Free State Business 2023

The 2023 edition of Free State Business is the 13th issue of this successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State. Sasol, one of the biggest industrial enterprises in the province, has announced that it may have found a way to keep running the Natref refinery far into the future, because of new and cleaner technologies that it is investigating. Gold miners Harmony and Sibanye-Stillwater are prospecting for new reefs. And the provincial tourism authorities are putting their minds to creating new ways of attracting new local tourists to various eco-tourism products. All of these news items and more are contained in the sector overviews that outline the characteristics of the main economic sectors of the province, and report on the latest news in those sectors as well. One of the most active sectors is a new one – natural gas and helium, which is being vigorously pursued by Renergen through its Virginia Gas Project. Significant investments are being attracted into the newly-established Maluti-A-Phofung Special Economic Zone (MAP SEZ) in the northern part of the province and a steel mill is under construction at the Botshabelo Industrial Park east of Bloemfontein. Special features on investment incentives and starting a business are included in this edition.

SPECIAL FEATURE South

SPECIAL FEATURE South African investment incentives The South African government, particularly the Department of Trade, Industry and Competition, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors. South Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and development (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP). FREE STATE BUSINESS 2023 2022 2021 22 24

SPECIAL FEATURE Manufacturing Key Key components of of the the incentive tive programme are are the the Manufacturing Incentive Programme (MIP) and and the the Manufacturing Competitiveness Enhancement Programme (MCEP). The The initial MCEP, launched in in 2012, was was so so successful that that it it was was oversubscribed with with almost 890 890 businesses receiving funding. A A second phase of of the the programme was was launched in in 2016. The The grants are are not not handouts as as the the funding covers a a maximum of of 50% 50% of of the the cost cost of of the the investment, with with the the remainder to to be be sourced elsewhere. The The Enterprise Investment Programme (EIP) (EIP) makes targeted grants to to stimulate and and promote investment, BEE BEE and and employment creation in in the the manufacturing and and tourism sectors. Aimed at at smaller companies, the the maximum grant is is R30-million. Specific tax tax deductions are are permissible for for larger companies investing in in the the manufacturing sector under Section 12i 12i of of the the Income Tax Tax Act. Act. Other incentives Other incentives that that are are available to to investors as as well well as as existing businesses in in more than than one one sector include the the following: • Technology • and and Human Resources for for Industry Programme (THRIP) • Support • Programme for for Industrial Innovation (SPII) (SPII) • Black • Business Supplier Development Programme (BBSDP), which is is a a cost-sharing grant offered to to black-owned small enterprises • Critical • Infrastructure Programme (CIP) (CIP) that that covers between 10% 10% and and 30% 30% of of the the total total development costs of of qualifying infrastructure • Co-operative • Incentive Scheme, which is is a a 90:10 matching cash cash grant for for registered primary co-operatives • Sector • Specific Assistance Scheme, which is is a a reimbursable 80:20 cost-sharing grant that that can can be be applied for for by by export councils, joint joint action groups and and industry associations. I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R I S M I T H FDC is renting out 18 850 sqm standalone factory including Furniture FDC is renting out 18 850 sqm standalone factory including Furniture T I D S R A P O E Manufacturing Machinery, Equipment, and Furniture for Business I N D U S T R I A L P R O P E R T Y T O R E N T I N H A R R R T I Y S T M O I R T E H N Manufacturing T Machinery, I Equipment, N and H Furniture A for Business R I S M I H N U T I L R P Operation.. Operation.. FDC is is renting renting out out 18 18 850 850 sqm sqm standalone standalone factory factory including including Furniture Furniture FDC Equipment, and Furniture for Manufacturing Machinery, Equipment, and Furniture for Business Business Manufacturing The factory is Situated at Site 2277 in Harrismith close proximity to all amenities, on Machinery, is Situated at Site 2277 in Harrismith and close proximity to all amenities, on The Operation.. factory onto Operation.. N3 Freeway. main arterial routes and Quick access and N3 arterial Freeway. onto main access routes Quick This following: the offers factory in 2277 Site at Situated is The on amenities, all to following: the offers factory This proximity close and Harrismith proximity close and Harrismith in 2277 Site at Situated is factory The on amenities, all to System. Sprinkler Sprinkler access Quick and routes arterial main Freeway. N3 onto System. arterial main 4 Doors Roller Freeway. N3 onto access Quick and routes 4 Doors Roller the offers House Guard Security factory This following: This following: the offers House Guard Security factory secured and fenced Well System. Sprinkler secured and fenced Well System. Sprinkler Ample parking Ample parking Doors Roller 4 4 Roller Doors 3 phase power with 100 amps 3 phase power with 100 amps House Guard Security Security Guard House 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with secured and fenced Well shower Well fenced and secured shower parking Ample parking Ample amps phase Occupation available immediately. Please contact Mr Tefo Matla for more 3 with power 100 100 amps Occupation available immediately. Please contact Mr Tefo phase Matla 3 for power more with and separate warehouse ablutions with 8 toilets, 6 offices and boardroom, reception, kitchen 8 toilets, 6 offices information and or boardroom, to reception, view: kitchen view: to or information with ablutions warehouse separate and shower www.fdc.co.za tefo@fdc.co.za Email: 800 4000 051 Tel: shower www.fdc.co.za tefo@fdc.co.za Email: 800 4000 051 Tel: available Please Mr Matla more FDC IS ZERO TOLERANCE TO FRAUD AND for Occupation immediately. contact Tefo contact available Mr immediately. Tefo Please Matla Occupation for CORRUPTION.PLEASE more REPORT FRAUD AND FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 view: to or information information or to view: Incentives for for SMMEs 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za Tel: 051 4000 800 Email: tefo@fdc.co.za www.fdc.co.za Tel: FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 A A lot lot of of emphasis is is placed on on the the potential role role of of small, medium and and micro enterprises in in job job creation and and a a number of of incentives are are designed to to promote the the growth of of these businesses. These include: • Small • Medium Enterprise Development Programme Programme (SMEDP) (SMEDP) • Isivande • Women’s Fund • Seda • Technology Programme (Stp). • Seda • is is the the Small Enterprise Development Agency, an an agency of of the the Department of of Small Business Development that that exists to to promote SMMEs. Trade-related incentives The The Export Marketing and and Investment Assistance (EMIA) Scheme includes support for for local businesses that that wish wish to to market their their businesses internationally to to potential importers and and investors. The The scheme offers financial assistance to to South Africans travelling or or exhibiting abroad as as well well as as for for inbound potential buyers of of South African goods. ■ ■ Online Resources De De partment of of Trade, Industry and and Competition: www.thedtic.gov.za Free Free State Development Corporation: www.fdc.co.za Industrial Development Corporation: www.idc.co.za Official South African government incentive schemes: www.investmentincentives.co.za 25 25 23 23 FREE FREE STATE BUSINESS 2021 2022 2021 2022 2023