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South African Business 2024

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 and www.southafricanbusiness.co.za. These unique titles are supported by monthly business e-newsletters. The Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

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 and www.southafricanbusiness.co.za. These unique titles are supported by monthly business e-newsletters. The Journal of African Business joined the Global African Network stable of publications as an annual in 2020 and is now published quarterly.

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SOUTH AFRICAN<br />

BUSINESS<br />

AFRICAN<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN SOUTH INESS<br />

USINESS AND INVESTMENT<br />

A<br />

2021 EDITION<br />

<strong>2024</strong> EDITION<br />

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CONTENTS<br />

CONTENTS<br />

<strong>South</strong> <strong>African</strong> <strong>Business</strong> <strong>2024</strong> Edition<br />

Introduction<br />

Foreword 10<br />

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

Special features<br />

An economic overview of <strong>South</strong> Africa 12<br />

The CEOs of <strong>South</strong> Africa’s biggest companies are supporting<br />

government in tackling the challenges that are getting in the way<br />

of economic growth. Renewable energy solutions are taking off and<br />

big mining projects are producing valuable product.<br />

Provinces of <strong>South</strong> Africa 16<br />

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

Collaborating to put young people to work 22<br />

Youth unemployment remains a stubborn national problem but<br />

creative solutions are increasingly coming to the fore.<br />

Economic sectors<br />

Agriculture 30<br />

Avocados are proving a fruitful investment.<br />

Mining 32<br />

Impala Platinum has gained control of Royal Bafokeng Platinum.<br />

Energy 36<br />

Sasol’s partnerships are defining a new direction for<br />

the energy giant.<br />

Oil, gas and petrochemicals 38<br />

A production rights request follows significant offshore gas finds.<br />

Engineering 40<br />

Engineers are making the switch to renewable energy possible.<br />

Manufacturing: general 42<br />

Glass group expansion creates 300 jobs.<br />

Manufacturing: automotive 43<br />

BMW celebrated 50 years of making cars in <strong>South</strong> Africa in 2023.


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THE GUIDE TO BUSINESS AND INVESTMENT<br />

IN SOUTH AFRICA<br />

CONTENTS<br />

Construction and property 44<br />

Student accommodation is a growing sector.<br />

Water 45<br />

Solar power is a water solution.<br />

Transport and logistics 46<br />

A regional airport could become an international hub.<br />

Tourism 47<br />

New hotels are being built.<br />

Telecommunications 50<br />

The Competition Commission has blocked a fibre merger.<br />

ICT 52<br />

Retailers are pouring money into digital infrastructure.<br />

Development finance and SMME support 54<br />

The SA SME Fund has launched a venture capital fund.<br />

Education and training 56<br />

Sol Plaatje University celebrated its 10th anniversary in 2023.<br />

Banking and financial services 59<br />

Carbon credits and green investing are catching on.<br />

References<br />

Key sector contents 28<br />

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

SOUTH AFRICAN<br />

BUSINESS<br />

THE GUIDE TO BUSINESS AND INVESTMENT<br />

SOUTH<br />

IN AFRICAN<br />

BUSINESS<br />

2021 EDITION<br />

<strong>2024</strong> EDITION<br />

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FOREWORD<br />

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

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

Credits<br />

Publishing director:<br />

Chris Whales<br />

Editor: John Young<br />

Managing director: Clive During<br />

Online editor: Christoff Scholtz<br />

Designer: Tyra Martin<br />

Production: Yonella Ngaba<br />

Ad sales:<br />

Gavin van der Merwe<br />

Sam Oliver<br />

Shiko Diala<br />

Gabriel Venter<br />

Vanessa Wallace<br />

Graeme February<br />

Tahlia Wyngaard<br />

Tennyson Naidoo<br />

Lungisa Maseti<br />

Administration & accounts:<br />

Charlene Steynberg<br />

Kathy Wootton<br />

Sharon Angus-Leppan<br />

Distribution and circulation<br />

manager: Edward MacDonald<br />

Printing: FA Print<br />

Welcome to the 12th edition of the <strong>South</strong> <strong>African</strong> <strong>Business</strong><br />

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

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

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

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

A special feature in this journal focusses on the relationship between<br />

tertiary education, training and the jobs market. The youth unemployment<br />

rate is referenced in a discussion of the various measures that are being<br />

taken in the public and private sectors to help prepare young people for<br />

work, or to encourage them to start businesses. The role of the country’s<br />

Sector Education and Training Authorities (SETAs) is highlighted.<br />

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

<strong>African</strong> economy. This includes tracking the rapidly evolving renewable<br />

energy landscape and reporting on the progress of exploration and<br />

discoveries of oil and gas off the coast and on land. Landmarks such as<br />

BMW’s 50-year celebration of making cars in <strong>South</strong> Africa are noted and a<br />

snapshot of each of the country’s provinces is provided.<br />

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

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

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

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

business e-newsletter with a circulation of over 23 000. The Journal of<br />

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

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

Chris Whales<br />

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

DISTRIBUTION<br />

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

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

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

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

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

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

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

government departments, municipalities and companies.<br />

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

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

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

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

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

PHOTO CREDITS | Airlink; Ardagh Group; BMW Group; CHIETA;<br />

Coca- Cola Beverages <strong>South</strong> Africa; De Beers Group; Ford Motor<br />

Company; Glencore; Grinaker-LTA; Impala Platinum; Meatmaster SA;<br />

MTN; ORBIT TVET College; Petra Diamonds; Radisson Blu; Sasol; SA<br />

PUBLISHED BY<br />

Global Africa Network Media (Pty) Ltd<br />

Company Registration No: 2004/004982/07<br />

Directors: Clive During, Chris Whales<br />

Physical address: 28 Main Road, Rondebosch 7700<br />

Postal address: PO Box 292, Newlands 7701<br />

Tel: +27 21 657 6200 | Fax: +27 21 674 6943<br />

Email: info@gan.co.za | Website: www.gan.co.za<br />

Member of the Audit Bureau<br />

of Circulations ISSN 2221-4194<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

10<br />

Government News Agency; Stag <strong>African</strong>; Anton Swanepoel; Transnet National<br />

Ports Authority; Versofy Solar; Wits <strong>Business</strong> School; YES; John Young; ZZ2.<br />

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

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

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

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

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

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

such information.


AN ECONOMIC OVERVIEW OF<br />

SOUTH AFRICA<br />

The CEOs of <strong>South</strong> Africa’s biggest companies are supporting<br />

government in tackling the challenges that are getting in the way of<br />

economic growth. Renewable energy solutions are taking off and big<br />

mining projects are producing valuable product.<br />

By John Young<br />

As 2023 drew to a close, concerns about<br />

the functioning of <strong>South</strong> Africa’s ports<br />

and railways became more urgent.<br />

Transnet, the state-run utility which<br />

has six divisions covering ports, port terminals,<br />

railways, engineering, pipelines and property, is<br />

investigating partnerships with private operators,<br />

but the immediate priority is to fix dockside cranes<br />

and unload ships.<br />

President Cyril Ramaphosa himself visited the<br />

Port of Richards Bay, pictured, and promised swift<br />

action. The inability of the state’s other big utility,<br />

Eskom, to ensure a reliable supply of electricity has<br />

been a concern for some time.<br />

In response to these large national problems,<br />

the Chief Executive Officers of 130 <strong>South</strong> <strong>African</strong><br />

companies have made a joint commitment to help. In<br />

addition to logistics and energy, crime is the third area<br />

of focus for a series of Working Groups which regularly<br />

meet and report to the President every six weeks.<br />

Calling itself “<strong>Business</strong> for <strong>South</strong> Africa”, the<br />

group first came together in response to the Covid<br />

pandemic in 2020 and helped to coordinate the<br />

successful vaccination rollout of 2021. Spokesmen<br />

for the grouping have said that they are responding<br />

to national priorities in the spirit of building a<br />

prosperous future together.<br />

The first steps in a move by the state to partner<br />

with the private sector in boosting efficiency at<br />

ports were taken in 2022: deals were signed at the<br />

Port of Durban, Richards Bay and at East London. In<br />

2023, these first steps became a giant leap when<br />

International Container Terminal Services Inc (ICTSI),<br />

a Philippines-based port operator, was announced<br />

as the preferred partner for a joint venture (JV) to<br />

run the Durban Container Terminal with Transnet.<br />

Part of the plan for Durban Container<br />

Terminal Pier 2 is to increase traffic in such a<br />

way that it will be able to increase its handling<br />

capacity from the present 2.9-million TEUs (two-<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

12<br />

PHOTO: TNPA


SPECIAL FEATURE<br />

million 20-foot equivalent units) to 11-million<br />

TEUs by 2032.<br />

The 2022 deal involving a 15-year concession<br />

for the loading of grain at one of Durban’s<br />

agricultural terminals was won by Afgri, one of<br />

<strong>South</strong> Africa’s biggest agricultural firms. Afgri<br />

will deal with the operation and maintenance of<br />

all landside operations, and the deal includes a<br />

similar arrangement at East London. The other<br />

two terminals in Durban are operated by SA Bulk<br />

Terminals and Bidvest Bulk Terminals.<br />

A similar plan to concession certain dedicated<br />

rail lines to private operators has not gone smoothly.<br />

The private sector was initially very interested in the<br />

idea of running currently closed branch lines to a<br />

railhead delivering grain in the Free State or coal in<br />

Mpumalanga, for example. However, the length of<br />

contract time offered to the private operators was<br />

not long enough for them to feel it was worth their<br />

while. There was only one bid so the whole process<br />

has been put on hold while the model is reworked.<br />

Seeing opportunity in a crisis<br />

The conversation about the global climate crisis<br />

has seized the limelight across the world in a way<br />

that few other topics have since World War II. The<br />

debate in <strong>South</strong> Africa has its own unique contours,<br />

particularly as so much of the country’s electricity<br />

generation comes from coal, about 80%. The fact<br />

that many people would lose their jobs if coal mines<br />

close down is an important factor in calculations,<br />

and a key reason why <strong>South</strong> Africa is at the forefront<br />

about the need for a “Just Energy Transition”.<br />

In addition to this, Eskom has not been able to<br />

avoid regular power cuts. An excellent programme<br />

exists to procure the energy that <strong>South</strong> Africa<br />

needs to expand the economy, the Renewable<br />

Energy Independent Power Producer Procurement<br />

Programme (REIPPPP). In Round Five of the REIPPPP,<br />

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

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

represent remarkably low costs.<br />

When President Ramaphosa announced that<br />

private power investors could create up to 100MW<br />

of power without having to wait for licensing, he<br />

potentially opened up a path to growth.<br />

The utility’s inability to provide enough<br />

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

Eskom’s Hex BESS site at Worcester is the largest<br />

battery storage project in Africa.<br />

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

economy. Opportunities for private consortiums are<br />

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

been oversubscribed so there is an appetite to enter<br />

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

The Northern Cape has attracted the bulk of<br />

solar projects, and the Eastern Cape has become<br />

the home of the wind farm but the Western Cape<br />

has a good mixture of both modes of renewable<br />

energy. It also has an enthusiastic metropole, Cape<br />

Town, and a provincial administration determined<br />

to take full advantage of nature’s bounty. Following<br />

the announcement by the City of Cape Town that<br />

residents could get cash for power in late 2022,<br />

Versofy Solar received 1 500 enquiries in the month<br />

of January and has experienced a surge of orders for<br />

rooftop installations since then.<br />

In 2023 a major wind farm project was<br />

announced for Mpumalanga, proving that<br />

preconceptions about renewable energy resources<br />

in that province were wrong.<br />

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

growth. The legal separation of transmission is the<br />

first step, and considerable progress was made on<br />

this in 2023. The other two elements, generation and<br />

distribution, will follow. The idea is not to privatise the<br />

entities but to find private partners and to allow for<br />

competition within the various fields.<br />

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

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

PHOTO: SA Government News Agency<br />

13<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


Rooftop solar installations surged on news that the City of Cape Town would buy power from<br />

individual households.<br />

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

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

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

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

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

away from fossil fuels without further stretching<br />

Eskom’s precarious finances.<br />

Eskom made a breakthrough in December 2022<br />

when <strong>South</strong> Korean company Hyonsung Heavy<br />

Industries broke ground at Elandskop signalling<br />

the first project in Eskom’s Battery Energy Storage<br />

System (BESS) project. The 8MW facility will move to<br />

producing an additional 144MW in the second stage<br />

of the project. In 2023, a larger project at Worcester,<br />

Hex BESS, was launched. Another company that<br />

will be involved in Phase 1 of the national rollout of<br />

these projects is Chinese company Pinggao.<br />

In Cape Town a Swedish firm has spent<br />

$30-million setting up an assembly factory for<br />

lithium batteries and Bushveld Energy, a subsidiary<br />

of Bushveld Minerals, is producing vanadium battery<br />

electrolyte at its factory in East London. An Eastern<br />

Cape project involving nascent local utility Earth &<br />

Wire expects to start delivering batteries in the first<br />

half of <strong>2024</strong>. US firm Ambri has the contract to deliver<br />

a 300MW/1 200 MWh battery system for a combined<br />

wind and solar system near Humansdorp.<br />

Traditional sectors<br />

Gold mining is declining in volumes (even while<br />

prices rise), platinum group metals (PGM) prices<br />

have gone off the highs experienced during<br />

and immediately after Covid, but major activity<br />

is still underway in the sector. Vedanta Zinc<br />

International’s project in the Northern Cape may<br />

the catalyst for the establishment of a Special<br />

Economic Zone (SEZ) and an uptick in other<br />

mining investment. Already, copper mines in that<br />

province are being revived.<br />

Sibanye-Stillwater, which quickly became a<br />

major player in PGMs, continues to acquire assets<br />

in the green metals and processing cluster while<br />

Afrimat, best known for many years for concrete<br />

and construction materials, has built up a much<br />

more varied portfolio by buying mines in three<br />

provinces. In June 2023 it went back to its roots<br />

in a sense: the company’s Construction Materials<br />

division was enlarged by the purchase of Lafarge<br />

<strong>South</strong> Africa Holdings.<br />

The biggest mining news in 2023 was that De<br />

Beers Venetia Diamond Mine started producing.<br />

This long-term conversion project of the mine to an<br />

underground mine will extend its life to 2045 and<br />

perhaps beyond.<br />

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

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

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

and sugar are other major exports. Basing economic<br />

growth on a devaluing currency is not the best<br />

long-term method of boosting economic growth,<br />

but high-value agricultural exports and increased<br />

numbers of high-spending international tourists<br />

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

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

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

14<br />

PHOTO: Versofy Solar


WWW.NORTHERNCAPEBUSINESS.CO.ZA<br />

JOIN S ONLINE US ONLINE<br />

WWW.GLOBALAFRICANETWORK.COM | WWW.NORTHERNCAPEBU<br />

| | 10 REASONS<br />

WHY YOU SHOULD INVEST IN SOUTH AFRICA<br />

01.<br />

HOT EMERGING<br />

MARKET<br />

Growing middle class, affluent consumer<br />

base, excellent returns on investment.<br />

02.<br />

MOST DIVERSIFIED<br />

ECONOMY IN AFRICA<br />

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

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

services destination.<br />

LARGEST PRESENCE OF MULTINATIONALS<br />

ON THE AFRICAN CONTINENT<br />

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

03.<br />

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

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

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

05.<br />

FAVOURABLE ACCESS TO<br />

GLOBAL MARKETS<br />

ADVANCED FINANCIAL SERVICES<br />

& BANKING SECTOR<br />

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

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

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

market capitalisation.<br />

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

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

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

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

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

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

07.<br />

YOUNG, EAGER LABOUR FORCE<br />

09.<br />

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

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

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

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

and skills development.<br />

04.<br />

06.<br />

08.<br />

PROGRESSIVE<br />

CONSTITUTION<br />

& INDEPENDENT<br />

JUDICIARY<br />

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

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

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

protection of investments and minority investors.<br />

ABUNDANT NATURAL<br />

RESOURCES<br />

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

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

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

WORLD-CLASS<br />

INFRASTRUCTURE<br />

AND LOGISTICS<br />

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

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

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

Logistics Performance Index.<br />

10.<br />

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

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

EXCELLENT QUALITY<br />

OF LIFE<br />

Page | 2<br />

719<br />

SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 20232020


SPECIAL FEATURE<br />

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

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

Eastern Cape<br />

Capital: Bhisho<br />

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

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

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

Uitenhage),<br />

(Makhanda)<br />

Graaff-Reinet, Mthatha, Makhanda<br />

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

Area: 168 966km² (13.8%<br />

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

Premier:<br />

Lubabalo Oscar Mabuyane (ANC)<br />

Key sectors: Automotive,<br />

agriculture, agri-processing,<br />

agro-processing,<br />

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

renewable energy.<br />

Infrastructure: Coega Industrial<br />

Development Zone, East London<br />

Industrial Development Zone,<br />

ports of East London, Port<br />

Elizabeth and Ngqura, airports at<br />

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

Notable tourism assets: Addo<br />

Elephant National Park, Mountain<br />

Zebra National Park, Wild Coast,<br />

Jeffreys Bay, National Arts Festival.<br />

Provincial government website:<br />

www.ecprov.gov.za<br />

Eastern Cape Development<br />

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

Free State<br />

Capital: Bloemfontein<br />

Main towns: Welkom, Sasolburg,<br />

Parys, Kroonstad<br />

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

Area: 129 825km² (10.6%<br />

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

Premier:<br />

Sefora Mxolisi Hixsonia Dukwana Ntombela (ANC) (ANC)<br />

Key sectors: Agriculture,<br />

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

manufacturing, mining, transport<br />

and logistics.<br />

Infrastructure: Maluti-A-Phofung<br />

Special Economic Zone, Bram<br />

Fischer International Airport,<br />

University of the Free State,<br />

Central University of Technology,<br />

N8 Corridor.<br />

Notable tourism assets: Vaal<br />

River, Gariep Dam, Golden Gate<br />

Highlands National Park, Cherry<br />

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

Cultural Festival (Macufe).<br />

Provincial government website:<br />

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

Free State Development<br />

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

Gauteng<br />

Capital: Johannesburg<br />

Main towns: Tshwane<br />

(including Pretoria), Ekurhuleni,<br />

Vanderbijlpark, Roodepoort<br />

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

Area: 18 178km² (1.5%<br />

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

Premier:<br />

David Panyaza Makhura Lesufi (ANC)<br />

Key sectors: Financial and banking,<br />

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

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

Infrastructure: OR Tambo<br />

International Airport, Gautrain, Vaal Special<br />

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

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

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

centres,<br />

FNB Stadium (Soccer City).<br />

Notable tourism assets: Cradle of<br />

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

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

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

Soweto tours, Dinokeng.<br />

Provincial government website:<br />

www.gauteng.gov.za<br />

Provincial government website:<br />

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

Growth and<br />

Development Gauteng Growth Agency: and Development<br />

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

SOUTH AFRICAN BUSINESS 2021 2020 <strong>2024</strong><br />

16 20 16


SPECIAL FEATURE<br />

SPECIAL SPECIAL FEATURE<br />

FEATURE<br />

KwaZulu-Natal<br />

Capital: Pietermaritzburg<br />

Main towns: Durban, Newcastle,<br />

Ballito, Port Shepstone,<br />

Empangeni, Ulundi<br />

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

Area: 125 755km² (7.7% of<br />

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

Premier:<br />

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

Sihle Zikalala (ANC)<br />

Key sectors: Chemicals, dissolving<br />

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

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

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

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

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

International<br />

TradePort, Richards<br />

Airport, Dube<br />

Bay Industrial<br />

TradePort,<br />

Richards<br />

Development<br />

Bay Industrial<br />

Zone,<br />

Development<br />

ports of<br />

Zone,<br />

Richards<br />

ports<br />

Bay<br />

of Richards<br />

and Durban,<br />

Bay and<br />

Albert<br />

Durban,<br />

Luthuli International<br />

Albert Luthuli International<br />

Convention<br />

Convention<br />

Centre Complex.<br />

Centre Complex.<br />

Notable<br />

Notable<br />

tourism<br />

tourism<br />

assets:<br />

assets:<br />

HluhluweiMfolozi<br />

HluhluweiMfolozi<br />

Park,<br />

Park,<br />

the<br />

the<br />

Drakensberg<br />

Drakensberg<br />

mountains,<br />

mountains,<br />

iSimangilso<br />

iSimangaliso<br />

Wetlands<br />

Wetland<br />

Park,<br />

Park,<br />

Durban<br />

Durban<br />

beaches,<br />

beaches,<br />

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

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

Coast,<br />

Zulu<br />

Coast,<br />

cultural<br />

Zulu<br />

heritage,<br />

cultural<br />

historical<br />

heritage,<br />

historical battlefields.<br />

battlefields.<br />

Provincial government website:<br />

Provincial government website:<br />

www.kznonline.gov.za<br />

www.kznonline.gov.za<br />

Trade and Investment KwaZulu-<br />

Trade and Investment KwaZulu-<br />

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

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

Limpopo<br />

Capital: Polokwane<br />

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

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

Steelpoort, Thohoyandou Tzaneen, Thohoyandou<br />

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

Area: 125 755km² (10.2% of<br />

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

Premier:<br />

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

Chupu Stanley Mathabatha (ANC)<br />

Key sectors: Mining, agriculture,<br />

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

tourism, logistics.<br />

Infrastructure: Musina-Makhado<br />

Infrastructure: Special Economic Musina-Makhado<br />

Zone,<br />

Special<br />

Fetakgomo-Tubatse<br />

Economic Zone,<br />

Special<br />

N1<br />

highway<br />

Economic<br />

and<br />

Zone,<br />

rail<br />

N1<br />

network,<br />

highway<br />

new<br />

and<br />

Medupi<br />

rail network,<br />

power<br />

new<br />

station.<br />

Medupi power<br />

station.<br />

Notable<br />

Notable<br />

tourism<br />

tourism<br />

assets:<br />

assets:<br />

Kruger<br />

Kruger<br />

National<br />

National<br />

Park,<br />

Park,<br />

Mapungubwe<br />

Mapungubwe<br />

Heritage<br />

World Heritage<br />

Site, Makapans<br />

Site, Makapans<br />

Valley,<br />

Marula<br />

Valley, Marula<br />

Festival,<br />

Festival,<br />

Waterberg<br />

Waterberg<br />

Biosphere.<br />

Biosphere.<br />

Provincial government website:<br />

Provincial government website:<br />

www.limpopo.gov.za<br />

www.limpopo.gov.za<br />

Limpopo Economic<br />

Limpopo Economic Development<br />

Development Agency:<br />

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

www.lieda.gov.za<br />

Mpumalanga<br />

Capital: Mbombela<br />

Main towns: Emalahleni,<br />

Middelburg,<br />

Middelburg, Sabie,<br />

Sabie,<br />

Lydenburg<br />

Lydenburg<br />

Population:<br />

Population: 4<br />

283<br />

283<br />

900<br />

900<br />

(2015)<br />

(2015)<br />

Area: 76 495km² (6.3% of<br />

Area: 76 495km² (6.3%<br />

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

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

Premier:<br />

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

Refilwe Mtshweni-Tsipane (ANC)<br />

Key sectors: Agriculture, forestry,<br />

mining, steel manufacturing,<br />

petrochemicals,<br />

Key sectors: Agriculture,<br />

pulp and<br />

forestry,<br />

paper,<br />

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

petrochemicals, pulp and paper,<br />

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

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

International Economic Zone, Fresh Mbombela Produce<br />

Market, International Maputo Fresh Development<br />

Produce<br />

Corridor, Market, Maputo Kruger Development<br />

Mpumalanga<br />

International Corridor, Kruger Airport. Mpumalanga<br />

International Airport.<br />

Notable tourism assets: Kruger<br />

National Park, Blyde River Canyon,<br />

Canyon, Barberton Barberton Makhonjwa Makhonjwa Mountains<br />

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

Heritage Site).<br />

Provincial government website:<br />

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

government website:<br />

www.mpumalanga.gov.za<br />

Mpumalanga Economic Growth<br />

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

Economic Growth<br />

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

21 17 2021<br />

17<br />

SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 2020 <strong>2024</strong>


SPECIAL FEATURE<br />

SPECIAL FEATURE<br />

Northern Cape<br />

Northern Cape<br />

Capital: Kimberley<br />

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

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

De Aar, Port Nolloth, Colesberg<br />

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

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

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

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

Premier:<br />

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

Dr Zamani Saul (ANC)<br />

Key sectors: Agriculture, mining,<br />

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

renewable energy, astronomy.<br />

Infrastructure: Upington Industrial<br />

Park, Sol Plaatje University,<br />

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

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

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

Scheme. Economic Zone.<br />

Notable tourism assets: Six<br />

national parks including the<br />

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

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

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

Orange River, spring flower<br />

displays, diamond routes.<br />

Provincial government website:<br />

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

Department of Economic<br />

Development and Tourism:<br />

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

North West<br />

North West<br />

Capital: Mahikeng<br />

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

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

Rustenburg, Brits, Potchefstroom<br />

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

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

of<br />

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

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

Premier:<br />

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

Mokgoro (ANC)<br />

Key sectors: Mining, agriculture,<br />

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

agri-processing, components. automotive<br />

components.<br />

Infrastructure: Hartbeespoort<br />

Infrastructure: Dam, Pelindaba Hartbeespoort<br />

nuclear research<br />

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

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

Bakwena Platinum Highway.<br />

Notable tourism assets: Sun City,<br />

Mmbatho Palms Hotel Casino<br />

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

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

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

National Park, 18 luxury lodges in<br />

Madikwe Game Reserve.<br />

Provincial government website:<br />

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

www.nwpg.gov.za<br />

North West Development<br />

North Corporation: West Development<br />

www.nwdc.co.za<br />

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

Western Cape<br />

Western Cape<br />

Capital: Cape Town<br />

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

Town<br />

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

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

West, Malmesbury Oudtshoorn, Worcester,<br />

Malmesbury<br />

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

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

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

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

Premier:<br />

Premier: Alan Winde (DA)<br />

Alan Winde (DA)<br />

Key sectors: Agriculture, agriprocessing,<br />

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

Key<br />

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

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

boatbuilding.<br />

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

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

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

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

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

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

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

station. Mountain, Garden Route National<br />

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

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

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

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

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

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

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

Contemporary Provincial government Art. website:<br />

www.westerncape.gov.za<br />

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

government website:<br />

www.westerncape.gov.za<br />

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

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

18<br />

SOUTH AFRICAN BUSINESS 2021 2020 18 22


FOCUS<br />

Sectoral strengths of<br />

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

SECTORAL STRENGTHS OF<br />

SOUTH AFRICA’S PROVINCES<br />

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

Gauteng:<br />

• Financial and business services<br />

• Information and communications<br />

technology<br />

• Transport and logistics<br />

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

• Fabricated metal products<br />

• Motor vehicles, parts and accessories<br />

• Appliances<br />

• Machinery and equipment<br />

• Chemical products, pharmaceuticals<br />

North West:<br />

• Agro-processing<br />

• Mining<br />

• Agriculture and agro-processing<br />

• Tourism<br />

• Metal products<br />

• Machinery and equipment<br />

• Renewable energy (solar)<br />

Northern Cape:<br />

• Mining<br />

• Agriculture and agro-processing<br />

• Fisheries and aquaculture<br />

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

• Jewellery manufacturing<br />

Limpopo:<br />

• Mining<br />

• Fertilisers<br />

• Tourism<br />

• Agriculture<br />

• Agro-processing<br />

• Energy, including<br />

renewables (solar)<br />

SPECIAL FEATURE<br />

Mpumalanga:<br />

• Mining<br />

• Tourism<br />

• Forestry, paper and paper<br />

products, wood and wood<br />

products<br />

• Agriculture and agroprocessing<br />

• Metal products<br />

FOCUS<br />

KwaZulu-Natal:<br />

• Transport and logistics<br />

• Tourism<br />

• Motor vehicles, parts and<br />

accessories<br />

• Petrochemicals<br />

• Aluminium<br />

• Clothing and textiles<br />

• Machinery and equipment<br />

• Agriculture and agroprocessing<br />

• Forestry, pulp and paper,<br />

wood and wood products<br />

Western Cape:<br />

• Tourism<br />

• Financial and business services<br />

• Transport and logistics<br />

• ICT<br />

• Agriculture and agro-processing<br />

• Fisheries and aquaculture<br />

• Petrochemicals<br />

• Basic iron and steel<br />

• Clothing and textiles<br />

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

Free State:<br />

• Agriculture and agro-processing<br />

• Mining<br />

• Petrochemicals<br />

• Machinery and equipment<br />

• Tourism<br />

Eastern Cape:<br />

• Motor vehicles, parts and<br />

accessories<br />

• Forestry, wood and wood products<br />

• Clothing and textiles<br />

• Pharmaceuticals<br />

• Leather and leather products<br />

• Tourism<br />

• Renewable energy (wind)<br />

Page | 40<br />

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

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

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

SOUTH AFRICAN BUSINESS 2021<br />

19<br />

20 23 SOUTH SOUTH AFRICAN AFRICAN BUSINESS BUSINESS 2020 <strong>2024</strong>


16<br />

INVESTMENT OPPORTUNITY : NORTHERN CAPE<br />

BOEGOE BAAI SPECIAL ECONOMIC ZONE<br />

The GH2 hub of Western SADC<br />

PROJECT BACKGROUND<br />

PROJECT BACKGROUND<br />

Green hydrogen has many downstream and upstream applications<br />

Green hydrogen has many downstream uses that could contribute to<br />

that contribute to the creation of new industries in the Northern<br />

the creation of new industries in the Northern Cape and enable the<br />

Cape and enable the industrialisation of industries nationally and<br />

industrialisation<br />

in SADC.<br />

of industries nationally.<br />

There is also a potentially lucrative global export market where<br />

demand There is is a growing lucrative rapidly. global The export province and local boasts market several where competitive demand<br />

advantages is growing for rapidly the production to supply the of green hard-to-abate hydrogen. sector. The province<br />

• boasts High renewable several competitive energy potential advantages and to established be a green RE hydrogen industrylead:<br />

• Less High complex renewable topography energy potential and established RE industry<br />

• 300km Less complex of shoreline topography<br />

• Large 300km mineral of shoreline deposits<br />

• International Large mineral accessibility deposits<br />

• International accessibility<br />

PROJECT LOCATION<br />

Boegoebaai PROJECT LOCATION is approximately 60km north of Port Nolloth and<br />

Boegoebaai is approximately 60km north of Port Nolloth and 20km<br />

20km south of the border between Namibia and <strong>South</strong> Africa in the<br />

south of the border between Namibia and <strong>South</strong> Africa in the<br />

Richtersveld Local Municipality area.<br />

Richtersveld Local Municipality area.<br />

PROJECT DESCRIPTION<br />

PROJECT DESCRIPTION<br />

The Boegoeberg Special Economic Zone is envisaged as a hub for<br />

The Boegoebaai Special Economic Zone is envisaged as a hub for the<br />

the<br />

production<br />

production<br />

and<br />

and<br />

export<br />

export<br />

of green<br />

of green<br />

hydrogen.<br />

hydrogen.<br />

The SEZ will also support<br />

the components sector and allow for value addition to minerals, using<br />

this green energy.<br />

The project is of strategic importance and will enable the overarching<br />

The project is of strategic importance to our country and will<br />

attainment of a Just Energy Transition.<br />

enable the overarching attainment of a Just Energy Transition<br />

Process.<br />

PROJECT PROGRESS<br />

• PROJECT Sasol has PROGRESS completed the prefeasibility phase of the green hydrogen<br />

• and Sasol renewable has completed energy facility. the pre-feasibility phase of the green<br />

• Evaluation hydrogen of and port renewable and rail energy quotation components. process is complete and<br />

• Transnet management has advanced is assessing to identify approval the final for location port location and and<br />

successful issued the bidders. RFQ towards an RFP for the construction of the<br />

• The Boegoebaai draft master port. plan has been developed and initial engagements<br />

• with The various Northern stakeholders Cape Green (public Hydrogen and private) Master has commenced.<br />

Plan was<br />

• Agreement launched for at SAGHS land access and COP28, has been providing signed the between clear pathway Northern<br />

Cape for Economic development. Development Agency (NCEDA) and the Community<br />

•<br />

Property The proposed Association Boegoebaai (CPA) as well SEZ as concept NCEDA and Sasol. preliminary<br />

• Completed infrastructure prefeasibility plan has designs been concluded. for the SEZ infrastructure.<br />

• SANRAL has approved plans to upgrade the R382 road to<br />

Sanral has approved plans to upgrade R382 road.<br />

the port and SEZ.<br />

• A fuel-bunkering concept study has been completed and will be<br />

• A key component of the Boegoebai SEZ and electrolyser<br />

published.<br />

deployment entails the production of electrons that will<br />

• Masts are to be erected for wind, bat and bird studies.<br />

supplement the grid and supply the electrolyser complex.<br />

• Strategic Environmental Assessment (SEA) for port and SEZ to be<br />

• A regional Strategic Environmental Assessment (SEA) for<br />

issued<br />

the port,<br />

to market.<br />

SEZ and renewable energy of over 40 000 hectares<br />

is currently underway to gauge the regional impact of<br />

the project.


19<br />

INVESTMENT OPPORTUNITY : NORTHERN CAPE<br />

NAMAKWA SPECIAL ECONOMIC ZONE<br />

National Cabinet has approved the intention to designate the<br />

Namakwa National Cabinet SEZ has Aggeneys approved in the designation Northern Cape. of the The Namakwa proposed SEZ<br />

designation in Aggeneys is in done the Northern in terms Cape. of the The Special proposed Economic designation Zones is done Act,<br />

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)<br />

Investment<br />

INVESTMENT<br />

and the proposed Drive.<br />

OPPORTUNITY<br />

SEZ is part of the Presidential Investment Drive.<br />

•<br />

• The Namakwa SEZ will<br />

will<br />

unlock<br />

unlock<br />

mining<br />

mining<br />

beneficiation, the<br />

production<br />

production<br />

of<br />

green<br />

of green<br />

hydrogen,<br />

hydrogen, infrastructure development, renewable energy<br />

and agro-processing.<br />

and • More than R29-billion in investments has already been committed<br />

• More than National Cabinet has in investments approved the has designation already of been the Namakwa committed SEZ<br />

for phase<br />

for phase in Aggeneys<br />

one of the<br />

one of the in<br />

SEZ.<br />

the SEZ. Northern<br />

These include<br />

These include Cape. The<br />

commitments<br />

commitments proposed designation<br />

from Vedanta<br />

from Vedanta is done<br />

Zinc, Frontier<br />

Zinc (R16-billion), in terms Rare of the Earths,<br />

Frontier Special Hive Economic Energy<br />

Rare Earth Zones and RRS<br />

(R13-billion), Act, Trade 2014 and (Act Investment.<br />

Hive 16 of Energy 2014)<br />

and the proposed SEZ is part of the Presidential Investment Drive.<br />

(R200-million) and RRS Trade and Investment (R100-million).<br />

MISSION • The Namakwa SEZ will unlock mining beneficiation, production of<br />

Create an industrial green hydrogen, hub for infrastructure the West development, Coast and renewable a catalyst energy for<br />

MISSION<br />

industrialising<br />

and<br />

the<br />

agro-processing.<br />

western SADC area.<br />

Create an • More industrial than R29-billion hub for in the investments West Coast has already and a been catalyst committed for<br />

industrialising for phase the western one of the SADC SEZ. area. These include commitments from Vedanta<br />

PROJECT LOCATION<br />

Zinc (R16-billion), Frontier Rare Earth (R13-billion), Hive Energy<br />

Aggeneys is 66km from Pofadder and 110km from Springbok and in<br />

PROJECT<br />

(R200-million)<br />

LOCATION<br />

and RRS Trade and Investment (R100-million).<br />

the regional network of the Boegoebaai harbour.<br />

Aggeneys is 66km from Pofadder and 110km from Springbok.<br />

MISSION<br />

ECONOMIC Create IMPACT an industrial hub for the West Coast and a catalyst for<br />

ECONOMIC IMPACT<br />

Operations industrialising will add R1.1-billion the western SADC to area. state tax revenue annually.<br />

• Operations will add R1.1-billion to state tax revenue annually<br />

A proposed smelter is to be built to treat zinc concentrate at<br />

Gamsberg<br />

• Opex will PROJECT<br />

and<br />

add R5.8-billion LOCATION<br />

to process<br />

to<br />

additional<br />

national GDP<br />

sulphuric<br />

annually<br />

acid for further<br />

downstream • Capex will Aggeneys<br />

industrialisation. add R6.7-billion is 66km from in Pofadder<br />

The one-off and<br />

zinc concentrate value 110km to GDP from Springbok.<br />

produced at the<br />

existing • Capex concentrator will add R1.6-billion plant will in one-off be treated value in to the tax smelter revenue<br />

ECONOMIC IMPACT<br />

using the<br />

conventional • Operations roast-leach-electrowinning will add R1.1-billion to (R-L-E) state tax process. revenue annually<br />

VALUE PROPOSITION<br />

• Opex will add R5.8-billion to national GDP annually<br />

TARGETED The value • proposition SECTORS<br />

Capex will add of R6.7-billion the Namakwa in one-off SEZ is value based to GDP on the existence<br />

• 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<br />

Zinc, Vedanta granite, Zinc copper, International. rare earths, These rare would quartz, be the slateanchor tenants of the<br />

VALUE PROPOSITION<br />

• Mineral processing<br />

The value proposition of the Namakwa SEZ is based on the existence<br />

Zinc processing of the Gamsberg plant, zinc Zinc smelter, Mine and copper the proposed processing building plant of a smelter by<br />

• Petro-chemical Vedanta Zinc International. These would be the anchor tenants of the<br />

Sulphuric acid, fertiliser, paint, hydrogen production, explosives<br />

NAMAKWA SPECIAL ECONOMIC ZONE<br />

19<br />

• Manufacturing<br />

SEZ. Super It alloys, is proposed batteries, that galvanising a smelter be steel built to treat zinc concentrate<br />

produced<br />

• Transport at Gamsberg. The zinc concentrate produced at the<br />

existing Mining and concentrator agricultural, plant regional will be and treated depots in the smelter using the<br />

•<br />

conventional Engineering roast-leach-electrowinning and suppliers (R-L-E) process.<br />

Renewable energy, transport, construction<br />

• Pharmaceuticals<br />

TARGETED SECTORS<br />

Zinc, food additives<br />

• Mining<br />

• Localisation and supplier development<br />

SEZ. Zinc, It is granite, proposed copper, that a smelter rare earths, be built rare to treat quartz, zinc concentrate slate<br />

produced<br />

Incubator,<br />

• Mineral at<br />

skills<br />

processing Gamsberg.<br />

development<br />

The zinc concentrate produced at the<br />

existing Zinc processing concentrator plant, will zinc be smelter, treated in copper the smelter processing using the plant<br />

conventional BENEFITSroast-leach-electrowinning (R-L-E) process.<br />

• Petro-chemical<br />

Products of the Northern Cape previously had to be transported<br />

Sulphuric acid, fertiliser, paint, hydrogen production, explosives<br />

TARGETED over great SECTORS distances by rail or road.<br />

• Manufacturing<br />

•<br />

Mining<br />

Beneficiated products from the mining industry will be exported<br />

Zinc, Super granite, alloys, copper, batteries, rare earths, galvanising rare quartz, steel slate<br />

• Opex will add R5.8-billion to national GDP annually<br />

• Mineral Transport processing<br />

• Capex will add R6.7-billion in one-off value to GDP<br />

Zinc Mining processing and agricultural, plant, zinc smelter, regional copper and processing depots plant<br />

•• During construction, 9 500 jobs will be created<br />

Petro-chemical<br />

Engineering and suppliers<br />

• Sulphuric Jointly acid, with fertiliser, the Boegoebaai paint, hydrogen SEZ, production, about 3 explosives 250 products such<br />

Renewable energy, transport, construction<br />

• Manufacturing as green ammonia will be produced<br />

Pharmaceuticals<br />

• Super The alloys, SEZ batteries, is aligned galvanising to the steel Gamsberg Zinc Mine and the<br />

• Transport Zinc, food additives<br />

proposed building of a smelter near the Zone and is being<br />

• Mining Localisation and agricultural, and supplier regional development<br />

and depots<br />

developed along strict project management guidelines<br />

• Engineering Incubator, and skills suppliers development<br />

Renewable energy, transport, construction<br />

•<br />

VALUE<br />

Pharmaceuticals<br />

PROPOSITION<br />

EXTENT The Zinc, value food additives proposition of the Namakwa SEZ is based on the<br />

•<br />

540.26 relationship Localisation<br />

hectares<br />

and that supplier such a development Special Economic Zone will have with up<br />

and Incubator, downstream skills development economic activities to boost industrialisation and<br />

JOBS to supply and add value to regional produce and consumer goods.<br />

EXTENT During construction, 9 500 jobs will be created with about 3 250<br />

540.26 permanent hectares<br />

The close jobs vicinity once the to zone both is fully Namibia operational. and Boegoebaai is<br />

JOBS<br />

a tremendous benefit and competitive advantage. The<br />

During proximity construction, to mining 9 500 and jobs agricultural will be created sector with about activities 3 250 and the<br />

permanent short distance jobs once from the zone coast is to fully deep operational. water further enhances the<br />

value proposition.


SPECIAL FEATURE<br />

Collaborating to put young people to work<br />

Youth unemployment remains a stubborn national problem but creative solutions<br />

are increasingly coming to the fore.<br />

By John Young<br />

learnerships, internships, short-course skills<br />

programmes and apprenticeships. SETAs are well<br />

placed to act as the linking factor between tertiary<br />

institutions and private companies or to ensure<br />

collaboration between NGOs and industry.<br />

Every industry is covered by the SETA network<br />

and companies must contribute a skills levy to the<br />

appropriate SETA. This occurs within a National Skills<br />

Development Strategy.<br />

In launching MTN Xlerator in 2023, CEO<br />

Charles Molapisi explained how the scaledup<br />

Enterprise and Supplier Development<br />

programme is intended to boost supply chains,<br />

drive economic growth and create jobs.<br />

It is in everyone’s interests that the rate of youth<br />

unemployment in <strong>South</strong> Africa comes down.<br />

StatsSA has published figures suggesting<br />

that as many as 60% of the 15-24 age group<br />

are unemployed. The rate for the 25-34 cohort is<br />

above 40%.<br />

The single, simplest solution would be for the<br />

national economy to grow faster, but because<br />

making that happen is actually extremely complex,<br />

other solutions have to be found. And this is where<br />

collaboration between business and industry,<br />

the education sector and non-governmental<br />

organisations (NGOs) becomes vital.<br />

Since 1998, <strong>South</strong> Africa has had Sector<br />

Education and Training Authorities (SETAs). These<br />

vocational-skills-training organisations were<br />

established by an act of parliament and there are<br />

currently 21 of them. SETAs create and manage<br />

Role of skills<br />

Whether the goal is to prepare to work for<br />

someone else (get a job) or to encourage<br />

entrepreneurship (start a business), the need for<br />

skills remains essential.<br />

Depending on the priority, the skills training<br />

programme would be biased in favour of workspecific<br />

skills (welding, computer skills, handling<br />

equipment) or business-related capabilities<br />

(keeping track of cashflow, marketing).<br />

The <strong>South</strong> <strong>African</strong> Council for Graduates<br />

Cooperative (SACGRA) sets out to support<br />

both approaches, striving to develop both<br />

“competent graduates that can become successful<br />

entrepreneurs or competitive employees” and like<br />

many such hubs, SACGRA offers advice, mentorships<br />

and links to markets and opportunity. What makes<br />

SACGRA stand out is its focus on co-operatives.<br />

Co-operatives are a successful model already<br />

widely adopted across <strong>South</strong> Africa for savings<br />

clubs known as “stokvels”. Old Mutual estimates<br />

that more then 800 000 such stokvels represent a<br />

value of R45-billion. SACGRA aims to professionalise<br />

co-operatives and prepare them to participate in<br />

two private-sector initiatives that have become a<br />

big part of the <strong>South</strong> <strong>African</strong> economic landscape,<br />

namely Supplier Development Programmes and<br />

Enterprise Development Programmes.<br />

In terms of these programmes, large companies<br />

are obliged to or choose to help build up and train<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

22


SPECIAL FEATURE<br />

The Chemical Industries Education and Training<br />

Authority, CHIETA, is establishing SMART Skills<br />

Centres around the country to boost training in<br />

digital skills.<br />

business owners (ED) which might be part of their<br />

supply chain (SD). The programmes often overlap,<br />

as it makes business sense for a large mining<br />

operation, for example, to have a successful local<br />

bus company supply its transport needs. The same<br />

would apply to cleaning and maintenance services,<br />

catering and many other categories. Given a steady<br />

client and a reliable income, these local businesses<br />

are much more likely to succeed in the long term<br />

and to create employment as they grow.<br />

So widespread have ED and SD programmes<br />

become that national awards are now presented<br />

annually. The <strong>Business</strong> Day Supplier Awards<br />

has no fewer than 11 categories and an overall<br />

winner. That winner in 2021 was Tiger Brands,<br />

whose R100-million Dipuno Enterprise and<br />

Supplier Development Fund impressed the<br />

judges and which was cited as an illustration<br />

of the best kind of collaboration between the<br />

private sector, government, mining houses and<br />

their pipeline partners.<br />

The financial sector has an important role in<br />

this environment. Old Mutual’s Masisizane Fund<br />

is geared to finance small, medium and microenterprises<br />

(SMMEs) and it is often to funds such as<br />

these that participants in SD programmes turn.<br />

Venetia Mine, a De Beers Group mine in northern<br />

Limpopo, has more than 50 SMMEs enrolled in<br />

incubation programmes and 34 locally owned<br />

companies are doing business with the mine. This<br />

kind of cooperation creates jobs and can lead to<br />

expansion. A woman-owned business which was<br />

supplying accommodation on the mine is now in<br />

the process of expanding into the nearby town in the<br />

form of a hotel which will be in a position to grow its<br />

clientele beyond visitors to the mine.<br />

Another example of collaboration across<br />

sectors that leads to employment is underway<br />

in the small Northern Cape town of Kuruman.<br />

Mining company Assmang is working with<br />

EduPower Skills Academy in a programme that<br />

combines skills training, enterprise development<br />

and community upliftment. Training is provided<br />

to potential call-centre operators while support is<br />

given to entrepreneur to set up a call centre. Once<br />

the trainees complete their 12-month learnerships,<br />

they are available to employed in the new business.<br />

The country’s biggest private sector youthemployment<br />

programme is YES4YOUTH. The idea<br />

is for private businesses and corporates to take in<br />

young people for 12 months of work experience.<br />

Run since 2019, the programme had by 2023<br />

reached the milestone of one-million placements.<br />

Curriculum relevance<br />

The old debate about how much broad education<br />

should be in a curriculum in contrast to how much<br />

skills training there should be, is a debate that won’t<br />

ever be resolved.<br />

What can be improved is the agility of<br />

educational and training institutions. When the<br />

economy needs new skills, how fast can the<br />

country’s training providers react?<br />

The Chemical Industries Education and Training<br />

Authority (CHIETA) is showing how it might be<br />

done. Recognising that <strong>South</strong> Africa is going to<br />

need specialists in green hydrogen, CHIETA has<br />

set out to focus on the kind of skills that this highly<br />

specialised economic sector is going to need. Few<br />

people know about electrolysers, fuel cells and<br />

the storage requirements of hydrogen. CHIETA<br />

has developed a list of 17 specific training and skill<br />

requirements as it anticipates that about 14 000<br />

jobs might be created in this new energy sector.<br />

Another body exhibiting flexibility is the<br />

Food and Beverages SETA, FoodBev SETA. In<br />

PHOTO: CHIETA<br />

23 SOUTH AFRICAN BUSINESS <strong>2024</strong>


SPECIAL FEATURE<br />

YES4YOUTH gives young people work experience.<br />

2023, it issued, together with the BRICS <strong>Business</strong><br />

Council, the “Atlas of Emerging Jobs in the Food<br />

and Beverage Sector”. Taking into account global<br />

trends that include mechanisation, the atlas<br />

shows that bio-nutritionists, farm technicians and<br />

integration software engineers are going to be in<br />

demand. Many of these are jobs that did not exist<br />

20 years ago, and some of the jobs that will exist in<br />

20 years’ time have not even been thought of by<br />

the authors of the atlas.<br />

Some universities are also showing an ability<br />

to adapt. Enterprises University of Pretoria is the<br />

skills division of the university and its short-course<br />

offering shows admirable variety. In listing its<br />

courses in advertising material, the unit flags the<br />

courses that are “trending”. These include project<br />

risk management, mine closure and rehabilitation,<br />

water quality management and information<br />

security management. Enterprise UP issued 11 185<br />

certificates in 2022.<br />

<strong>Business</strong> schools also need to examine their<br />

curriculums to ensure relevance. One way of<br />

staying relevant is to hire people who are active<br />

in business. Enterprise UP has 148 “subject matter<br />

experts” collaborating with staff members from<br />

67 departments.<br />

Hlengani Mathebula became a professor at the<br />

University of Limpopo’s Turfloop Graduate School<br />

of Leadership in 2023. He has been the managing<br />

executive of ABSA Private Bank and is the founder<br />

of Ignite Africa Advisory Services Group. Writing in<br />

the Sunday Times, Mathebula argued that students<br />

attending business schools should also have work<br />

experience because, without it “very little of what<br />

these schools teach will make sense, putting<br />

students at a disadvantage”.<br />

Mathebula’s larger argument is that business<br />

schools can play a role in helping rich <strong>South</strong> <strong>African</strong>s<br />

understand and work with poorer <strong>South</strong> <strong>African</strong>s.<br />

He writes that a business school’s first challenge is<br />

to provide skills where both kinds of <strong>South</strong> <strong>African</strong>s<br />

can “find common ground that will transform the<br />

dominant leadership trajectory and in that way<br />

transform the country”. ■<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

24<br />

PHOTO: YES4YOUTH


WE<br />

MAKE<br />

STEAM<br />

Steinmüller Africa (Pty) Ltd. is one of the enterprises<br />

in Bilfinger Power Africa (Pty) Ltd., the <strong>South</strong> <strong>African</strong><br />

subsidiary of German based Bilfinger SE. For years, we<br />

have been adding value to the power, mining, paper pulping<br />

and broader industry through comprehensive valve supply,<br />

valve maintenance and heat treatment solutions.<br />

www.steinmuller.bilfinger.com<br />

WORK<br />

Engineering design services<br />

Boiler pressure parts<br />

Commissioning, field and testing services<br />

Bellows<br />

Headers<br />

Induction bending of HP/HT piping<br />

Heat treatment (workshop and in situ)<br />

HP Heaters<br />

Piping technology<br />

Pipe supports<br />

Plant erection services<br />

Explosive welding<br />

MEMBER OF THE BILFINGER GROUP OF COMPANIES


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KEY SECTORS<br />

Overviews of the main economic<br />

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

Agriculture 30<br />

Mining 32<br />

Energy 36<br />

Oil and gas 38<br />

Engineering 40<br />

Manufacturing: general 42<br />

Manufacturing: automotive 43<br />

Construction and property 44<br />

Water 45<br />

Transport and logistics 46<br />

Tourism 47<br />

Telecommunications 50<br />

ICT 52<br />

Development finance and SMME support 54<br />

Education and skills training 58<br />

Banking and financial services 59<br />

BMW Group headquarters in Midrand, Gauteng. Plant Rosslyn in Pretoria has produced more than<br />

1.6-million vehicles since the company started making cars in <strong>South</strong> Africa 50 years ago. They have<br />

been exported to more than 40 countries worldwide, including 14 <strong>African</strong> nations. BMW has produced<br />

many models and began on the best-selling BMW X3 in 2018. From <strong>2024</strong> the BMW X3 will be made as a<br />

plug-in hybrid for export. An investment of R4.2-billion will adapt the factory to electrical specifications.<br />

PHOTO: BMW Group


OVERVIEW<br />

Agriculture<br />

Avocados are proving a fruitful investment.<br />

SECTOR INSIGHT<br />

Companies are bidding for<br />

troubled Tongaat Hulett.<br />

The biggest tomato producer in the southern hemisphere<br />

has started planting and trading in avocados. ZZ2’s new<br />

R128-million processing facility in Limpopo for avocados<br />

and tomatoes is complete. With floor space of 11 200m²<br />

the facility is large, but then everything about ZZ2 tends to be<br />

on a big scale. The company’s website gives a figure for tomato<br />

production of 190 000 tons, a total which allows ZZ2 to cater for<br />

all market channels and income groups.<br />

The main operations of the company are in Limpopo but it has<br />

facilities in the Western Cape, Eastern Cape, Gauteng, North West,<br />

Mpumalanga and Namibia. ZZ2 grows a large assortment of fruits<br />

including mangoes, onions, dates, cherries, apples, pears, stone fruit,<br />

almonds and blueberries. There are ambitious plans to increase market<br />

share in avocados, a highly sought after and popular export product. A<br />

joint venture between ZZ2, Mission Produce and Criterion Africa Partners<br />

will see more than 1 000ha of avocado orchards developed, but ZZ2 will<br />

continue to develop other orchards independently. So far, the Selokwe<br />

Agri JV has planted 250ha.<br />

The EU market has the best potential, with average per capita<br />

consumption in that area currently less than half that of the US. <strong>South</strong><br />

Africa has an edge over Peru in that the season begins before the <strong>South</strong><br />

American’s peak period and the aim is to supply the popular Hass variety<br />

all year round. Core Fruit has been contracted to handle the logistics and<br />

transportation of product to Europe.<br />

According to Fruit SA,<br />

324 000 <strong>South</strong> <strong>African</strong>s are<br />

employed in the fresh fruit<br />

industry, which accounted<br />

for 35% (or R63-billion) of the<br />

country’s agricultural exports<br />

in 2021/22. <strong>South</strong> Africa is the<br />

world’s second-largest exporter<br />

of citrus fruit. A national export<br />

record was achieved in 2020,<br />

with 146-million cartons of fresh<br />

citrus being exported (second<br />

only to Spain).<br />

In the sugar industry, <strong>South</strong><br />

Africa has for a long time been<br />

used to the dominance of two<br />

large companies, Illovo and<br />

Tongaat Hulett. The latter group<br />

going into business rescue in<br />

2020 was a major shock, not only<br />

to the many businesses which<br />

rely on the sugar producer in<br />

KwaZulu-Natal, but because the<br />

company has a long history and<br />

has become one of the biggest<br />

corporate names in the <strong>South</strong><br />

<strong>African</strong> economy.<br />

In 2022 seven former<br />

Tongaat Hulett senior executives<br />

appeared in court on charges of<br />

fraud for allegedly backdating<br />

sales agreements of the<br />

company’s property division<br />

to score better bonuses. The<br />

business rescue practitioners<br />

(BRP), Metis Strategic Advisors,<br />

managed to keep 2 500<br />

employed at the company and<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

30<br />

PHOTO: ZZ2


OVERVIEW<br />

Maydon Wharf, Durban, serves<br />

11 mills and can store more than<br />

half-a-million tons of sugar.<br />

National assets<br />

invested more than R400-million in off-crop capital maintenance<br />

between December 2022 and April 2023.<br />

In 2023, the BRP produced a statement which read, in part: “It is<br />

beyond question that the successful rescue of especially THL’s sugar<br />

operations in <strong>South</strong> Africa will save tens of thousands, possibly hundreds<br />

of thousands, of direct and indirect jobs. We take this responsibility very<br />

seriously and are confident that Tongaat Hulett has a future.” A number<br />

of bids to buy the company have been made.<br />

The sugar industry itself faces many challenges, not least the<br />

imposition of a sugar tax and imports from countries such as Brazil, India<br />

and Thailand. Diversification is vital for the future and power generation<br />

will be an important part of that. Neither of the Big Two companies relies<br />

exclusively on <strong>South</strong> <strong>African</strong> sugar earnings: the troubled Tongaat Hulett<br />

has a big property portfolio and Illovo draws most of its profit from<br />

operations elsewhere in Africa.<br />

A start has been made on tackling the many challenges faced by the<br />

sugar industry: the Sugarcane Value Chain Master Plan 2030 has been<br />

signed. Of the 10 443 farmers who supply Tongaat Hulett, 94% are smallscale<br />

farmers. The Illovo Small-Scale Grower Cane Development Project<br />

used 119 local contractors to develop the fields of 1 630 new growers on<br />

3 000ha. SA Canegrowers represents 23 866 growers and is responsible<br />

for the production of 18.9-million cane tons. The Sugar Terminal at<br />

ONLINE RESOURCES<br />

Agricultural Research Council: www.arc.agric.za<br />

Grain SA: www.grainsa.co.za<br />

SA Table Grape Industry: www.satgi.co.za<br />

<strong>South</strong> <strong>African</strong> Berry Producers’ Association: www.berriesza.co.za<br />

AgriSA states that the amount of<br />

agricultural land in <strong>South</strong> Africa<br />

in 2016 stood at 93.5-million<br />

hectares. This represents 76.3% of<br />

<strong>South</strong> Africa’s total land mass of<br />

122.5-million hectares and about<br />

3% less than in 1994.<br />

A total of 70% of <strong>South</strong> Africa’s<br />

grain production is maize, which<br />

covers 60% of the cropping area<br />

of the country. KwaZulu-Natal<br />

and Mpumalanga produce sugar,<br />

but volumes are down.<br />

The Free State Province<br />

supplies significant proportions of<br />

the nation’s sorghum, sunflower,<br />

potatoes, groundnuts, dry beans,<br />

and almost all of its cherries.<br />

<strong>South</strong> Africa is famous for<br />

its fruit, of which 35% is citrus,<br />

23% subtropical and nuts, 26%<br />

pome fruit, 11% stone fruit and<br />

9% table grapes. Most of <strong>South</strong><br />

Africa’s citrus and subtropical fruit<br />

comes from the eastern part of<br />

Limpopo. There are about 3 500<br />

wine producers in <strong>South</strong> Africa,<br />

with the majority located in the<br />

Western Cape.<br />

The Eastern Cape is the largest<br />

livestock province, which includes<br />

Angora goats, from whom<br />

mohair is taken. The province is<br />

the centre of the country’s mohair<br />

value chain. <strong>South</strong> Africa has a<br />

beef herd of 14-million. <strong>South</strong><br />

Africa’s milk producers normally<br />

produce about 3.3-billion litres of<br />

milk every year. ■<br />

PHOTO: MeatmasterSA<br />

31<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Mining<br />

Impala Platinum has gained control of Royal Bafokeng Platinum.<br />

A<br />

sale that was first mooted in 2021 was finally resolved<br />

in June 2023 when Northam Platinum agreed to sell<br />

its stake in Royal Bafokeng Platinum (RBPlat) to Impala<br />

Platinum (Implats).<br />

That sale took Implats’ holding in RBPlat to 91% after it had bought<br />

9.26% of the company from Public Investment Corporation (PIC) earlier<br />

in the year to give it a majority holding. The RBPlat platinum group<br />

metals (PGM) facility, which lies directly south of Sun City, is adjacent to<br />

Implats Rustenburg’s land. The Impala Rustenburg operation comprises<br />

a nine-shaft mining complex and concentrating and smelting plants.<br />

The big sale coincided with a decline in the global prices of some of<br />

the PGMs such as palladium and rhodium. Whereas platinum attracted a<br />

price of $1 070 not long ago, in November 2023 it was trading at $869.<br />

Although the prospects for PGMs are good in support of the nascent<br />

hydrogen economy, a slowing Chinese economy and the expanded<br />

market for electric vehicles are negative factors.<br />

In July 2023, as scheduled, De Beers Group celebrated the<br />

beginning of production at its Venetia Mine, pictured, in the northern<br />

part of Limpopo Province. The long-term, $2.3-billion conversion<br />

project of the diamond mine to an underground mine began in<br />

2012 and will extend the life of the mine to 2045 or beyond. The<br />

SECTOR INSIGHT<br />

De Beers’ giant conversion<br />

project has started<br />

producing diamonds.<br />

mechanised underground<br />

operation will deliver up to<br />

seven-million tons of kimberlite<br />

ore per year to produce fourmillion<br />

carats of diamonds.<br />

Construction of the mine, which<br />

employs 4 300 local people,<br />

is now 70% complete. In the<br />

Northern Cape, the Namakwa<br />

Special Economic Zone in<br />

Aggeneys is being envisioned<br />

as an industrial cluster for<br />

mining and agriculture<br />

services, beneficiation and<br />

manufacturing. The hub of this<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

32<br />

PHOTO: De Beers Group


SEZ will be what is the biggest new mine project in the country, the<br />

Gamsberg project of Vedanta Zinc International, which will deliver<br />

600 000 tons of zinc when phase three is complete. The provincial<br />

government is using the mine’s multifaceted activities (and possible<br />

future smelter) as the basis for the SEZ which forms part of a larger<br />

“multi-nodal” corridor envisaged for the province.<br />

Copper is one of the most important elements needed to power<br />

the renewable energy transformation and so it’s no surprise that areas<br />

mined historically for that mineral in the Northern Cape are now back in<br />

the news. Batteries need copper, as do systems used to transmit energy<br />

from solar or wind sources. Electric vehicles contain an average of 85kg<br />

and, according to the CEO of newly formed Copper 360, Jan Nelson, the<br />

world had a stock of copper equal to only three weeks supply at a certain<br />

point in February 2023 (Financial Mail, 23 February 2023).<br />

Copper 360 was formed in November 2022 following a reverse<br />

takeover of copper producer Big Tree Copper (a producer of copper)<br />

and SHiP Copper (a mining company). The company listed on the AltX<br />

of the JSE in April 2023. Copper 360 produces 1 200t/y of A-grade copper<br />

cathode and has set a target of achieving 7 700t/y inside two years. Three<br />

new copper flotation plants are being built at a cost of R280-million. With<br />

280 new employees over the last two years and plans to recruit a further<br />

1 000 staff members in the next two years, global copper demand is<br />

clearly also good news for the town of Nababeep. Founded in 1860<br />

by the Okiep Mining Company, Nababeep is in the Namakwa District<br />

Municipality just north of Springbok.<br />

An old zinc mine at Prieska that produced a million tons of zinc<br />

and 430 000 tons of copper before it closed in 1991 is being revived<br />

by Australian miner Orion Minerals. Orion Minerals has secured a<br />

funding package of $87-million from subsidiaries of Triple Flag Precious<br />

Metals. The funding is conditional on the rest of the plan for the mine’s<br />

development also receiving funding and on the approval of <strong>South</strong><br />

Africa’s regulatory authorities.<br />

Afrimat continues to expand its commodities portfolio with the<br />

purchase for R300-million of Coza Mining, an iron-ore mining company<br />

in the Northern Cape.<br />

Prospects and exploration<br />

Mzila Mthenjane, the newly appointed CEO of Minerals Council<br />

<strong>South</strong> Africa, the mining industry employers’ body, co-authored an<br />

article for the Sunday Times in<br />

October 2023 in which it was<br />

stated that:<br />

“We would see a relatively<br />

quick shift in our economy if<br />

the Department of Mineral<br />

Resources and Energy expedited<br />

approvals for more than 5 000<br />

prospecting and mining right<br />

applications and mining permits.”<br />

Citing Stats SA figures that<br />

mining employed 477 574<br />

people in Q2 2023 and that for<br />

every person directly employed,<br />

a further 10 people are<br />

dependent on the industry for<br />

their livelihoods, Mthenjane and<br />

Otsile Matlou, COO of law firm<br />

ENSafrica, argued that “billions<br />

of rands of latent investments<br />

and future spending [are]<br />

locked up in these applications”.<br />

Among the things that<br />

the authors called for are the<br />

introduction of a “transparent,<br />

corruption-free, off-the-shelf<br />

digital mineral rights management<br />

system known as a cadastre”. In<br />

August 2023, an announcement<br />

was made that a winning bidder<br />

for a new cadastral system had<br />

been identified for the tender<br />

which had gone out in March<br />

2023. Final arrangements still had<br />

to made, and the name of the<br />

company was not known as of the<br />

last week of November. ■<br />

ONLINE RESOURCES<br />

Council for Geoscience: www.geoscience.org.za<br />

Minerals Council <strong>South</strong> Africa: www.mineralscouncil.org.za<br />

National Department of Mineral Resources and Energy: www.dmr.gov.za<br />

33<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


FOCUS<br />

Mind the Gap<br />

The uncertainty gap between organisational objectives and operational<br />

targets can be reduced, according to leading <strong>African</strong>-based specialist mining<br />

service provider, Ukwazi.<br />

When examining the general downward<br />

trend of commodity prices over recent<br />

years, uranium yellowcake has been<br />

a notable exception, with a recent<br />

upward trend. Gold has remained relatively stable,<br />

but platinum group metals (PGMs) and copper have<br />

seen a substantial decline from the highs achieved in<br />

early 2021. Bulks such as manganese ore, bauxite and<br />

specifically coal, are materially down from the peaks<br />

reached late in the Covid-19 pandemic, while chrome<br />

has not regained its pre-2017 commodity-crisis levels.<br />

Many operations, particularly across <strong>South</strong>ern Africa,<br />

are currently facing significant challenges. These stem<br />

from Transnet’s logistical obstacles, amplified post-<br />

Covid-19 production cost escalation and declining<br />

commodity prices. Mines are now prioritising cost<br />

control and aligning production with sales projections,<br />

placing the onus on production teams to meet<br />

strategic goals amid market pressures.<br />

Bridging the gap<br />

Whenever you travel on the London subway there<br />

are signs that warn you, “Mind the Gap”. In recent<br />

years, the disparity between strategic mining<br />

plans and the practical, implementable mining<br />

plans accessible to mining operational teams has<br />

grown considerably. This gap subsequently fosters<br />

widespread uncertainty within the execution<br />

environment, ie, what must be done and the “how”<br />

of what must be done practically. In the same vein,<br />

while most mining organisations do adhere to welldefined<br />

planning horizons and put notable effort<br />

in producing these plans – in a sequential manner<br />

and at specific intervals, they often lack practical<br />

guidance. At Ukwazi, we strongly believe that<br />

when a plan serves as basis for evaluating a mine’s<br />

performance or the performance of its operational<br />

team, it should be tailored for those specific<br />

purposes; aligning with the business’ strategic<br />

objectives while also providing clear, instructional<br />

and practical guidance. Simply put, it must extend<br />

beyond providing spatial guidance alone.<br />

Closing the gap<br />

As you increase uncertainty by imposing top-down<br />

strategic models for operational control, frustrations<br />

will mount and needless stress will burden an already<br />

demanding production environment, making it<br />

progressively difficult to retain outstanding operational<br />

and mining management teams.<br />

As such, the uncertainty gap between<br />

organisational objectives and operational targets needs<br />

to be reduced by developing pragmatic and cohesive<br />

mining budget plans that are audience-driven and<br />

outline sufficient practical requirements. It should be all<br />

about creating certainty. The result? A production team<br />

well positioned to perform in line with their respective<br />

performance indicators and organisational incentives.<br />

So, how do we effectively close the gap? Well,<br />

ultimately mining engineering and mine planning<br />

constitute pivotal technical and organisational<br />

disciplines. The effective implementation of the<br />

budget-mine-planning horizon requires active<br />

engagement from the intended audience, the<br />

operational team in this case, and a technical team<br />

that has insight into the strategic objectives of<br />

the mine and an in-depth understanding of the<br />

sequential nature of mine deployment. Further to<br />

this, the operational teams should receive outputs<br />

that equip them with the practical tools needed to<br />

adequately meet their requirements. At the end of the<br />

day, cultivating this collaborative approach should be<br />

a standard practice in every mining organisation. ■<br />

www.ukwazi.com<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

34<br />

PHOTO: Dominik Vanyi on Unsplash


OVERVIEW<br />

Energy<br />

Sasol’s partnerships are defining a new direction for the energy giant.<br />

A<br />

series of international and domestic partnerships that Sasol<br />

has signed in recent months illustrate that the company has<br />

decided that the energy future must be markedly different<br />

to the present. A disruption of the company’s AGM by<br />

climate activists and doubts about the company’s carbon-reduction<br />

strategy expressed by some big investors have helped bring that<br />

awareness to broader public attention.<br />

International chemicals and energy company Sasol has several large<br />

plants in the Free State and Mpumalanga, pictured, and is the dominant<br />

national player in these sectors. Products manufactured by Sasol include<br />

synthetic fuel, petroleum, paraffin, jet fuel, creosote, bitumen, diesel and<br />

lubricants. The primary feedstock for synthetic-fuel production is coal.<br />

With more than 30 000 employees and a presence in 30 countries, the<br />

decisions Sasol makes have a big impact.<br />

Subsidiary company Sasol ecoFT is producing sustainable fuels and<br />

chemicals from green hydrogen and sustainable carbon sources via the<br />

Power-to-Liquids process and using the Fischer-Tropsch technology (FT)<br />

which has helped set the company apart in its field.<br />

In 2010 Sasol flew the world’s first passenger aircraft using fully<br />

SECTOR INSIGHT<br />

A market for carbon credits<br />

has been created.<br />

synthetic jet fuel and it has<br />

been investigating solutions<br />

ever since. Sasol is part of a<br />

consortium based at its Secunda<br />

operations called HyShiFT with<br />

Linde, Enertrag and HydRegen,<br />

a spinoff company from the<br />

Department of Chemistry of the<br />

University of Oxford. The project<br />

aims to invest in about 500MW of<br />

renewable energy that will supply<br />

a 200MW electrolyser for green<br />

hydrogen production, resulting in<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

36<br />

PHOTO: Sasol


OVERVIEW<br />

approximately 45 000 tons a year of sustainable aviation fuel (SAF).<br />

In 2021, agreements were signed with Toyota and the Industrial<br />

Development Corporation (IDC) relating to green hydrogen and Sasol<br />

joined the Hydrogen Council.<br />

With the IDC, Sasol aims to develop a green hydrogen market in <strong>South</strong><br />

Africa, develop policy guidelines, support pilot projects and investigate<br />

funding options for the nascent sector. One such project involves<br />

investigating the possibilities of developing a Special Economic Zone (SEZ)<br />

in the Northern Cape dedicated to the production of green hydrogen. The<br />

feasibility studies regarding the Boegoebaai SEZ are ongoing and Sasol is a<br />

key player in this potentially transformative project.<br />

Battery storage is increasingly becoming an important part of hybrid<br />

projects and a move in November 2023 by the JSE, Africa’s biggest stock<br />

market, signalled another landmark on the renewable energy landscape.<br />

JSE Ventures has initiated a Voluntary Carbon Market together with US<br />

company Xpansiv, with the aim of creating a market for carbon credits.<br />

Generation plans<br />

When big companies start investing in a sector, then it’s clear that that<br />

sector should be taken seriously. Resources company Exxaro started<br />

investing in renewable energy earlier than most. Rolling blackouts have<br />

been a feature of <strong>South</strong> <strong>African</strong> life since 2008 and the Renewable Energy<br />

Independent Power Producer Procurement Programme (REIPPPP) was<br />

introduced in 2011 to encourage the private sector to start generating<br />

power. Exxaro subsidiary Cennergi’s bid to produce power in the<br />

Tsitsikamma area of the Eastern Cape via a 95.3MW wind farm was<br />

accepted by the Department of Energy in 2012. Since then, the 134.4MW<br />

Amakhala Emoyeni has been built in the Bedford area and Cennergi<br />

Services has evolved into a company that builds, manages and operates<br />

renewable energy projects that it owns as well managing assets for third<br />

parties. It has seven projects in four provinces.<br />

Exxaro’s huge coalmine at Grootgeluk in Limpopo (which supplies<br />

Eskom power plants) will be the site of an 84MW solar project and<br />

Northam Platinum is building a 10MW solar plant at its Zondereinde<br />

smelter. Implats is using natural gas to supply its refinery in Springs. In<br />

Phase one of the project 20 Doosan fuel cells are generating 8MW of<br />

power. The long-term goal is to generate 22-30MW.<br />

Certain manufacturing companies that have access to biomass<br />

that results from the manufacturing process, such as woodchips for<br />

ONLINE RESOURCES<br />

HyShiFT: www.hyshift.org<br />

National Energy Regulator of <strong>South</strong> Africa: www.nersa.org.za<br />

<strong>South</strong> <strong>African</strong> Independent Power Producers Association:<br />

www.saippa.org.za<br />

<strong>South</strong> <strong>African</strong> Wind Energy Association: www.sawea.org.za<br />

Sappi and bagasse in the case of<br />

sugar producers such as Tongaat<br />

Hulett and Illovo, are in a position to<br />

produce their own energy.<br />

However, there are industries<br />

where signing offtake agreements<br />

with renewable energy producers<br />

is the more logical route to take.<br />

In fact, even PGM miner Ivanhoe<br />

Mines, despite having its own<br />

plans to produce solar power, has<br />

signed an offtake agreement with<br />

Renergen in order to have access to<br />

that company’s electricity powered<br />

by renewable sources.<br />

Amazon has signed deals to have<br />

exclusive rights to renewable power<br />

produced from dedicated projects<br />

in the Northern Cape. Telecoms<br />

market-leader Vodacom has gone<br />

beyond the idea of having a single<br />

power producer. In a landmark<br />

deal brokered in 2023, Vodacom<br />

and Eskom have agreed to “virtual<br />

wheeling” whereby Vodacom<br />

will source power from multiple<br />

independent power producers.<br />

Wheeling refers to sending<br />

power through the grid. At the<br />

moment Eskom is the sole owner<br />

and operator of the national grid. The<br />

Department of Public Enterprises<br />

intends for Eskom to be broken up<br />

into separate entities, one of which<br />

would be a transmissions company.<br />

The City of Cape Town has<br />

initiated a pilot project whereby<br />

15 commercial suppliers can sell<br />

electricity to third parties via the<br />

city’s grid, a development that<br />

will be very closely watched.<br />

The chair of the <strong>South</strong> <strong>African</strong><br />

Independent Power Producers<br />

Association, Tommy Garner,<br />

told the Sunday Times, “It is very<br />

important for the electricity<br />

market in <strong>South</strong> Africa that you<br />

split Eskom into three entities.” ■<br />

37<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Oil and gas<br />

A production rights request follows significant offshore gas finds.<br />

SECTOR INSIGHT<br />

The national regulator has<br />

approved a gas plant for<br />

Richards Bay.<br />

Exploration off the southern coast has produced excellent results.<br />

TotalEnergies has applied to Petroleum Agency <strong>South</strong> Africa<br />

(PASA) to convert its exploration right into a production<br />

right, a move that may have major significance for the oil<br />

and gas sector in the region.<br />

The TotalEnergies-led consortium, after making world-class<br />

discoveries off <strong>South</strong> Africa’s southern coast off Mossel Bay in the<br />

Outeniqua Basin, has now made the decision to proceed to the next<br />

phase. The exploratory drilling campaign employed 195 <strong>South</strong> <strong>African</strong>s<br />

with specialist skills, but the potential spinoff is enormous for the<br />

Western Cape and <strong>South</strong> Africa,<br />

if the find leads to drilling and<br />

commercialisation.<br />

As David van der Spuy,<br />

Manager: Resource Evaluation<br />

Manager at PASA, explains, “It is<br />

critical for the development to<br />

go ahead, not only because it<br />

will avert the closure of the gasto-liquids<br />

(GTL) plant in Mossel<br />

Bay and the loss of 1 500 direct<br />

jobs, but also because of the<br />

economic effects this will have on<br />

the surrounding area.”<br />

PASA has noted the<br />

significance of international<br />

oil companies committing to<br />

exploration off <strong>South</strong> Africa’s<br />

coast and has a stated goal to<br />

move beyond exploration to<br />

development and production.<br />

More exploration will guarantee<br />

that interest is maintained.<br />

The next phase of the project,<br />

a gas-market development<br />

period, is not the same as an<br />

immediate decision to start<br />

building pipelines and decks,<br />

but it is a step along the way.<br />

The Luiperd and Brulpadda<br />

discoveries were made in the<br />

Block 11B/12B areas.<br />

The joint venture has<br />

decided to give up a northern<br />

portion of its right, reducing<br />

the proposed area to be<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

38<br />

PHOTO: Anton Swanepoel


OVERVIEW<br />

worked to 12 000km², whereas the exploration right extended to<br />

more than 18 000km². TotalEnergies’ joint venture partners in Block<br />

11B/12B include QatarEnergy and Canadian Natural Resources.<br />

If the process moves further along to the point where TotalEnergies<br />

obtains all the environmental permits it needs and starts to develop the<br />

resource, some estimates suggest that gas could begin to flow by 2026.<br />

Another area of considerable interest is Block 5/6/7 off the West<br />

Coast. Says Van der Spuy, “The area under licence is bigger than the<br />

licence area of the south coast and in our opinion holds great potential.<br />

TotalEnergies and its partners have submitted a work programme for<br />

initial drilling of up to five exploration wells in the area.”<br />

A major milestone was achieved in July 2022 for the Virginia Gas<br />

Project in the Free State, owned by Renergen subsidiary Tetra4. That was<br />

when “natural gas to plant” was achieved. This test allows for the system<br />

to be comprehensively tested, with the inlet line from the gas-gathering<br />

system opened to the process plant and then on to the natural gas<br />

filtration and pre-compression system.<br />

In September 2023, commercial operations of the company’s<br />

liquified natural gas (LNG) plant began. Helium production will follow<br />

but at the time of writing some delay had been experienced. Whereas<br />

it took nine years to find the R1.2-billion needed to fund the first phase<br />

of Virginia Project, investors are now looking very keenly at its prospects.<br />

An amount of R3.6-billion has been invested by Ivanhoe Mines to secure<br />

some offtake rights and the Central Energy Fund has purchased a 10%<br />

stake in Tetra4 for R1-billion.<br />

Gas future<br />

Van der Spuy reports that apart from the biogenic gas discovery being<br />

worked on by Tetra, the country also has “other types of unconventional<br />

gas onshore, such as coal-bed methane and shale gas”.<br />

The National Energy Regulator of <strong>South</strong> Africa (Nersa) has approved<br />

an application from national utility Eskom to build a 3 000MW gas power<br />

station in Richards Bay.<br />

An allocation of 3 126MW to natural gas has been made in the<br />

national medium-term energy policy to 2030. The National Department<br />

of Mineral Resources and Energy allocated one of the first two gas-topower<br />

plants to be constructed under the Independent Power Producer<br />

Procurement Programme (IPPPP) to Richards Bay. This has the potential<br />

to turn the Richards Bay Industrial Development Zone (RBIDZ) into an<br />

energy hub.<br />

Another site has been identified<br />

within the Coega SEZ in the Eastern<br />

Cape but no plans have been<br />

published. The Western Cape<br />

Provincial Government is lobbying<br />

for Saldanha to receive a licence to<br />

run such a plant.<br />

Environmental groups have<br />

lodged appeals in an attempt to<br />

stop the building of the plant,<br />

which is a step along the pathway<br />

outlined by national government to<br />

use gas as a “transitional fuel”, away<br />

from fossil fuels towards greener<br />

sources of power.<br />

In reaction to the<br />

announcement in 2022 by Shell<br />

Downstream <strong>South</strong> Africa and bp<br />

<strong>South</strong>ern Africa of a “spend freeze”<br />

and a pause in operations at the<br />

SAPREF oil refinery in Durban, the<br />

Provincial Government of KwaZulu-<br />

Natal intends facilitating meetings<br />

with these companies and other<br />

interested parties to try to find<br />

a way to restart operations. The<br />

refinery accounts for roughly 35%<br />

of the country’s refinery capacity<br />

and is likely to be offered for sale.<br />

Durban’s other oil refinery,<br />

Enref, was hit by a fire in<br />

December 2020 and there are<br />

plans to convert it to a storage<br />

facility. Astron Energy’s 100 000<br />

b/d refinery Cape Town resumed<br />

operations in 2023 after being<br />

offline for nearly three years. A fire<br />

closed the refinery in 2020. Natref<br />

in Sasolburg is <strong>South</strong> Africa’s only<br />

inland crude oil refinery and is a<br />

joint venture between Sasol Oil<br />

and Total <strong>South</strong> Africa. ■<br />

ONLINE RESOURCES<br />

Council for Geoscience: www.geoscience.org.za<br />

Petroleum Agency <strong>South</strong> Africa: www.petroleumagencysa.com<br />

<strong>South</strong> <strong>African</strong> Oil and Gas Alliance: www.saoga.org.za<br />

<strong>South</strong> <strong>African</strong> Petroleum Industry Association: www.sapia.co.za<br />

39<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Engineering<br />

Engineers are making the switch to renewable energy possible.<br />

SECTOR INSIGHT<br />

Pay-for-use models make new<br />

technologies more accessible.<br />

The Redstone Concentrated Solar Thermal (CSP) power plant<br />

project (pictured) is the largest investment so far in terms<br />

of the <strong>South</strong> <strong>African</strong> Renewable Energy Independent Power<br />

Producer Procurement Programme (REIPPPP). The large<br />

undertaking, located near Postmasburg in the Northern Cape, has<br />

also given Grinaker-LTA’s Civil Engineering division a substantial<br />

foothold in one of <strong>South</strong> Africa’s fastest-growing economic sectors,<br />

renewable energy.<br />

Many <strong>South</strong> <strong>African</strong> engineering concerns are filling their order<br />

books with renewable energy infrastructure orders as the country aims<br />

to generate more power from solar, hydro-electric and wind plants and<br />

fit more rooftop solar panels to houses and businesses.<br />

Some of the key aspects which Grinaker-LTA was responsible<br />

for included hot and cold storage tank bases, civil works, the steam<br />

generation structure and the molten salt pump towers. The 100MW<br />

plant is the first project-financed CSP with molten-salt-central receiver<br />

in the world. ACWA Power, a Saudi developer, investor and operator of<br />

power generation plants, and Chinese engineering company SEPCOIII<br />

Electric Power Construction Limited, managed the project and they<br />

jointly appointed Grinkaker-LTA as the contractor to execute the<br />

construction of the project’s critical structures.<br />

Also in the Northern<br />

Cape, engineering skills are<br />

being expanded by new work<br />

associated with radio astronomy.<br />

Local artisans from the town of<br />

Carnarvon have built telescopes<br />

for a radio telescope array project,<br />

the 350-dish HERA project, which<br />

is led by the US National Science<br />

Foundation with the <strong>South</strong> Africa<br />

Radio Astronomy Observatory<br />

(SARAO) acting as the local<br />

partner, responsible for systems<br />

engineering and construction,<br />

among other duties. At one point,<br />

the construction team grew to 20<br />

and many news skills were learnt.<br />

When dairy company Clover<br />

decided to consolidate its<br />

national operations into just four<br />

plants, technological expertise<br />

was needed to make sure those<br />

factories were able to cope<br />

with greater demand. One such<br />

company was Energy Partners<br />

Refrigeration (EPR) who were<br />

contracted to tackle a number<br />

of issues, including increased<br />

power requirements to higher<br />

refrigeration load as well as<br />

increased steam demand and<br />

pressure requirements.<br />

The upgrade of the cooling<br />

structure featured the installation<br />

of a new 10MW ammonia system<br />

and 16% of all the electricity used<br />

by the new system is generated by<br />

solar PV. An innovative aspect of<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

40<br />

PHOTO: Grinaker-LTA


OVERVIEW<br />

the project is that Clover has a Cooling-as-a-Service (CaaS) contract, a payper-use<br />

model that removes the large upfront investment cost as a barrier<br />

to improved efficiencies and improved environmental performance.<br />

Marine repair and engineering form a significant sector in the<br />

Western Cape and KwaZulu-Natal, with established companies such as<br />

EBH <strong>South</strong> Africa offering comprehensive services. Both KwaZulu-Natal<br />

ports are expanding and will continue to attract engineers.<br />

Dormac, which is headquartered in the Bayhead area of the Port of<br />

Durban, is best known for its marine engineering but it offers specialised<br />

services to the sugar industry and provides machinery for industrial<br />

giants like Toyota and Defy.<br />

The Engineering Council of <strong>South</strong> Africa has a programme where<br />

trainees can earn certificates in specific disciplines from a range of<br />

institutions. The qualifications are in line with the council’s Exit Level<br />

outcomes. Six of <strong>South</strong> Africa’s biggest construction companies have<br />

established a R1.25-billion skills fund. Several partnerships<br />

between the public and private sectors are trying to address the<br />

skills deficit. The Skills Development Amendment Act is intended<br />

ONLINE RESOURCES<br />

Consulting Engineers <strong>South</strong> Africa: www.cesa.co.za<br />

Engineering Council of <strong>South</strong> Africa: www.ecsa.co.za<br />

<strong>South</strong> <strong>African</strong> Consulting Engineering Firms: www.consultsa.co.za<br />

<strong>South</strong>ern <strong>African</strong> Institution of Civil Engineering: www.civils.org.za<br />

to improve the situation.<br />

One of the most exciting<br />

engineering projects in <strong>South</strong><br />

Africa is the Msikaba Bridge<br />

project that forms part of the<br />

new N2 toll road between Port<br />

Edward in KwaZulu-Natal and<br />

Umtata in the Eastern Cape.<br />

The CME JV (Concor – MECSA<br />

Construction Joint Venture) is the<br />

main contractor and it has had<br />

to stop work more than once<br />

because of protests of various<br />

sorts. Sophisticated techniques<br />

are required to ensure that the<br />

580m cable-stayed structure,<br />

which will span the 198m-deep<br />

Msikaba Gorge, is stable. The<br />

deck will be supported by 34<br />

cable tendons connected to two<br />

128m-high pylons. Winds have<br />

been known to blow at 100km/h<br />

at the site. ■<br />

SUPPLYING INDUSTRIAL AND<br />

SPECIALTY GAS PRODUCTS TO THE<br />

SOUTHERN AFRICAN REGION<br />

www.airproducts.co.za


OVERVIEW<br />

Manufacturing<br />

Glass group expansion creates 300 jobs.<br />

SECTOR INSIGHT<br />

Manufacturers are responding<br />

to global trends.<br />

Ardagh Group is a large multinational with 63 metal and<br />

glass-production facilities in 16 countries, with more<br />

than 20 000 employees. The group’s 2022 acquisition<br />

of Consol Glass created Ardagh Glass Packaging –<br />

Africa, and led to immediate investment in an expansion of the<br />

glass-container plant in Nigel, Gauteng.<br />

The two new furnaces that have been added to the facility, at<br />

a cost of R3-billion, are expected to create 300 new jobs and have<br />

made it the biggest of its kind in Africa. Other Gauteng facilities of the<br />

group are located at Wadeville and Clayville and there is a Western<br />

Cape factory in Bellville. The group’s other continental assets are in<br />

Ethiopia, Kenya and Nigeria.<br />

Another company to make an investment in Gauteng is TFG,<br />

with the opening of a clothing manufacturing facility in downtown<br />

Johannesburg. Workers at the Nugget Street factory are making<br />

T-shirts for the Jet brand and blankets and bags for various CSI<br />

projects. Up to 40 hearing-impaired students from the St Vincent<br />

School for the Deaf are being trained and employed at the factory.<br />

TFG, which counts Foschini, TotalSports and Markhams among its<br />

brands, has been buying up clothing factories for nearly a decade<br />

and is now in a position to respond more quickly to fashion trends<br />

than when it was more dependent on imports. Among TFG’s<br />

acquisitions were Prestige Clothing Maitland and Prestige Clothing<br />

Caledon. The group plans to increase the percentage of locally made<br />

clothing items from the current level of 35% to 55%.<br />

Two stockwatchers in the Financial Mail (FM) have referenced<br />

trends that are worth watching, and noted that certain companies are<br />

gearing up to respond. Marc Hasenfuss noted a “vibrant sprawl of niche<br />

packaging operations” in supporting Caxton, previously a company<br />

ONLINE RESOURCES<br />

Chemical and Allied Industries’ Association: www.caia.co.za<br />

Manufacturing Circle: www.manufacturingcircle.co.za<br />

<strong>South</strong> <strong>African</strong> Textile Federation: www.texfed.co.za<br />

associated with printing and<br />

publishing only, as a stock<br />

pick. Niches include flexible<br />

packaging (for wine bladders)<br />

and cups for takeaway drinks.<br />

The growing home delivery<br />

market post-Covid is driving<br />

the need for more containers.<br />

Another FM correspondent,<br />

Anthony Clark, praised Omnia<br />

Holdings for its focus on “future<br />

farming”, and predicted a good<br />

year for agriculture in <strong>2024</strong>.<br />

Sappi has spent R7.7-billion<br />

on expanding its dissolving<br />

pulp plant in KwaZulu-Natal. The<br />

project aims to boost the annual<br />

production capacity of dissolving<br />

pulp (DP) at Saiccor Mill by an<br />

additional 110 000 tons annually,<br />

taking production to 890 000<br />

tons a year and reinforcing the<br />

company’s position as the world<br />

leader in the manufacture of<br />

Lyocell, a cutting-edge material<br />

of the future. Lyocell is a form<br />

of rayon consisting of cellulose<br />

fibres made from dissolving<br />

pulp that is reconstituted by<br />

dry jet-wet spinning. The fully<br />

biodegradable and compostable<br />

fibre is used to make textiles. ■<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

42<br />

PHOTO: Ardagh Glass Packaging – Africa


OVERVIEW<br />

Manufacturing: automotive<br />

BMW celebrated 50 years of making cars in <strong>South</strong> Africa in 2023.<br />

During the celebrations around the 50th anniversary of<br />

making vehicles at its Rosslyn Plant in Tshwane, BMW Group<br />

announced that from <strong>2024</strong> the BMW X3 will be made as a<br />

plug-in hybrid for export. This will entail an investment of<br />

R4.2-billion in adapting the factory to electrical specifications. More<br />

than 300 employees will receive specialised training at the plant,<br />

which was BMW’s first-ever foreign facility. Since then, Plant Rosslyn has<br />

produced more than 1.6-million vehicles to date and exported them to<br />

more than 40 countries worldwide, including 14 <strong>African</strong> nations.<br />

Apart from BMW, Pretoria is also home to Nissan and Ford. The<br />

Tshwane Automotive Special Economic Zone (TASEZ) is a project<br />

of the Gauteng Province, the Department of Trade, Industry and<br />

Competition (dtic) and the City of Tshwane.<br />

Ford Motor Company has initiated discussions about the<br />

feasibility of developing a sophisticated rail corridor between<br />

Gauteng and the Eastern Cape because the company assembles<br />

diesel engines in Gqeberha, pictured. Ford wants to send parts to<br />

Pretoria and export cars through the Port of Gqeberha.<br />

Ford makes engines for the Ford Ranger pickup and Everest SUV<br />

at its Struandale plant and it has committed to invest R600-million for<br />

modernising and growing its local operations, which employ about<br />

850 people. A further R5.2-billion will enable hybrid-electric Ranger<br />

bakkies to be built in Gauteng.<br />

The 520 963m² facility of Volkswagen <strong>South</strong> Africa in Kariega<br />

(formerly Uitenhage) is one of four plants worldwide that makes<br />

right-hand-drive Polos but the only one in the world that makes the<br />

Polo GTI.<br />

Both the Coega Special Economic Zone and the East London<br />

Industrial Development Zone (ELIDZ) have areas dedicated to<br />

automotive and automotive components manufacture.<br />

Mercedes-Benz <strong>South</strong> Africa’s new C-Class project (W206) has sparked<br />

several other related investments, which collectively will create 2 078 new<br />

jobs over two years at the East London plant.<br />

Home-grown manufacturer of powertrain and catalytic converter<br />

assembly systems, Jendamark, exports to 18 countries from its<br />

facility in Gqeberha. Continental Tyre <strong>South</strong> Africa is producing a<br />

ONLINE RESOURCES<br />

Automotive Industry Development Centre: www.aidc.co.za<br />

Naamsa | The Automotive <strong>Business</strong> Council: www.naamsa.co.za<br />

National Association of Automotive Component and Allied<br />

Manufacturers: www.naacam.org.za<br />

SECTOR INSIGHT<br />

Ford is investing R5.2-billion to<br />

build hybrid-electric Rangers.<br />

19-inch tyre for the first time<br />

at its New Brighton facility in<br />

Port Elizabeth and Isuzu SA has<br />

completed its consolidation<br />

project, with truck and bakkie<br />

manufacturing now taking<br />

place at its new headquarters in<br />

nearby Struandale.<br />

The Automotive Production<br />

and Development Programme<br />

(APDP) has been extended<br />

to 2035, 15 years beyond its<br />

original expiry date. State<br />

support for the industry<br />

has helped it thrive, but<br />

manufacturers are expected to<br />

increase local content levels.<br />

The industry itself is looking to<br />

Africa for new markets and is<br />

urging national government<br />

to release policy guidelines on<br />

electric vehicles. ■<br />

PHOTO: Ford Motor Company<br />

43 SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Construction and property<br />

Student accommodation is a growing sector.<br />

SECTOR INSIGHT<br />

A R1-billion green bond has<br />

been raised by a REIT.<br />

One of the greatest differences between the society<br />

that existed under apartheid <strong>South</strong> Africa and the<br />

post-democratic dispensation is in the expansion of<br />

educational opportunities.<br />

Several companies came into being to provide this new<br />

student population with accommodation at tertiary institutions.<br />

Stag <strong>African</strong>, which has built a substantial student housing project<br />

at the University of Fort Hare in the Eastern Cape, pictured, is<br />

active in three provinces. <strong>South</strong> Point has created a 1 195-bed<br />

complex in Braamfontein to go with no fewer than 15 other sites<br />

in Johannesburg and it is active in five other cities. Respublica<br />

offers rooms in six cities and there are several other companies.<br />

The boom in building and developing student<br />

accommodation has been supported by the fact that many<br />

students are funded by the National Student Financial Aid<br />

Scheme (NSFAS), providing some security for investors in the<br />

sector. Controversies related to NSFAS have recently caused<br />

some concern, but demand remains strong.<br />

TUHF is among the financing companies that provide<br />

funding for housing projects. In TUHF’s case, inner city property<br />

investors are the focus of the company’s commercial property<br />

financing operations. This includes student accommodation and<br />

a township backyard rental finance product called uMaStandi<br />

which has recently been expanded.<br />

Another aspect unique to post-apartheid <strong>South</strong> Africa is the<br />

awareness of environmental issues. A third green bond for the<br />

real estate investment trust (REIT) of Redefine Properties was<br />

oversubscribed when it went to market in August 2023. An<br />

amount of R1-billion has been allocated across three, five and<br />

seven years.<br />

ONLINE RESOURCES<br />

Afrimat Construction Index: www.afrimat.co.za<br />

Construction Industry Development Board: www.cidb.org.za<br />

SA Reit Association: www.sareit.co.za<br />

<strong>South</strong> <strong>African</strong> Property Owners Association: www.sapoa.org.za<br />

Green buildings are now<br />

considered mainstream in the<br />

construction industry, and star<br />

ratings from Green Building<br />

Council <strong>South</strong> Africa (GBCSA)<br />

are expected in commercial,<br />

industrial and residential<br />

projects. The bond was listed<br />

on the JSE in the Sustainability<br />

Segment, a further sign that<br />

every sector is responding to<br />

the climate crisis.<br />

Covid-19 provided a sharp<br />

shock for many business sectors,<br />

but with the move towards<br />

working from home accelerated<br />

by the pandemic, none is going<br />

to have to look harder at its<br />

models for sustainability than<br />

the office rental sector.<br />

Logistics, often taken<br />

for granted in normal times,<br />

became an even more important<br />

component of the supply chain<br />

during the global lockdown and<br />

in the months that followed.<br />

FNB, which publishes a regular<br />

property barometer, has done<br />

an in-depth analysis of previous<br />

crises to help understand what<br />

may occur in the post-Covid<br />

property market. According to<br />

John Loos, a property strategist<br />

at FNB Commercial Property<br />

Finance, the most vulnerable<br />

sector is likely to be Retail<br />

Property. Smaller neighbourhood<br />

centres, with more essential items<br />

and greater convenience, will be<br />

less vulnerable. ■<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

44<br />

PHOTO: Stag <strong>African</strong>


Water<br />

Solar power is a water solution.<br />

OVERVIEW<br />

An off-grid, solar-powered groundwater harvesting<br />

system has been developed by Coca-Cola Beverages<br />

<strong>South</strong> Africa (CCBSA). The Coke Ville Project, pictured, was<br />

launched in 2020 and not only harvests groundwater but<br />

treats it as well.<br />

Over time, the project has expanded to several provinces and is<br />

proving of great benefit to communities, especially in times when<br />

power outages are experienced. Water wheelbarrows are distributed<br />

as part of the project to enable residents to transport water easily.<br />

In KwaZulu-Natal an amount of R30-million has been set aside<br />

for 28 solar-powered boreholes with elevated tankstands to be<br />

constructed in the Harry Gwala District Municipality.<br />

Phase 1 of the Vaal Gamagara Water Supply Scheme (VGWSS)<br />

has been completed in the Northern Cape, bringing much-needed<br />

water to several communities and mining companies. Some R10-<br />

billion will be spent in completing phase 2, an extension of pipelines<br />

from the Vaal River to the town of Hotazel, including reticulation to<br />

communities living along the path of the pipeline. The private sector<br />

and national government are partners in the project.<br />

One of the small towns that will benefit from phase 2 is<br />

Danielskuil, a town that in 2022 was briefly in the news spotlight.<br />

The town ran out of water because it had rained too much. Massive<br />

thunderstorms overwhelmed the town’s systems, already under<br />

pressure because of electrical outages and theft.<br />

Places like the normally dry Northern Cape will increasingly<br />

be the focus of attention as the earth warms and extreme events<br />

become more common. Municipalities in the Northern Cape (as in<br />

many other provinces) have consistently struggled to supply good<br />

services to citizens. With the declaration of the entire province as<br />

a Priority Human Settlements Development Area by the National<br />

Department of Human Settlements, this situation could improve.<br />

Another partnership between the public and private sectors<br />

will see the Vaalharts Irrigation Scheme revitalised, leading to<br />

greater certainty for fresh produce producers, assistance for local<br />

municipalities in providing water to residents and a doubling of<br />

ONLINE RESOURCES<br />

National Cleaner Production Centre <strong>South</strong> Africa: www.ncpc.co.za<br />

National Department of Water and Sanitation: www.dws.gov.za<br />

<strong>South</strong> <strong>African</strong> Water Research Commission: www.wrc.org.za<br />

Water Institute of <strong>South</strong> Africa: www.wisa.org.za<br />

SECTOR INSIGHT<br />

Phase one of the Vaal<br />

Gamagara Bulk Water Scheme<br />

has been completed.<br />

the amount of land available<br />

to emerging farmers. The<br />

three entities involved are the<br />

National Department of Water<br />

and Sanitation, the Vaalharts<br />

Water User Association and the<br />

Infrastructure Fund.<br />

The project was gazetted as<br />

one of the Strategic Integrated<br />

Projects (SIPs) in 2020 and<br />

falls under the Presidential<br />

Infrastructure Coordinating<br />

Commission (PICC). The<br />

existing scheme is one of the<br />

largest irrigation schemes in<br />

the world, covering 39 000ha<br />

under irrigation and extending<br />

it to Taung in the North West<br />

will give it even greater reach.<br />

The scheme currently has<br />

1 000km of concrete-lined<br />

canals and more than 300km of<br />

concrete drainage. ■<br />

PHOTO: CCBSA 45 SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Transport and logistics<br />

A regional airport could become an international hub.<br />

SECTOR INSIGHT<br />

The City of Cape Town<br />

wants to revive rail.<br />

There are plans to make more use of Hoedspruit Airport, the<br />

airport that is most often associated with the Orpen Gate of<br />

the Kruger National Park. In 2022, 61 000 of the people who<br />

passed through Hoedspruit were European tourists but there<br />

is potential to increase this traffic substantially. CemAir offers flights<br />

to Johannesburg and Cape Town and Airlink connects to destinations<br />

such as the Victoria Falls in Zimbabwe, Maun in Botswana and<br />

Vilanculo in Mozambique. The Limpopo Department of Transport<br />

and Community Safety is working on a strategy to develop the<br />

airport to further boost the tourism sector.<br />

The Polokwane International Airport (PIA) is wholly owned<br />

by the provincial government and run by the Gateway Airports<br />

Authority Ltd (GAAL), an agency of the Department and Transport.<br />

It has the potential to be an important regional cargo airport.<br />

In the Western Cape, the administrations in charge of the City of<br />

Cape Town and the province have plans to better coordinate transport.<br />

The City of Cape Town conducted a feasibility study in 2022 on taking<br />

over the management of passenger rail services from PRASA. The city<br />

wants to have a fully-integrated system, which would include rail.<br />

In 2022 the city’s Urban Mobility Directorate published<br />

an updated Comprehensive Integrated Transport Plan<br />

(CITP), outlining the strategies and plans for improving the<br />

transport environment in the metropole for five years to<br />

2028. The Transport and Urban Development Authority (TDA),<br />

located within the municipality, is responsible for planning,<br />

costing, contracting, regulating, monitoring, evaluating,<br />

communicating, managing and maintaining the City of Cape<br />

Town’s transport infrastructure, systems, operations, facilities<br />

and network. The provincial government is following the city’s<br />

ONLINE RESOURCES<br />

<strong>African</strong> Rail Infrastructure Association (ARIA): www.aria.org.za<br />

Airlines Association of <strong>South</strong>ern Africa: www.aasa.za.net<br />

<strong>South</strong> <strong>African</strong> Heavy Haul Association: www.saheavyhaul.co.za<br />

lead with the establishment<br />

of a Mobility Department.<br />

Large amounts of money<br />

are to be spent on various<br />

forms of public transport in<br />

the short term. Investments<br />

in rapid transit systems in the<br />

big metropolitan areas are<br />

being followed by cities such<br />

as Polokwane and Rustenburg.<br />

In Limpopo’s provincial capital<br />

of Polokwane, operations<br />

of the Leeto La Polokwane<br />

public transport system were<br />

launched in 2021.<br />

The <strong>South</strong> <strong>African</strong><br />

Department of Transport<br />

has several agencies and<br />

businesses reporting to it.<br />

Among them are Air<br />

Traffic and Navigation Services<br />

Company, Airports Company<br />

<strong>South</strong> Africa (ACSA), National<br />

Transport Information System,<br />

Road Accident Fund, <strong>South</strong><br />

<strong>African</strong> Civil Aviation Authority,<br />

<strong>South</strong> <strong>African</strong> Maritime Safety<br />

Authority (SAMSA), <strong>South</strong><br />

<strong>African</strong> National Roads Agency<br />

Limited (SANRAL) and Passenger<br />

Rail Agency of SA (PRASA).<br />

<strong>South</strong> Africa has 22 000km<br />

of railway lines and 747 000km<br />

of roads, 325 019 heavy-load<br />

vehicles and the road freight<br />

industry employs 65 000 drivers.<br />

There are 135 licensed airports<br />

in the country, 10 of which have<br />

international status. ■<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

46<br />

PHOTO: Airlink


Tourism<br />

New hotels are being built.<br />

OVERVIEW<br />

SECTOR INSIGHT<br />

A Green Tourism Incentive<br />

Programme is available.<br />

The Industrial Development Corporation, one of <strong>South</strong><br />

Africa’s biggest institutional investors, is active in the tourism<br />

sector. Among its products is the Green Tourism Incentive<br />

Programme, which incentivises privately owned tourism<br />

companies to move towards using renewable energy and efficient<br />

water utilisation. It also supports local economic development, such<br />

as initiatives in Limpopo to develop new hotels in the Musina area.<br />

The northern parts of that province are experiencing a boom in<br />

business tourism due to an uptick in mining operations. Elsewhere in<br />

the Vhembe District Municipality, the <strong>African</strong> Century Group is building<br />

a four-star Premier Hotel at Thohoyandou and the team behind the<br />

venture expects to fill its 120 rooms.<br />

A similar trend can be seen in the Northern Cape, where the<br />

Country Hotels group has developed a three-tier offering covering<br />

most of the province, spurred in part by the rapid rise of the<br />

renewable energy sector in that province.<br />

In Durban, the Radisson Blu Hotel in Umhlanga (pictured), shortly<br />

after celebrating its one-year anniversary in July 2023, received two<br />

awards from Durban Tourism, the Visitor Experience and Restaurants<br />

Award as well as the Meetings, Exhibitions and Special Events (MESE)<br />

Award. Premier Hotels & Resorts has two new properties in Umhlanga<br />

and recently restored its Cutty Sark property, further down the coast<br />

in Scottburgh.<br />

Turkish Airlines returned to King Shaka International Airport in 2022.<br />

Two of the airline’s Istanbul-Johannesburg flights now extend to Durban<br />

on Thursdays and Saturdays and it has plans to increase these to four<br />

weekly flights. A new direct flight from Durban to Harare in Zimbabwe<br />

ONLINE RESOURCES<br />

<strong>African</strong> <strong>Business</strong> Travel Association: www.abta.co.za<br />

<strong>South</strong> <strong>African</strong> National Parks: www.sanparks.co.za<br />

<strong>South</strong> <strong>African</strong> Tourism: www.southafrica.net<br />

was launched by Airlink in April<br />

2022. These new flights are in<br />

addition to Emirates flying five<br />

flights a week from Durban<br />

directly to Dubai and the fourweekly<br />

direct flights that Qatar<br />

Airways offers.<br />

<strong>South</strong> <strong>African</strong> National Parks<br />

(SANParks), which runs nearly 70%<br />

of <strong>South</strong> Africa’s 509 state and<br />

protected areas, has a number<br />

of public-private partnerships<br />

and held an investment summit<br />

in 2022 to showcase a further<br />

100 opportunities in 12 national<br />

parks. There are currently 60 PPPs<br />

in operation in <strong>South</strong> Africa.<br />

Sun City announced in<br />

October 2022 that it would<br />

spend about R1.1-billion on<br />

projects at its Sun City Resort.<br />

The R295-million Lefika Villas<br />

development will see 58 threeand<br />

four-bedroom villas added<br />

to the resort’s accommodation<br />

options for members of Sun<br />

International’s Sun Vacation Club.<br />

The Palace will gain a spa and a<br />

gymnasium and 320 bedrooms<br />

are to be refurbished.<br />

There are 711 745 people<br />

employed in the tourism industry<br />

nationally, with road transport<br />

(29%), food and beverages (20%)<br />

and accommodation (19%)<br />

absorbing the largest numbers.<br />

The sector contributes 9% to<br />

<strong>South</strong> Africa’s gross domestic<br />

product (GDP). ■<br />

PHOTO: Radisson Blu<br />

47 SOUTH AFRICAN BUSINESS <strong>2024</strong>


FOCUS<br />

Polokwane International Airport is<br />

soaring to destined glory<br />

The company responsible for Polokwane International Airport has a new board in<br />

place and a turnaround strategy is already delivering dividends.<br />

Mokgadi Matli, CEO, GAAL<br />

Polokwane International Airport (PIA), based<br />

in Polokwane, the capital city of Limpopo<br />

Province, is a gateway to the SADC region,<br />

a pillar of safe air travel that promotes<br />

convenient connectivity of the province to other<br />

major transport hubs.<br />

PIA is managed by Gateway Airports Authority<br />

Limited (GAAL) under the chairmanship of Mr Victor<br />

Xaba. The shareholder, the MEC of the Limpopo<br />

Department of Transport and Community Safety, in<br />

2021 embarked on a robust recruitment process to<br />

appoint a competent board to address leadership<br />

instability and improve governance. The board<br />

members have brought to the entity a combination<br />

of skills in aviation, engineering, finance, legal and<br />

human resources which will be critical to ensuring<br />

the success of GAAL.<br />

Turnaround strategy<br />

The board developed a turnaround strategy that<br />

is intended to achieve financial and operational<br />

sustainability and expand the operating model. The<br />

goal is to implement the full mandate of GAAL, which<br />

includes managing all of the airports that fall under the<br />

control of the entity.<br />

The strategy is embraced by the Provincial<br />

Government and funding has been approved to<br />

implement improvements and revenue-generation<br />

projects. To ensure the successful implementation of<br />

the strategy, critical vacancies have been filled, including<br />

CEO and CFO.<br />

Optimising human capital has yielded results<br />

and improvements are evident as GAAL managed<br />

to address the <strong>South</strong> <strong>African</strong> Civil Aviation Authority<br />

(SACAA) safety findings and continues to retain a<br />

Category 7 operating licence. The audit outcome has<br />

improved and there is a steady increase in revenue due<br />

to increases in flight and passenger movement. Current<br />

rental tenants have been retained and the occupancy<br />

rate for the airport has increased. New rentals have led<br />

to a 25% revenue increase.<br />

Turnaround strategy at a glance:<br />

• Appoint competent board<br />

• Fill vacancies<br />

• Ensure financial sustainability<br />

• Expand operations<br />

• Implement the full mandate of GAAL<br />

• Pursue cargo facility potential<br />

• Generate more revenue<br />

• Attract investors<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

48


FOCUS<br />

Potential investors<br />

GAAL has identified opportunities for investment<br />

and strategic partnerships on revenue-generating<br />

projects. The Limpopo Investment Conference 2023<br />

has unlocked engagements with potential investors.<br />

PIA is strategically situated at heart of Limpopo,<br />

which makes it the ideal location for the provincial<br />

logistics hub, thus establishment of cargo services<br />

is at the pulse of the turnaround. Other investment<br />

opportunities include resuscitation of the fuel<br />

farm, repurposing of old aircrafts into a restaurant,<br />

refurbishment and operating PR Mphephu Airport,<br />

cold storage facilities, conference facilities, rental of<br />

offices, advertising space and hangars.<br />

The steady and consistent improvements that<br />

are already visible at the airport, coupled with<br />

the plans that are in the turnaround strategy is an<br />

assurance that PIA, GAAL other airports under its<br />

mandate are soaring to their destined glory. ■<br />

Technically advanced facilities<br />

PIA is equipped with two crossing runways<br />

sufficient to accommodate large aircraft of the<br />

size of Boeing 747 and Airbus A346. Runway<br />

05/23 is fully lit with a runway-lighting system<br />

and is equipped with a simple approachlighting<br />

system to complement the RNAV<br />

procedure and to enable access to the airport in<br />

bad weather conditions.<br />

The airport has an apron with parking<br />

capacity of 74 000m² and is able to accommodate<br />

nine B747-type aircraft and 13 B737/A321-type<br />

aircraft. There are 16 hangars of 540m² and one<br />

6 450m² hangar, with the immediate potential<br />

of setting up multi-functional cargo facility and<br />

aircraft maintenance services.<br />

PIA is built on 945 hectares of land, with<br />

potential to acquire more as cargo companies<br />

take up more space.<br />

Airport Rescue and fire-fighting protection<br />

level is currently at category 7, meaning that<br />

the airport can regularly service aircraft in the<br />

categories B737-800 and A320.<br />

Contact details:<br />

Polokwane International Airport<br />

Gateway Drive, Polokwane<br />

Tel: +27 15 288 0122<br />

Website: www.gaal.co.za<br />

PHOTO: Airlink | PHOTO: Pixabay/Pexels<br />

49 SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Telecommunications<br />

The Competition Commission has blocked a fibre merger.<br />

In 2023 the Competition Commission blocked a proposed<br />

deal in which Vodacom would buy a stake in Maziv, a holding<br />

company with two fibre units.<br />

The two companies behind the proposed merger, which had<br />

previously won approval from the country’s telecommunications<br />

regulator, intend taking the matter to the Competition Tribunal on<br />

appeal. The Commission argues that 5G fixed wireless access (FWA)<br />

and fibre compete in the same market and that the link-up would<br />

reduce that competition to the detriment of the consumer.<br />

One of the fibre units within Maziv, Vumatel, announced in March<br />

2023 that it had reached the milestone of having connected twomillion<br />

<strong>South</strong> <strong>African</strong> homes to the Internet while Dark Fibre Africa,<br />

which is a provider of open-access connectivity infrastructure, is also<br />

the national leader in its field. Maziv is part of Community Investment<br />

Ventures Holdings (CIVH), which is the telecom infrastructure division<br />

of the Remgro Group.<br />

Vodacom and MTN are the two biggest providers of mobile<br />

phone services in <strong>South</strong> Africa, with more than 70% of the market<br />

between them. Telkom and Cell C are the other two major operators.<br />

The SA Connect project, intended to connect 5.8-million sites<br />

across <strong>South</strong> Africa to high-speed Internet by 2026, received an<br />

additional R3-billion in 2023 from National Treasury. The Department<br />

of Communications and Digital Technologies, the implementing entity,<br />

wants to see remote rural areas having better access to technology.<br />

As of 2021, National Treasury has appointed four companies<br />

as service providers to government, through its new mobile<br />

communication services contract, known as RT15-2021. The contract<br />

covers all entities of the state and is expected to allow for significant<br />

cost saving through better controls.<br />

The contract, which was previously held by Vodacom, is now<br />

shared between Cell C, MTN, Telkom and Vodacom. The transversal<br />

contract is for uncapped data for different categories of employees<br />

and includes mobile devices for packages from all service providers.<br />

Nearly 450 organs of state participated in the previous contract.<br />

ONLINE RESOURCES<br />

Department of Communications and Digital Technologies:<br />

www.dcdt.gov.za<br />

Independent Communications Authority of <strong>South</strong> Africa:<br />

www.icasa.org.za<br />

State Information Technology Agency: www.sita.co.za<br />

Wireless Access Providers Association: wapa.org.za<br />

SECTOR INSIGHT<br />

The national broadband<br />

project has received<br />

additional funding.<br />

This included 38 national<br />

departments, 99 provincial<br />

departments, 106 local<br />

government departments and<br />

207 other state institutions.<br />

The National Department<br />

of Communications is<br />

responsible for the Independent<br />

Communications Authority<br />

of <strong>South</strong> Africa (ICASA), the<br />

regulator of communications,<br />

broadcasting and postal services,<br />

the <strong>South</strong> <strong>African</strong> Broadcasting<br />

Corporation (SABC) and three<br />

other agencies.<br />

The Wireless Access<br />

Providers Association (WAPA)<br />

has a large and growing<br />

membership. WAPA is a nonprofit<br />

which aims to be a liaison<br />

between wireless Internet<br />

service providers (WISPs), ICASA,<br />

network operators, service<br />

providers and consumers. It<br />

offers information to members<br />

on regulations and technical<br />

training and lobbies on behalf<br />

of the sector. ■<br />

SOUTH AFRICAN BUSINESS 2022<br />

50<br />

PHOTO: MTN


•<br />

• •<br />

•<br />

•<br />

•<br />


OVERVIEW<br />

ICT<br />

Retailers are pouring money into digital infrastructure.<br />

Ever since Covid-19 turbocharged online shopping, retailers<br />

have been racing to get ahead in the digital game.<br />

Figures released in September 2023 showed Takealot, a<br />

local service majority owned by Naspers, topping the polls in<br />

traffic, followed by two international giants in Shein and Amazon.<br />

An interesting entry at number four was Bash, the e-commerce<br />

platform of TFG, formerly known as the Foschini Group. More than<br />

500 brands can be purchased using TFGMoney, a bank account<br />

created with TymeBank. Other successful e-commerce retail<br />

operations include Sixty60 (Checkers), Massmart (Makro, Game and<br />

Builders) and the JD Group (Everyshop).<br />

TFG is building a 75 000m² distribution centre in Gauteng<br />

with the intention of delivering 70% of all its online sales, and all<br />

of its fashion items, through that single site.<br />

As <strong>South</strong> Africa joins the global trend towards online<br />

shopping, data centres are going up all over the country. The<br />

latest to join the trend is software company Oracle which has<br />

chosen Johannesburg as the headquarters of its <strong>African</strong> cloud<br />

region. All of the company’s cloud regions (data centres)<br />

worldwide will be 100% powered by renewable energy by<br />

2025. Teraco stores data in Johannesburg, Durban and Cape<br />

Town while Africa Data Centre (ADC), part of the Liquid Telecom<br />

Group, has purchased a Tier IV data centre in Johannesburg.<br />

In 2022 Oracle announced an interconnect service between<br />

itself and Microsoft Azure data centres. This allows customers of<br />

both companies to export data from one to the other at no cost.<br />

The companies are competing with Google Cloud and Amazon<br />

Web Services (AWS), among others.<br />

AWS announced at the 2023 <strong>South</strong> Africa Investment<br />

Conference that its investment plan for <strong>South</strong> Africa to the end<br />

of 2029 amounts to R46-billion. By the end of 2022, R15.6-billion<br />

had already been invested. The AWS Africa Region was created<br />

in 2020 when AWS opened a data centre in Cape Town.<br />

The Council for Scientific and Industrial Research (CSIR) in Pretoria<br />

will host a new body aimed at preparing <strong>South</strong> Africa for the Fourth<br />

SECTOR INSIGHT<br />

Amazon Web Services<br />

will spend R46-billion in<br />

<strong>South</strong> Africa.<br />

Industrial Revolution (4IR), the<br />

<strong>South</strong> <strong>African</strong> Affiliate Centre of<br />

the World Economic Forum.<br />

<strong>South</strong> Africa has not<br />

only been home to many<br />

pioneering banking apps<br />

on mobile phones, but the<br />

country’s operators continue<br />

to offer unprecedented<br />

innovation and levels of<br />

service. Arthur Goldstuck<br />

noted these trends in<br />

September 2022, further<br />

pointing out that the Reserve<br />

Bank will also speed up<br />

EFTs between banks with<br />

the introduction of a Rapid<br />

Payments Programme. Bank<br />

Zero not only uses biometric<br />

authentication for logging in,<br />

but offers zero-cost banking.<br />

Both MTN and Vodacom<br />

are offering much more<br />

sophisticated apps than<br />

when they first ventured<br />

into fintech: MTN MoMo has<br />

diverse offerings and VodaPay<br />

encompasses payment,<br />

lending, insurance and cash<br />

for emergencies. ■<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Process Enabling SA: www.bpesa.org.za<br />

Independent Communications Authority: www.icasa.org.za<br />

Technology Innovation Agency: www.tia.org.za<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

52


OVERVIEW<br />

Development finance and<br />

SMME support<br />

The SA SME Fund has launched a venture capital fund.<br />

SECTOR INSIGHT<br />

The Industrial Development<br />

Corporation loaned R7.6-billion<br />

to black industrialists.<br />

Glencore supports Moeding Transport in Limpopo.<br />

One the country’s biggest institutional investors is the<br />

Industrial Development Corporation (IDC). Apart from<br />

taking stakes in large companies in sectors like steel<br />

and agriculture that have strategic significance, the IDC<br />

has a product called SME Connect. A collaborative model sees the<br />

IDC provide funding and business support while a corporate might<br />

guarantee to buy goods or services from the small business operator.<br />

Most big companies in <strong>South</strong> Africa have two main programmes<br />

to support SMMES: enterprise development (ED) and local supplier<br />

development (or procurement). Sometimes they are combined as<br />

enterprise supplier development (ESD). Venetia Mine in northern<br />

Limpopo, a De Beers Group mine, has more than 50 SMMEs enrolled<br />

in incubation programmes and 34 locally-owned companies are doing<br />

business with the mine.<br />

Another Limpopo initiative has led to the growth of Moeding<br />

Transport, a company that has been supplying services to Glencore<br />

Ferroalloys’ Lion Smelter for several years. The contract has enabled the<br />

company to grow, and it was recently further boosted by the donation<br />

by Glencore of two 65-seater buses.<br />

In Rustenburg, Impala Rustenburg has invested R8.6-million in the<br />

development of a Economic Inclusion Centre that serves as a small<br />

business hub for SMMEs in and around the mining community. Apart<br />

from the physical facilities on offer, advice on market access and funding<br />

is also available.<br />

Among the IDC’s other focus<br />

areas are black industrialists (to<br />

whom R7.6-billion was loaned<br />

in 2022), black-empowered and<br />

black-owned companies (R6.5-<br />

billion) and women-owned<br />

businesses (R1.1-billion).<br />

The increased number<br />

and scope of the <strong>Business</strong><br />

Day Supplier Development<br />

Awards gives an indication of<br />

how developed this aspect of<br />

support for small enterprise<br />

has become in the <strong>South</strong><br />

<strong>African</strong> business community.<br />

The process of helping small<br />

businesses become bigger<br />

businesses has sparked<br />

creativity across sectors such<br />

as retail and mining and<br />

collaboration with other<br />

companies has become the<br />

norm in promoting supplier<br />

development.<br />

Through the Spar Rural<br />

Hub, the retail group supports<br />

small-scale farmers and creates<br />

markets for their products. The<br />

Spar Group has established<br />

The Spar Academy of Learning<br />

where learnerships and skills<br />

programmes are offered. This is<br />

to support the business owners<br />

who take up the ownership<br />

model offered by Spar, which,<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong> 54<br />

PHOTO: Glencore


OVERVIEW<br />

The Economic Inclusion Centre in Rustenburg.<br />

unlike the franchise model, means that independent retailers have<br />

more independence when it comes to decisions within the store and<br />

in terms of who to buy from. Spar’s independent retailers in <strong>South</strong>ern<br />

Africa grew from 2 440 in 2021 to 2 508 in 2022.<br />

Woolworths reports that it spent R450-million in 2022 on<br />

procurement from 34 SMME beneficiaries of its ESD programme.<br />

Examples include a security company (Comet Security), a manufacturer<br />

of babywear and underwear (Davis Clothing) and pet food (K9 Pet<br />

Food), all of which have expanded their businesses on the programme<br />

and started employing more staff as a result. Altogether, the company<br />

contributed R2.9-billion towards the revenue of 917 SMMEs in its value<br />

chain up to end of the financial year in June 2022.<br />

Funds and schemes<br />

In 2023 the SA SME Fund set up its third fund, a dedicated venture capital<br />

fund. In August first close was reached with a figure of R700-million,<br />

achieved with some support from the pension fund sector.<br />

The SA SME Fund is a fund of funds, investing in fund managers<br />

who will support startups and new ventures, rather than itself investing<br />

in projects. It was established with the support of 50 of <strong>South</strong> Africa’s<br />

biggest companies and its first fund had a fairly broad remit, which<br />

included fintech, biotech and supporting universities in turning research<br />

into business ventures. The focus of the second fund was debt funding.<br />

As Hilary Joffe pointed out in <strong>Business</strong> Day, <strong>South</strong> Africa “ranks only fourth<br />

in Africa” in venture capital, despite a strong private equity industry. Joffe<br />

cited the SA Venture Capital Association, which reported that in 2021, the<br />

venture capital industry invested R1.3-billion in 129 startups.<br />

ONLINE RESOURCES<br />

<strong>Business</strong> Day Supplier Development Awards: www.sdawards.co.za<br />

National Department of Small <strong>Business</strong> Development: www.dsbd.gov.za<br />

Small <strong>Business</strong> Institute: www.smallbusinessinstitute.co.za<br />

Small Enterprise Development Agency: www.seda.co.za<br />

In the North West, the Provincial<br />

Government is investing in digital<br />

infrastructure. SMMEs will be able to<br />

use the newly-established Mafikeng<br />

Digital Innovation Hub as a co-working<br />

environment and to get support in using<br />

digital tools.<br />

The <strong>South</strong> <strong>African</strong> National Roads<br />

Agency Limited (SANRAL) actively<br />

supports small businesses wherever it<br />

works in <strong>South</strong> Africa. Subcontracts are<br />

routinely awarded for maintenance such<br />

as the patching of potholes, fencing and<br />

the cutting of grass verges.<br />

Part of the rationale behind a national<br />

programme to revive industrial parks is to<br />

benefit SMMEs. The National Department<br />

of Trade, Industry and Competition (the<br />

dtic) has invested R40-million in the<br />

Nkowankowa Industrial Park in Limpopo,<br />

an initiative which has helped to create<br />

174 direct jobs. In the northern reaches<br />

of the province, more than 300 jobs have<br />

been created with the revitalisation of<br />

the Thohoyandou Industrial Park, which<br />

has achieved a 91% occupancy rate.<br />

The dtic is trying to stimulate<br />

township and rural economies through<br />

programmes such as the Enterprise<br />

Investment Programme (EIP).<br />

The National Department of Small<br />

<strong>Business</strong> Development (DSBD) has<br />

several programmes to assist SMMEs<br />

and co-operatives. The Small Enterprise<br />

Development Agency (Seda), a subsidiary<br />

of the DSBD, has 42 incubation centres<br />

under its Seda Technology Programme<br />

(STP). In Mpumalanga, Seda supports<br />

several incubators: Furntech, furniture<br />

manufacturing, White River; Mobile Agro-<br />

Skills Development & Training, agricultural<br />

training, Nelspruit;Mpumalanga Stainless<br />

Initiative (MSI), stainless-steel processing,<br />

Middelburg (with Columbus Stainless);<br />

Timbali floriculture, Nelspruit; Ehlanzeni<br />

TVET College Rapid Incubator Renewable<br />

Technologies, Nelspruit. ■<br />

PHOTO: Impala<br />

55<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Education and skills training<br />

Sol Plaatje University celebrated its 10th anniversary in 2023.<br />

As part of a programme to spread skills to young people<br />

living in rural areas, an eco-friendly SMART Skills Centre<br />

is to be built in Sabie, the centre of the timber sector in<br />

Mpumalanga. The timber structure is the<br />

result of a partnership between the Chemical Industries<br />

Education and Training Authority (CHIETA) and the <strong>South</strong><br />

<strong>African</strong> Forest Company Limited (SAFCOL).<br />

CHIETA aims to provide digital technology and<br />

online learning to help young people compete in the<br />

job market and the Mpumalanga SMART Skills Centre<br />

is just one of several that are being initiated across<br />

the country. Among the forestry-related skills that the<br />

centre will focus on are drone operators, but it will<br />

also respond to national skills needs such as fitters<br />

and turners. SAFCOL will cover the cost of erecting<br />

the eco-friendly wooden structure and CHIETA will<br />

supply the equipment.<br />

In November 2023, the Decade of the Artisan<br />

Programme will have run its course. The Department<br />

of Higher Education and Training set targets for skilled<br />

graduates and established Centres of Specialisation<br />

at Technical Vocational Education and Training (TVET)<br />

colleges around the country.<br />

For example, ORBIT TVET College in the North West offers diesel<br />

mechanic training at its Mankwe campus and electrical training at<br />

Brits as part of the Centre of Specialisation programme. Centres of<br />

Specialisation aim to produce:<br />

• A skilled and capable workforce<br />

• Increased availability of intermediate-level technical skills<br />

• Increased delivery of qualified artisans in 13 priority trades<br />

In KwaZulu-Natal the Elangeni TVET College has achieved trade<br />

test centre accreditation in two disciplines, Welding and Electrical,<br />

and in 2023, had 50 artisans in training. Higher Education and<br />

Training Minister Dr Blade Nzimande has called on principals of<br />

TVET colleges to prioritise work placements for students.<br />

Beyond TVET colleges, the private sector actively offers training<br />

in basic and advanced skills. Shorter courses such as the twoweek<br />

bricklaying course offered by cement-maker PPC are greatly<br />

appreciated by job-seekers, all the more so because the courses are<br />

free. PPC is working together with the private Motheo Academy in<br />

Johannesburg. Other courses for small business owners or “bakkie<br />

builders” are offered, such as construction management.<br />

SECTOR INSIGHT<br />

<strong>South</strong> Africa has three<br />

types of public universities.<br />

Wits <strong>Business</strong> School launched a new MBA<br />

in Health Leadership in 2023.<br />

The Council for Scientific<br />

and Industrial Research (CSIR)<br />

has established a Learning<br />

Factory to support companies<br />

in training staff in relevant and<br />

up-to-date skills. The training<br />

is offered free and via a variety<br />

of methods: online, virtual,<br />

hybrid and practical training<br />

on the CSIR campus in Pretoria.<br />

Among the subjects covered<br />

are the Internet of Things,<br />

Digital Lifestyle Management,<br />

Additive Manufacturing and<br />

Big Data Analytics.<br />

The <strong>South</strong>ern <strong>African</strong><br />

Wildlife College, offering<br />

diploma and short courses in<br />

conservation, is a joint World<br />

Wide Fund for Nature <strong>South</strong><br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

56


Thought leaders with impact<br />

Wits <strong>Business</strong> School leads research in areas critical to the<br />

continent’s sustainability.<br />

New leadership, a new strategy and<br />

international accreditation – Wits<br />

<strong>Business</strong> School (WBS) is consolidating<br />

its position as a leading <strong>African</strong> business<br />

school. Almost three years after Professor Maurice<br />

Radebe took the helm as Director and Head of<br />

WBS, the School is experiencing a turnaround, as<br />

evidenced by the growing number of corporate<br />

clients and students affiliated to the school.<br />

For Radebe, a former energy executive at Sasol Oil,<br />

leading the turnaround at WBS was an opportunity<br />

for him to give back, not only to WBS, his alma mater,<br />

but to society: “When the opportunity arose, I realised<br />

this is very much in line with my purpose, which is<br />

to develop the next generation of leaders who are<br />

ethical and who have a passion to make a difference.”<br />

Developing impactful leadership is at the heart<br />

of the School’s mission and the golden thread that<br />

runs through its programmes, whether academic<br />

or executive short courses. The MBA programme<br />

at WBS is centred around a “Leadership Quest”, an<br />

independent study component which challenges<br />

the students to reflect on their leadership style and<br />

beliefs and identify the gaps that need to be closed<br />

to become a great leader.<br />

“Our country and continent are rich with young<br />

talent. As business schools, we need to tap into this<br />

talent and develop it. We need to invest in the next<br />

generation of leaders who can take Africa into an<br />

inclusive and sustainable future. This means leading<br />

with purpose, integrity and accountability, while at<br />

the same time developing an entrepreneurial and<br />

innovative mindset,” says Radebe.<br />

To this end, WBS has established three<br />

centres of excellence which focus on developing<br />

the latest research in areas critical to Africa’s<br />

future. These include Energy Leadership, Digital<br />

<strong>Business</strong> and <strong>African</strong> Philanthropy and Resource<br />

Mobilisation. The school recently announced a<br />

new MBA in the field of Healthcare Leadership,<br />

launching in March<br />

<strong>2024</strong>, which seeks<br />

to address the many<br />

challenges facing the<br />

healthcare sector, both<br />

locally and globally.<br />

WBS has also<br />

announced the imminent<br />

launch of a new Centre<br />

for Entrepreneurship, the<br />

result of a collaboration<br />

with the private sector<br />

which seeks to sustain the<br />

economic revitalisation of<br />

<strong>South</strong> <strong>African</strong> cities and<br />

townships.<br />

In the Executive<br />

Education division at<br />

Director and Head of WBS,<br />

WBS, impactful leadership<br />

Professor Maurice Radebe.<br />

means providing delegates<br />

with the tools to adapt to<br />

change and disruption through soft skills such as agility<br />

and resilience, along with hard skills such as digital<br />

business. Programmes are taught by both academics and<br />

industry experts.<br />

“We get people from business to teach business and<br />

in this way, we embrace the concept of ‘pracademia’ to<br />

ensure real-world impact,” says Leoni Grobler, Director of<br />

Executive Education at WBS.<br />

WBS has recently attained accreditation with the<br />

Association of <strong>African</strong> <strong>Business</strong> Schools (AABS) and reaccreditation<br />

with AMBA. The school is now shifting its<br />

focus to achieving American and European accreditation<br />

through AACSB and EQUIS.<br />

“WBS is on an exciting journey to becoming globally<br />

recognised as an <strong>African</strong> thought leader, using our<br />

reputation for academic excellence as a foundation for<br />

delivering programmes that are strongly research-based<br />

and relevant to our context and our collective future as<br />

<strong>African</strong>s,” says Radebe. ■<br />

57<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

Africa (WWF-SA) and Peace Parks Foundation<br />

initiative. The college is located near the Orpen<br />

Gate on the edge of the Kruger National Park.<br />

Universities<br />

There are three types of public universities<br />

in <strong>South</strong> Africa: traditional universities,<br />

which are academic in focus and award<br />

degrees; universities of technology, which<br />

have a vocational emphasis and can award<br />

diplomas and certificates; and comprehensive<br />

universities which offer a combination of both<br />

types of qualification and can confer degrees<br />

and diplomas.<br />

The addition of two universities in the<br />

provinces of Mpumalanga and the Northern<br />

Cape means that every <strong>South</strong> <strong>African</strong> province<br />

now has a university.<br />

The official launch of the University of<br />

Mpumalanga was in October 2013, with the first<br />

cohort of 169 students registered in just three<br />

programmes in 2014. By <strong>2024</strong>, the plan is to offer<br />

approximately 70 qualifications to over 8 000<br />

students. That is the year in which the university’s<br />

first doctoral graduates will be capped.<br />

Research relevant to the needs of the<br />

province can now be done at local level.<br />

With Sol Plaatje University celebrating its 10th<br />

anniversary in 2023, the chances of indigenous<br />

young people being able to study on its campus<br />

have been boosted by large donations from two<br />

Anglo American subsidiaries.<br />

Kumba Iron Ore and De Beers Group are<br />

among the biggest mining companies active in<br />

ONLINE RESOURCES<br />

Centres of Specialisation: www.dhet.gov.za<br />

National Department of Science and Innovation:<br />

www.dst.gov.za<br />

Sol Plaatje University: www.spu.ac.za<br />

TVET colleges: www.tvetcolleges.co.za<br />

University of Mpumalanga: www.ump.ac.za<br />

A team of students from ORBIT TVET College<br />

competed successfully in an international AI<br />

competition run by Intel.<br />

the Northern Cape. Their donations of R20-million<br />

and R5-million towards the university’s Lesedi La<br />

Afrika Fund will support scholarships and social<br />

impact projects. The fund has set a target of R100-<br />

million over the next three years.<br />

SPU has seen major growth in its enrolment<br />

figures and staff recruitment in recent years,<br />

with 60% of its academic staff having PhDs. As<br />

part of its sustainable growth, the institution<br />

is committed to community engagement and<br />

scholarly activity.<br />

The first intake of students at the Kimberley<br />

campus of Sol Plaatje University in 2014<br />

was 124. For the 2023 academic year a total<br />

of 28 454 applications (undergraduate and<br />

postgraduate) were received by SPU. This is<br />

an increase of just under 9 000 against the<br />

applications received for 2022.<br />

Another milestone was reached in the<br />

university’s young history when the Risk and<br />

Vulnerability Science Centre (RVSC) celebrated<br />

its first birthday, on 9 September 2022. As the<br />

Northern Cape is water-scarce, the unit’s location<br />

is highly relevant. RVSC is a programme of the<br />

Department of Science and Innovation under<br />

the Global Change Research Plan for <strong>South</strong><br />

Africa – funded through the National Research<br />

Foundation’s Global Change programme.<br />

Most of <strong>South</strong> Africa’s universities have<br />

business schools attached to them, offering<br />

MBAs, management diplomas and a variety of<br />

short courses. ■<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong><br />

58


Banking and financial services<br />

Carbon credits and green investing are catching on.<br />

OVERVIEW<br />

Carbon credits and renewable energy certificates can<br />

now be traded on Africa’s largest stock exchange,<br />

following the launch in 2023 of the JSE Ventures<br />

Voluntary Carbon Market. JSE Ventures is collaborating<br />

with US company Xpansiv, which has experience in global<br />

environmental markets. <strong>South</strong> Africa has had carbon taxes<br />

since 2019.<br />

One of <strong>South</strong> Africa’s newer stock exchanges, the Cape<br />

Town Stock Exchange (which started life as 4AX), oversaw the<br />

listing of an initial tranche of preference shares of the Gaia<br />

Renewables REIT, a fund that caters to investors who want to<br />

have a stake in the burgeoning renewable energy economy. It<br />

is expected that more investors will want to be part of a sector<br />

that is showing enormous potential.<br />

TymeBank is taking the concept of “retail banking” to<br />

another level. Having run banking kiosks within retailers such<br />

as Pick n Pay and Boxer for several years, TymeBank has signed a<br />

deal with TFG, a group that has a big presence all across <strong>South</strong><br />

Africa. What used to be known as the Foschini Group has 34<br />

brands, including Markhams, Totalsports, Jet and Dial a Bed,<br />

and 30-million customers. In the short term, TymeBank will<br />

have access to 600 TFG kiosks, taking the bank’s total in <strong>South</strong><br />

Africa to 1 450.<br />

Another relatively new bank is Capitec. Investment holding<br />

company PSG has reduced its holding in Capitec Bank from<br />

32% to 4%, earning about R4-billion by selling those shares.<br />

Discovery Bank reported in 2022 that it was signing up 750<br />

new clients every day which puts it on course to achieve more<br />

than 600 000 customers by <strong>2024</strong>. The bank, which launched<br />

in 2019, has already opened more than one-million accounts.<br />

Long-term insurer and asset manager Liberty has delisted from<br />

the JSE and has been integrated into the Standard Bank Group.<br />

Financial services group Old Mutual received permission<br />

from the prudential authority of the <strong>South</strong> <strong>African</strong> Reserve<br />

Bank to apply for a banking licence. The bank will spend R1.75-<br />

billion on setting up the bank and intends to launch in <strong>2024</strong>.<br />

ONLINE RESOURCES<br />

Financial Sector Conduct Authority: www.fsca.co.za<br />

Insurance Institute of <strong>South</strong> Africa: www.iisa.co.za<br />

<strong>South</strong> <strong>African</strong> Institute of Chartered Accountants: www.saica.co.za<br />

SECTOR INSIGHT<br />

The JSE has launched a<br />

carbon-trading market.<br />

<strong>African</strong> Bank has signalled that<br />

it is ready to grow, with an<br />

agreement to buy Grindrod<br />

Bank and an R80-million deal<br />

to purchase lender Ubank. After<br />

going into administration in<br />

2014, <strong>African</strong> Bank took some<br />

time to recover and is still halfowned<br />

by the Reserve Bank<br />

but it has materially added<br />

to its retail client base and<br />

the addition of more than<br />

4.5-million clients with the<br />

purchase of the troubled Ubank,<br />

which had as its base mine<br />

workers, will further strengthen<br />

its position. The R1.5-billion<br />

purchase of Grindrod Bank gives<br />

<strong>African</strong> Bank a stronger position<br />

in business lending.<br />

PHOTO: John Young<br />

59<br />

SOUTH AFRICAN BUSINESS <strong>2024</strong>


OVERVIEW<br />

The <strong>South</strong> <strong>African</strong> state has promised a<br />

huge infrastructure drive and has established an<br />

entity called Infrastructure <strong>South</strong> Africa (ISA) to<br />

coordinate and encourage catalytic projects. The<br />

business and investment communities are also<br />

interested in infrastructure but in the context of<br />

climate change, the emphasis is increasingly on<br />

sustainability.<br />

Sanlam, established in 1918 as a life insurer, is<br />

now a financial services company with five main<br />

divisions, including Corporate, Personal Finance<br />

and Emerging Markets. Santam focusses on shortterm<br />

insurance. With its headquarters in Bellville,<br />

Sanlam is Africa’s largest insurance company.<br />

Sanlam Investments has launched a<br />

Sustainable Infrastructure Fund which primarily<br />

invests in senior or subordinated debt across a<br />

wide range of <strong>South</strong> <strong>African</strong> infrastructure assets,<br />

with the ability to invest up to 10% in equity.<br />

Sanlam Group will invest R6-billion in the<br />

fund and aims to attract a further R5-billion<br />

from institutional investors. Investments will<br />

be made in housing, transport, health, water,<br />

waste, communication, conventional energy and<br />

renewable energy, a fast-growing sector with<br />

enormous potential.<br />

Large-scale infrastructure projects like the<br />

Berg River Voelvlei Augmentation Water Scheme<br />

(BRVAS), pictured, are examples of the kind of<br />

projects that need to attract investment from a<br />

variety of sources. Even when National Treasury is<br />

the main funder, complications can arise. Managed<br />

by the Trans-Caledon Tunnel Authority (TCTA), the<br />

BRVAS project could only go ahead once offtake<br />

agreements had been signed. In October 2022,<br />

the City of Cape Town Council approved a R2.3-<br />

billion Water Supply Agreement (WSA) with the<br />

Department of Water and Sanitation (DWS). ■<br />

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