Zimbabwe and the Canadian Shield
and include Impala Rustenburg, Zimplats, Marula,
Impala Canada, Mimosa and Two Rivers. The
Group maintains a primary listing on the JSE in
South Africa, a secondary listing on South Africa’s
A2X and a level one American Depositary Receipt
programme in the USA.
Implats contributes approximately 20% to
annual global primary PGM production and
employs more than 55 000 employees (including
contactors) across its operations – which
presents a complex labour dynamic, specifically
with respect to safeguarding the safety, health
and wellness of employees and sustaining
constructive industrial relations. Our people are
the heartbeat of our Company and though our
values – to respect, care and deliver – we foster
a culture of teamwork and accountability.
The Company’s vision is to be the world’s
best PGM producer, sustainably delivering
superior value to all its stakeholders. Implats
is committed to a value-focused strategy
and places a strong emphasis on developing
a portfolio of long-life, low-cost, shallow,
mechanised or mechanisable mining assets
to sustainably deliver improved returns for all
its stakeholders.
Implats has total attributable resources
of 269-million ounces of PGMs. Our markets
are in South Africa, Japan, China, the US and
Europe. The metals we produce are the key
to making many essential industrial, medical
and electronic items and they contribute to a
cleaner, greener world. ■
SOUTH AFRICAN BUSINESS 2023
50
Creating a better future
through the way we do business
Developing and caring for
our host communities
Caring for and
supporting our
environment
Providing meaningful
employment
Creating value for
all our stakeholders
Coolead 18903
OVERVIEW
Energy
Infrastructure for carrying newly-generated power is a priority.
Showing two phases proposed for the development of Renewable Energy Development Zones (REDZs) and
electricity grid infrastructure corridors where investment in transmission infrastructure is planned. Credit: CSIR
The second phase of the Strategic Environmental Assessment
(SEA) for wind and solar photovoltaic (PV) energy in
South Africa proposes three additional Renewable Energy
Development Zones (REDZs) for wind and solar photovoltaic
energy projects, taking the total number to 11 (see map).
The REDZs support the implementation of the Integrated Resource
Plan (IRP 2019). Renewable energy projects that might be developed in
these new REDZs have the potential to make significant contributions to
mine rehabilitation and, by creating jobs, support a just energy transition
in the specified areas including areas where coal power stations are
planned to be decommissioned by 2030.
A most important aspect for South Africa as it brings more and
more renewable energy projects on line are the so-called “transmission
corridors”. These have to be beefed up to be able to carry extra capacity
if energy plants are built where transmission infrastructure is close to (or
at) full capacity. This adds to the attractiveness of using existing power
plant sites for new generation.
SECTOR INSIGHT
Komati power station is
become a site for making
mini-grid components.
Part of the equation
for agreeing to new power
generation in the current context
is whether or not there is sufficient
carrying capacity to link the new
solar or wind plant to the grid.
Large investments are needed
to beef up the Northern Cape’s
capacity, but the problem is also
leading planners to find different
solutions, for example, to start
SOUTH AFRICAN BUSINESS 2023
52
OVERVIEW
exploring more carefully whether other provinces (with under-utilised
infrastructure) might not be sensible locations for new renewable-energy
plants. National utility Eskom has signalled that it wants to move into
the new era, partly through a process whereby the entity will be broken
into three more competitive units, but more immediately through the
announcement in July 2022 of 18 winnings bids from independent power
producers (IPPs) for renewable projects on Eskom land, 4 000ha of which
the utility has made available for this first phase.
Eskom owns 36 000ha in Mpumalanga alone. A total of 1 800MW
will become available to the grid and it will be cheaper to transmit
because the solar or wind plants will be right next to the existing Eskom
transmission lines.
Eskom is undertaking studies to assess the potential impact on
local communities of power plant closures. Options to get these
plants producing energy again include gas, biomass and hydrogen
but it is possible they might be used for something quite different. The
workshops of Komati power station are to be converted into a factory for
the manufacture of components for containerised mini-grids.
Eskom wants to be a net-zero company by 2050
Sasol has announced plans to start producing 1 200MW of renewable
energy by 2030. Sasol is an integrated oil, gas and chemicals company
with more than 30 000 employees and operations in 31 countries.
Products manufactured by Sasol include synthetic fuel, petroleum,
paraffin, jet fuel, creosote, bitumen, diesel and lubricants. The primary
feedstock for synthetic-fuel production is coal.
The National Cleaner Production Centre (NCPC) is expending
considerable energy (renewable, mostly in the form of brain power)
to help commercial operations use less energy. A programme of the
Department of Trade, Industry and Competition (dtic) housed within
the Council For Scientific and Industrial Research (CSIR), the NCPC also
spent some money in rolling out an aspect of the Industrial Energy
Efficiency Programme to large poultry company Daybreak Farms.
Through improved energy management, the replacement of office
lights with LED, the reduction of idling and heat loads in cold rooms
and training, an overall energy consumption of 0.98% was achieved
and energy savings of 916.85GJ were made.
South Africa’s acclaimed Renewable Energy Independent Power
Producer Procurement Programme (REIPPPP) attracted about R200-
billion in committed investments, mostly in solar and wind power, in just
ONLINE RESOURCES
National Cleaner Production Centre: www.industrialefficiency.co.za
National Energy Regulator of South Africa: www.nersa.org.za
South African Independent Power Producers Association: www.saippa.org.za
South African Wind Energy Association: www.sawea.org.za
five years. The first bidding window
of the REIPPPP was announced in
December 2011. By October 2021,
the programme could boast of 5
423MW of renewable electricity
capacity from 83 IPP projects,
accounting for 7% of the country’s
energy demand. The latest bidding
rounds of South Africa’s independent
power producers programme
have revealed astonishing low
costs: in round five the lowest solar
generation bid came in at 37.5c/
kWh while one of the wind power
offerings was priced at 34.4c/kWh.
In June 2021 President Cyril
Ramaphosa announced that
private entities could go ahead
and produce electricity without
a licence, raising the threshold
from 1MW to 100MW at a stroke.
Intensive energy users such as
mining houses had been arguing for
this policy initiative for a long time,
as had manufacturers in the sugar
and timber milling industries, which
produce vast amounts of biomass
which can be turned into energy.
The presidential announcement
was almost universally welcomed
by interested parties, including the
CEO of national utility Eskom, which
is struggling to keep South Africa
supplied with sufficient power.
Mining companies such as Sibanye-
Stillwater and Gold Fields want to
marshal renewable energy resources
to power their own operations.
Another big game-changer in the
South African energy landscape
will be the unbundling of Eskom,
referenced above.
An Independent Transmission
System and Market Operator was
set to be established. Companies
such as Earth & Wire are preparing
to become independent utilities in a
more flexible energy environment. ■
53
SOUTH AFRICAN BUSINESS 2023
FOCUS
South Africa is on the path to
green hydrogen exports
Thomas Roos, Principal Research Engineer at the Council for Scientific and
Industrial Research (CSIR), reports on cooperation with three German ministries.
Thomas Roos, Principal Research Engineer, CSIR
Under the Just Energy Transition Partnership
announced at COP26 in Glasgow, the governments
of UK, France, Germany, the USA
and the EU have agreed to provide $8.5-billion
in financing in the form of grants and soft loans,
to assist South Africa to decarbonise the electricity
sector by early retirement of coal-fired power plants
and expansion of renewables, to accelerate the introduction
of electric vehicles and to facilitate the adoption
of green hydrogen. In February, the Department
of Science and Innovation released the Hydrogen
Society Roadmap. In November at the South African
Green Hydrogen Summit, President Ramaphosa announced
that the Just Energy Transition Investment
Plan, recently released for public comment, has identified
green hydrogen as one of the four “big frontiers”
of a just energy transition, indicating that it has huge
growth and investment potential.
CSIR research is showing ways that South Africa
can become a significant exporter of green hydrogen
and the body is already involved in projects with
several German ministries.
It may therefore legitimately be asked: “What
is green hydrogen, and why is it important?” While
the term green hydrogen is often used to describe
hydrogen produced from any non-fossil-fuel-based
source (such as biogenic or nuclear), in this context
it is more strictly defined as hydrogen produced by
splitting water by electrolysis into hydrogen and
oxygen, using electricity from renewable sources.
Green hydrogen may therefore be regarded as
renewable electricity stored in chemical form.
Green hydrogen is important for the
decarbonisation required by the Paris Agreement
(signed and ratified by 193 countries) and the
European Green Deal (which commits the EU to
be carbon-free by 2050). The most efficient and
generally lowest-cost decarbonisation approach
is to convert current fossil-driven processes
to instead be directly driven by renewable
electricity. There are two scenarios, however,
where this direct renewable electrification is not
always possible or feasible.
Geography dictates
The first scenario involves geographic locations
where energy demand exceeds feasible renewableelectricity
supply. This is the case for Japan, the
world’s third-largest economy and a signatory to
both the Kyoto Protocol and the Paris Agreement. It
is also in the top four importers globally of the three
major chemical energy vectors (coal, oil and natural
gas). Its decarbonisation options are constrained: it
has very limited natural energy resources and the
Fukushima disaster significantly dampened public
appetite for nuclear power. As a result, Japan plans
to move its economy towards hydrogen – mobility
by fuel cell electric vehicles, homes powered by
fuel cells (with the waste heat produced providing
domestic water heating) and central power
generation from combined-cycle power stations,
SOUTH AFRICAN BUSINESS 2023
54
FOCUS
Credit: Shutterstock
fired by green ammonia. To allow this, from 2030
Japan will import about 300 000 tons of hydrogen
per year (at a target price of $3 per kilogram), rising
to between five-million and 10-million tons of
hydrogen per year by 2050.
This presents an opportunity for South Africa:
CSIR modelling has shown that the combination
of South Africa’s excellent solar and wind resources
and the expected cost reductions over time in solar
PV, wind and electrolyser equipment allow green
ammonia produced in South Africa to be delivered
to Japan in 2030, meeting the Japanese cost target.
Difficult sectors
The second scenario involves two broad categories
of hard-to-abate economic sectors. The first category
is heavy-duty, long-range transport where the use
of batteries is ruled out by range, power density or
charging time limitations, such as commercial aviation,
maritime shipping and long-distance trucking.
The second category is a subset of carbonintensive
industrial processes, such as iron and
steelmaking, cement manufacture, ammonia
production and the manufacture of plastics.
Green hydrogen, together with its derivatives
such as green ammonia, green methanol and
sustainable aviation fuel, provides a pathway to
decarbonise these sectors.
For Germany to meet its decarbonisation
targets, the National Hydrogen Strategy of
the German Government states that between
2.7-million and 3.3-million tons per year (90-110
TWh/year) of green hydrogen will be required by
2030, but that only a maximum of 420 000 tons per
year (14 TWh/year) can be generated in-country
(14% of this amount). By far the bulk of the green
hydrogen will have to be imported, some from
elsewhere in the EU such as Portugal, Spain and
the Ukraine; and the remainder from renewablerich
countries in a development relationship with
Germany, such as South Africa.
Three separate German federal ministries are
funding projects to develop the green hydrogen
economy in South Africa: BMWK (Ministry for
Economic Affairs and Climate Action), BMZ
(Economic Cooperation and Development) and
BMBF (Research and Education), and CSIR is
involved in each of these. In a project funded
by BMWK, CSIR and Meridian Economics were
contracted by KfW Development Bank to solicit,
evaluate and rank applications from hydrogen
developers for 200-million euros in concessional
financing to fund green hydrogen projects in
South Africa. From 55 initial applications, a longlist
of 20 projects passed the initial filtration
process, leading to a shortlist of between seven
and 12 projects, depending on the breakdown
of grant versus concessional-loan financing.
The oversubscription of the funding shows
significant market appetite.
CSIR is well positioned to support the energy
transition in this way, as the development and
implementation of green hydrogen will draw on
many of CSIR’s capabilities. ■
55 SOUTH AFRICAN BUSINESS 2023
OVERVIEW
Oil and gas
The Central Energy Fund has become a shareholder in a Free State gas project.
Renergen’s Virginia Gas Project has passed several significant milestones. Credit: Renergen
South Africa’s reserves of shale gas and coal-bed methane
are set to be exploited and in 2022, the Department of
Forestry, Fisheries and the Environment signed off on
the map (see Energy Overview) of where nine strategic
pipelines will go.
The pipelines are consistent with planning for future gas exploration
projects and coincide to some degree with planned Renewable Energy
Development Zones (REDZs) but have caused some consternation
among environmentalists.
Air Liquide Large Industries South Africa Air is to start operating 16 air
separation units (ASUs) as a result of an R8-billion purchase of a plant in
Mpumalanga from Sasol. The company’s fleet now comprises 17 ASUs in
Secunda, with the units having the capacity to produce 42 000 tons per
day of oxygen.
Sasol announced in 2021 that it was to sell a 30% stake in the
Romco natural gas pipeline that links Mozambique and South Africa.
As part of a global sell-off of assets to reduce debt, Sasol expects to
SECTOR INSIGHT
Routes for nine major
pipelines have been
gazetted.
earn more than R5-billion from
the transaction. The company
will continue to be the pipeline’s
operator and maintains a 20%
stake in the venture.
The Romco pipeline could
carry far more gas in the future
as there have been big finds
of new gas off the coast off
Mozambique which could be
shipped as liquefied natural gas
SOUTH AFRICAN BUSINESS 2023
56
OVERVIEW
(LNG) to Maputo and continue from there to the Sasol plant at Secunda.
The Liquefied Natural Gas Independent Power Producer Procurement
Programme (LNG IPPPP) is part of the broader programme of the
National Department of Mineral Resources and Energy which encourages
private investment in renewable energy, namely the Renewable Energy
Independent Power Producer Procurement Programme (REIPPPP). The
total allocated to gas-to-power in the national power plan is 3 726MW, of
which 3 000MW is for LNG.
Three natural gas exploration permits have been awarded to Tosaco
Energy for the sandstone-rich area between Amersfoort and Balfour in
the western part of Mpumalanga by Petroleum Agency South Africa
(PASA). Tosaco Holdings has a 25% stake in Total SA. Two methane-gas
exploration rights have been granted to Highland Exploration in the
Evander area. PASA regulates exploration and production activities,
and acts as the custodian of the national petroleum exploration
and production database.
Gas is expanding
What to do with redundant power stations is a question testing the
best minds in the country. Eskom has decided that some of its sites
can become locations for renewable energy plants, given that they are
already connected to the grid.
And in 2022 came news that Majuba Power Station is the site of a
successful bid to drill for gas. Australian company Kinetiko Energy aims to
supply Majuba’s 20MW gas generator with fuel. Majuba is one of Eskom’s
many coal-fired power stations which are facing closure in the province
of Mpumalanga and one of several that might be switched to gas.
Kinetiko has a further two sites where it will do exploratory
drilling: one near Sasol’s Secunda synthetic fuel plant and one to
the south of that. A major milestone was achieved in July 2022 for the
Virginia Gas Project, owned by Renergen subsidiary Tetra4. That was
when “natural gas to plant” was achieved. This test allows for the system
to be comprehensively tested, with the inlet line from the gas-gathering
system opened to the process plant and then on to the natural gas
filtration and pre-compression system.
In September, commercial operations of the company’s liquified
natural gas (LNG) plant began. Helium production will follow.
Whereas it took nine years to find the R1.2-billion needed to fund the
first phase of Virginia Project, investors are now looking very keenly at its
prospects. An amount of R3.6-billion has been invested by Ivanhoe Mines
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Petroleum Agency South Africa: www.petroleumagencysa.com
South African Oil and Gas Alliance: www.saoga.org.za
South African Petroleum Industry Association: www.sapia.co.za
to secure some offtake rights and the
Central Energy Fund has purchased a
10% stake in Tetra4 for R1-billion.
Sproule, a resources accreditation
agency, has given an updated report
on the helium and methane reserves
in the Virginia gas field. The results
were even more positive than
previous estimates, with helium
reserves up by 620% and methane
reserves by 427%. The field covers
187 000ha in the region of Virginia,
Theunissen and Welkom.
The SpaceX rocket that
launched in 2021 used 11 tons
of helium to propel itself off the
ground. Every computer microchip
in the world is produced in the
presence of helium and the world
uses 85 tons of it every day. Exciting
offshore gas discoveries have also
been made in recent years. Total
and its partners first announced
success at a site called Brulpadda
off the coast of Mossel Bay. The
nearby Luiperd prospect in Block
11B/12B delivered more exciting
news when gas condensate was
also found there.
The block, in the Outeniqua
Basin 175km off the southern coast,
covers an area of about 19 000km² in
water depths of 200m-1 800m.
The two finds raise the odds
of Total investing in what it calls
a “world-class” offshore gas site.
The drilling campaign employed
195 South Africans with specialist
skills but the potential spinoff is
enormous for the Western Cape
and South Africa, if the find leads to
drilling and commercialisation.
PASA has noted the significance
of international oil companies
committing to exploration
off South Africa’s coast. More
exploration will guarantee that
interest is maintained. ■
57
SOUTH AFRICAN BUSINESS 2023
FOCUS
South Africa’s oil and gas
sector is open for business
The application by TotalEnergies for the right to
produce signals an exciting new phase.
TotalEnergies has submitted an application to
Petroleum Agency South Africa (PASA) to convert
its exploration right into a production right.
The TotalEnergies-led consortium, after
making world-class discoveries off South Africa’s
southern coast off Mossel Bay in the Outeniqua Basin,
has now made the decision to proceed to the next
phase, which could have enormous implications for
the local, regional and national economy. The next
phase, a gas-market development period, is not the
same as an immediate decision to start building
pipelines and decks, but it is a step along the way. The
Luiperd and Brulpadda discoveries were made in the
Block 11B/12B areas.
The joint venture has decided to give up a
northern portion of its right, reducing the proposed
area to be worked to 12 000km², whereas the
exploration right extended to more than 18 000km².
TotalEnergies’ joint venture partners in Block 11B/12B
include QatarEnergy and Canadian Natural Resources.
A massive rig travelled from Norway to explore
off South Africa’s south coast.
If the process moves further along to the point
where TotalEnergies obtains all the environmental
permits it needs and starts to develop the resource,
some estimates suggest that gas could begin to
flow by 2026.
Petroleum Agency SA plays an important
role in developing South Africa’s gas market by
attracting qualified and competent companies
to explore for gas, as in the case of TotalEnergies
and its partners. Another major focus is increasing
the inclusion of historically-disadvantaged South
Africans in the upstream industry.
Currently, natural gas supplies just 3% of South
Africa’s primary energy. A significant challenge
facing the development of a major gas market
is the dominance of coal. Opportunities for gas
lie in the realisation of South Africa’s National
Development Plan (NDP) and the Integrated
Resource Plan (IRP).
West coast developments
While the newspaper headlines focussed mainly
on the discoveries off the south-western coast
of South Africa, progress was being made off the
west coast too.
Eco Atlantic Oil & Gas and its partners have
hired a rig to start exploring Block 2B, an area which
has been of interest to the oil and gas industries for
many years. Eco Atlantic Oil & Gas is the operator
of Block 2B while Africa Energy, Panoro Energy ASA
and Crown Energy AB are other major investors.
Block 2B is located in the Orange Basin (see
map) where both Total and Shell announced
significant oil and gas discoveries offshore Namibia
in early 2022. The block covers an area of 3 062km²
with water depths from 50 to 200 metres.
South Africa shares a geological sedimentary
basin with its western neighbour so the
announcement by Shell that it had made significant
SOUTH AFRICAN BUSINESS 2023
58
oil and gas discoveries in the southernmost sector
was welcome news indeed. The discoveries were
made at the Graff-1 well.
Scientifically, the big takeaway from Shell’s
discovery is related to where the finds were made.
Previously, it was believed that only gas would
be found in one layer of the shelf, known as the
Cretaceous sector; Shell found a working petroleum
system with oil as a component in the Cretaceous
sector. The geological sedimentary basin extends to
offshore Cape Town and out to sea, stretching over
160 000km². The rights to the South African southern
section of the basin are held by Shell and its partners
TotalEnergies and PetroSA.
TotalEnergies have themselves had promising
early signs of possible oil and gas finds near the Shell
find off Namibia, and in the block adjacent to the
South African maritime border. This is the Venus-1.
The deepwater sector of the South African Orange
Basin is unexplored, but similar geology extends
south of Namibia into the South African sector.
Geological features similar to the Namibian
reservoirs have been identified on seismic data
in the South African part of the basin, also in the
Cretaceous, but these remain to be tested through
drilling. New seismic data acquired by the survey
planned by the company, Searcher, will assist in
reducing exploration risk and help in identifying
and quantifying possible oil and gas deposits off
South Africa’s west coast.
Onshore prospects
The Department of Forestry, Fisheries and the
Environment (DFFE) in 2022 issued draft regulations
to govern the process of hydraulic fracking because
Renergen’s Virginia Gas Project is
barrelling ahead.
the underground resources of the Karoo are again
in the spotlight.
Various environmental studies are being done,
including groundwater and geological studies.
The geo-environmental baseline study for gas
in Beaufort West undertaken by the Council for
Geoscience has been completed and showed
significant resources of shale gas. The study did not
encompass any economic modelling.
PASA will be responsible for the granting of any
licences once the draft regulations are finalised.
The massive resources of natural gas that
Renergen has been working on for the last few
years reached commercial production in October
2022 in the northern Free State. Renergen, through
its subsidiary Tetra4, is the only holder of an
onshore petroleum production licence issued by
the Department of Mineral Resources and Energy
through the PASA.
The production right area covers 187 000
hectares around the towns of Welkom, Virginia
and Theunissen.
Liquid natural gas for the domestic market
and helium for export from this project will
create an entirely new stream of energy options
for South Africa. ■
59
SOUTH AFRICAN BUSINESS 2023
FOCUS
Driving socio-economic
growth
Petroleum Agency South Africa assigns exploration and
production rights to bolster the country’s economy.
South Africa is a net importer of fuel and
the country’s refining capacity has been
reduced in recent years.
To counter this trend, exploration
has been on an upward trajectory. Partly this is
explained by growing certainty in the regulatory
environment and by the good work done by
Petroleum Agency South Africa (PASA), the agency
which evaluates, promotes and regulates oil
and gas production in the country. This has seen
increased interest in South Africa’s potential as a
destination for investment dollars.
Underpinning PASA’s strategy is the need to
ensure that all prospecting and mining leases are
for the long-term economic benefit of South Africa.
This applies to every kind of licence issued by the
agency, be it in old technologies or new.
Just Energy Transition
PASA also has to deal with the global desire to
move away from fossil fuels and to start using
cleaner, renewable energy.
The Mossgas facility at Mossel Bay could be revitalised
if new finds are turned into gas production.
Is it possible to grow the economy by
exploiting the country’s natural resources and start
moving to a greener future? PASA CEO Dr Phindile
Masangane not only thinks it’s possible, she insists
that it’s something South Africa must do.
Dr Masangane points out that with South
Africa’s excellent solar resources it makes
sense to localise the solar value chain to boost
manufacturing but the country should not ignore
what it has. “At the same time, we know that the
gas value chain is well established in the country,
so let’s also capitalise on that.”
The multiple uses of gas could play a major role
in helping South Africa transition away from fossil
fuels while at the same time boosting economic
growth. “We need gas not just in electricity and
transport,” noted Dr Masangane, “but importantly
for South Africa, which is in desperate need of an
economic turnaround, is for us to use this gas for
our manufacturing industry.”
Referencing a section on gas in a report on
energy in Africa by the International Energy
Agency, Dr Masangane says, “Most of what Africa
produces is actually exported out of the continent.”
The report notes that Africa accounts for less than
3% of the world’s energy-related carbon dioxide
emissions. Says Dr Masangane, “This report calls
for us as Africa to extract the gas and produce it
and use it not just to power the continent but to
reindustrialise the continent and industrialise for
the first time some countries on the continent.”
Potential impact
The gas discoveries that have been made off the
coast of South Africa (near Mossel Bay), when linked
with the massive finds off the coast of Mozambique
and the enormous potential that exists in fields off
the west coast, amount to what could become
a massive change in the regional economy.
TotalEnergies and its partners have deployed the
SOUTH AFRICAN BUSINESS 2023
60
FOCUS
Deepsea Stavanger offshore drilling rig and they
have achieved significant successes. The two fields
where finds have been made are called Luiperd
(where 2.1-trillion feet of contingent gas resources
has been found, enough to power a medium-sized
city for five years) and Brulpadda (1.3 Tef ), which are
part of Block 11B/12B.
If this gas were to be piped to the existing
gas-to-liquid plant at Mossel Bay, Mossgas,
then instead of spending about R12-billion on
decommissioning the plant, the facility could
instead start generating R22-billion in taxes and
royalties and save South African taxpayers R26.5-
billion through not having to import oil and
refined products.
PASA estimates that the gas found in these
blocks could produce 560-million cubic feet per
day of gas for more than 15 years. TotalEnergies’
expenditure on stream phase one could amount
to $3-billion in 2027 and create 1 500 direct jobs, 5
000 indirect jobs and increase the country’s gross
domestic production by R22-billion.
The plan is to run the gas via a pipeline to a
new fixed steel platform, and from there to use
the existing pipeline to get the gas to Mossgas.
Up to 18 000 barrels per day of condensate
and 210-million cubic feet per day (MMcfd)
are expected to be pumped to the facility. Gas
condensate is a hydrocarbon liquid stream
separated from natural gas and is used for making
petrol, diesel and heating oil. ■
DATABASE MANAGEMENT
The continental shelf of the Republic of South
Africa covers some 200 000km² and the country
has a coastline approximately 3 000km in length.
Petroleum Agency SA is responsible for
the archive and management of the national
hydrocarbon exploration database on behalf of
the State. It has digitised, indexed and archived all
of the data and reports resulting from the drilling
of more than 300 offshore and some 200 onshore
boreholes. The exploration database also includes
seismic field and processed data for more than 300
000km of 2D and 40 000km² of 3D seismic data
that was acquired offshore and some 9 800km of
seismic processed data that was acquired during
the late 1960s in the Karoo, Algoa and Zululand
onshore basins.
Being the custodian of the National Petroleum
Exploration and Production Database of South
Africa, the Agency relies on a sustainable and
effective Information Management Infrastructure
in order to comply with its mandate to:
• archive and maintain a database on petroleum
exploration and production data
• provide access to existing data,
cores, well samples, information
and literature on request
• add value and incorporate
new as well as interpreted
data into the database
• maintain records of all
hydrocarbon exploration
and production
activities.
PASA CEO Dr Phindile Masangane
OVERVIEW
Water
South Africa is investigating how best to use its groundwater.
A mural depicting the water goddess Camissa by local artist Nadia Nardstar has been unveiled at
the V&A Waterfront Cruise Terminal. Credit: John Young
Managed aquifer recharge (MAR) might be one of the
answers to the Cape metropole’s enduring water
shortage. The idea of putting excess water into the
Cape Flats aquifer during times of plenty – and then
drawing on that water when drought hits – is the subject of a study
by UCT’s Department of Environmental and Geographical Science.
It’s not a new idea; the smaller Atlantis aquifer has been playing that
role for decades.
A country that is expert at using its groundwater resources has
signed up to cooperate with South Africa in investigating how the
much drier African country might exploit groundwater. Denmark
gets nearly all of its water from groundwater and the latest intergovernmental
agreement signed by South Africa and Denmark
is a strategic green cooperation. Previous memorandums of
understanding have dealt with energy, resilient cities – and water.
Two huge and colourful murals have been created at the V&A
Waterfront Cruise Terminal to publicise the groundwater partnership,
one by a Danish artist and the other by a local artist. Nadia Nardstar
took 15 days, with the help of an assistant, to create a depiction of the
water goddess Camissa. The mural project is a collaboration between
the Danish Embassy, the City of Cape Town, the Table Mountain
Water Source Partnership, WWF and Maersk.
The National Cleaner Production Centre South Africa (NCPC) is the
technical partner for the water use part of Phase 2 of the Strategic Water
SECTOR INSIGHT
Councils owe water boards
more than R10-billion.
Sector Cooperation between
the governments of Denmark
and South Africa. The NCPC,
which runs the Industrial Water
Efficiency project, has found that
more efficient use of energy (a
key focus area of its work) has also
led to less water being used in
production processes.
Supplying water to
households and businesses
has often been a task beyond
the capabilities of some of
South Africa’s municipalities.
As of June 2021, South African
municipalities owed more than
R10-billion to water boards.
Leaking pipes account for a
large portion of the water lost
SOUTH AFRICAN BUSINESS 2023
62
OVERVIEW
to South African municipalities in trying to serve their households
and businesses. The simple expedient of reducing water pressure,
which the City of Cape Town introduced during the period of
severe water shortage that raised the spectre of “Day Zero”, reduced
water use by 40%.
The concept of non-revenue water (NRW) is a vital aspect in the
sustainability of any operation or agency in the water sector. NRW
can result from faulty metering and leaky pipes but in South Africa,
non-payment is a big contributor to terrible NRW percentages. In
some municipalities it is as high as 70% whereas Denmark’s NRW is
routinely at or below 7%.
The Municipal Infrastructure Support Agency (MISA) falls under
the National Department for Cooperative Governance and Traditional
Affairs and will assist municipalities to plan for, provide and maintain
infrastructure. The first action of MISA was to commission 81
engineers and town planners to get to work in areas that need the
most help.
Improving dams
Water loss in a water-scarce country is a serious business. The National
Department of Water and Sanitation (DWS) has appointed the Water
Research Commission (WRC) to develop and manage the National
Siltation Management Strategy for Large Dams. More than 90% of
the country’s total storage capacity is carried by 321 large state dams,
most of which are subject to serious sedimentation, which greatly
reduces their carrying capacity.
Expectations are that South Africa will have a 17% water deficit by
2030 and so the matter is urgent. Three government water schemes
are the target of the pilot plan: Hazelmere Dam in KwaZulu-Natal;
Darlington Dam in the Eastern Cape; and Welbedacht Dam in the
Free State. Key deliverables include creating models for sustainable
dredging and decision-making. The programme is intended to
be complete by 2023. In the North West, the revitalisation of the
Vaalharts-Taung Water Irrigation Scheme will double the land
available to emerging farmers, create more than 10 000 jobs during
its implementation, resolve water shortages in local municipalities
and provide certainty for producers of fresh produce.
ONLINE RESOURCES
National Cleaner Production Centre South Africa: www.ncpc.co.za
National Department of Water and Sanitation: www.dws.gov.za
South African Water Research Commission: www.wrc.org.za
Water Institute of South Africa: www.wisa.org.za
The project was gazetted as
one of the Strategic Integrated
Projects (SIPs) in 2020 and
falls under the Presidential
Infrastructure Coordinating
Commission (PICC). The
existing Vaalharts Irrigation
Scheme is one of the largest
irrigation schemes in the
world, covering 39 000ha under
irrigation, and extending it to
Taung in the North West will
give it even greater reach. The
scheme currently has 1 000km
of concrete-lined canals and
more than 300km of concrete
drainage. The DWS has released
a master plan in response
to the severe droughts that
have affected the country in
recent years. It calls for annual
investment for a decade of
R3.3-billion in infrastructure
to achieve water security. This
is a figure that can only be
achieved with the help of the
private sector.
In an attempt to reduce the
amount of water sucked up by
alien plants, Coca-Cola aims to
recover nearly three-billion litres
of water through the removal of
invasive plants.
Another response to
the municipal problem is a
new national strategy which
gives a bigger role to wellresourced
water boards
such as Umgeni Water and
Sedibeng Water. In terms of
the National Water Resource
Strategy, catchment area
management agencies have
been established to oversee
water resource management
on a regional basis. ■
63
SOUTH AFRICAN BUSINESS 2023
OVERVIEW
Engineering
A huge bridge in the Eastern Cape is an engineering challenge.
One of the most exciting engineering projects in South
Africa – and fraught in more ways than one – is the
Msikaba Bridge project that forms part of the new N2 toll
road between Port Edward in KwaZulu-Natal and Umtata
in the Eastern Cape.
The CME JV (Concor – MECSA Construction Joint Venture) is the
main contractor and it has had to stop work more than once because of
protests of various sorts. Environmentalists don’t like the idea of this part
of the Wild Coast becoming more accessible to miners and tourists and
local residents have protested more than once about what they claim
are unfulfilled promises of jobs on the building project.
The project will see the construction of two mega-bridges on the
Msikaba (pictured) and Mtentu Rivers, seven other river bridges and
several interchange bridges, as well as a new intersection, interchanges,
pedestrian walkways and under- and overpasses for the use of farmers
and for their stock.
In addition, sophisticated techniques are required to ensure that the
580m cable-stayed structure, which will span the 198m-deep Msikaba
Gorge, is stable. The deck will be supported by 34 cable tendons
connected to two 128m-high pylons. Winds have been known to blow
at 100km/h at the site.
SECTOR INSIGHT
A call has been made for
consulting engineers to unite.
The CEO of Consulting
Engineers South Africa (CESA) has
called for a united front to help
the sector fight its corner. Chris
Campbell has noted that the
country has “countless industry
bodies” including, but not limited
to, ECSA, SAICE, SABTACO, NSBE
and SAIEE. Campbell referenced
an earlier overarching body,
the South African Forum for
Engineering (SAFE) as a model.
Such a body would be able to
take an industry-wide position
on issues such as the contentious
issue of Cuban engineers working
SOUTH AFRICAN BUSINESS 2023
64
OVERVIEW
on South Africa’s water system. The Engineering Council of South Africa
(ECSA) regulates the industry through professional registration and the
standardisation of tertiary qualifications. South Africa is the only African
member of the International Engineering Alliance (IEA).
An Investment and Infrastructure Office has been created in the
Presidency. It is headed by the former Gauteng MEC for Economic
Development, Dr Kgosientso Ramokgopa. In 2020, 51 infrastructure
projects with a total investment value of more than R340-billion
were gazetted and hopes are high that this initiative will provide a
boost for engineering firms. A study carried out by KMPG found that
spending on infrastructure resulted in additional economic activity
worth R26-billion and created 92 000 direct jobs.
The Renewable Energy Independent Power Producer Procurement
Programme (REIPPPP) has created an entirely new industry in less than
seven years, with investment of about R200-billion in solar parks and
wind farms. This has created many opportunities for engineers.
Marine repair and engineering form a significant sector in the Western
Cape and KwaZulu-Natal, with established companies such as EBH
South Africa offering comprehensive services. Both KwaZulu-Natal ports
are expanding and will continue to attract engineers.Dormac, which is
ONLINE RESOURCES
Consulting Engineers South Africa: www.cesa.co.za
Engineering Council of South Africa: www.ecsa.co.za
South African Consulting Engineering Firms: www.consultsa.co.za
Southern African Institution of Civil Engineering: www.civils.org.za
headquartered in the Bayhead
area of the Port of Durban, is best
known for its marine engineering
but it offers specialised services to
the sugar industry and provides
machinery for industrial giants like
Toyota and Defy.
The Engineering Council of
South Africa has a programme
where trainees can earn
certificates in specific disciplines
from a range of institutions. The
qualifications are in line with the
council’s Exit Level outcomes. Six of
South Africa’s biggest construction
companies have established a
R1.25-billion skills fund. Several
partnerships between the public
and private sectors are trying
to address the skills deficit. The
Skills Development Amendment
Act is intended to improve the
situation. Universities, universities
of technology and companies
are increasing their focus on the
training of engineers. ■
SUPPLYING INDUSTRIAL AND
SPECIALTY GAS PRODUCTS TO THE
SOUTHERN AFRICAN REGION
www.airproducts.co.za
OVERVIEW
Manufacturing
Innovation and expansion are happening in textiles.
SECTOR INSIGHT
Government master
plans aim to bolster local
production.
Special jeans for a special occasion. Designer Tshepo Mohlala, who
created bespoke Tshepo Jeans for the inauguration of Sappi’s expansion
project made from imported denim containing Sappi’s Verve Lyocell
blend pulp, shakes hands with Ebrahim Patel, Minister of Trade, Industry
and Competition. Looking on are Alex Thiel, CEO of Sappi Southern
Africa, the Premier of KwaZulu-Natal, Nomusa Dube-Ncube, and
President Cyril Ramaphosa. Credit: Sappi
Sappi has spent R7.7-billion on expanding its dissolving
pulp plant in KwaZulu-Natal. The project aims to boost
the annual production capacity of dissolving pulp (DP)
at Saiccor Mill by an additional 110 000 tons annually,
taking production to 890 000 tons a year and reinforcing the
company’s position as the world leader in the manufacture of
Lyocell, a cutting-edge material of the future.
Lyocell is a form of rayon consisting of cellulose fibres made from
dissolving pulp that is reconstituted by dry jet-wet spinning. The fully
biodegradable and compostable fibre is used to make textiles.
TFG is ramping up production of clothing and expects to increase
staff from just over 3 000 to more than 5 000 going in to 2023. TFG,
which counts Foschini, TotalSports and Markhams among its brands,
has been buying up clothing factories for nearly a decade and is now
in a position to respond more quickly to fashion trends than when it
was more dependent on imports.
Among TFG’s acquisitions
were Prestige Clothing Maitland
and Prestige Clothing Caledon.
The group then spent R75-
million on expanding the
factory in Caledon.
TFG plans to significantly
increase the percentage of
locally-made clothing items
from the current level of 35% to
55%. In 2020, the group made
12-million garments and is
aiming for 30-million by 2025/26.
The Manufacturing and
Competitiveness Enhancement
Programme (MCEP) of the
Department of Trade, Industry
and Competition (the dtic)
has disbursed grants which
have resulted in 230 000 jobs
being “sustained”. Because
of the Clothing and Textile
Competitiveness Programme,
that sector currently now
employs around 95 000
workers, contributing 8% to
manufacturing GDP and 2.9%
to overall GDP. In the leather
sector 22 new factories have
been opened, supporting 2 200
jobs. In the Western Cape, this
revival is reflected in member
companies of the Cape Clothing
and Textile Cluster hiring 35%
more staff in four years. About
23 600 people are employed in
the province and exports from
the Cape are on the increase.
SOUTH AFRICAN BUSINESS 2023
66
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OVERVIEW
The Aspen Pharmacare facility in Gqeberha
readied itself to make hundreds of millions of
doses of the Johnson & Johnson Covid-19 vaccine
for South Africa and Africa but the orders didn’t
come. As of April 2022, no orders had been
received and there was a danger that the facility
would close down that section. The Africa Centres
for Disease Control and Prevention was concerned
about that possibility, and urged African states to
order vaccines, partly to keep the capacity to make
large volumes of vaccines in a state of readiness. It
was anticipated that as many as 500-million doses
would be made annually.
A consortium of development finance
organisations, including the World Bank’s
International Finance Corporation, made
€600-million in financing available to the South
African company to assist it in ramping up
production of the vaccines.
In Johannesburg, global pharmaceutical
company Mylan has purchased a manufacturing
site, previously used by Ascendis Health, to make
antiretrovirals to cater to the seven-million South
Africans living with HIV. The Isando factory will
produce effervescent tablets, semi-solid and hard
capsules and pills.
A new tender for a national supplementary
HIV/Aids drug tender, which was previously
awarded to foreign companies, is to be issued,
opening up opportunities for local manufacturers
such as Cipla Medpro. The three-year tender is
worth R18.3-billion.
Pirates off the west coast of Africa are
driving an increase in boatbuilding in South
Africa. Companies like Paramount Marine which
specialise in security boats are receiving many
orders. In 2021, the company announced that
its Cape Town facility was making 26 boats for a
contract price of more than R850-million.
PG Bison, a subsidiary of KAP Industrial
Holdings, is investing more than R2-billion
at its plant in Mkhondo in Mpumalanga. With
operations in four provinces ranging from
forestry to the manufacture of medium-density
fibreboard (MDP), particleboard and valueadded
products, PG Bison is also building a new
MDP plant in Mpumalanga to complement its
existing Gauteng facility.
Sectoral master plans
The South African government believes that
the existing Proudly South African campaign
– which encourages the purchase of locallymade
goods – is something to be supported
and expanded.
Government has identified 27 sectors in
which government departments will aim to
procure from local suppliers. Speaking at the
Proudly South African Summit and Expo 2021,
President Ramaphosa said: “There is an express
undertaking to increase local procurement
over the next five years. Apart from its own
commitments, government will also work to
lower the barriers to entry, thereby making
it easier to establish and grow a business in
South Africa.”
Government is in the process of rolling out
master plans for various sectors. Some (including
furniture and plastics) are still in the works but
others have been delivered.
Goals include:
Automotive: to double the number of jobs by
increasing local content percentages
Clothing, textile, footwear and leather:
R500-million from the state for expansion of
manufacturing sites
Poultry: more than a million extra chickens
every week for retail
Sugar: soft drink manufacturers to procure 80%
from local growers. ■
ONLINE RESOURCES
Chemical and Allied Industries’ Association: www.caia.co.za
Manufacturing Circle: www.manufacturingcircle.co.za
South African Textile Federation: www.texfed.co.za
SOUTH AFRICAN BUSINESS 2023
68
Construction and property
The renewable energy sector has opened up new workstreams.
The uptick experienced by the building and home
improvement sector during Covid-19 came to an end in
2022 as customers were no longer forced to spend time
at home.
However, Afrimat’s Construction Index showed in the second
half of 2022 that a number of other indicators were trending
upwards: plans passed, buildings completed, wholesale trade
and building materials. Also, a Financial Mail interview with
Raubex CEO Rudolf Fourie in late 2021 produced an upbeat
assessment of the construction industry in South Africa.
In response to Giulietta Talevi’s question about “future
prospects”, Fourie said that tender activity was “buoyant” and
that the company’s order book stretching beyond two years was
something they had not seen in three decades.
Raubex is active in infrastructure, roads and earthworks
and materials. Like many South African companies, Raubex is
now also present in the burgeoning renewable energy market,
offering civil works and electrical installations at projects such as
the Redstone CSP project and Copperton wind farm (pictured) in
the Northern Cape.
For the year ending 28 February 2022, Raubex reported an
increase of 30.9% to R11.58-billion and an increase in operating
profit to R945.3-million.
Covid-19 provided a sharp shock for many business sectors,
but with the move towards working from home accelerated by
the pandemic, none is going to have to look harder at its models
for sustainability than the office rental sector.
Logistics, often taken for granted in normal times, became an
even more important component of the supply chain during the
global lockdown and in the months that followed, with the second
ONLINE RESOURCES
Afrimat Construction Index: www.afrimat.co.za
Construction Industry Development Board: www.cidb.org.za
SA Reit Association: www.sareit.co.za
South African Property Owners Association: www.sapoa.org.za
SECTOR INSIGHT
Home improvers are not at
home as much as they were
under lockdown.
half of 2021 characterised by
blockages and delays. In that
context, the news that Fortress
REIT had successfully let more
than 100 000m² of logistics
space in KwaZulu-Natal, was
significant. FNB, which publishes
a regular property barometer,
has done an in-depth analysis
of previous crises to help
understand what may occur
in the post-Covid property
market. According to John Loos,
a property strategist at FNB
Commercial Property Finance,
the most vulnerable sector
is likely to be Retail Property.
Smaller neighbourhood centres,
with more essential items and
greater convenience, will be
less vulnerable. Statistics SA has
found that the percentage of
South Africans living in flats
has risen markedly. Whereas 26
out of 100 approved plans in
2013 were for flats, this figure
reached 59 in 2016. Although
the total number of people
living in flats is still relatively
small (5.4%), this figure will rise
as urbanisation increases. ■
69 SOUTH AFRICAN BUSINESS 2023
OVERVIEW
Transport and logistics
The value of goods transported along the N3 continues to grow.
SECTOR INSIGHT
Private investors are
sought to improve roads,
railways and ports.
Defy’s new warehousing and distribution centre in Danskraal,
Ladysmith (pictured), is more evidence of the importance
of the N3 Corridor that carries enormous amounts of cargo
between Johannesburg and Durban.
The new facility represents a R170-million investment into the
area and will create more than 130 jobs. The warehouse can process
the loading and unloading of more than 200 trucks per day and has
a storage capacity of 100 000m³ of product. The strategic location
of the distribution centre creates the opportunity to move product
by rail from the Ezakheni manufacturing facility to the Durban port
250km away. Since 2012, Defy has invested approximately R642-
million into the Ladysmith economy.
Studies have shown that up to 45 000 vehicles use the N3
highway on a normal day, and that figure can rise to 130 000 in busy
times. More than 75-million tons worth of freight is carried annually
along the route.
The Harrismith Logistics Hub at the Maluti-A-Phofung SEZ on the
N3 is an inland port that can handle cargo containers and shift cargo
from road to rail, reducing congestion and costs.
State-owned Transnet is expanding its programme to get the
private sector involved in the country’s railways, ports and terminals.
Because of the dynamics of
South African politics, this
can never be referred to as
“privatisation” in any shape or
form, but the trend towards
having private companies
involved in some way is
increasing.
To run two of biggest
container terminals (in Durban
and at Ngqura), the plan is to
create a special purpose vehicle
that includes new subsidiary
of Transnet National Ports
Authority (TNPA), Transnet
employees and a private
operator. This SPV would run the
terminals on a 25-year contract.
A R100-billion master plan
is intended to underpin the
upgrade of the Port of Durban on
the back of private investments
linked to contracts. South Africa
has 8 000km of rail line that is
defined as a “branch line”. These
are typically smaller lines serving
a particular farming or mining
area and transporting a single
commodity, such as wheat.
Transnet Freight Rail
announced in April 2022 that
16 slots would be available for
private operators, including six
between Johannesburg and
Durban and eight between
Springfontein in the Free State
and East London. However, the
suggested contract period – two
SOUTH AFRICAN BUSINESS 2023
70
FOCUS
years – almost guarantees that no investor will touch
the project. The cost of investment would be too
high against the short period in which returns might
be made.
Despite uncertainties such as this, the private
sector seems quite bullish, with trade in shares
of logistics companies (Zeder Investments sold
its share of The Logistics Group to Old Mutual
Infrastructure for R1.6-billion) and interest being
shown in Imperial Logistics by foreign buyers such
as Dubai-based DP World.
Transnet Freight Rail’s operations represent
about 80% of Africa’s rail infrastructure. With
25 000 employees TFR has specialist divisions
for hauling coal and iron ore together with
a general freight division which transports
everything from grain to chemicals.
While there is concern about the performance
of South Africa’s ports in getting goods in and
out in the best possible time, a record was set in
2020 by Transnet Freight Rail in transporting 66
train lots and 3 662 FEU reefer containers from
Limpopo and Gauteng to the Port of Durban.
The Citrus Growers Association was very happy
about this, which represented a 20% increase on
the previous year’s volumes and was some way
towards the target of 15 000 reefer containers.
A mandatory automated truck booking
system has been introduced at Durban Container
Terminal Pier 1 and Pier 2, while the Grindrod, FPT
and Bulk Terminal depots have also piloted their
own booking systems.
The building of the Musina-Makhado Special
Economic Zone (SEZ) will boost Limpopo’s role
as a transport and logistics hub. The Musina
Intermodal Terminal is 15km from the busy Beit
Bridge border crossing. It will boost efforts to
move cargo from road to rail.
The Maputo Development Corridor is Africa’s
most advanced spatial development initiative. Run
by the Maputo Development Corridor Logistics
Initiative (MCLI), the corridor runs from near
Pretoria in Gauteng toMaputo in Mozambique.
South Africa’s logistics and courier market is
worth R10-billion.
Transport systems
Large amounts of money are to be spent on
various forms of public transport in the short term.
Investments in rapid transit systems in the big
metropolitan areas of Johannesburg and Cape
Town are now being followed by other South
African cities such as Polokwane and Rustenburg,
the Gautrain is looking to expand its routes, and a
taxi infrastructure programme is in place.
In Limpopo’s provincial capital of Polokwane,
operations of the Leeto La Polokwane public
transport system were launched in 2021. In the
North West, the Rustenburg Rapid Transport
Project (Yarona) aims to integrate busses, taxis and
improved pedestrian access throughout the city.
The South African Department of Transport
has several agencies and businesses reporting
to it: Air Traffic and Navigation Services
Company, Airports Company South Africa
(ACSA), National Transport Information System,
Road Accident Fund, South African Civil
Aviation Authority, South African Maritime
Safety Authority (SAMSA), South African
National Roads Agency Limited (Sanral) and
Passenger Rail Agency of SA (PRASA).
Several airports are possible future regional
freight nodes: Wonderboom Airport in Pretoria,
Polokwane International Airport in Limpopo
and Mafikeng.
South Africa has 22 000km of railway lines and
747 000km of roads, 325 019 heavy-load vehicles
and the road freight industry employs 65 000 drivers.
There are 135 licensed airports in the country, 10 of
which have international status. ■
ONLINE RESOURCES
African Rail Infrastructure Association (ARIA): www.aria.org.za
Airlines Association of Southern Africa: www.aasa.za.net
South African Heavy Haul Association: www.saheavyhaul.co.za
71 SOUTH AFRICAN BUSINESS 2023
OVERVIEW
Tourism
Swiss investment may underpin expansion.
SECTOR INSIGHT
Marriott International has
sold more properties.
The International Hotel School (HIS), which has campuses
in six South African cities, is now part of the Swiss group,
Sommet Education, following the acquisition by the
European company of Invictus Education Group. Invictus
also runs the SAE Institute in Cape Town and Johannesburg, where
the focus is animation, audio and film. The Sommet Education
connection, which includes the Gilon Institute of Higher Education
among its brands, will allow for more rapid expansion in other parts
of Africa for the IHS and SAE brands.
Three Gauteng hotels have changed ownership from Marriott
International to Anew Hotels & Resorts. Writing in the Sunday Times,
Arthur Goldstuck ascribed this success for the South African family
group to “the very fact that it has a local base and focus has given it
an edge”. The three hotels were the Parktonian (Johannesburg), Hotel
Roodepoort and what is now called the Anew Centurion. Anew now has
11 properties in its portfolio.
Earlier, when the Marriott International hotel group closed three
of its South African hotels during the Covid-19 lockdown, Tsogo Sun
Hotels, which owns a controlling stake in all three hotels, stepped up
its commitment by agreeing to bring them into its portfolio, keep them
open and run them.
Hospitality Property Fund Limited delisted from the JSE in 2021
and became a wholly-owned subsidiary of Tsogo Sun Hotels Limited,
ONLINE RESOURCES
African Business Travel Association: www.abta.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
giving Hospitality shareholders
shares in a more liquid stock and
the hotel group an expanded
property portfolio. Most of
Hospitality’s 54 properties
(with about 9 000 rooms) were
operated by Tsogo Sun.
South African National Parks
(SANParks), which runs nearly 70%
of South Africa’s 509 state and
protected areas, has a number
of public-private partnerships
and held an investment summit
in 2022 to showcased a further
100 opportunities in 12 national
parks. There are currently 60 PPPs
in operation in South Africa.
Sun City announced in
October 2022 that it would spend
about R1.1-billion on projects at
its Sun City Resort.
The R295-million Lefika Villas
development will see 58 three
and four-bedroom villas added
to the resort’s accommodation
options for members of Sun
International’s Sun Vacation Club.
The Palace (pictured) will gain a
spa and a gymnasium and 320
bedrooms are to be refurbished.
There are 711 745 people
employed in the tourism industry
nationally, with road transport
(29%), food and beverages (20%)
and accommodation (19%)
absorbing the largest numbers.
The sector contributes 9% to
South Africa’s gross domestic
product (GDP). ■
SOUTH AFRICAN BUSINESS 2023
72
OVERVIEW
ICT
Government’s latest mobile contract is shared by four companies.
As of 2021, National Treasury has appointed four companies
as service providers to government, through its new mobile
communication services contract, known as RT15-2021. The
contract covers all entities of the state and is expected to
allow for significant cost saving through better controls.
The contract, which was previously held by Vodacom, is
now shared between Cell C, MTN, Telkom and Vodacom. The
transversal contract is for uncapped data for different categories
of employees and includes mobile devices for packages from
all service providers. Nearly 450 organs of state participated in
the previous contract. This included 38 national departments, 99
provincial departments, 106 local government departments and
207 other state institutions.
South Africa has not only been home to many pioneering
banking apps on mobile phones, but the country’s operators
continue to offer unprecedented innovation and levels of
service. Arthur Goldstuck noted these trends in September 2022,
further pointing out that the Reserve Bank will also speed up
EFTs between banks with the introduction of a Rapid Payments
Programme. Bank Zero not only uses biometric authentication
for logging in, but offers zero-cost banking. Both MTN and
Vodacom are offering much more sophisticated apps than when
they first ventured into fintech: MTN MoMo has diverse offerings
and VodaPay encompasses payment, lending, insurance and
cash for emergencies.
Invicta Holdings, an investment holdings and management
company, has expanded into the fibre field at a time when working
from home has massively increased the demand for data. Invicta
acquired Dartcom Group for R500-million, giving it a presence in the
ONLINE RESOURCES
Business Process Enabling SA: www.bpesa.org.za
Independent Communications Authority: www.icasa.org.za
Technology Innovation Agency: www.tia.org.za
Credit: Caspir Camille
Ruben on Unsplash
SECTOR INSIGHT
South African banking
apps are world class.
distribution of communication
and renewable technologies
and the manufacture of fibre
optic cables (under licence
from Japan). As South Africa
joins the global trend towards
online shopping and with the
first networks rolling out 5G in
2020, data centres are going up
all over the country. The latest
to join the trend is software
company Oracle which has
chosen Johannesburg as the
headquarters of its African cloud
region. All of the company’s
cloud regions worldwide will be
100% powered by renewable
energy by 2025.
Teraco stores data in
Johannesburg, Durban and
Cape Town. A second 30MW
site is under construction in
Brackenfell to complement the
existing facility in Rondebosch.
Africa Data Centre (ADC), part of
the Liquid Telecom Group, has
purchased a Tier IV data centre
in Johannesburg, previously
used by Standard Bank.
The Council for Scientific
and Industrial Research (CSIR)
in Pretoria will host a new
body aimed at preparing South
Africa for the Fourth Industrial
Revolution (4IR), the South
African Affiliate Centre of the
World Economic Forum. ■
SOUTH AFRICAN BUSINESS 2023
74
Banking and financial services
African Bank is on the acquisition trail.
OVERVIEW
Banking and financ
African Bank has signalled that it is ready to grow, with SECTOR INSIGHT
an agreement to buy Grindrod Bank and an R80-
Advisory companies that
million deal to purchase lender Ubank.
enabled state capture are
After going into administration in 2014, Mutual African banks facing have sanctions. been granted licences.
Bank took some time to recover and is still half-owned by the
Reserve Bank but it has materially added to its retail client
base and the addition of more than 4.5-million clients with
the purchase of the troubled Ubank, which had as its base
mine workers, will further strengthen its position. The R1.5-
billion purchase of Grindrod Bank gives African Bank a stronger
position in business lending.
Consulting company Bain & Company has been excluded
from British government contracts for three years because of
the role the company played in the evisceration of the South
African Revenue Service in the time of state capture. Although
the Zondo Commission on state capture found that KPMG and
McKinsey also enabled state capture, no such strictures have yet
been applied by the South African government.
Discovery Bank reported in June 2022 that it was signing up 750
new clients every day which puts it on course to achieve more than
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 South with African enormous Reserve Bank
minew
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
integrated into the Standard Bank Group.
one of several capital investment adequacy funds
ratio in May 20
consequently placed under curatorship.
The New Development Bank, established to fund infrastructure Teba Trust looking Fund, which for opportunities owns Ubank, in was activ
projects in BRICS countries, had approved loans of $5.1-billion a strategic to investor the financial when sector. the curatorship Insurance was anno
be spent in South Africa by July 2022. This included renewable administrators technology of the fund is are of the particular National Union of M
energy projects and the Port of Durban upgrades. (NUM) and Minerals interest, Council together SA. One with of the credit banks being
The launch by Sanlam Investments of a Sustainable Infrastructure the South African services arm and of Nigeria’s payment Access systems. Bank Group a
Fund is a sign of the times. The South African state has promised Council SA remains Capital positive Appreciation, about the future which of the ban
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
caused by the use of fossil fuels, the investment community mutual banks is is Investment strong, given the Corporation, nature of the is South African
increasingly putting emphasis on sustainability. Sanlam Group Young will Women already in Business invested Network in a (YWBN) software has been gran
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
from institutional investors. Investments will be made in housing, Tyme Digital payment went from terminal acquiring provider a licence and to runnin
transport, health, water, waste, communication, conventional with energy services has available R500-million in more than available 500 Pick for n Pay and
in less than two further years. investments. African
ONLINE RESOURCES
Second to Rainbow market among Capital the has country’s a stake new in banks w
the investment company and is
Financial Sector Conduct Authority: www.fsca.co.za Bank, which officially launched in 2019 and is experie
Insurance Institute of South Africa: www.iisa.co.za growth in retail the deposits. owner of Discovery TymeBank, Bank which is applying the
South African Institute of Chartered Accountants: www.saica.co.za model it uses received in its health a banking business licence to in reward goo
behaviour. The 2017 Discovery and expanding group is already rapidly. ■a giant on t
ONLINE RESOURCES
75 SOUTH AFRICAN BUSINESS 2023
Financial Sector Conduct Authority: www.fsca.co.za
Public Investment Corporation: www.pic.gov.za
South African Reserve Bank: www.resbank.co.za
OVERVIEW
Development finance and
SMME support
Expanding small business has become big business.
SECTOR INSIGHT
More than 30 small businesses
supply services to a mine in
northern Limpopo.
The number and scope of the Business Day Supplier
Development Awards gives an indication of how developed
this aspect of support for small enterprise has become in the
South African business community. The process of helping
small businesses become bigger businesses has sparked creativity
across sectors such as retail and mining and collaboration with other
companies has become the norm in promoting supplier development.
A fairly new initiative, the HandPicked programme of the Mr Price
Foundation, has no fewer than five partners in African Grower, CHEP,
Fresh Life Produce, Veldskoen and Catalyx. These partners cover urban
or vertical farming, logistics, developers and implementers of a growing
system for urban areas, shoe manufacturing and training. Young people
interested in agriculture are trained in innovative farming techniques
and business skills with the goals of tackling food security, eliminating
poverty and hunger and promoting good health and well-being.
The list of winners from 2021 points to how important and varied
supplier development has become in the SMME environment.
2021 Winners
Credit: Dipuno Fund
Overall Winner – award sponsored by Absa: Tiger Brands.
Agri supply-chain development includes agri-procurement access,
import replacement, funding support, land-access support and agrarian
technical support using an aggregator model with strategic partners that
enable small farmers to benefit while developing black mega farmers.
Tiger Brands launched the Dipuno Enterprise and Supplier Development
Fund in 2019, committing R100-
million in investment by 2025 to
black-owned and black womenowned
small enterprises and
smallholder farmers. Initiatives
are underpinned by strong
collaborative partnerships with
government, colleges, mining
houses and their pipeline partners.
There is a focus on technology
investment.
Localisation Award: The Empact
Group, which collaborates with
local agricultural departments
to bring opportunities to local
farmers, straight into their local
and Gauteng supply chain outlets.
Outstanding Growth in a
Small Supplier Award: Exxaro.
In 2019, in response to the
pandemic, Exxaro invested and
allocated R200-million to ESD
transformation. MBR was one of
the companies that benefitted as
Exxaro provided MBR with a zerointerest
loan of R25-million to
acquire mining operations assets.
Newcomer Award: Uyandiswa
Innovation Award: V&A
Waterfront
Youth Focus Award: Anglo
American Zimele
Women Focus Award: sponsored
by Cold Press Media: The Empact
Group
SOUTH AFRICAN BUSINESS 2023 76
OVERVIEW
Rural and Township Focus Award: the SPAR Rural Hub model
Emerging Technology Award: Exxaro Resources
Collaboration Award – sponsored by Fetola: Tiger Brands
The Covid-19 Recovery Award: Distell
Small Supplier Award – sponsored by IDC: Distell, in partnership
with supplier Stellar Wines.
Most big companies in South Africa have two main programmes
to support SMMES: enterprise development (ED) and local supplier
development (or procurement). Venetia Mine in northern Limpopo,
a De Beers Group mine, has more than 50 SMMEs enrolled in
incubation programmes and 34 locally-owned companies are doing
business with the mine.
Covid scheme
An amount of R15-billion was made available by national government
for businesses adversely affected by Covid-19 and the unrest and
floods that hit KwaZulu-Natal in 2021, but Treasury announced in
August 2022 that only R77-million of this “bounce back” scheme had
been disbursed out of a total of R140-million in loans approved. Any
small business is eligible for the loans, irrespective of whether or not
it was directly harmed by one of the bad events, but a combination
of other events such as loadshedding and higher interest rates had
discouraged uptake.
A R200-billion loan guarantee scheme (LGS) was made available
for firms with a turnover of less than R300-million per year. This
scheme received very few applications and so the criteria were relaxed
although money can still only be used for operations. Treasury will also
now take responsibility for the first 20.5% of default losses, in contrast
to the first iteration whereby banks had to take that loss. While the
“bounce back” scheme allows businesses to change the terms of the
loan (by extending it, for example), the LGS is a fixed-term loan.
National programmes
The National Department of Small Business Development (DSBD) has
several programmes to assist SMMEs and co-operatives.
ONLINE RESOURCES
Business Day Supplier Development Awards: www.sdawards.co.za
National Department of Small Business Development: www.dsbd.gov.za
Small Business Institute: www.smallbusinessinstitute.co.za
Small Enterprise Development Agency: www.seda.co.za
The Small Enterprise Development
Agency (Seda), a subsidiary of the
DSBD, has 42 incubation centres
under its Seda Technology Programme
(STP). In Mpumalanga, Seda supports
several incubators: Furntech, furniture
manufacturing, White River; Mobile
Agro-Skills Development & Training,
agricultural training, Nelspruit;
Mpumalanga Stainless Initiative (MSI),
stainless-steel processing, Middelburg
(with Columbus Stainless); Timbali
floriculture, Nelspruit; Ehlanzeni TVET
College Rapid Incubator Renewable
Technologies, Nelspruit.
In the North West, the Provincial
Government is investing in digital
infrastructure. SMMEs will be able to
use the newly-established Mafikeng
Digital Innovation Hub as a co-working
environment and to get support in
using digital tools. The South African
National Roads Agency Limited
(SANRAL) actively supports small
businesses wherever it works in South
Africa. Subcontracts are routinely
awarded for maintenance such as the
patching of potholes, fencing and the
cutting of grass verges.
Part of the rationale behind a
national programme to revive industrial
parks is to benefit SMMEs. The National
Department of Trade, Industry and
Competition (the dtic) has invested R40-
million in the Nkowankowa Industrial
Park in Limpopo, an initiative which has
helped to create 174 direct jobs. In the
northern reaches of the province, more
than 300 jobs have been created with
the revitalisation of the Thohoyandou
Industrial Park, which has achieved a
91% occupancy rate.
The dtic is trying to stimulate
township and rural economies through
programmes such as the Enterprise
Investment Programme (EIP). ■
77
SOUTH AFRICAN BUSINESS 2023
OVERVIEW
Education and skills training
Private education companies are growing
JSE-listed companies are doing well in the education
sector. ADvTech reported a 22% increase in operating profit
in the year to December 2021 and Curro Holdings’ revenue
increased by 15.5% to R2.06-billion for the six
months to the end of June 2022.
With brands such as Crawford, Trinity House,
Crawford House, Abbotts College, Varsity College and
Vega in its stable, ADvTech made that operating profit
of R1.1-billion on increased revenues of R5.9-billion.
Enrolments in South African schools run by the
company rose by 8% (to 29 599) and by just over
7 000 in other African countries, or 10%. The group
intends increasing its focus on the rest of Africa in
the years ahead.
Curro Holdings, which runs 181 schools, increased
pupil numbers by 66 167 for the six months to June 2022.
This despite an increase in tuition fees of 13.3%. Curro
has been expanding steadily since its establishment in
1998, and the same trend is evident in the trajectory of its
tertiary offshoot, Stadio Holdings.
Stadio Holdings listed separately for the first
time in 2017 and now has more than 41 000 students registered
across three institutions. Milpark Education is the online offering,
AFDA offers accredited degrees and higher certificates in film,
performance, entertainment, business and technology while Stadio
Higher Education Institution is the result of the merger of Southern
Business School, Embury Institute for Higher Education, LISOF and
Prestige Academy.
Interim results published by Stadio Holdings in August 2022 reported
that profit after tax rose by 23.5%, to R105-million. A R200-million Stadio
campus was opened in Centurion in Gauteng early in 2022.
Skills
In November 2023, the Decade of the Artisan Programme will have
run its course. The Department of Higher Education and Training set
targets for skilled graduates and established Centres of Specialisation
at Technical Vocational Education and Training (TVET) colleges around
the country.
For example, False Bay TVET College was appointed as the
Centre of Specialisation in Rigging and Mechanical Fitting, both
skills highly relevant to the maritime industry. The Eastern Cape
SECTOR INSIGHT
The Decade of the Artisan
is drawing to a close.
Stadio’s new campus in Centurion.
Midlands TVET College
specialises in welding and the
Gert Sibande TVET College in
Mpumalanga is the institution
that focusses on the skills of a
millwright.
Centres of Specialisation aim
to produce:
• A skilled and capable workforce
• Increased availability of intermediate-level
technical skills
• Increased delivery of qualified
artisans in 13 priority trades
Speaking at the opening
ceremony of the WorldSkills
South Africa (WSZA) National
Competition in KwaZulu-Natal
in June 2022, Higher Education
and Training Minister Dr Blade
Nzimande called on principals
SOUTH AFRICAN BUSINESS 2023
78
OVERVIEW
of TVET colleges to prioritise work placements
for students. He said, “We have now incorporated
into our plans that all college principals must have
the issue of work placement and partnership with
industry in their performance agreements. Any
college principal who does not promote work
placement has no place in our TVET college system.”
Venetia Diamond Mine in the far north
of Limpopo is in the process of transitioning
from surface to underground mining and that
requires a new set of skills from employees and
contractors. Six simulators are being installed
at a new training centre for the mine, covering
aspects such as drills and bolters while virtual
reality will be deployed for a virtual blast wall.
More than 300 training modules will be available.
Universities
There are three types of public universities in
South Africa: traditional universities, which are
academic in focus and award degrees; universities
of technology (previously “technikons”), which have
a vocational emphasis and can award diplomas and
certificates; and comprehensive universities which
offer a combination of both types of qualification
and can confer degrees and diplomas.
The addition of two universities in the
provinces of Mpumalanga and the Northern Cape
means that every South African province now has
a university.
In Mbombela, the phase of using old
buildings has come to an end for the University
of Mpumalanga. Now a striking new architectural
addition has been added to the cityscape on a
hill north of the Crocodile River: a complex of
department headquarters and residence buildings
ONLINE RESOURCES
Centres of Specialisation: www.dhet.gov.za
National Department of Science and Innovation:
www.dst.gov.za
Sol Plaatje University: www.spu.ac.za
TVET colleges: www.tvetcolleges.co.za
University of Mpumalanga: www.ump.ac.za
is taking shape as a new home to the province’s
first university. By building on existing institutions
such as teacher training colleges, the university has
progressively offered more courses and taken on
more students over the last few years. The official
launch was in October 2013, with the first cohort of
169 students registered in just three programmes
in 2014. By 2020, the university was offering 26
qualifications to 4 200 students.The university
currently offers 48 programmes in three faculties:
Education; Agriculture and Natural Sciences; and
Economics and Business Sciences. There are plans
to add new programmes at both undergraduate
and postgraduate levels and to establish the faculty
of Humanities and Social Sciences and the School of
Law. By 2024, the plan is to offer approximately 70
qualifications to over 8 000 students.
University of Mpumalanga students have
distinguished themselves in competitions run
by ENACTUS, an international organisation
that works with leaders in business and higher
education to mobilise university students to
make a difference in their communities while
developing the skills to become sociallyresponsible
business leaders
The first intake of students at the Kimberley
campus of Sol Plaatje University in 2014 was 124.
At the 2019 graduation ceremony, 319 students
were congratulated and when classes began for
the 2020 academic year, just over 700 first-time
students enrolled. In 2022, the SPU expects to
have in the region of 3 479 students, of which
339 will be new postgraduate students.
The academic programme is housed in four
schools: Education; Humanities; Natural and
Applied Sciences; Economic and Management
Sciences. Bachelor’s degrees are offered in
education, science, science in data, ICT, heritage
studies, commerce and arts. A diploma in retail
business management (three years) and a
one-year higher certificate in heritage studies
completes the prospectus.
In 2022 the university tweaked its brand, with
an internal logo falling away and the colour black
being replaced by navy blue, joining red, orange
and beige as the corporate colours. ■
79
SOUTH AFRICAN BUSINESS 2023
A STUDENT RECRUITMENT INITIATIVE TO ATTRACT
ACADEMICALLY TALENTED RURAL STUDENTS TO
REGISTER AT SOL PLAATJE UNIVERSITY
SINCE ITS INCEPTION IN 2013, SOL PLAATJE UNIVERSITY (SPU)
HAS MADE SIGNIFICANT PROGRESS AND HAS GROWN TO BECOME
A PERMANENT PRESENCE IN KIMBERLEY, THE NORTHERN CAPE,
AND THE SOUTH AFRICAN HIGHER EDUCATION SECTOR.
Sol Plaatje University is still developing as a
university, and faces significant challenges in
meeting the steep student growth targets that
the institution agreed to with the government.
The demographics of both the student body and its graduates
suggest that SPU attracts students from all nine provinces, with
the main concentrations being from the major towns in the
Northern Cape and the North-West Provinces. There is however
a challenge in attracting students from rural areas.
The Northern Cape and North West Province are two of the
largest and most sparsely populated provinces in South Africa.
The economic drivers in these provinces are mainly mining and
agriculture, but new economies around the Square Kilometre
Array project and alternative energies are emerging.
Many rural learners are caught in the poverty trap after
finishing their high school education because they cannot find
opportunities within these major or emerging economies.
Therefore, a lot of talent is lost because these learners,
although talented, are precluded from going to University.
In the absence of any sort of stimulus plan for education that
will level the playing field for rural learners regarding access
to higher education, Sol Plaatje University wants to create a
pipeline of academically talented learners from rural areas and
see them register for a tertiary qualification at the University.
RESEARCH HAS SHOWN THAT A SINGLE GRADUATE
FROM A UNIVERSITY, HAS AN IMMEDIATE IMPACT ON
THE LIVES OF TEN OTHERS WHEN THEY RETURN TO
THEIR COMMUNITY.
ONE GRADUATE FROM A RURAL COMMUNITY
CAN BE A CATALYST FOR ECONOMIC GROWTH!
TALENT PIPELINE
PROGRAMME
The Talent Pipeline Programme (TPP) at Sol
Plaatje University is a pre-university enrichment
programme aimed at increasing the academic,
social, and psychosocial preparation of learners
to enter higher education.
We will identify the top ten performing learners in
grades 10, 11 and 12 from a broad range of underresourced
schools in the Northern Cape Province.
The learners will be accommodated at the University
during their school holidays (one week in March,
two weeks in June and one week in September) and
participate in a programme that focuses on a psychosocial,
educational enrichment curriculum of deep immersion in
ten subject areas: Mathematics, Scientific Thinking,
Science, Molecular Literacy, Computer Science,
Language, Economics and Law, Diversity Studies and
International Relations. The academic instruction will be
accompanied by a personal skills development curriculum
(life skills, sport, art and music) focusing on coping and
success mechanisms.
Programmes such as the TPP which are run elsewhere have
been highly successful in creating a pipeline of excellent
learners from under-resourced schools that enter University
and have already produced several medical doctors, nurses,
actuaries, accountants, economists, and engineers who
have positively impacted their communities.
EDUCATORS
ENHANCEMENT
PROGRAMME
We take pride in SPU being located within
the Northern Cape Province; thus, we must
play a part in dealing with some of the
general issues in our space.
A priority is to contribute towards improving the quality
of schooling in our province to enable young people
from these parts of the country to access post-secondary
education. We will therefore run an Educators
Enhancement Programme as part of the TPP for
Mathematics and Science Educators from the
participant schools.
This programme will ensure that the learners have
the necessary support in their studies, receive the
appropriate academic interventions at school, and that
their teachers encourage their commitment to success.
Through this enhancement programme, we will assist
educators in teaching and assessing in ways that make
the transition from high school to University smoother,
thereby facilitating access. We also endeavour to ensure
that educators have the appropriate technology, access to
data and connectivity, and gain experience using online
resources for teaching and collaboration. The Educator
Enhancement Programme will be a residential workshop
which runs over two weeks in June on the SPU premises.
FAMILY WORKSHOPS
One of the most critical assets of any education system
is the solidarity between parents and teachers.
We want to promote the involvement of families and communities in
the education process of the learner. We will host workshops through
which we will explain the role of the family in the success of the
learner in the TPP; and establish sustainable partnership practices
across schools, families, and communities.
ONLINE TUTORING
For the time in-between the residential sessions at
the University, the TPP learners will be supported by
online tutoring.
This support will be conducted by their teachers who have been
taken through the Educator Enhancement Programme, and we will
assign online tutors that the learners can access at learning centres
that the University will establish across the Northern Cape Province.
“As I embark upon my second five-year
term as the Chancellor of Sol Plaatje
University, I am committed to the SPU
Talent Pipeline Programme’s success
because it speaks to my belief that
academically excellent students who come
from modest means must be given a fair
chance to succeed in higher education.
Sol Plaatje University has a vision of
enhancing democratic practice and
social justice in society. This programme
puts it on a path to achieving that
vision and to making a positive impact
on uplifting rural communities in the
Northern Cape Province.
I hope you will consider supporting this
ambitious but necessary programme at
our University.”
CHANCELLOR, JUDGE STEVEN MAJIEDT
For more information, send an email
to specialprojects@spu.ac.za.
You can also visit our website at
www.spu.ac.za.
• Light
from Africa
-
for Humanity
• Lesedi
Lig uit Afrika – vir die Mensdom
la Afrika - go Batho •
Sol Plaatje University offers the following
undergraduate and postgraduate qualifications:
UNDERGRADUATE
SCHOOL OF ECONOMIC & MANAGEMENT SCIENCES
Diploma in Retail Business Management
Advanced Diploma in Management
Bachelor of Commerce in Accounting
Bachelor of Commerce in Economics
ENQUIRIES: charmell.cardoso@spu.ac.za
SCHOOL OF HUMANITIES
Higher Certificate in Court Interpreting
Higher Certificate in Heritage Studies
Bachelor of Arts (Specialisations: Archaeology, Heritage Studies,
Languages and Social Sciences)
ENQUIRIES: humanities@spu.ac.za
SCHOOL OF EDUCATION
Bachelor of Education (Foundation Phase)
Bachelor of Education (Intermediate Phase)
Bachelor of Education (Senior & FET Phase)
ENQUIRIES: jeffrey.thomas@spu.ac.za
SCHOOL OF NATURAL & APPLIED SCIENCES
Diploma in ICT (Applications Development)
Advanced Diploma in ICT (Applications Development)
Bachelor of Science in Data Science
Bachelor of Science (Specialisations: Mathematical and
Computer Sciences, Biological Sciences and Physical Sciences)
ENQUIRIES: nobulali.mathimba@spu.ac.za
+27 53 491 0000 | information@spu.ac.za | PRIVATE BAG X5008, KIMBERLEY 8300
SolPlaatjeUniv @MySPU sol-plaatje-university Sol Plaatje University
www.spu.ac.za
POSTGRADUATE
SCHOOL OF ECONOMIC & MANAGEMENT SCIENCES
Postgraduate Diploma in Entrepreneurship
Postgraduate Diploma in Public Management
ENQUIRIES: postgrad.ems@spu.ac.za
SCHOOL OF HUMANITIES
Bachelor of Arts Honours in Languages (Specialisations: English
and Afrikaans)
Bachelor of Social Science Honours (Specialisations: Archaeology,
Anthropology, History, Sociology and Heritage Studies)
Master of Arts (Specialisations: Anthropology, History, Sociology
and Heritage Studies)
ENQUIRIES: postgrad.hum@spu.ac.za
SCHOOL OF EDUCATION
Bachelor of Education (Honours) in Curriculum Studies
Postgraduate Diploma in Mathematics Education
Postgraduate Certificate in Education (Senior Phase and FET)
Master of Education
ENQUIRIES: postgrad.edu@spu.ac.za
SCHOOL OF NATURAL & APPLIED SCIENCES
Bachelor of Science (Honours) in Biological Sciences (Specialisations:
Botany and Zoology)
Bachelor of Science (Honours) in Computer Science
Bachelor of Science (Honours) in Data Science
Bachelor of Science (Honours) in Mathematical Sciences
(Specialisations: Applied Mathematics, Mathematics and Statistics)
Bachelor of Science (Honours) in Physical Sciences (Specialisations:
Chemistry, Geography and Physics)
Master of Science (e-Science) by coursework
ENQUIRIES: postgrad.nas@spu.ac.za
INDEX
INDEX
Air Products............................................................................................................................................................................... 65
Brand South Africa.................................................................................................................................................................. 6
Council for Geoscience (CGS) ..............................................................................................................................48-49
Council for Scientific and Industrial Research (CSIR).................................................................................... 54
Durban International Convention Centre (Durban ICC)............................................................................... 3
Free State Development Corporation (FDC)..............................................................................................32-33
Impala Platinum (Implats) .......................................................................................................................................50-51
Indaba Hotel, Spa and Conference Centre.......................................................................................................... 73
Invest Durban.........................................................................................................................................................................IFC
Momentum Financial Planning ................................................................................................................................IBC
Mpumalanga Tourism and Parks Agency (MTPA)........................................................................................... 11
Musina-Makhado Special Economic Zone (MMSEZ)............................................................................22-27
National Cleaner Production Centre South Africa.....................................................................................OBC
Newlyn Group .................................................................................................................................................................36-39
Northern Cape Economic Development, Trade and
Investment Promotion Agency (NCEDA) .....................................................................................................34-35
Petroleum Agency South Africa .........................................................................................................16-17, 58-61
Sol Plaatje University ..................................................................................................................................................80-83
South African Bureau of Standards (SABS).......................................................................................................... 67
South African Mohair Industries Limited (SAMIL)....................................................................................44-45
Standard Bank ........................................................................................................................................................................ 21
Vaal Special Economic Zone .................................................................................................................................28-31
SOUTH AFRICAN BUSINESS 2023 84
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