South African Business 2024

SOUTH AFRICAN
BUSINESS
AFRICAN
THE GUIDE TO BUSINESS AND INVESTMENT
IN SOUTH INESS
USINESS AND INVESTMENT
A
2021 EDITION
2024 EDITION
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Dube
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and King
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Airport - 60-
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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
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cities in Africa and
Middle East by
Mercer Consulting in
2015
Named one of the
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by the Swiss-based
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THIS IS WHY
WE MATTER...

CONTENTS
CONTENTS
South African Business 2024 Edition
Introduction
Foreword 10
A unique guide to business and investment in South Africa.
Special features
An economic overview of South Africa 12
The CEOs of South Africa’s biggest companies are supporting
government in tackling the challenges that are getting in the way
of economic growth. Renewable energy solutions are taking off and
big mining projects are producing valuable product.
Provinces of South Africa 16
A snapshot of South Africa’s nine provinces.
Collaborating to put young people to work 22
Youth unemployment remains a stubborn national problem but
creative solutions are increasingly coming to the fore.
Economic sectors
Agriculture 30
Avocados are proving a fruitful investment.
Mining 32
Impala Platinum has gained control of Royal Bafokeng Platinum.
Energy 36
Sasol’s partnerships are defining a new direction for
the energy giant.
Oil, gas and petrochemicals 38
A production rights request follows significant offshore gas finds.
Engineering 40
Engineers are making the switch to renewable energy possible.
Manufacturing: general 42
Glass group expansion creates 300 jobs.
Manufacturing: automotive 43
BMW celebrated 50 years of making cars in South Africa in 2023.

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THE GUIDE TO BUSINESS AND INVESTMENT
IN SOUTH AFRICA
CONTENTS
Construction and property 44
Student accommodation is a growing sector.
Water 45
Solar power is a water solution.
Transport and logistics 46
A regional airport could become an international hub.
Tourism 47
New hotels are being built.
Telecommunications 50
The Competition Commission has blocked a fibre merger.
ICT 52
Retailers are pouring money into digital infrastructure.
Development finance and SMME support 54
The SA SME Fund has launched a venture capital fund.
Education and training 56
Sol Plaatje University celebrated its 10th anniversary in 2023.
Banking and financial services 59
Carbon credits and green investing are catching on.
References
Key sector contents 28
Overviews of the main economic sectors of South Africa.
SOUTH AFRICAN
BUSINESS
THE GUIDE TO BUSINESS AND INVESTMENT
SOUTH
IN AFRICAN
BUSINESS
2021 EDITION
2024 EDITION
ABOUT THE COVER:
Main image: Tsitsikamma Community Wind Farm, Cennergi Services.
Bottom left: fruit packing, ZZ2; Springboks, Muhammad/Brand SA;
Cullinan Diamond Mine, Petra Diamonds; auto worker, BMW Group;
Sasol One, Sasolburg, Sasol.
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FOREWORD
South African Business
A unique guide to business and investment in South Africa.
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
Shiko Diala
Gabriel Venter
Vanessa Wallace
Graeme February
Tahlia Wyngaard
Tennyson Naidoo
Lungisa Maseti
Administration & accounts:
Charlene Steynberg
Kathy Wootton
Sharon Angus-Leppan
Distribution and circulation
manager: Edward MacDonald
Printing: FA Print
Welcome to the 12th 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 relationship between
tertiary education, training and the jobs market. The youth unemployment
rate is referenced in a discussion of the various measures that are being
taken in the public and private sectors to help prepare young people for
work, or to encourage them to start businesses. The role of the country’s
Sector Education and Training Authorities (SETAs) is highlighted.
Regular pages cover all the main economic sectors of the South
African economy. This includes tracking the rapidly evolving renewable
energy landscape and reporting on the progress of exploration and
discoveries of oil and gas off the coast and on land. Landmarks such as
BMW’s 50-year celebration of making cars in South Africa are noted and a
snapshot of each of the country’s provinces is provided.
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 23 000. The 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
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.
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 | Airlink; Ardagh Group; BMW Group; CHIETA;
Coca- Cola Beverages South Africa; De Beers Group; Ford Motor
Company; Glencore; Grinaker-LTA; Impala Platinum; Meatmaster SA;
MTN; ORBIT TVET College; Petra Diamonds; Radisson Blu; Sasol; SA
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
SOUTH AFRICAN BUSINESS 2024
10
Government News Agency; Stag African; Anton Swanepoel; Transnet National
Ports Authority; Versofy Solar; Wits Business School; YES; John Young; ZZ2.
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.

AN ECONOMIC OVERVIEW OF
SOUTH AFRICA
The CEOs of South Africa’s biggest companies are supporting
government in tackling the challenges that are getting in the way of
economic growth. Renewable energy solutions are taking off and big
mining projects are producing valuable product.
By John Young
As 2023 drew to a close, concerns about
the functioning of South Africa’s ports
and railways became more urgent.
Transnet, the state-run utility which
has six divisions covering ports, port terminals,
railways, engineering, pipelines and property, is
investigating partnerships with private operators,
but the immediate priority is to fix dockside cranes
and unload ships.
President Cyril Ramaphosa himself visited the
Port of Richards Bay, pictured, and promised swift
action. The inability of the state’s other big utility,
Eskom, to ensure a reliable supply of electricity has
been a concern for some time.
In response to these large national problems,
the Chief Executive Officers of 130 South African
companies have made a joint commitment to help. In
addition to logistics and energy, crime is the third area
of focus for a series of Working Groups which regularly
meet and report to the President every six weeks.
Calling itself “Business for South Africa”, the
group first came together in response to the Covid
pandemic in 2020 and helped to coordinate the
successful vaccination rollout of 2021. Spokesmen
for the grouping have said that they are responding
to national priorities in the spirit of building a
prosperous future together.
The first steps in a move by the state to partner
with the private sector in boosting efficiency at
ports were taken in 2022: deals were signed at the
Port of Durban, Richards Bay and at East London. In
2023, these first steps became a giant leap when
International Container Terminal Services Inc (ICTSI),
a Philippines-based port operator, was announced
as the preferred partner for a joint venture (JV) to
run the Durban Container Terminal with Transnet.
Part of the plan for Durban Container
Terminal Pier 2 is to increase traffic in such a
way that it will be able to increase its handling
capacity from the present 2.9-million TEUs (two-
SOUTH AFRICAN BUSINESS 2024
12
PHOTO: TNPA

SPECIAL FEATURE
million 20-foot equivalent units) to 11-million
TEUs by 2032.
The 2022 deal involving a 15-year concession
for the loading of grain at one of Durban’s
agricultural terminals was won by Afgri, one of
South Africa’s biggest agricultural firms. Afgri
will deal with the operation and maintenance of
all landside operations, and the deal includes a
similar arrangement at East London. The other
two terminals in Durban are operated by SA Bulk
Terminals and Bidvest Bulk Terminals.
A similar plan to concession certain dedicated
rail lines to private operators has not gone smoothly.
The private sector was initially very interested in the
idea of running currently closed branch lines to a
railhead delivering grain in the Free State or coal in
Mpumalanga, for example. However, the length of
contract time offered to the private operators was
not long enough for them to feel it was worth their
while. There was only one bid so the whole process
has been put on hold while the model is reworked.
Seeing opportunity in a crisis
The conversation about the global climate crisis
has seized the limelight across the world in a way
that few other topics have since World War II. The
debate in South Africa has its own unique contours,
particularly as so much of the country’s electricity
generation comes from coal, about 80%. The fact
that many people would lose their jobs if coal mines
close down is an important factor in calculations,
and a key reason why South Africa is at the forefront
about the need for a “Just Energy Transition”.
In addition to this, Eskom has not been able to
avoid regular power cuts. 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). 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.
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.
The utility’s inability to provide enough
electricity to power the economy (and its huge
Eskom’s Hex BESS site at Worcester is the largest
battery storage project in Africa.
debt) rank as the biggest risks to the South African
economy. Opportunities for private consortiums are
expanding and every window of the REIPPPP has
been oversubscribed so there is an appetite to enter
the South African energy market.
The Northern Cape has attracted the bulk of
solar projects, and the Eastern Cape has become
the home of the wind farm but the Western Cape
has a good mixture of both modes of renewable
energy. It also has an enthusiastic metropole, Cape
Town, and a provincial administration determined
to take full advantage of nature’s bounty. Following
the announcement by the City of Cape Town that
residents could get cash for power in late 2022,
Versofy Solar received 1 500 enquiries in the month
of January and has experienced a surge of orders for
rooftop installations since then.
In 2023 a major wind farm project was
announced for Mpumalanga, proving that
preconceptions about renewable energy resources
in that province were wrong.
Eskom’s unbundling will be another spur to
growth. The legal separation of transmission is the
first step, and considerable progress was made on
this in 2023. The other two elements, generation and
distribution, will 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
PHOTO: SA Government News Agency
13
SOUTH AFRICAN BUSINESS 2024

Rooftop solar installations surged on news that the City of Cape Town would buy power from
individual households.
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.
Eskom made a breakthrough in December 2022
when South Korean company Hyonsung Heavy
Industries broke ground at Elandskop signalling
the first project in Eskom’s Battery Energy Storage
System (BESS) project. The 8MW facility will move to
producing an additional 144MW in the second stage
of the project. In 2023, a larger project at Worcester,
Hex BESS, was launched. Another company that
will be involved in Phase 1 of the national rollout of
these projects is Chinese company Pinggao.
In Cape Town a Swedish firm has spent
$30-million setting up an assembly factory for
lithium batteries and Bushveld Energy, a subsidiary
of Bushveld Minerals, is producing vanadium battery
electrolyte at its factory in East London. An Eastern
Cape project involving nascent local utility Earth &
Wire expects to start delivering batteries in the first
half of 2024. US firm Ambri has the contract to deliver
a 300MW/1 200 MWh battery system for a combined
wind and solar system near Humansdorp.
Traditional sectors
Gold mining is declining in volumes (even while
prices rise), platinum group metals (PGM) prices
have gone off the highs experienced during
and immediately after Covid, but major activity
is still underway in the sector. Vedanta Zinc
International’s project in the Northern Cape may
the catalyst for the establishment of a Special
Economic Zone (SEZ) and an uptick in other
mining investment. Already, copper mines in that
province are being revived.
Sibanye-Stillwater, which quickly became a
major player in PGMs, continues to acquire assets
in the green metals and processing cluster while
Afrimat, best known for many years for concrete
and construction materials, has built up a much
more varied portfolio by buying mines in three
provinces. In June 2023 it went back to its roots
in a sense: the company’s Construction Materials
division was enlarged by the purchase of Lafarge
South Africa Holdings.
The biggest mining news in 2023 was that De
Beers Venetia Diamond Mine started producing.
This long-term conversion project of the mine to an
underground mine will extend its life to 2045 and
perhaps beyond.
Grain crops such as maize, wheat, barley
and soya beans are among the country’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 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. ■
SOUTH AFRICAN BUSINESS 2024
14
PHOTO: Versofy Solar

WWW.NORTHERNCAPEBUSINESS.CO.ZA
JOIN S ONLINE US ONLINE
WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU
| | 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.
07.
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.
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

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 Mxolisi Hixsonia Dukwana Ntombela (ANC) (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 2024
16 20 16

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 17 2021
17
SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 2020 2024

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 2024
18
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
19
20 23 SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 2020 2024

16
INVESTMENT OPPORTUNITY : NORTHERN CAPE
BOEGOE BAAI SPECIAL ECONOMIC ZONE
The GH2 hub of Western SADC
PROJECT BACKGROUND
PROJECT BACKGROUND
Green hydrogen has many downstream and upstream applications
Green hydrogen has many downstream uses that could contribute to
that contribute to the creation of new industries in the Northern
the creation of new industries in the Northern Cape and enable the
Cape and enable the industrialisation of industries nationally and
industrialisation
in SADC.
of industries nationally.
There is also a potentially lucrative global export market where
demand There is is a growing lucrative rapidly. global The export province and local boasts market several where competitive demand
advantages is growing for rapidly the production to supply the of green hard-to-abate hydrogen. sector. The province
• boasts High renewable several competitive energy potential advantages and to established be a green RE hydrogen industrylead:
• Less High complex renewable topography energy potential and established RE industry
• 300km Less complex of shoreline topography
• Large 300km mineral of shoreline deposits
• International Large mineral accessibility deposits
• International accessibility
PROJECT LOCATION
Boegoebaai PROJECT LOCATION is approximately 60km north of Port Nolloth and
Boegoebaai is approximately 60km north of Port Nolloth and 20km
20km south of the border between Namibia and South Africa in the
south of the border between Namibia and South Africa in the
Richtersveld Local Municipality area.
Richtersveld Local Municipality area.
PROJECT DESCRIPTION
PROJECT DESCRIPTION
The Boegoeberg Special Economic Zone is envisaged as a hub for
The Boegoebaai Special Economic Zone is envisaged as a hub for the
the
production
production
and
and
export
export
of green
of green
hydrogen.
hydrogen.
The SEZ will also support
the components sector and allow for value addition to minerals, using
this green energy.
The project is of strategic importance and will enable the overarching
The project is of strategic importance to our country and will
attainment of a Just Energy Transition.
enable the overarching attainment of a Just Energy Transition
Process.
PROJECT PROGRESS
• PROJECT Sasol has PROGRESS completed the prefeasibility phase of the green hydrogen
• and Sasol renewable has completed energy facility. the pre-feasibility phase of the green
• Evaluation hydrogen of and port renewable and rail energy quotation components. process is complete and
• Transnet management has advanced is assessing to identify approval the final for location port location and and
successful issued the bidders. RFQ towards an RFP for the construction of the
• The Boegoebaai draft master port. plan has been developed and initial engagements
• with The various Northern stakeholders Cape Green (public Hydrogen and private) Master has commenced.
Plan was
• Agreement launched for at SAGHS land access and COP28, has been providing signed the between clear pathway Northern
Cape for Economic development. Development Agency (NCEDA) and the Community
•
Property The proposed Association Boegoebaai (CPA) as well SEZ as concept NCEDA and Sasol. preliminary
• Completed infrastructure prefeasibility plan has designs been concluded. for the SEZ infrastructure.
• SANRAL has approved plans to upgrade the R382 road to
Sanral has approved plans to upgrade R382 road.
the port and SEZ.
• A fuel-bunkering concept study has been completed and will be
• A key component of the Boegoebai SEZ and electrolyser
published.
deployment entails the production of electrons that will
• Masts are to be erected for wind, bat and bird studies.
supplement the grid and supply the electrolyser complex.
• Strategic Environmental Assessment (SEA) for port and SEZ to be
• A regional Strategic Environmental Assessment (SEA) for
issued
the port,
to market.
SEZ and renewable energy of over 40 000 hectares
is currently underway to gauge the regional impact of
the project.

19
INVESTMENT OPPORTUNITY : NORTHERN CAPE
NAMAKWA SPECIAL ECONOMIC ZONE
National Cabinet has approved the intention to designate the
Namakwa National Cabinet SEZ has Aggeneys approved in the designation Northern Cape. of the The Namakwa proposed SEZ
designation in Aggeneys is in done the Northern in terms Cape. of the The Special proposed Economic designation Zones is done Act,
2014 in terms (Act 16 of the of 2014) Special and Economic the proposed Zones SEZ Act, is 2014 part of (Act the 16 Presidential of 2014)
Investment
INVESTMENT
and the proposed Drive.
OPPORTUNITY
SEZ is part of the Presidential Investment Drive.
•
• The Namakwa SEZ will
will
unlock
unlock
mining
mining
beneficiation, the
production
production
of
green
of green
hydrogen,
hydrogen, infrastructure development, renewable energy
and agro-processing.
and • More than R29-billion in investments has already been committed
• More than National Cabinet has in investments approved the has designation already of been the Namakwa committed SEZ
for phase
for phase in Aggeneys
one of the
one of the in
SEZ.
the SEZ. Northern
These include
These include Cape. The
commitments
commitments proposed designation
from Vedanta
from Vedanta is done
Zinc, Frontier
Zinc (R16-billion), in terms Rare of the Earths,
Frontier Special Hive Economic Energy
Rare Earth Zones and RRS
(R13-billion), Act, Trade 2014 and (Act Investment.
Hive 16 of Energy 2014)
and the proposed SEZ is part of the Presidential Investment Drive.
(R200-million) and RRS Trade and Investment (R100-million).
MISSION • The Namakwa SEZ will unlock mining beneficiation, production of
Create an industrial green hydrogen, hub for infrastructure the West development, Coast and renewable a catalyst energy for
MISSION
industrialising
and
the
agro-processing.
western SADC area.
Create an • More industrial than R29-billion hub for in the investments West Coast has already and a been catalyst committed for
industrialising for phase the western one of the SADC SEZ. area. These include commitments from Vedanta
PROJECT LOCATION
Zinc (R16-billion), Frontier Rare Earth (R13-billion), Hive Energy
Aggeneys is 66km from Pofadder and 110km from Springbok and in
PROJECT
(R200-million)
LOCATION
and RRS Trade and Investment (R100-million).
the regional network of the Boegoebaai harbour.
Aggeneys is 66km from Pofadder and 110km from Springbok.
MISSION
ECONOMIC Create IMPACT an industrial hub for the West Coast and a catalyst for
ECONOMIC IMPACT
Operations industrialising will add R1.1-billion the western SADC to area. state tax revenue annually.
• Operations will add R1.1-billion to state tax revenue annually
A proposed smelter is to be built to treat zinc concentrate at
Gamsberg
• Opex will PROJECT
and
add R5.8-billion LOCATION
to process
to
additional
national GDP
sulphuric
annually
acid for further
downstream • Capex will Aggeneys
industrialisation. add R6.7-billion is 66km from in Pofadder
The one-off and
zinc concentrate value 110km to GDP from Springbok.
produced at the
existing • Capex concentrator will add R1.6-billion plant will in one-off be treated value in to the tax smelter revenue
ECONOMIC IMPACT
using the
conventional • Operations roast-leach-electrowinning will add R1.1-billion to (R-L-E) state tax process. revenue annually
VALUE PROPOSITION
• Opex will add R5.8-billion to national GDP annually
TARGETED The value • proposition SECTORS
Capex will add of R6.7-billion the Namakwa in one-off SEZ is value based to GDP on the existence
• of Mining the Gamsberg • Capex will Zinc add Mine R1.6-billion and the in proposed one-off value building to tax of revenue a smelter by
Zinc, Vedanta granite, Zinc copper, International. rare earths, These rare would quartz, be the slateanchor tenants of the
VALUE PROPOSITION
• Mineral processing
The value proposition of the Namakwa SEZ is based on the existence
Zinc processing of the Gamsberg plant, zinc Zinc smelter, Mine and copper the proposed processing building plant of a smelter by
• Petro-chemical Vedanta Zinc International. These would be the anchor tenants of the
Sulphuric acid, fertiliser, paint, hydrogen production, explosives
NAMAKWA SPECIAL ECONOMIC ZONE
19
• Manufacturing
SEZ. Super It alloys, is proposed batteries, that galvanising a smelter be steel built to treat zinc concentrate
produced
• Transport at Gamsberg. The zinc concentrate produced at the
existing Mining and concentrator agricultural, plant regional will be and treated depots in the smelter using the
•
conventional Engineering roast-leach-electrowinning and suppliers (R-L-E) process.
Renewable energy, transport, construction
• Pharmaceuticals
TARGETED SECTORS
Zinc, food additives
• Mining
• Localisation and supplier development
SEZ. Zinc, It is granite, proposed copper, that a smelter rare earths, be built rare to treat quartz, zinc concentrate slate
produced
Incubator,
• Mineral at
skills
processing Gamsberg.
development
The zinc concentrate produced at the
existing Zinc processing concentrator plant, will zinc be smelter, treated in copper the smelter processing using the plant
conventional BENEFITSroast-leach-electrowinning (R-L-E) process.
• Petro-chemical
Products of the Northern Cape previously had to be transported
Sulphuric acid, fertiliser, paint, hydrogen production, explosives
TARGETED over great SECTORS distances by rail or road.
• Manufacturing
•
Mining
Beneficiated products from the mining industry will be exported
Zinc, Super granite, alloys, copper, batteries, rare earths, galvanising rare quartz, steel slate
• Opex will add R5.8-billion to national GDP annually
• Mineral Transport processing
• Capex will add R6.7-billion in one-off value to GDP
Zinc Mining processing and agricultural, plant, zinc smelter, regional copper and processing depots plant
•• During construction, 9 500 jobs will be created
Petro-chemical
Engineering and suppliers
• Sulphuric Jointly acid, with fertiliser, the Boegoebaai paint, hydrogen SEZ, production, about 3 explosives 250 products such
Renewable energy, transport, construction
• Manufacturing as green ammonia will be produced
Pharmaceuticals
• Super The alloys, SEZ batteries, is aligned galvanising to the steel Gamsberg Zinc Mine and the
• Transport Zinc, food additives
proposed building of a smelter near the Zone and is being
• Mining Localisation and agricultural, and supplier regional development
and depots
developed along strict project management guidelines
• Engineering Incubator, and skills suppliers development
Renewable energy, transport, construction
•
VALUE
Pharmaceuticals
PROPOSITION
EXTENT The Zinc, value food additives proposition of the Namakwa SEZ is based on the
•
540.26 relationship Localisation
hectares
and that supplier such a development Special Economic Zone will have with up
and Incubator, downstream skills development economic activities to boost industrialisation and
JOBS to supply and add value to regional produce and consumer goods.
EXTENT During construction, 9 500 jobs will be created with about 3 250
540.26 permanent hectares
The close jobs vicinity once the to zone both is fully Namibia operational. and Boegoebaai is
JOBS
a tremendous benefit and competitive advantage. The
During proximity construction, to mining 9 500 and jobs agricultural will be created sector with about activities 3 250 and the
permanent short distance jobs once from the zone coast is to fully deep operational. water further enhances the
value proposition.

SPECIAL FEATURE
Collaborating to put young people to work
Youth unemployment remains a stubborn national problem but creative solutions
are increasingly coming to the fore.
By John Young
learnerships, internships, short-course skills
programmes and apprenticeships. SETAs are well
placed to act as the linking factor between tertiary
institutions and private companies or to ensure
collaboration between NGOs and industry.
Every industry is covered by the SETA network
and companies must contribute a skills levy to the
appropriate SETA. This occurs within a National Skills
Development Strategy.
In launching MTN Xlerator in 2023, CEO
Charles Molapisi explained how the scaledup
Enterprise and Supplier Development
programme is intended to boost supply chains,
drive economic growth and create jobs.
It is in everyone’s interests that the rate of youth
unemployment in South Africa comes down.
StatsSA has published figures suggesting
that as many as 60% of the 15-24 age group
are unemployed. The rate for the 25-34 cohort is
above 40%.
The single, simplest solution would be for the
national economy to grow faster, but because
making that happen is actually extremely complex,
other solutions have to be found. And this is where
collaboration between business and industry,
the education sector and non-governmental
organisations (NGOs) becomes vital.
Since 1998, South Africa has had Sector
Education and Training Authorities (SETAs). These
vocational-skills-training organisations were
established by an act of parliament and there are
currently 21 of them. SETAs create and manage
Role of skills
Whether the goal is to prepare to work for
someone else (get a job) or to encourage
entrepreneurship (start a business), the need for
skills remains essential.
Depending on the priority, the skills training
programme would be biased in favour of workspecific
skills (welding, computer skills, handling
equipment) or business-related capabilities
(keeping track of cashflow, marketing).
The South African Council for Graduates
Cooperative (SACGRA) sets out to support
both approaches, striving to develop both
“competent graduates that can become successful
entrepreneurs or competitive employees” and like
many such hubs, SACGRA offers advice, mentorships
and links to markets and opportunity. What makes
SACGRA stand out is its focus on co-operatives.
Co-operatives are a successful model already
widely adopted across South Africa for savings
clubs known as “stokvels”. Old Mutual estimates
that more then 800 000 such stokvels represent a
value of R45-billion. SACGRA aims to professionalise
co-operatives and prepare them to participate in
two private-sector initiatives that have become a
big part of the South African economic landscape,
namely Supplier Development Programmes and
Enterprise Development Programmes.
In terms of these programmes, large companies
are obliged to or choose to help build up and train
SOUTH AFRICAN BUSINESS 2024
22

SPECIAL FEATURE
The Chemical Industries Education and Training
Authority, CHIETA, is establishing SMART Skills
Centres around the country to boost training in
digital skills.
business owners (ED) which might be part of their
supply chain (SD). The programmes often overlap,
as it makes business sense for a large mining
operation, for example, to have a successful local
bus company supply its transport needs. The same
would apply to cleaning and maintenance services,
catering and many other categories. Given a steady
client and a reliable income, these local businesses
are much more likely to succeed in the long term
and to create employment as they grow.
So widespread have ED and SD programmes
become that national awards are now presented
annually. The Business Day Supplier Awards
has no fewer than 11 categories and an overall
winner. That winner in 2021 was Tiger Brands,
whose R100-million Dipuno Enterprise and
Supplier Development Fund impressed the
judges and which was cited as an illustration
of the best kind of collaboration between the
private sector, government, mining houses and
their pipeline partners.
The financial sector has an important role in
this environment. Old Mutual’s Masisizane Fund
is geared to finance small, medium and microenterprises
(SMMEs) and it is often to funds such as
these that participants in SD programmes turn.
Venetia Mine, a De Beers Group mine in northern
Limpopo, has more than 50 SMMEs enrolled in
incubation programmes and 34 locally owned
companies are doing business with the mine. This
kind of cooperation creates jobs and can lead to
expansion. A woman-owned business which was
supplying accommodation on the mine is now in
the process of expanding into the nearby town in the
form of a hotel which will be in a position to grow its
clientele beyond visitors to the mine.
Another example of collaboration across
sectors that leads to employment is underway
in the small Northern Cape town of Kuruman.
Mining company Assmang is working with
EduPower Skills Academy in a programme that
combines skills training, enterprise development
and community upliftment. Training is provided
to potential call-centre operators while support is
given to entrepreneur to set up a call centre. Once
the trainees complete their 12-month learnerships,
they are available to employed in the new business.
The country’s biggest private sector youthemployment
programme is YES4YOUTH. The idea
is for private businesses and corporates to take in
young people for 12 months of work experience.
Run since 2019, the programme had by 2023
reached the milestone of one-million placements.
Curriculum relevance
The old debate about how much broad education
should be in a curriculum in contrast to how much
skills training there should be, is a debate that won’t
ever be resolved.
What can be improved is the agility of
educational and training institutions. When the
economy needs new skills, how fast can the
country’s training providers react?
The Chemical Industries Education and Training
Authority (CHIETA) is showing how it might be
done. Recognising that South Africa is going to
need specialists in green hydrogen, CHIETA has
set out to focus on the kind of skills that this highly
specialised economic sector is going to need. Few
people know about electrolysers, fuel cells and
the storage requirements of hydrogen. CHIETA
has developed a list of 17 specific training and skill
requirements as it anticipates that about 14 000
jobs might be created in this new energy sector.
Another body exhibiting flexibility is the
Food and Beverages SETA, FoodBev SETA. In
PHOTO: CHIETA
23 SOUTH AFRICAN BUSINESS 2024

SPECIAL FEATURE
YES4YOUTH gives young people work experience.
2023, it issued, together with the BRICS Business
Council, the “Atlas of Emerging Jobs in the Food
and Beverage Sector”. Taking into account global
trends that include mechanisation, the atlas
shows that bio-nutritionists, farm technicians and
integration software engineers are going to be in
demand. Many of these are jobs that did not exist
20 years ago, and some of the jobs that will exist in
20 years’ time have not even been thought of by
the authors of the atlas.
Some universities are also showing an ability
to adapt. Enterprises University of Pretoria is the
skills division of the university and its short-course
offering shows admirable variety. In listing its
courses in advertising material, the unit flags the
courses that are “trending”. These include project
risk management, mine closure and rehabilitation,
water quality management and information
security management. Enterprise UP issued 11 185
certificates in 2022.
Business schools also need to examine their
curriculums to ensure relevance. One way of
staying relevant is to hire people who are active
in business. Enterprise UP has 148 “subject matter
experts” collaborating with staff members from
67 departments.
Hlengani Mathebula became a professor at the
University of Limpopo’s Turfloop Graduate School
of Leadership in 2023. He has been the managing
executive of ABSA Private Bank and is the founder
of Ignite Africa Advisory Services Group. Writing in
the Sunday Times, Mathebula argued that students
attending business schools should also have work
experience because, without it “very little of what
these schools teach will make sense, putting
students at a disadvantage”.
Mathebula’s larger argument is that business
schools can play a role in helping rich South Africans
understand and work with poorer South Africans.
He writes that a business school’s first challenge is
to provide skills where both kinds of South Africans
can “find common ground that will transform the
dominant leadership trajectory and in that way
transform the country”. ■
SOUTH AFRICAN BUSINESS 2024
24
PHOTO: YES4YOUTH

WE
MAKE
STEAM
Steinmüller Africa (Pty) Ltd. is one of the enterprises
in Bilfinger Power Africa (Pty) Ltd., the South African
subsidiary of German based Bilfinger SE. For years, we
have been adding value to the power, mining, paper pulping
and broader industry through comprehensive valve supply,
valve maintenance and heat treatment solutions.
www.steinmuller.bilfinger.com
WORK
Engineering design services
Boiler pressure parts
Commissioning, field and testing services
Bellows
Headers
Induction bending of HP/HT piping
Heat treatment (workshop and in situ)
HP Heaters
Piping technology
Pipe supports
Plant erection services
Explosive welding
MEMBER OF THE BILFINGER GROUP OF COMPANIES

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KEY SECTORS
Overviews of the main economic
sectors of South Africa
Agriculture 30
Mining 32
Energy 36
Oil and gas 38
Engineering 40
Manufacturing: general 42
Manufacturing: automotive 43
Construction and property 44
Water 45
Transport and logistics 46
Tourism 47
Telecommunications 50
ICT 52
Development finance and SMME support 54
Education and skills training 58
Banking and financial services 59
BMW Group headquarters in Midrand, Gauteng. Plant Rosslyn in Pretoria has produced more than
1.6-million vehicles since the company started making cars in South Africa 50 years ago. They have
been exported to more than 40 countries worldwide, including 14 African nations. BMW has produced
many models and began on the best-selling BMW X3 in 2018. From 2024 the BMW X3 will be made as a
plug-in hybrid for export. An investment of R4.2-billion will adapt the factory to electrical specifications.
PHOTO: BMW Group

OVERVIEW
Agriculture
Avocados are proving a fruitful investment.
SECTOR INSIGHT
Companies are bidding for
troubled Tongaat Hulett.
The biggest tomato producer in the southern hemisphere
has started planting and trading in avocados. ZZ2’s new
R128-million processing facility in Limpopo for avocados
and tomatoes is complete. With floor space of 11 200m²
the facility is large, but then everything about ZZ2 tends to be
on a big scale. The company’s website gives a figure for tomato
production of 190 000 tons, a total which allows ZZ2 to cater for
all market channels and income groups.
The main operations of the company are in Limpopo but it has
facilities in the Western Cape, Eastern Cape, Gauteng, North West,
Mpumalanga and Namibia. ZZ2 grows a large assortment of fruits
including mangoes, onions, dates, cherries, apples, pears, stone fruit,
almonds and blueberries. There are ambitious plans to increase market
share in avocados, a highly sought after and popular export product. A
joint venture between ZZ2, Mission Produce and Criterion Africa Partners
will see more than 1 000ha of avocado orchards developed, but ZZ2 will
continue to develop other orchards independently. So far, the Selokwe
Agri JV has planted 250ha.
The EU market has the best potential, with average per capita
consumption in that area currently less than half that of the US. South
Africa has an edge over Peru in that the season begins before the South
American’s peak period and the aim is to supply the popular Hass variety
all year round. Core Fruit has been contracted to handle the logistics and
transportation of product to Europe.
According to Fruit SA,
324 000 South Africans are
employed in the fresh fruit
industry, which accounted
for 35% (or R63-billion) of the
country’s agricultural exports
in 2021/22. 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).
In the sugar industry, South
Africa has for a long time been
used to the dominance of two
large companies, Illovo and
Tongaat Hulett. The latter group
going into business rescue in
2020 was a major shock, not only
to the many businesses which
rely on the sugar producer in
KwaZulu-Natal, but because the
company has a long history and
has become one of the biggest
corporate names in the South
African economy.
In 2022 seven former
Tongaat Hulett senior executives
appeared in court on charges of
fraud for allegedly backdating
sales agreements of the
company’s property division
to score better bonuses. The
business rescue practitioners
(BRP), Metis Strategic Advisors,
managed to keep 2 500
employed at the company and
SOUTH AFRICAN BUSINESS 2024
30
PHOTO: ZZ2

OVERVIEW
Maydon Wharf, Durban, serves
11 mills and can store more than
half-a-million tons of sugar.
National assets
invested more than R400-million in off-crop capital maintenance
between December 2022 and April 2023.
In 2023, the BRP produced a statement which read, in part: “It is
beyond question that the successful rescue of especially THL’s sugar
operations in South Africa will save tens of thousands, possibly hundreds
of thousands, of direct and indirect jobs. We take this responsibility very
seriously and are confident that Tongaat Hulett has a future.” A number
of bids to buy the company have been made.
The sugar industry itself faces many challenges, not least the
imposition of a sugar tax and imports from countries such as Brazil, India
and Thailand. Diversification is vital for the future and power generation
will be an important part of that. Neither of the Big Two companies relies
exclusively on South African sugar earnings: the troubled Tongaat Hulett
has a big property portfolio and Illovo draws most of its profit from
operations elsewhere in Africa.
A start has been made on tackling the many challenges faced by the
sugar industry: the Sugarcane Value Chain Master Plan 2030 has been
signed. Of the 10 443 farmers who supply Tongaat Hulett, 94% are smallscale
farmers. The Illovo Small-Scale Grower Cane Development Project
used 119 local contractors to develop the fields of 1 630 new growers on
3 000ha. SA Canegrowers represents 23 866 growers and is responsible
for the production of 18.9-million cane tons. The Sugar Terminal at
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
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 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. ■
PHOTO: MeatmasterSA
31
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Mining
Impala Platinum has gained control of Royal Bafokeng Platinum.
A
sale that was first mooted in 2021 was finally resolved
in June 2023 when Northam Platinum agreed to sell
its stake in Royal Bafokeng Platinum (RBPlat) to Impala
Platinum (Implats).
That sale took Implats’ holding in RBPlat to 91% after it had bought
9.26% of the company from Public Investment Corporation (PIC) earlier
in the year to give it a majority holding. The RBPlat platinum group
metals (PGM) facility, which lies directly south of Sun City, is adjacent to
Implats Rustenburg’s land. The Impala Rustenburg operation comprises
a nine-shaft mining complex and concentrating and smelting plants.
The big sale coincided with a decline in the global prices of some of
the PGMs such as palladium and rhodium. Whereas platinum attracted a
price of $1 070 not long ago, in November 2023 it was trading at $869.
Although the prospects for PGMs are good in support of the nascent
hydrogen economy, a slowing Chinese economy and the expanded
market for electric vehicles are negative factors.
In July 2023, as scheduled, De Beers Group celebrated the
beginning of production at its Venetia Mine, pictured, in the northern
part of Limpopo Province. The long-term, $2.3-billion conversion
project of the diamond mine to an underground mine began in
2012 and will extend the life of the mine to 2045 or beyond. The
SECTOR INSIGHT
De Beers’ giant conversion
project has started
producing diamonds.
mechanised underground
operation will deliver up to
seven-million tons of kimberlite
ore per year to produce fourmillion
carats of diamonds.
Construction of the mine, which
employs 4 300 local people,
is now 70% complete. In the
Northern Cape, the Namakwa
Special Economic Zone in
Aggeneys is being envisioned
as an industrial cluster for
mining and agriculture
services, beneficiation and
manufacturing. The hub of this
SOUTH AFRICAN BUSINESS 2024
32
PHOTO: De Beers Group

SEZ will be what is the biggest new mine project in the country, the
Gamsberg project of Vedanta Zinc International, which will deliver
600 000 tons of zinc when phase three is complete. The provincial
government is using the mine’s multifaceted activities (and possible
future smelter) as the basis for the SEZ which forms part of a larger
“multi-nodal” corridor envisaged for the province.
Copper is one of the most important elements needed to power
the renewable energy transformation and so it’s no surprise that areas
mined historically for that mineral in the Northern Cape are now back in
the news. Batteries need copper, as do systems used to transmit energy
from solar or wind sources. Electric vehicles contain an average of 85kg
and, according to the CEO of newly formed Copper 360, Jan Nelson, the
world had a stock of copper equal to only three weeks supply at a certain
point in February 2023 (Financial Mail, 23 February 2023).
Copper 360 was formed in November 2022 following a reverse
takeover of copper producer Big Tree Copper (a producer of copper)
and SHiP Copper (a mining company). The company listed on the AltX
of the JSE in April 2023. Copper 360 produces 1 200t/y of A-grade copper
cathode and has set a target of achieving 7 700t/y inside two years. Three
new copper flotation plants are being built at a cost of R280-million. With
280 new employees over the last two years and plans to recruit a further
1 000 staff members in the next two years, global copper demand is
clearly also good news for the town of Nababeep. Founded in 1860
by the Okiep Mining Company, Nababeep is in the Namakwa District
Municipality just north of Springbok.
An old zinc mine at Prieska that produced a million tons of zinc
and 430 000 tons of copper before it closed in 1991 is being revived
by Australian miner Orion Minerals. Orion Minerals has secured a
funding package of $87-million from subsidiaries of Triple Flag Precious
Metals. The funding is conditional on the rest of the plan for the mine’s
development also receiving funding and on the approval of South
Africa’s regulatory authorities.
Afrimat continues to expand its commodities portfolio with the
purchase for R300-million of Coza Mining, an iron-ore mining company
in the Northern Cape.
Prospects and exploration
Mzila Mthenjane, the newly appointed CEO of Minerals Council
South Africa, the mining industry employers’ body, co-authored an
article for the Sunday Times in
October 2023 in which it was
stated that:
“We would see a relatively
quick shift in our economy if
the Department of Mineral
Resources and Energy expedited
approvals for more than 5 000
prospecting and mining right
applications and mining permits.”
Citing Stats SA figures that
mining employed 477 574
people in Q2 2023 and that for
every person directly employed,
a further 10 people are
dependent on the industry for
their livelihoods, Mthenjane and
Otsile Matlou, COO of law firm
ENSafrica, argued that “billions
of rands of latent investments
and future spending [are]
locked up in these applications”.
Among the things that
the authors called for are the
introduction of a “transparent,
corruption-free, off-the-shelf
digital mineral rights management
system known as a cadastre”. In
August 2023, an announcement
was made that a winning bidder
for a new cadastral system had
been identified for the tender
which had gone out in March
2023. Final arrangements still had
to made, and the name of the
company was not known as of the
last week of November. ■
ONLINE RESOURCES
Council for Geoscience: www.geoscience.org.za
Minerals Council South Africa: www.mineralscouncil.org.za
National Department of Mineral Resources and Energy: www.dmr.gov.za
33
SOUTH AFRICAN BUSINESS 2024

FOCUS
Mind the Gap
The uncertainty gap between organisational objectives and operational
targets can be reduced, according to leading African-based specialist mining
service provider, Ukwazi.
When examining the general downward
trend of commodity prices over recent
years, uranium yellowcake has been
a notable exception, with a recent
upward trend. Gold has remained relatively stable,
but platinum group metals (PGMs) and copper have
seen a substantial decline from the highs achieved in
early 2021. Bulks such as manganese ore, bauxite and
specifically coal, are materially down from the peaks
reached late in the Covid-19 pandemic, while chrome
has not regained its pre-2017 commodity-crisis levels.
Many operations, particularly across Southern Africa,
are currently facing significant challenges. These stem
from Transnet’s logistical obstacles, amplified post-
Covid-19 production cost escalation and declining
commodity prices. Mines are now prioritising cost
control and aligning production with sales projections,
placing the onus on production teams to meet
strategic goals amid market pressures.
Bridging the gap
Whenever you travel on the London subway there
are signs that warn you, “Mind the Gap”. In recent
years, the disparity between strategic mining
plans and the practical, implementable mining
plans accessible to mining operational teams has
grown considerably. This gap subsequently fosters
widespread uncertainty within the execution
environment, ie, what must be done and the “how”
of what must be done practically. In the same vein,
while most mining organisations do adhere to welldefined
planning horizons and put notable effort
in producing these plans – in a sequential manner
and at specific intervals, they often lack practical
guidance. At Ukwazi, we strongly believe that
when a plan serves as basis for evaluating a mine’s
performance or the performance of its operational
team, it should be tailored for those specific
purposes; aligning with the business’ strategic
objectives while also providing clear, instructional
and practical guidance. Simply put, it must extend
beyond providing spatial guidance alone.
Closing the gap
As you increase uncertainty by imposing top-down
strategic models for operational control, frustrations
will mount and needless stress will burden an already
demanding production environment, making it
progressively difficult to retain outstanding operational
and mining management teams.
As such, the uncertainty gap between
organisational objectives and operational targets needs
to be reduced by developing pragmatic and cohesive
mining budget plans that are audience-driven and
outline sufficient practical requirements. It should be all
about creating certainty. The result? A production team
well positioned to perform in line with their respective
performance indicators and organisational incentives.
So, how do we effectively close the gap? Well,
ultimately mining engineering and mine planning
constitute pivotal technical and organisational
disciplines. The effective implementation of the
budget-mine-planning horizon requires active
engagement from the intended audience, the
operational team in this case, and a technical team
that has insight into the strategic objectives of
the mine and an in-depth understanding of the
sequential nature of mine deployment. Further to
this, the operational teams should receive outputs
that equip them with the practical tools needed to
adequately meet their requirements. At the end of the
day, cultivating this collaborative approach should be
a standard practice in every mining organisation. ■
www.ukwazi.com
SOUTH AFRICAN BUSINESS 2024
34
PHOTO: Dominik Vanyi on Unsplash

OVERVIEW
Energy
Sasol’s partnerships are defining a new direction for the energy giant.
A
series of international and domestic partnerships that Sasol
has signed in recent months illustrate that the company has
decided that the energy future must be markedly different
to the present. A disruption of the company’s AGM by
climate activists and doubts about the company’s carbon-reduction
strategy expressed by some big investors have helped bring that
awareness to broader public attention.
International chemicals and energy company Sasol has several large
plants in the Free State and Mpumalanga, pictured, and is the dominant
national player in these sectors. 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.
With more than 30 000 employees and a presence in 30 countries, the
decisions Sasol makes have a big impact.
Subsidiary company Sasol ecoFT is producing sustainable fuels and
chemicals from green hydrogen and sustainable carbon sources via the
Power-to-Liquids process and using the Fischer-Tropsch technology (FT)
which has helped set the company apart in its field.
In 2010 Sasol flew the world’s first passenger aircraft using fully
SECTOR INSIGHT
A market for carbon credits
has been created.
synthetic jet fuel and it has
been investigating solutions
ever since. Sasol is part of a
consortium based at its Secunda
operations called HyShiFT with
Linde, Enertrag and HydRegen,
a spinoff company from the
Department of Chemistry of the
University of Oxford. The project
aims to invest in about 500MW of
renewable energy that will supply
a 200MW electrolyser for green
hydrogen production, resulting in
SOUTH AFRICAN BUSINESS 2024
36
PHOTO: Sasol

OVERVIEW
approximately 45 000 tons a year of sustainable aviation fuel (SAF).
In 2021, agreements were signed with Toyota and the Industrial
Development Corporation (IDC) relating to green hydrogen and Sasol
joined the Hydrogen Council.
With the IDC, Sasol aims to develop a green hydrogen market in South
Africa, develop policy guidelines, support pilot projects and investigate
funding options for the nascent sector. One such project involves
investigating the possibilities of developing a Special Economic Zone (SEZ)
in the Northern Cape dedicated to the production of green hydrogen. The
feasibility studies regarding the Boegoebaai SEZ are ongoing and Sasol is a
key player in this potentially transformative project.
Battery storage is increasingly becoming an important part of hybrid
projects and a move in November 2023 by the JSE, Africa’s biggest stock
market, signalled another landmark on the renewable energy landscape.
JSE Ventures has initiated a Voluntary Carbon Market together with US
company Xpansiv, with the aim of creating a market for carbon credits.
Generation plans
When big companies start investing in a sector, then it’s clear that that
sector should be taken seriously. Resources company Exxaro started
investing in renewable energy earlier than most. Rolling blackouts have
been a feature of South African life since 2008 and the Renewable Energy
Independent Power Producer Procurement Programme (REIPPPP) was
introduced in 2011 to encourage the private sector to start generating
power. Exxaro subsidiary Cennergi’s bid to produce power in the
Tsitsikamma area of the Eastern Cape via a 95.3MW wind farm was
accepted by the Department of Energy in 2012. Since then, the 134.4MW
Amakhala Emoyeni has been built in the Bedford area and Cennergi
Services has evolved into a company that builds, manages and operates
renewable energy projects that it owns as well managing assets for third
parties. It has seven projects in four provinces.
Exxaro’s huge coalmine at Grootgeluk in Limpopo (which supplies
Eskom power plants) will be the site of an 84MW solar project and
Northam Platinum is building a 10MW solar plant at its Zondereinde
smelter. Implats is using natural gas to supply its refinery in Springs. In
Phase one of the project 20 Doosan fuel cells are generating 8MW of
power. The long-term goal is to generate 22-30MW.
Certain manufacturing companies that have access to biomass
that results from the manufacturing process, such as woodchips for
ONLINE RESOURCES
HyShiFT: www.hyshift.org
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
Sappi and bagasse in the case of
sugar producers such as Tongaat
Hulett and Illovo, are in a position to
produce their own energy.
However, there are industries
where signing offtake agreements
with renewable energy producers
is the more logical route to take.
In fact, even PGM miner Ivanhoe
Mines, despite having its own
plans to produce solar power, has
signed an offtake agreement with
Renergen in order to have access to
that company’s electricity powered
by renewable sources.
Amazon has signed deals to have
exclusive rights to renewable power
produced from dedicated projects
in the Northern Cape. Telecoms
market-leader Vodacom has gone
beyond the idea of having a single
power producer. In a landmark
deal brokered in 2023, Vodacom
and Eskom have agreed to “virtual
wheeling” whereby Vodacom
will source power from multiple
independent power producers.
Wheeling refers to sending
power through the grid. At the
moment Eskom is the sole owner
and operator of the national grid. The
Department of Public Enterprises
intends for Eskom to be broken up
into separate entities, one of which
would be a transmissions company.
The City of Cape Town has
initiated a pilot project whereby
15 commercial suppliers can sell
electricity to third parties via the
city’s grid, a development that
will be very closely watched.
The chair of the South African
Independent Power Producers
Association, Tommy Garner,
told the Sunday Times, “It is very
important for the electricity
market in South Africa that you
split Eskom into three entities.” ■
37
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Oil and gas
A production rights request follows significant offshore gas finds.
SECTOR INSIGHT
The national regulator has
approved a gas plant for
Richards Bay.
Exploration off the southern coast has produced excellent results.
TotalEnergies has applied to Petroleum Agency South Africa
(PASA) to convert its exploration right into a production
right, a move that may have major significance for the oil
and gas sector in the region.
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. The exploratory 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.
As David van der Spuy,
Manager: Resource Evaluation
Manager at PASA, explains, “It is
critical for the development to
go ahead, not only because it
will avert the closure of the gasto-liquids
(GTL) plant in Mossel
Bay and the loss of 1 500 direct
jobs, but also because of the
economic effects this will have on
the surrounding area.”
PASA has noted the
significance of international
oil companies committing to
exploration off South Africa’s
coast and has a stated goal to
move beyond exploration to
development and production.
More exploration will guarantee
that interest is maintained.
The next phase of the project,
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
SOUTH AFRICAN BUSINESS 2024
38
PHOTO: Anton Swanepoel

OVERVIEW
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.
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.
Another area of considerable interest is Block 5/6/7 off the West
Coast. Says Van der Spuy, “The area under licence is bigger than the
licence area of the south coast and in our opinion holds great potential.
TotalEnergies and its partners have submitted a work programme for
initial drilling of up to five exploration wells in the area.”
A major milestone was achieved in July 2022 for the Virginia Gas
Project in the Free State, 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 2023, commercial operations of the company’s
liquified natural gas (LNG) plant began. Helium production will follow
but at the time of writing some delay had been experienced. 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 to secure
some offtake rights and the Central Energy Fund has purchased a 10%
stake in Tetra4 for R1-billion.
Gas future
Van der Spuy reports that apart from the biogenic gas discovery being
worked on by Tetra, the country also has “other types of unconventional
gas onshore, such as coal-bed methane and shale gas”.
The National Energy Regulator of South Africa (Nersa) has approved
an application from national utility Eskom to build a 3 000MW gas power
station in Richards Bay.
An allocation of 3 126MW to natural gas has been made in the
national medium-term energy policy to 2030. The National Department
of Mineral Resources and Energy allocated one of the first two gas-topower
plants to be constructed under the Independent Power Producer
Procurement Programme (IPPPP) to Richards Bay. This has the potential
to turn the Richards Bay Industrial Development Zone (RBIDZ) into an
energy hub.
Another site has been identified
within the Coega SEZ in the Eastern
Cape but no plans have been
published. The Western Cape
Provincial Government is lobbying
for Saldanha to receive a licence to
run such a plant.
Environmental groups have
lodged appeals in an attempt to
stop the building of the plant,
which is a step along the pathway
outlined by national government to
use gas as a “transitional fuel”, away
from fossil fuels towards greener
sources of power.
In reaction to the
announcement in 2022 by Shell
Downstream South Africa and bp
Southern Africa of a “spend freeze”
and a pause in operations at the
SAPREF oil refinery in Durban, the
Provincial Government of KwaZulu-
Natal intends facilitating meetings
with these companies and other
interested parties to try to find
a way to restart operations. The
refinery accounts for roughly 35%
of the country’s refinery capacity
and is likely to be offered for sale.
Durban’s other oil refinery,
Enref, was hit by a fire in
December 2020 and there are
plans to convert it to a storage
facility. Astron Energy’s 100 000
b/d refinery Cape Town resumed
operations in 2023 after being
offline for nearly three years. A fire
closed the refinery in 2020. Natref
in Sasolburg is South Africa’s only
inland crude oil refinery and is a
joint venture between Sasol Oil
and Total South Africa. ■
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
39
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Engineering
Engineers are making the switch to renewable energy possible.
SECTOR INSIGHT
Pay-for-use models make new
technologies more accessible.
The Redstone Concentrated Solar Thermal (CSP) power plant
project (pictured) is the largest investment so far in terms
of the South African Renewable Energy Independent Power
Producer Procurement Programme (REIPPPP). The large
undertaking, located near Postmasburg in the Northern Cape, has
also given Grinaker-LTA’s Civil Engineering division a substantial
foothold in one of South Africa’s fastest-growing economic sectors,
renewable energy.
Many South African engineering concerns are filling their order
books with renewable energy infrastructure orders as the country aims
to generate more power from solar, hydro-electric and wind plants and
fit more rooftop solar panels to houses and businesses.
Some of the key aspects which Grinaker-LTA was responsible
for included hot and cold storage tank bases, civil works, the steam
generation structure and the molten salt pump towers. The 100MW
plant is the first project-financed CSP with molten-salt-central receiver
in the world. ACWA Power, a Saudi developer, investor and operator of
power generation plants, and Chinese engineering company SEPCOIII
Electric Power Construction Limited, managed the project and they
jointly appointed Grinkaker-LTA as the contractor to execute the
construction of the project’s critical structures.
Also in the Northern
Cape, engineering skills are
being expanded by new work
associated with radio astronomy.
Local artisans from the town of
Carnarvon have built telescopes
for a radio telescope array project,
the 350-dish HERA project, which
is led by the US National Science
Foundation with the South Africa
Radio Astronomy Observatory
(SARAO) acting as the local
partner, responsible for systems
engineering and construction,
among other duties. At one point,
the construction team grew to 20
and many news skills were learnt.
When dairy company Clover
decided to consolidate its
national operations into just four
plants, technological expertise
was needed to make sure those
factories were able to cope
with greater demand. One such
company was Energy Partners
Refrigeration (EPR) who were
contracted to tackle a number
of issues, including increased
power requirements to higher
refrigeration load as well as
increased steam demand and
pressure requirements.
The upgrade of the cooling
structure featured the installation
of a new 10MW ammonia system
and 16% of all the electricity used
by the new system is generated by
solar PV. An innovative aspect of
SOUTH AFRICAN BUSINESS 2024
40
PHOTO: Grinaker-LTA

OVERVIEW
the project is that Clover has a Cooling-as-a-Service (CaaS) contract, a payper-use
model that removes the large upfront investment cost as a barrier
to improved efficiencies and improved environmental performance.
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 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
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
to improve the situation.
One of the most exciting
engineering projects in South
Africa 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. 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. ■
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SPECIALTY GAS PRODUCTS TO THE
SOUTHERN AFRICAN REGION
www.airproducts.co.za

OVERVIEW
Manufacturing
Glass group expansion creates 300 jobs.
SECTOR INSIGHT
Manufacturers are responding
to global trends.
Ardagh Group is a large multinational with 63 metal and
glass-production facilities in 16 countries, with more
than 20 000 employees. The group’s 2022 acquisition
of Consol Glass created Ardagh Glass Packaging –
Africa, and led to immediate investment in an expansion of the
glass-container plant in Nigel, Gauteng.
The two new furnaces that have been added to the facility, at
a cost of R3-billion, are expected to create 300 new jobs and have
made it the biggest of its kind in Africa. Other Gauteng facilities of the
group are located at Wadeville and Clayville and there is a Western
Cape factory in Bellville. The group’s other continental assets are in
Ethiopia, Kenya and Nigeria.
Another company to make an investment in Gauteng is TFG,
with the opening of a clothing manufacturing facility in downtown
Johannesburg. Workers at the Nugget Street factory are making
T-shirts for the Jet brand and blankets and bags for various CSI
projects. Up to 40 hearing-impaired students from the St Vincent
School for the Deaf are being trained and employed at the factory.
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 plans to increase the percentage of locally made
clothing items from the current level of 35% to 55%.
Two stockwatchers in the Financial Mail (FM) have referenced
trends that are worth watching, and noted that certain companies are
gearing up to respond. Marc Hasenfuss noted a “vibrant sprawl of niche
packaging operations” in supporting Caxton, previously a company
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
associated with printing and
publishing only, as a stock
pick. Niches include flexible
packaging (for wine bladders)
and cups for takeaway drinks.
The growing home delivery
market post-Covid is driving
the need for more containers.
Another FM correspondent,
Anthony Clark, praised Omnia
Holdings for its focus on “future
farming”, and predicted a good
year for agriculture in 2024.
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. ■
SOUTH AFRICAN BUSINESS 2024
42
PHOTO: Ardagh Glass Packaging – Africa

OVERVIEW
Manufacturing: automotive
BMW celebrated 50 years of making cars in South Africa in 2023.
During the celebrations around the 50th anniversary of
making vehicles at its Rosslyn Plant in Tshwane, BMW Group
announced that from 2024 the BMW X3 will be made as a
plug-in hybrid for export. This will entail an investment of
R4.2-billion in adapting the factory to electrical specifications. More
than 300 employees will receive specialised training at the plant,
which was BMW’s first-ever foreign facility. Since then, Plant Rosslyn has
produced more than 1.6-million vehicles to date and exported them to
more than 40 countries worldwide, including 14 African nations.
Apart from BMW, Pretoria is also home to Nissan and Ford. The
Tshwane Automotive Special Economic Zone (TASEZ) is a project
of the Gauteng Province, the Department of Trade, Industry and
Competition (dtic) and the City of Tshwane.
Ford Motor Company has initiated discussions about the
feasibility of developing a sophisticated rail corridor between
Gauteng and the Eastern Cape because the company assembles
diesel engines in Gqeberha, pictured. Ford wants to send parts to
Pretoria and export cars through the Port of Gqeberha.
Ford makes engines for the Ford Ranger pickup and Everest SUV
at its Struandale plant and it has committed to invest R600-million for
modernising and growing its local operations, which employ about
850 people. A further R5.2-billion will enable hybrid-electric Ranger
bakkies to be built in Gauteng.
The 520 963m² facility of Volkswagen South Africa in Kariega
(formerly Uitenhage) is one of four plants worldwide that makes
right-hand-drive Polos but the only one in the world that makes the
Polo GTI.
Both the Coega Special Economic Zone and the East London
Industrial Development Zone (ELIDZ) have areas dedicated to
automotive and automotive components manufacture.
Mercedes-Benz South Africa’s new C-Class project (W206) has sparked
several other related investments, which collectively will create 2 078 new
jobs over two years at the East London plant.
Home-grown manufacturer of powertrain and catalytic converter
assembly systems, Jendamark, exports to 18 countries from its
facility in Gqeberha. Continental Tyre South Africa is producing a
ONLINE RESOURCES
Automotive Industry Development Centre: www.aidc.co.za
Naamsa | The Automotive Business Council: www.naamsa.co.za
National Association of Automotive Component and Allied
Manufacturers: www.naacam.org.za
SECTOR INSIGHT
Ford is investing R5.2-billion to
build hybrid-electric Rangers.
19-inch tyre for the first time
at its New Brighton facility in
Port Elizabeth and Isuzu SA has
completed its consolidation
project, with truck and bakkie
manufacturing now taking
place at its new headquarters in
nearby Struandale.
The Automotive Production
and Development Programme
(APDP) has been extended
to 2035, 15 years beyond its
original expiry date. State
support for the industry
has helped it thrive, but
manufacturers are expected to
increase local content levels.
The industry itself is looking to
Africa for new markets and is
urging national government
to release policy guidelines on
electric vehicles. ■
PHOTO: Ford Motor Company
43 SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Construction and property
Student accommodation is a growing sector.
SECTOR INSIGHT
A R1-billion green bond has
been raised by a REIT.
One of the greatest differences between the society
that existed under apartheid South Africa and the
post-democratic dispensation is in the expansion of
educational opportunities.
Several companies came into being to provide this new
student population with accommodation at tertiary institutions.
Stag African, which has built a substantial student housing project
at the University of Fort Hare in the Eastern Cape, pictured, is
active in three provinces. South Point has created a 1 195-bed
complex in Braamfontein to go with no fewer than 15 other sites
in Johannesburg and it is active in five other cities. Respublica
offers rooms in six cities and there are several other companies.
The boom in building and developing student
accommodation has been supported by the fact that many
students are funded by the National Student Financial Aid
Scheme (NSFAS), providing some security for investors in the
sector. Controversies related to NSFAS have recently caused
some concern, but demand remains strong.
TUHF is among the financing companies that provide
funding for housing projects. In TUHF’s case, inner city property
investors are the focus of the company’s commercial property
financing operations. This includes student accommodation and
a township backyard rental finance product called uMaStandi
which has recently been expanded.
Another aspect unique to post-apartheid South Africa is the
awareness of environmental issues. A third green bond for the
real estate investment trust (REIT) of Redefine Properties was
oversubscribed when it went to market in August 2023. An
amount of R1-billion has been allocated across three, five and
seven years.
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
Green buildings are now
considered mainstream in the
construction industry, and star
ratings from Green Building
Council South Africa (GBCSA)
are expected in commercial,
industrial and residential
projects. The bond was listed
on the JSE in the Sustainability
Segment, a further sign that
every sector is responding to
the climate crisis.
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.
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. ■
SOUTH AFRICAN BUSINESS 2024
44
PHOTO: Stag African

Water
Solar power is a water solution.
OVERVIEW
An off-grid, solar-powered groundwater harvesting
system has been developed by Coca-Cola Beverages
South Africa (CCBSA). The Coke Ville Project, pictured, was
launched in 2020 and not only harvests groundwater but
treats it as well.
Over time, the project has expanded to several provinces and is
proving of great benefit to communities, especially in times when
power outages are experienced. Water wheelbarrows are distributed
as part of the project to enable residents to transport water easily.
In KwaZulu-Natal an amount of R30-million has been set aside
for 28 solar-powered boreholes with elevated tankstands to be
constructed in the Harry Gwala District Municipality.
Phase 1 of the Vaal Gamagara Water Supply Scheme (VGWSS)
has been completed in the Northern Cape, bringing much-needed
water to several communities and mining companies. Some R10-
billion will be spent in completing phase 2, an extension of pipelines
from the Vaal River to the town of Hotazel, including reticulation to
communities living along the path of the pipeline. The private sector
and national government are partners in the project.
One of the small towns that will benefit from phase 2 is
Danielskuil, a town that in 2022 was briefly in the news spotlight.
The town ran out of water because it had rained too much. Massive
thunderstorms overwhelmed the town’s systems, already under
pressure because of electrical outages and theft.
Places like the normally dry Northern Cape will increasingly
be the focus of attention as the earth warms and extreme events
become more common. Municipalities in the Northern Cape (as in
many other provinces) have consistently struggled to supply good
services to citizens. With the declaration of the entire province as
a Priority Human Settlements Development Area by the National
Department of Human Settlements, this situation could improve.
Another partnership between the public and private sectors
will see the Vaalharts Irrigation Scheme revitalised, leading to
greater certainty for fresh produce producers, assistance for local
municipalities in providing water to residents and a doubling of
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
SECTOR INSIGHT
Phase one of the Vaal
Gamagara Bulk Water Scheme
has been completed.
the amount of land available
to emerging farmers. The
three entities involved are the
National Department of Water
and Sanitation, the Vaalharts
Water User Association and the
Infrastructure Fund.
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 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. ■
PHOTO: CCBSA 45 SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Transport and logistics
A regional airport could become an international hub.
SECTOR INSIGHT
The City of Cape Town
wants to revive rail.
There are plans to make more use of Hoedspruit Airport, the
airport that is most often associated with the Orpen Gate of
the Kruger National Park. In 2022, 61 000 of the people who
passed through Hoedspruit were European tourists but there
is potential to increase this traffic substantially. CemAir offers flights
to Johannesburg and Cape Town and Airlink connects to destinations
such as the Victoria Falls in Zimbabwe, Maun in Botswana and
Vilanculo in Mozambique. The Limpopo Department of Transport
and Community Safety is working on a strategy to develop the
airport to further boost the tourism sector.
The Polokwane International Airport (PIA) is wholly owned
by the provincial government and run by the Gateway Airports
Authority Ltd (GAAL), an agency of the Department and Transport.
It has the potential to be an important regional cargo airport.
In the Western Cape, the administrations in charge of the City of
Cape Town and the province have plans to better coordinate transport.
The City of Cape Town conducted a feasibility study in 2022 on taking
over the management of passenger rail services from PRASA. The city
wants to have a fully-integrated system, which would include rail.
In 2022 the city’s Urban Mobility Directorate published
an updated Comprehensive Integrated Transport Plan
(CITP), outlining the strategies and plans for improving the
transport environment in the metropole for five years to
2028. The Transport and Urban Development Authority (TDA),
located within the municipality, is responsible for planning,
costing, contracting, regulating, monitoring, evaluating,
communicating, managing and maintaining the City of Cape
Town’s transport infrastructure, systems, operations, facilities
and network. The provincial government is following the city’s
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
lead with the establishment
of a Mobility Department.
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 are
being followed by cities such
as Polokwane and Rustenburg.
In Limpopo’s provincial capital
of Polokwane, operations
of the Leeto La Polokwane
public transport system were
launched in 2021.
The South African
Department of Transport
has several agencies and
businesses reporting to it.
Among them are 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).
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. ■
SOUTH AFRICAN BUSINESS 2024
46
PHOTO: Airlink

Tourism
New hotels are being built.
OVERVIEW
SECTOR INSIGHT
A Green Tourism Incentive
Programme is available.
The Industrial Development Corporation, one of South
Africa’s biggest institutional investors, is active in the tourism
sector. Among its products is the Green Tourism Incentive
Programme, which incentivises privately owned tourism
companies to move towards using renewable energy and efficient
water utilisation. It also supports local economic development, such
as initiatives in Limpopo to develop new hotels in the Musina area.
The northern parts of that province are experiencing a boom in
business tourism due to an uptick in mining operations. Elsewhere in
the Vhembe District Municipality, the African Century Group is building
a four-star Premier Hotel at Thohoyandou and the team behind the
venture expects to fill its 120 rooms.
A similar trend can be seen in the Northern Cape, where the
Country Hotels group has developed a three-tier offering covering
most of the province, spurred in part by the rapid rise of the
renewable energy sector in that province.
In Durban, the Radisson Blu Hotel in Umhlanga (pictured), shortly
after celebrating its one-year anniversary in July 2023, received two
awards from Durban Tourism, the Visitor Experience and Restaurants
Award as well as the Meetings, Exhibitions and Special Events (MESE)
Award. Premier Hotels & Resorts has two new properties in Umhlanga
and recently restored its Cutty Sark property, further down the coast
in Scottburgh.
Turkish Airlines returned to King Shaka International Airport in 2022.
Two of the airline’s Istanbul-Johannesburg flights now extend to Durban
on Thursdays and Saturdays and it has plans to increase these to four
weekly flights. A new direct flight from Durban to Harare in Zimbabwe
ONLINE RESOURCES
African Business Travel Association: www.abta.co.za
South African National Parks: www.sanparks.co.za
South African Tourism: www.southafrica.net
was launched by Airlink in April
2022. These new flights are in
addition to Emirates flying five
flights a week from Durban
directly to Dubai and the fourweekly
direct flights that Qatar
Airways offers.
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 showcase 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 threeand
four-bedroom villas added
to the resort’s accommodation
options for members of Sun
International’s Sun Vacation Club.
The Palace 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). ■
PHOTO: Radisson Blu
47 SOUTH AFRICAN BUSINESS 2024

FOCUS
Polokwane International Airport is
soaring to destined glory
The company responsible for Polokwane International Airport has a new board in
place and a turnaround strategy is already delivering dividends.
Mokgadi Matli, CEO, GAAL
Polokwane International Airport (PIA), based
in Polokwane, the capital city of Limpopo
Province, is a gateway to the SADC region,
a pillar of safe air travel that promotes
convenient connectivity of the province to other
major transport hubs.
PIA is managed by Gateway Airports Authority
Limited (GAAL) under the chairmanship of Mr Victor
Xaba. The shareholder, the MEC of the Limpopo
Department of Transport and Community Safety, in
2021 embarked on a robust recruitment process to
appoint a competent board to address leadership
instability and improve governance. The board
members have brought to the entity a combination
of skills in aviation, engineering, finance, legal and
human resources which will be critical to ensuring
the success of GAAL.
Turnaround strategy
The board developed a turnaround strategy that
is intended to achieve financial and operational
sustainability and expand the operating model. The
goal is to implement the full mandate of GAAL, which
includes managing all of the airports that fall under the
control of the entity.
The strategy is embraced by the Provincial
Government and funding has been approved to
implement improvements and revenue-generation
projects. To ensure the successful implementation of
the strategy, critical vacancies have been filled, including
CEO and CFO.
Optimising human capital has yielded results
and improvements are evident as GAAL managed
to address the South African Civil Aviation Authority
(SACAA) safety findings and continues to retain a
Category 7 operating licence. The audit outcome has
improved and there is a steady increase in revenue due
to increases in flight and passenger movement. Current
rental tenants have been retained and the occupancy
rate for the airport has increased. New rentals have led
to a 25% revenue increase.
Turnaround strategy at a glance:
• Appoint competent board
• Fill vacancies
• Ensure financial sustainability
• Expand operations
• Implement the full mandate of GAAL
• Pursue cargo facility potential
• Generate more revenue
• Attract investors
SOUTH AFRICAN BUSINESS 2024
48

FOCUS
Potential investors
GAAL has identified opportunities for investment
and strategic partnerships on revenue-generating
projects. The Limpopo Investment Conference 2023
has unlocked engagements with potential investors.
PIA is strategically situated at heart of Limpopo,
which makes it the ideal location for the provincial
logistics hub, thus establishment of cargo services
is at the pulse of the turnaround. Other investment
opportunities include resuscitation of the fuel
farm, repurposing of old aircrafts into a restaurant,
refurbishment and operating PR Mphephu Airport,
cold storage facilities, conference facilities, rental of
offices, advertising space and hangars.
The steady and consistent improvements that
are already visible at the airport, coupled with
the plans that are in the turnaround strategy is an
assurance that PIA, GAAL other airports under its
mandate are soaring to their destined glory. ■
Technically advanced facilities
PIA is equipped with two crossing runways
sufficient to accommodate large aircraft of the
size of Boeing 747 and Airbus A346. Runway
05/23 is fully lit with a runway-lighting system
and is equipped with a simple approachlighting
system to complement the RNAV
procedure and to enable access to the airport in
bad weather conditions.
The airport has an apron with parking
capacity of 74 000m² and is able to accommodate
nine B747-type aircraft and 13 B737/A321-type
aircraft. There are 16 hangars of 540m² and one
6 450m² hangar, with the immediate potential
of setting up multi-functional cargo facility and
aircraft maintenance services.
PIA is built on 945 hectares of land, with
potential to acquire more as cargo companies
take up more space.
Airport Rescue and fire-fighting protection
level is currently at category 7, meaning that
the airport can regularly service aircraft in the
categories B737-800 and A320.
Contact details:
Polokwane International Airport
Gateway Drive, Polokwane
Tel: +27 15 288 0122
Website: www.gaal.co.za
PHOTO: Airlink | PHOTO: Pixabay/Pexels
49 SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Telecommunications
The Competition Commission has blocked a fibre merger.
In 2023 the Competition Commission blocked a proposed
deal in which Vodacom would buy a stake in Maziv, a holding
company with two fibre units.
The two companies behind the proposed merger, which had
previously won approval from the country’s telecommunications
regulator, intend taking the matter to the Competition Tribunal on
appeal. The Commission argues that 5G fixed wireless access (FWA)
and fibre compete in the same market and that the link-up would
reduce that competition to the detriment of the consumer.
One of the fibre units within Maziv, Vumatel, announced in March
2023 that it had reached the milestone of having connected twomillion
South African homes to the Internet while Dark Fibre Africa,
which is a provider of open-access connectivity infrastructure, is also
the national leader in its field. Maziv is part of Community Investment
Ventures Holdings (CIVH), which is the telecom infrastructure division
of the Remgro Group.
Vodacom and MTN are the two biggest providers of mobile
phone services in South Africa, with more than 70% of the market
between them. Telkom and Cell C are the other two major operators.
The SA Connect project, intended to connect 5.8-million sites
across South Africa to high-speed Internet by 2026, received an
additional R3-billion in 2023 from National Treasury. The Department
of Communications and Digital Technologies, the implementing entity,
wants to see remote rural areas having better access to technology.
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.
ONLINE RESOURCES
Department of Communications and Digital Technologies:
www.dcdt.gov.za
Independent Communications Authority of South Africa:
www.icasa.org.za
State Information Technology Agency: www.sita.co.za
Wireless Access Providers Association: wapa.org.za
SECTOR INSIGHT
The national broadband
project has received
additional funding.
This included 38 national
departments, 99 provincial
departments, 106 local
government departments and
207 other state institutions.
The National Department
of Communications is
responsible for the Independent
Communications Authority
of South Africa (ICASA), the
regulator of communications,
broadcasting and postal services,
the South African Broadcasting
Corporation (SABC) and three
other agencies.
The Wireless Access
Providers Association (WAPA)
has a large and growing
membership. WAPA is a nonprofit
which aims to be a liaison
between wireless Internet
service providers (WISPs), ICASA,
network operators, service
providers and consumers. It
offers information to members
on regulations and technical
training and lobbies on behalf
of the sector. ■
SOUTH AFRICAN BUSINESS 2022
50
PHOTO: MTN

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OVERVIEW
ICT
Retailers are pouring money into digital infrastructure.
Ever since Covid-19 turbocharged online shopping, retailers
have been racing to get ahead in the digital game.
Figures released in September 2023 showed Takealot, a
local service majority owned by Naspers, topping the polls in
traffic, followed by two international giants in Shein and Amazon.
An interesting entry at number four was Bash, the e-commerce
platform of TFG, formerly known as the Foschini Group. More than
500 brands can be purchased using TFGMoney, a bank account
created with TymeBank. Other successful e-commerce retail
operations include Sixty60 (Checkers), Massmart (Makro, Game and
Builders) and the JD Group (Everyshop).
TFG is building a 75 000m² distribution centre in Gauteng
with the intention of delivering 70% of all its online sales, and all
of its fashion items, through that single site.
As South Africa joins the global trend towards online
shopping, 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 (data centres)
worldwide will be 100% powered by renewable energy by
2025. Teraco stores data in Johannesburg, Durban and Cape
Town while Africa Data Centre (ADC), part of the Liquid Telecom
Group, has purchased a Tier IV data centre in Johannesburg.
In 2022 Oracle announced an interconnect service between
itself and Microsoft Azure data centres. This allows customers of
both companies to export data from one to the other at no cost.
The companies are competing with Google Cloud and Amazon
Web Services (AWS), among others.
AWS announced at the 2023 South Africa Investment
Conference that its investment plan for South Africa to the end
of 2029 amounts to R46-billion. By the end of 2022, R15.6-billion
had already been invested. The AWS Africa Region was created
in 2020 when AWS opened a data centre in Cape Town.
The Council for Scientific and Industrial Research (CSIR) in Pretoria
will host a new body aimed at preparing South Africa for the Fourth
SECTOR INSIGHT
Amazon Web Services
will spend R46-billion in
South Africa.
Industrial Revolution (4IR), the
South African Affiliate Centre of
the World Economic Forum.
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. ■
ONLINE RESOURCES
Business Process Enabling SA: www.bpesa.org.za
Independent Communications Authority: www.icasa.org.za
Technology Innovation Agency: www.tia.org.za
SOUTH AFRICAN BUSINESS 2024
52

OVERVIEW
Development finance and
SMME support
The SA SME Fund has launched a venture capital fund.
SECTOR INSIGHT
The Industrial Development
Corporation loaned R7.6-billion
to black industrialists.
Glencore supports Moeding Transport in Limpopo.
One the country’s biggest institutional investors is the
Industrial Development Corporation (IDC). Apart from
taking stakes in large companies in sectors like steel
and agriculture that have strategic significance, the IDC
has a product called SME Connect. A collaborative model sees the
IDC provide funding and business support while a corporate might
guarantee to buy goods or services from the small business operator.
Most big companies in South Africa have two main programmes
to support SMMES: enterprise development (ED) and local supplier
development (or procurement). Sometimes they are combined as
enterprise supplier development (ESD). 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.
Another Limpopo initiative has led to the growth of Moeding
Transport, a company that has been supplying services to Glencore
Ferroalloys’ Lion Smelter for several years. The contract has enabled the
company to grow, and it was recently further boosted by the donation
by Glencore of two 65-seater buses.
In Rustenburg, Impala Rustenburg has invested R8.6-million in the
development of a Economic Inclusion Centre that serves as a small
business hub for SMMEs in and around the mining community. Apart
from the physical facilities on offer, advice on market access and funding
is also available.
Among the IDC’s other focus
areas are black industrialists (to
whom R7.6-billion was loaned
in 2022), black-empowered and
black-owned companies (R6.5-
billion) and women-owned
businesses (R1.1-billion).
The increased 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.
Through the Spar Rural
Hub, the retail group supports
small-scale farmers and creates
markets for their products. The
Spar Group has established
The Spar Academy of Learning
where learnerships and skills
programmes are offered. This is
to support the business owners
who take up the ownership
model offered by Spar, which,
SOUTH AFRICAN BUSINESS 2024 54
PHOTO: Glencore

OVERVIEW
The Economic Inclusion Centre in Rustenburg.
unlike the franchise model, means that independent retailers have
more independence when it comes to decisions within the store and
in terms of who to buy from. Spar’s independent retailers in Southern
Africa grew from 2 440 in 2021 to 2 508 in 2022.
Woolworths reports that it spent R450-million in 2022 on
procurement from 34 SMME beneficiaries of its ESD programme.
Examples include a security company (Comet Security), a manufacturer
of babywear and underwear (Davis Clothing) and pet food (K9 Pet
Food), all of which have expanded their businesses on the programme
and started employing more staff as a result. Altogether, the company
contributed R2.9-billion towards the revenue of 917 SMMEs in its value
chain up to end of the financial year in June 2022.
Funds and schemes
In 2023 the SA SME Fund set up its third fund, a dedicated venture capital
fund. In August first close was reached with a figure of R700-million,
achieved with some support from the pension fund sector.
The SA SME Fund is a fund of funds, investing in fund managers
who will support startups and new ventures, rather than itself investing
in projects. It was established with the support of 50 of South Africa’s
biggest companies and its first fund had a fairly broad remit, which
included fintech, biotech and supporting universities in turning research
into business ventures. The focus of the second fund was debt funding.
As Hilary Joffe pointed out in Business Day, South Africa “ranks only fourth
in Africa” in venture capital, despite a strong private equity industry. Joffe
cited the SA Venture Capital Association, which reported that in 2021, the
venture capital industry invested R1.3-billion in 129 startups.
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
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).
The National Department of Small
Business Development (DSBD) has
several programmes to assist SMMEs
and co-operatives. 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. ■
PHOTO: Impala
55
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Education and skills training
Sol Plaatje University celebrated its 10th anniversary in 2023.
As part of a programme to spread skills to young people
living in rural areas, an eco-friendly SMART Skills Centre
is to be built in Sabie, the centre of the timber sector in
Mpumalanga. The timber structure is the
result of a partnership between the Chemical Industries
Education and Training Authority (CHIETA) and the South
African Forest Company Limited (SAFCOL).
CHIETA aims to provide digital technology and
online learning to help young people compete in the
job market and the Mpumalanga SMART Skills Centre
is just one of several that are being initiated across
the country. Among the forestry-related skills that the
centre will focus on are drone operators, but it will
also respond to national skills needs such as fitters
and turners. SAFCOL will cover the cost of erecting
the eco-friendly wooden structure and CHIETA will
supply the equipment.
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, ORBIT TVET College in the North West offers diesel
mechanic training at its Mankwe campus and electrical training at
Brits as part of the Centre of Specialisation programme. 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
In KwaZulu-Natal the Elangeni TVET College has achieved trade
test centre accreditation in two disciplines, Welding and Electrical,
and in 2023, had 50 artisans in training. Higher Education and
Training Minister Dr Blade Nzimande has called on principals of
TVET colleges to prioritise work placements for students.
Beyond TVET colleges, the private sector actively offers training
in basic and advanced skills. Shorter courses such as the twoweek
bricklaying course offered by cement-maker PPC are greatly
appreciated by job-seekers, all the more so because the courses are
free. PPC is working together with the private Motheo Academy in
Johannesburg. Other courses for small business owners or “bakkie
builders” are offered, such as construction management.
SECTOR INSIGHT
South Africa has three
types of public universities.
Wits Business School launched a new MBA
in Health Leadership in 2023.
The Council for Scientific
and Industrial Research (CSIR)
has established a Learning
Factory to support companies
in training staff in relevant and
up-to-date skills. The training
is offered free and via a variety
of methods: online, virtual,
hybrid and practical training
on the CSIR campus in Pretoria.
Among the subjects covered
are the Internet of Things,
Digital Lifestyle Management,
Additive Manufacturing and
Big Data Analytics.
The Southern African
Wildlife College, offering
diploma and short courses in
conservation, is a joint World
Wide Fund for Nature South
SOUTH AFRICAN BUSINESS 2024
56

Thought leaders with impact
Wits Business School leads research in areas critical to the
continent’s sustainability.
New leadership, a new strategy and
international accreditation – Wits
Business School (WBS) is consolidating
its position as a leading African business
school. Almost three years after Professor Maurice
Radebe took the helm as Director and Head of
WBS, the School is experiencing a turnaround, as
evidenced by the growing number of corporate
clients and students affiliated to the school.
For Radebe, a former energy executive at Sasol Oil,
leading the turnaround at WBS was an opportunity
for him to give back, not only to WBS, his alma mater,
but to society: “When the opportunity arose, I realised
this is very much in line with my purpose, which is
to develop the next generation of leaders who are
ethical and who have a passion to make a difference.”
Developing impactful leadership is at the heart
of the School’s mission and the golden thread that
runs through its programmes, whether academic
or executive short courses. The MBA programme
at WBS is centred around a “Leadership Quest”, an
independent study component which challenges
the students to reflect on their leadership style and
beliefs and identify the gaps that need to be closed
to become a great leader.
“Our country and continent are rich with young
talent. As business schools, we need to tap into this
talent and develop it. We need to invest in the next
generation of leaders who can take Africa into an
inclusive and sustainable future. This means leading
with purpose, integrity and accountability, while at
the same time developing an entrepreneurial and
innovative mindset,” says Radebe.
To this end, WBS has established three
centres of excellence which focus on developing
the latest research in areas critical to Africa’s
future. These include Energy Leadership, Digital
Business and African Philanthropy and Resource
Mobilisation. The school recently announced a
new MBA in the field of Healthcare Leadership,
launching in March
2024, which seeks
to address the many
challenges facing the
healthcare sector, both
locally and globally.
WBS has also
announced the imminent
launch of a new Centre
for Entrepreneurship, the
result of a collaboration
with the private sector
which seeks to sustain the
economic revitalisation of
South African cities and
townships.
In the Executive
Education division at
Director and Head of WBS,
WBS, impactful leadership
Professor Maurice Radebe.
means providing delegates
with the tools to adapt to
change and disruption through soft skills such as agility
and resilience, along with hard skills such as digital
business. Programmes are taught by both academics and
industry experts.
“We get people from business to teach business and
in this way, we embrace the concept of ‘pracademia’ to
ensure real-world impact,” says Leoni Grobler, Director of
Executive Education at WBS.
WBS has recently attained accreditation with the
Association of African Business Schools (AABS) and reaccreditation
with AMBA. The school is now shifting its
focus to achieving American and European accreditation
through AACSB and EQUIS.
“WBS is on an exciting journey to becoming globally
recognised as an African thought leader, using our
reputation for academic excellence as a foundation for
delivering programmes that are strongly research-based
and relevant to our context and our collective future as
Africans,” says Radebe. ■
57
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
Africa (WWF-SA) and Peace Parks Foundation
initiative. The college is located near the Orpen
Gate on the edge of the Kruger National Park.
Universities
There are three types of public universities
in South Africa: traditional universities,
which are academic in focus and award
degrees; universities of technology, 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.
The official launch of the University of
Mpumalanga was in October 2013, with the first
cohort of 169 students registered in just three
programmes in 2014. By 2024, the plan is to offer
approximately 70 qualifications to over 8 000
students. That is the year in which the university’s
first doctoral graduates will be capped.
Research relevant to the needs of the
province can now be done at local level.
With Sol Plaatje University celebrating its 10th
anniversary in 2023, the chances of indigenous
young people being able to study on its campus
have been boosted by large donations from two
Anglo American subsidiaries.
Kumba Iron Ore and De Beers Group are
among the biggest mining companies active in
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
A team of students from ORBIT TVET College
competed successfully in an international AI
competition run by Intel.
the Northern Cape. Their donations of R20-million
and R5-million towards the university’s Lesedi La
Afrika Fund will support scholarships and social
impact projects. The fund has set a target of R100-
million over the next three years.
SPU has seen major growth in its enrolment
figures and staff recruitment in recent years,
with 60% of its academic staff having PhDs. As
part of its sustainable growth, the institution
is committed to community engagement and
scholarly activity.
The first intake of students at the Kimberley
campus of Sol Plaatje University in 2014
was 124. For the 2023 academic year a total
of 28 454 applications (undergraduate and
postgraduate) were received by SPU. This is
an increase of just under 9 000 against the
applications received for 2022.
Another milestone was reached in the
university’s young history when the Risk and
Vulnerability Science Centre (RVSC) celebrated
its first birthday, on 9 September 2022. As the
Northern Cape is water-scarce, the unit’s location
is highly relevant. RVSC is a programme of the
Department of Science and Innovation under
the Global Change Research Plan for South
Africa – funded through the National Research
Foundation’s Global Change programme.
Most of South Africa’s universities have
business schools attached to them, offering
MBAs, management diplomas and a variety of
short courses. ■
SOUTH AFRICAN BUSINESS 2024
58

Banking and financial services
Carbon credits and green investing are catching on.
OVERVIEW
Carbon credits and renewable energy certificates can
now be traded on Africa’s largest stock exchange,
following the launch in 2023 of the JSE Ventures
Voluntary Carbon Market. JSE Ventures is collaborating
with US company Xpansiv, which has experience in global
environmental markets. South Africa has had carbon taxes
since 2019.
One of South Africa’s newer stock exchanges, the Cape
Town Stock Exchange (which started life as 4AX), oversaw the
listing of an initial tranche of preference shares of the Gaia
Renewables REIT, a fund that caters to investors who want to
have a stake in the burgeoning renewable energy economy. It
is expected that more investors will want to be part of a sector
that is showing enormous potential.
TymeBank is taking the concept of “retail banking” to
another level. Having run banking kiosks within retailers such
as Pick n Pay and Boxer for several years, TymeBank has signed a
deal with TFG, a group that has a big presence all across South
Africa. What used to be known as the Foschini Group has 34
brands, including Markhams, Totalsports, Jet and Dial a Bed,
and 30-million customers. In the short term, TymeBank will
have access to 600 TFG kiosks, taking the bank’s total in South
Africa to 1 450.
Another relatively new bank is Capitec. Investment holding
company PSG has reduced its holding in Capitec Bank from
32% to 4%, earning about R4-billion by selling those shares.
Discovery Bank reported in 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 2019, has already opened more than one-million accounts.
Long-term insurer and asset manager Liberty has delisted from
the JSE and has been integrated into the Standard Bank Group.
Financial services group Old Mutual received permission
from the prudential authority of the South African Reserve
Bank to apply for a banking licence. The bank will spend R1.75-
billion on setting up the bank and intends to launch in 2024.
ONLINE RESOURCES
Financial Sector Conduct Authority: www.fsca.co.za
Insurance Institute of South Africa: www.iisa.co.za
South African Institute of Chartered Accountants: www.saica.co.za
SECTOR INSIGHT
The JSE has launched a
carbon-trading market.
African Bank has signalled that
it is ready to grow, with an
agreement to buy Grindrod
Bank and an R80-million deal
to purchase lender Ubank. After
going into administration in
2014, African Bank took some
time to recover and is still halfowned
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.
PHOTO: John Young
59
SOUTH AFRICAN BUSINESS 2024

OVERVIEW
The South African state has promised a
huge infrastructure drive and has established an
entity called Infrastructure South Africa (ISA) to
coordinate and encourage catalytic projects. The
business and investment communities are also
interested in infrastructure but in the context of
climate change, the emphasis is increasingly on
sustainability.
Sanlam, established in 1918 as a life insurer, is
now a financial services company with five main
divisions, including Corporate, Personal Finance
and Emerging Markets. Santam focusses on shortterm
insurance. With its headquarters in Bellville,
Sanlam is Africa’s largest insurance company.
Sanlam Investments has launched a
Sustainable Infrastructure Fund which primarily
invests in senior or subordinated debt across a
wide range of South African infrastructure assets,
with the ability to invest up to 10% in equity.
Sanlam Group will invest R6-billion in the
fund and aims to attract a further R5-billion
from institutional investors. Investments will
be made in housing, transport, health, water,
waste, communication, conventional energy and
renewable energy, a fast-growing sector with
enormous potential.
Large-scale infrastructure projects like the
Berg River Voelvlei Augmentation Water Scheme
(BRVAS), pictured, are examples of the kind of
projects that need to attract investment from a
variety of sources. Even when National Treasury is
the main funder, complications can arise. Managed
by the Trans-Caledon Tunnel Authority (TCTA), the
BRVAS project could only go ahead once offtake
agreements had been signed. In October 2022,
the City of Cape Town Council approved a R2.3-
billion Water Supply Agreement (WSA) with the
Department of Water and Sanitation (DWS). ■
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