Regional overview of
Regional overview of North West Province With easy access to South Africa’s biggest urban areas, the North West hopes to add a thriving manufacturing sector to its strengths in mining, agriculture and tourism. John Young The North West province makes up 6.8% of the population of South Africa (3.6-million), 8.7% of the land mass (105 076km²) and accounts for 5.8% of economic output in terms of gross value added. The North West is bordered on the west by the Republic of Botswana and on the east by Gauteng province, the engine of the South African economy. The Vaal River runs along the province’s southeastern border with the Free State, and the province also shares borders with the Northern Cape to the south and Limpopo in the north. The province's strategic location goes beyond its proximity to Gauteng: the major roads linking trade on an east-west axis pass through the province, as does the major railway line which runs from Cape Town in the south to Zimbabwe and beyond in the north. The mineral reserves that still lie beneath the ground in the province are enormous. Platinum group metals (PGMs) predominate but there are significant deposits of gold, uranium, diamonds, copper, vanadium, fluorspar and nickel. Stone and limestone are also found in rich quantities. Mining beneficiation takes place at many places, with Rustenburg being particularly strong in this sector. The economy of the town is closely linked to the fortunes of platinum mining, with the sector contributing about 70% of the city’s gross geographic product. The North West is a major producer of maize and sunflower seeds and many other agricultural products. About 20% of South Africa’s maize comes from the province, as does 15% of its wheat. The dry western part of the province is home to beef cattle, game ranching and hunting. The normally well-watered eastern and north-eastern regions can carry many kinds of crops, many of which find themselves on the tables of the citizens of the nearby urban centres of Johannesburg and Pretoria. The agricultural sector also generates largescale storage and logistics operations, particularly NORTH WEST BUSINESS 2019 26
in Klerksdorp, Vryburg and Brits, together with a number of agri-processing plants. The province's three Technical and Vocational Education and Training (TVET) colleges and the wellrespected North-West University all have several campuses catering to a wide range of educational disciplines. The university has a strong reputation as a research institution. Future growth Manufacturing capacity is concentrated in the larger towns in the north-east and eastern parts of the province but there are plans to expand this capacity. Automotive components firms are clustered in Brits, which in turn is very close to the automotive manufacturing hub in Rosslyn (Pretoria) in Gauteng. Towns like Klerksdorp (agri-processing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity. All of the big agricultural companies have storage and logistics operations and many of them are involved in agri-processing. Senwes is one of the biggest with extensive silo infrastructure while Suidwes has 17 retail outlets and MGK makes full-fat soy at its manufacturing plant. Lichtenburg-based NWK makes liquid fertiliser and animal feed, processes sunflower seeds and runs 37 silos and three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. There are several milling facilities in the province. A provincial Integrated Manufacturing Strategy has found that chemical processing holds great potential because of the province’s proximity to Gauteng’s markets and the availability of the ingredients needed for the manufacture of phosphate and nitrogen-based fertilisers. A sector strategy for boosting clothing and textile manufacturing is also being developed. There is also a possibility that a totally new sector, renewable energy, will help to transform the lives 27 NORTH WEST BUSINESS 2019
