Free State Business 2023

Sasolburg Operations is only private institution to

be Green Drop certified

During the launch of the 2022 Green Drop Report by the Department of Water and Sanitation on 1 April 2022, Sasolburg Operations won the award for Best Performing Private Sector system, as well as the award for the Best Progress made by a Private Sector system, improving its score from 86% in 2013 to 96% in 2022.

Sasol’s Sasolburg Operations is the only private institution to receive Green Drop certification in 2022 and one of only 23 wastewater systems to achieve this accolade this year. The system was also noted as the fourth best performing system overall.

“Our win is a direct reflection of our commitment and resilience in working towards innovating for a better world through all our water initiatives,” said Rightwell Laxa, Senior Vice President of Sasol’s Sasolburg and Ekandustria Operations.

The minister of Water and Sanitation, Senzo Mchunu, hosted the Awards

Ceremony held during the launch of the 2022 Green Drop Report.

According to Minister Senzo Mchunu the Department of Water and Sanitation (the then Department of Water Affairs) introduced the Green Drop certification programme in 2008 seeking to protect the environment from the hazards associated with polluted wastewater or sewage.

“It sets standards higher than minimum requirements and challenges Water Services Authorities to go the extra mile in a quest for excellence, with the intention to augment and compliment the normal legislative and regulatory provisions,” he said.

The programme also seeks to get wastewater treatment works to measure themselves against international risk standards for wastewater quality. According to the 2022 Green Drop report, 995 wastewater networks and treatment works belonging to private and public water services institutions

were subjected to the Green Drop Audit from 1 July 2020 to 30 June 2021. Of these, only 23 wastewater systems scored a minimum of 90% when measured against the Green Drop standards and thus qualified for Green Drop Certification. This is lower than the 60 wastewater systems awarded Green Drop Status in 2013.

“I want to single out our Sasolburg Utilities Water and Waste team for securing this prestigious outcome and working so hard that they increased our score from 86% in 2013 to an incredible 96%,” continued Laxa.

Obtaining Green Drop Certification is a result of a combination of various water initiatives. One of the most significant being the bio-sludge generated through Sasol’s Sasolburg facilities that is composted and used as a landfill cover.

Other initiatives include the extensive three phase upgrades to the municipal water and sanitation pump station systems in the greater Sasolburg

area. During phase one R2 million was invested, while the critical mechanical and electrical work at the Gortin and Chris Hani pump stations was valued at more than R3,4 million in phase two.

Civil work was also conducted at 11 Metsimaholo Local Municipality (MLM) pump stations. Phase three comprised of critical remedial upgrades and capacity building at the MLM sanitation network valued at R6,2 million, including the electric monitoring of major sewer pump stations in Baddrif, Welgelegen, Leeuwspruit, Leitrim, Gortin 4 and Amelia.

“As a company, we are continuously contributing towards the enhancement of water quality in South Africa. However, this certification does not mean that our work is done. Our envisaged outcome for future programmes is to ultimately provide a healthy living environment for the Sasolburg and Zamdela communities by eliminating exposure to raw sewage,” Laxa concluded.

CONTENTS

Introduction

The Free State welcomes investors

4

The attractions of the Free State as a destination of choice are laid out in detail in this message to domestic and foreign investors. During his delivery of the 2023 State of the Province Address, the Honourable Premier Mxolisi Dukwana, pictured right, stated that, “We will undertake a substantial review of the current state of our public entities and reposition them to be proactive and responsive to the investment and development needs of the Free State economy. The revitalisation of our Industrial Parks is a key enabler of provincial economic growth. Our priority areas remain Botshabelo, Phuthaditjhaba and Thaba Nchu. This programme is catalytic to unlocking job creation as 3 986 people are now employed in these Industrial Parks. The Maluti-A-Phofung Special Economic Zone continues to offer multiple investment opportunities.

Foreword

Special features

Free State Development Corporation (FDC)

Driving enterprise development and investment in South Africa’s most central province, the Free State.

Regional overview

6

8

10

More high-quality gas has been found at Virginia and the Gas Project is powering ahead. Exploration is underway for a new gold mine. A new strategy has been adopted to attract a new domestic market. The province’s industrial parks and its Special Economic Zone are attracting investors. All of these trends are being supported by investment in infrastructure.

14

Environmental sustainability

16

The Environment and Conservation Branch is working to promote a pristine environment that facilitates economic transformation.

of the main economic sectors of the Free State.

Top left, Sasol plant, Sasol; Gold mine equipment, Harmony; Mandela statue in Bloemfontein, SA Tourism/Flickr; Sunflower, NWPG; Factory space, Free State

Every ingredient an investor could want

The Free State has the natural resources, the infrastructure and incentives to attract investors in every conceivable sector, from renewable energy to manufacturing and pharmaceuticals. The Department of Small Business Development, Tourism and Environmental Affairs stands ready to welcome investors to the province.

South African President Cyril Ramaphosa has called for increased long-term investment necessary for sustainable job creation, innovation, productivity enhancement, wealth creation and improvements in the living standards of our people.

The Free State Province not only champions this call but proclaims that the country’s most centrally-located province has all the ingredients that an investor could need.

The Free State Province lies in the heart of South Africa, with the Kingdom of Lesotho nestling in the hollow of its bean-like shape. Lying between the Vaal River in the north and the Orange River in the south, the region is one of flat, rolling grassland and fields of crops, rising to lovely mountains in the north-east. The Free State shares borders with six other provinces and provides easy access to the main ports of Durban, East London and Gqeberha (Port Elizabeth). The country’s major national highway, N1, runs through the centre of the province on a north-south axis.

Mangaung, comprising Bloemfontein, Botshabelo and Thaba Nchu, is South Africa’s newest metropolitan authority. The Bram Fischer International Airport in the provincial capital is the site of a multi-phase industrial and commercial development.

The N8 Corridor covers Bloemfontein, Botshabelo and Thaba Nchu and contains projects including the ICC Precinct (hotel and convention centre in Bloemfontein), Bio-Medical Park, Airport Node (logistics and supply chain, warehouses, residential apartments, hospitals, schools, hotels and new shopping malls), and tourism infrastructure for the Naval Hill development. The province has an established institutional, educational and administrational infrastructure and is home to the Supreme Court of Appeal, the University of the Free State and the Central University of Technology.

Multiple sector opportunities

The Free State is home to immense investment opportunities in sectors such as agriculture, agroprocessing, manufacturing, ICT, infrastructure development, green energy, construction, tourism and trade.

Some of the biggest current sectors in the province are agriculture, mining, manufacturing and tertiary sectors, making it an ideal location for transport logistics and agro-processing operations. The province is the granary of South Africa, with agriculture central to its economy, while the mining industry is still a large employer.

The Free State Development Corporation has good warehouse and factory space available at competitive rates. Spaces to rent are located at Thaba Nchu, Industria-Harrismith, Phuthadithjaba and Botshabelo Industrial Park, which is situated approximately 60km from the economic hub on the eastern side of the Mangaung Metro.

A unique guide to business and investment in the Free State.

Credits

Free State Business T

Publishing director: Chris Whales

Editor: John Young

Business development manager: Shiko Diala

Managing director: Clive During

Online editor: Christoff Scholtz

Designer: Tyra Martin

Production: Yonella Ngaba

Ad sales:

Gavin van der Merwe

Sam Oliver

Shiko Diala

Gabriel Venter

Vanessa Wallace

Administration & accounts:

Charlene Steynberg

Kathy Wootton

Distribution and circulation manager: Edward MacDonald

Printing: FA Print

DISTRIBUTION

he 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.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.freestatebusiness. co.za. Updated information on the Free State is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the new addition to our list of publications, Journal of African Business, which was launched in 2020. ■

Chris Whales Publisher, Global Africa Network Media | Email: chris@gan.co.za

Free State Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.

Member of the Audit Bureau of Circulations

COPYRIGHT | Free State Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd.

PHOTO CREDITS | Enactus/Ford; Free State Development Corporation; Free State Provincial Government; Harmony; Premier Hotels and Resorts; Renergen; SAB Foundation; SASKO; Sasol; Sun International; Standard Bank; TotalEnergies; University of the Free State; Vodacom Foundation.

PUBLISHED BY

Global Africa Network Media (Pty) Ltd

Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700

Postal address: PO Box 292, Newlands 7701

Tel: +27 21 657 6200

Email: info@gan.co.za | Website: www.gan.co.za

ISSN 1993-0119

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in the Free State Business journal is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

Free State Development Corporation (FDC)

Driving enterprise development and investment in South Africa’s most central province, the Free State.

Office and industrial park space available

The Free State Development Corporation (FDC) offers a wide range of spacious and affordable rental space to SMMEs.

There are opportunities to rent factory space at Free State Development Corporation properties in Botshabelo, Phuthaditjhaba and Industriqwa.

The FDC contributes to the Free State’s economic development through four service delivery pillars:

Industrial portfolio

SMME/co-operative funding and support

The FDC provides products and services to SMMEs and co-operatives in the form of financial support (business loans) as well as business development support (facilitating training and mentoring service providers). The principal loan products offered to Free State entrepreneurs by the FDC are:

Property management

Industrial building: Mainly stand-alone industrial type buildings designed for manufacturing and/ or warehouse purposes.

• Start-up loans for recently established businesses that are mainly at formative stages.

The FDC administers a diverse property portfolio and can offer small to medium enterprises suitable premises at affordable rates. The corporation has some 253 commercial properties, 290 industrial properties and a large number of residential and vacant land for development. The corporation aims to use them to facilitate commercial and industrial activity, while assisting new investors looking for suitable premises. The FDC offers advice and guidance in terms of the following incentives:

Large factories (>500m 2 ): Consists of mainly standard and custom-built factories used for manufacturing, service industries and warehousing.

• Expansion loans offering viable and existing businesses the capital needed to expand.

• Business take-over finance to assist potential clients to acquire a business as a going concern.

• Bridging finance for SMMEs with short-term cashflow problems with contracts or tenders.

• Subsidised rental rates.

• Rental holidays of up to three months.

The FDC services to exporters include Export Promotion Programme, which grow demand for Free State products markets through capacity-building the dissemination of trade leads, networking opportunities with inbound trade product promotion through participation outbound group missions and on national international exhibitions, access to national incentive programmes, market access and technical advice on exporting procedures.

Small industrial units (<500m2): Standard units in small industrial parks and incubators designed for incubation of start-up manufacturing and/or service industry activities.

• Special incentives and discounts for BEE companies or individuals.

Warehouses: Building occupied by businesses serving the broader economic base that is utilised for storage and distribution.

Factory shops: Manufacturing entities utilising industrial space to sell own products to general public.

Wholesalers/retailers: Community projects in the manufacturing and service sectors. Ownership and control must be widely based in such communities. Vacant land: Serviced or unserviced land zoned for commercial and industrial use.

Commercial portfolio

This portfolio is divided into urban and rural areas and typically consists of the following: shopping centres, office blocks, market stalls, kiosks and containers.

Industrial incentives

Incentives can be granted in the form of rental holidays, reduced rental rates and discounts on utilities to investments contributing on a large scale to inward investment mobilisation and job creation. Deviations shall be approved by the COO or his or her delegate, if it is clear that such incentives are in support of the FDC’s developmental agenda which is to support economic development and reduce unemployment.

Black Economic Empowerment

The following concessions may be granted to businesses with more than 50% black ownership:

• Discount of 10% on normal rental rates

• An additional 2% for women-owned businesses, where women have more than 50% shareholding

• Additional 2% for businesses qualifying as youth-owned entities with more than 50% shareholding belonging to individuals below the age of 35 years

• An additional 2% for businesses with more than 25% shareholding belonging to disabled individuals

• The concessions may be granted to any business entity and community-based projects will qualify for small industries with a 50% rental holiday for the first year

• Rental holidays.

It is our duty to facilitate commercial and industrial activity, assist new investors looking for spacious and affordable premises, and facilitate SM ME development, particularly in rural areas . Look no further than FDC for spacious and affordable, subsidised rental facilities.

Free State Development Corporation (FDC)

Driving

enterprise development and investment

in South

Africa’s most central province, the Free State.

The FDC contributes to the Free State’s economic development through four service delivery pillars:

The FDC contributes to the Free State’s economic development through four service delivery pillars:

Property management

Property management

SMME/co-operative funding and support

SMME/co-operative funding and support

The FDC provides products and services to SMMEs and co-operatives in the form of financial support (business loans) as well as business development support (facilitating training and mentoring service providers). The principal loan products offered to Free State entrepreneurs by the FDC are:

The FDC provides products and services to SMMEs and co-operatives in the form of financial support (business loans) as well as business development support (facilitating training and mentoring service providers). The principal loan products offered to Free State entrepreneurs by the FDC are:

• Start-up loans for recently established businesses that are mainly at formative stages.

• Start-up loans for recently established businesses that are mainly at formative stages.

• Expansion loans offering viable and existing businesses the capital needed to expand.

• Expansion loans offering viable and existing businesses the capital needed to expand.

• Business take-over finance to assist potential clients to acquire a business as a going concern.

• Business take-over finance to assist potential clients to acquire a business as a going concern.

• Bridging finance for SMMEs with short-term cashflow problems with contracts or tenders.

• Bridging finance for SMMEs with short-term cashflow problems with contracts or tenders.

The FDC administers a diverse property portfolio and can offer small to medium enterprises suitable premises at affordable rates. The corporation has some 253 commercial properties, 290 industrial properties and a large number of residential and vacant land for development.

The corporation aims to use them to facilitate commercial and industrial activity, while assisting new investors looking for suitable premises.

The FDC administers a diverse property portfolio and can offer small to medium enterprises suitable premises at affordable rates. The corporation has some 253 commercial properties, 290 industrial properties and a large number of residential and vacant land for development. The corporation aims to use them to facilitate commercial and industrial activity, while assisting new investors looking for suitable premises. The FDC offers advice and guidance in terms of the following incentives:

• Subsidised rental rates.

The FDC offers advice and guidance in terms of the following incentives:

• Rental holidays of up to three months.

• Subsidised rental rates.

• Special incentives and discounts for BEE companies or individuals.

• Rental holidays of up to three months.

• Special incentives and discounts for BEE companies or individuals.

The CEO of the Free State Development Corporation, Mr Z.E. Lebelo

Investor services

Investor services

The FDC offers a range of services to investors and businesses looking to trade in the Free State. These include the following:

The FDC offers a range of services to investors and businesses looking to trade in the Free State. These include the following:

• Project appraisal and packaging.

• Project appraisal and packaging.

• Promotion and facilitation of investment projects and facilitation of access to finance.

• Promotion and facilitation of investment projects and facilitation of access to finance.

• Providing access to business and government networks and assistance with business retention and expansion.

• Providing access to business and government networks and assistance with business retention and expansion.

• Information on statutory requirements, investment advice and assistance with investment incentive applications and business permits.

• Information on statutory requirements, investment advice and assistance with investment incentive applications and business permits.

• Assisting with the development of local and international markets and facilitating joint ventures/equity partnerships through identification of local partners.

• Assisting with the development of local and international markets and facilitating joint ventures/equity partnerships through identification of local partners.

Export-related services

Export-related services

The FDC services to exporters include the Export Promotion Programme, which aims to grow demand for Free State products in global markets through capacity-building workshops, the dissemination of trade leads, networking opportunities with inbound trade missions, product promotion through participation in outbound group missions and on national and international exhibitions, access to national exportincentive programmes, market access information and technical advice on exporting procedures. ■

The FDC services to exporters include the Export Promotion Programme, which aims to grow demand for Free State products in global markets through capacity-building workshops, the dissemination of trade leads, networking opportunities with inbound trade missions, product promotion through participation in outbound group missions and on national and international exhibitions, access to national export-incentive programmes, market access information and technical advice on exporting procedures. ■

Free State Development Corporation

Tel: +27 51 4000 800

Emails: wecare@fdc.co.za | invest@fdc.co.za

Website: www.fdc.co.za

A REGIONAL OVERVIEW OF FREE STATE

More high-quality gas has been found at Virginia and the Gas Project is powering ahead. Exploration is underway for a new gold mine. A new strategy has been adopted to attract a new domestic market for tourism. The province’s industrial parks and its Special Economic Zone are attracting investors. All of these trends are being supported by investment in infrastructure.

By John Young

The Free State Province is blessed with abundant natural resources and tourism assets. A number of measures are being undertaken to make sure that these advantages are recognised by potential investors. Among the things that investors like to see is good infrastructure and more than one body is working to deliver that in the province.

The Provincial Government of the Free State reports that it is working with Infrastructure South Africa and other tiers of government to develop a pipeline of bankable projects.

Among those mentioned by Premier Sisi Ntombela in her State of the Province address were projects associated with the Durban-Free State-Gauteng Corridor, the Orange-Riet Canal, the Vista Park, Rustfontein Water Treatment

Works and the Gariep water pipeline projects. In the category of potential projects are the Phuthaditjhaba Gateway, Maluti-A-Phofung Mega City, the Gauteng-Free State Vaal River City Region, Mangaung Airport Node and the Provincial Broadband project.

Roads in South Africa fall under various entities and the Free State’s central position means that it hosts many national roads. However, the province has committed to spend more than R1-billion on its Access Roads Programme, which will not only make it easier for farmers and other producers to get their products to market, but also create some 5 000 part-time job opportunities.

Various construction and renovation projects are underway that will contribute to improved infrastructure. These include indoor sport centres

Sasol One, Sasolburg. Credit: Sasol

in Dinoheng, Smithfield and Frankfort, arts studios in three districts, the Basotho Cultural Village and community libraries in Tumahole, Cornelia, Bluegumbusch and Van Standensrus.

Further infrastructure investments are coming from the likes of telecoms company Vodacom. Several new base stations have been established in rural villages. Bloemfontein is the site of one of Vodacom’s new solar-powered facilities, helping in the company’s drive to reduce its carbon emissions.

Industrial parks and SEZ

The Maluti-A-Phofung Special Economic Zone (MAP SEZ), the strategically located area on the N3 highway, is attracting investors to the Free State Province. The aim is to attract R2-billion in new investments.

Sectors prioritised at the MAP SEZ include logistics, ICT, automotive, pharmaceuticals, manufacturing and agro-processing. The 1 000ha site has four zones: agro-processing, light industrial, heavy industrial and a container terminal. Control of the project now rests with the provincial Department of Small Business Development, Tourism and Environmental Affairs (DESTEA).

Other areas that are being upgraded to provide infrastructure to encourage manufacturing are the Phuthaditjhaba Industrial Park and the Botshabelo Industrial Park, where a foreign firm has started construction of a new steel mill. The Digital Hub in the Botshabelo Industrial Park has been launched. Young people in Botshabelo have a space to learn how to code, develop games and programme robotics.

New gold

An energy consulting firm announced in 2022 that the extremely positive resource findings for the Virginia Gas Project were, in fact, an understatement.

As it happens, the site of the project is close to where gold was for many decades mined, an industry that supported thousands of jobs. The prospects for the company Renergen, which is the owner of Tetra4, the holder of the licence to exploit the natural gas of the area, are on the rise.

The Virginia Gas Project covers 187 000ha in the rather flat triangle created by Welkom, Virginia and Theunissen in the south.

Ironically, given the overall decline in gold production and the sense that the Free State goldfields had given all they could, Harmony is prospecting at what it calls Target 1, just north of its existing mines north-west of Welkom.

Provincial assets

International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its many products. Mining is reduced in importance but remains a significant employer. Harmony Gold has several assets in the province and Sibanye-Stillwater has undertaken a feasibility study on a property adjacent to its existing Beatrix mine.

In agriculture, the Free State is looking forward to the implementation of the African Continental Free Trade Area (AfCFTA), the free trade agreement that was stalled by the Covid-19 pandemic. The Free State’s agricultural export basket is well suited to trading with African states and strategies are being considered to promote apples, asparagus, cherries, cut flowers, sorghum, venison and wine.

The Free State produces significant proportions of South Africa’s wheat (30%), sunflowers (45%) and maize (45%) and is ranked third in contribution to national GDP in agriculture.

The Free State shares borders with six other provinces, in addition to the Mountain Kingdom of Lesotho. A summer-rainfall region with a mean annual rainfall of 532mm, the Free State’s climate, soil types and topography vary greatly within the province, with plains in the west and mountains in the east. The western and southern areas are semidesert, with some Karoo vegetation occurring in the south. The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam.

Municipalities in the Free State

The Free State has one metropolitan municipality (Mangaung), four district municipalities and 19 local municipalities.

Mangaung Metropolitan Municipality

Mangaung Metropolitan Municipality is a Category

A municipality which governs Bloemfontein, Botshabelo and Thaba Nchu. The sixth-largest city

in the country, the Mangaung municipal area covers more than 6 263km² and has a population of about 850 000 people. Bloemfontein is responsible for about 25% of provincial GDP.

Xhariep District Municipality

Towns: Trompsberg, Zastron, Philipollis, Smithfield, Wepener

The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam. The dam is also the site of small hydro-power and aquaculture projects. The nearby Tussen die Riviere Nature Reserve and the Mynhardt Game Reserve are popular. Crops are produced in the northern parts of the district and sheep farming is the biggest activity in the south. Diamonds, gravel and clay are mined at Koffiefontein. Jagersfontein is one of the first places where diamonds were found.

Lejweleputswa District Municipality

Towns: Welkom, Virginia, Boshof, Christiana, Bultfontein, Bothaville

Mining is the most important economic activity in this area, also known as the Free State Goldfields, but it is also the most important maize-growing area in South Africa. A large natural gas field has been discovered on what used to be gold turf. Bothaville hosts the annual NAMPO maize festival and the headquarters of Grain SA. Welkom is the major urban centre in the district.

The area has tourist assets such as a holiday resort on the Allemanskraal Dam, the Goldfields Wine Cellar in Theunissen and the Willem Pretorius Game Reserve.

Fezile Dabi District Municipality

Towns: Sasolburg, Parys, Kroonstad, Frankfort, Heilbron, Viljoenskroon

The chemical complex at Sasolburg is the economic driver in the district, which shares a border with Gauteng province along the Vaal River. Kroonstad is the district’s second-largest town and has a number of engineering works and a railway junction.

A good proportion of South Africa’s grain crop is sourced from this district and when the

vast fields of sunflowers and cosmos flowers are in bloom, a marvellous vista is created. The Vaal River presents opportunities for yachting, rafting and resort-based enterprises. Parys is a charming town and Vredefort is home to a World Heritage Site – the Vredefort Dome where a meteor crashed to earth. Fezile Dabi District Municipality is the biggest contributor towards the provincial GDP, accounting for approximately 35%. The Fezile Dabi area is mostly dominated by the industrial power of Sasol, with the manufacturing of refined petroleum, coke and chemical products adding largely to its GDP.

Thabo Mofutsanyana District Municipality

Towns: Phuthaditjhaba, Bethlehem, Ladybrand, Clarens, Harrismith, Ficksburg

Tourism and fruit farming are the two principal economic activities of this area which is characterised by beautiful landscapes: the Maluti and the Drakensberg mountain ranges, wetlands in the north, well-watered river valleys and the plains of the north and west. The most famous asset is the Golden Gate National Park. Industrial activity is undertaken at Harrismith and Phuthaditjhaba, where the Free State Development Corporation is promoting investment. The Maluti-A-Phofung Special Economic Zone (MAP SEZ) at Harrismith is a multi-modal transport and logistics hub. The commercial centre of the district is Bethlehem while Clarens and Ficksburg have become famous for their artists and cherries respectively. ■

A sign of the (nearly) post-Covid times. Bloemfontein’s Windmill Casino reopened with fanfare. Credit: Sun International.

THE EARLIER YOU START PLANNING FOR YOUR FUTURE, THE MORE LIKELY YOU ARE TO REACH YOUR FINANCIAL GOALS.

Free State Gambling, Liquor and Tourism Authority

Driving economic transformation in the Free State.

Vision

A transformed economy and a prosperous society with an effective, well-regulated gambling and liquor industry and a vibrant tourism sector.

Mission

To be a leading developmental institution that drives economic transformation, regulation and adaptation to the ever-changing industry dynamics to benefit the Free State.

Mandate

The Free State Gambling, L iquor and Tourism Authority ( FSGLTA) is one of the two e ntities of the Department

o f Economic, Small Business D evelopment, Tourism and Environmental Affairs (DESTEA).

The FSGLTA was established by the FSGLTA Amendment Act 4 of 2017, w hich was amended to incorporate the former Free State Tourism A uthority and Free State Gambling and Liquor to form the new entity which is known as FSGLTA.

The mandate of the Free State Gambling, Liquor and Tourism Authority is to regulate the gambling and liquor industries within the province and to market and promote tourism in the province. The Authority’s purpose is to promote legally compliant, responsible, sustainable and transformed gaming and liquor industries through effective licensing, regulating and reporting on the activities of the industries, and to position the Free State Province as a tourist destination of choice.

The mandate of the Free State Gambling, Liquor and Tourism Authority is to regulate the gambling and liquor industries within the province and to market and promote tourism in the province. The Authority’s purpose is to promote legally compliant, responsible, sustainable and transformed gaming and liquor industries through effective licensing, regulating and reporting on the activities of the industries, and to position the Free State Province as a tourist destination of choice.

The gambling industry

• Invite applications for licences (gambling)

• Consider, grant or refuse applications

• Cancel, suspend, vary, renew or revoke a licence or registration approved

• Implementation of norms and standards in the gambling industry as determined by the National Gambling Act

• Ensure that gambling activities are effectively regulated, licensed and controlled

• Ensure compliance to the act, rules and regulations

The liquor industry

• Receive applications for registrations (liquor)

• Reduce the socio-economic and other costs of alcohol

• Promote the development of a responsible and sustainable liquor industry in relation to gambling

• Generate revenue for the Free State Province

CEO of Free State Gambling, Liquor and Tourism Authority, Mr Kenny Dichabe

The tourism industry

It is important that the FSGLTA intensifies its efforts to ensure effective marketing of the province in order to attract domestic tourists as well as international tourists. The province continues to enhance tourism infrastructure, up-skill the sector, inculcate the culture of service excellence and enhance the provision of world-class visitor experiences. The Authority has partnered with event organisers and tour operators to market and promote the Free State as a tourist destination. These are achieved through the following:

• Forging strategic partnerships with the public and private sectors to leverage from each the capability and capacity to improve the industry

• Streamlining the impact of events through partnerships and sponsorships

• Improving on Meetings, Incentives, Conferencing and Events (MICE) as a focused growth area of the market

• Continuous review of the marketing plans to stay on par with the industry trends. ■

GAMBLING AND LIQUOR CONTACT DETAILS

• Mangaung Metro Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272

Gift Poli

• Thabo Mofutsanyana Peter Moleko molekop@fsglta.gov.za | 078 309 4178

078 439 9316

• Lejweleputswa Thabo Tlake tlaket@fsglta.gov.za | 057 492 0001 | 072 533 6681

078 309 4178

Peter Moleko

• Fezile Dabi Bongakele Nzunga nzungab@fsglta.co.za | 056 492 0001 | 082 256 5926

• Gariep Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272

TOURISM ROUTE CONTACT DETAILS

• Cheetah Route Nthabiseng Methola cheetah@freestatetourism.org | 073 125 1614

Flamingo Route 076 513 8988

Lion Route 084 951 1564

• Eagle Route Bonolo Molefe eagle@freestatetourism.org | 072 056 6090

Springbok Route 071 873 5916

• Flamingo Route Dineka Lephowane flamingo@freestatetourism.org | 073 796 8577

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Environmental sustainability

The Environment and Conservation Branch is working to promote a pristine environment that facilities economic transformation.

Environmental sustainability within the Free State Province is conducted within the prescripts of promoting Section 24 of the South African Constitution, recognising and promoting environmental rights as contained in the Bill of Rights. We also recognise our responsibility to promote a pristine environment that facilitates a transformative economic agenda to create jobs and a just society.

The main focus areas are:

• Environmental Quality and Protection: environmental education and awareness; waste and air quality management; environmental impacts and assessments; EPWP. Also promoting the circular economy with a particular focus on waste and recycling.

• Biodiversity Conservation and Research: maintenance of resorts and reserves; protected areas maintenance and expansion; biodiversity research; game culling and auctions including the transformation and promotion of Biodiversity Economy; transformative entrepreneurship; development and promotion of the wildlife economy.

Current considerations

• Ensuring sustainable environmental management.

• Improve national and provincial state of environmental reporting.

• Integration of environmental objectives in national, provincial and instruments and tools.

• Implementation of Chapter 4 of NEMA provisions in relation to fair decision-making and conflict management (conciliation, arbitration and investigations). Responding to EIA complaints and appeals without compromising on economic transformation, job creation and the promotion of spatial integration.

Conservation priorities

The Free State is 128 000km² in extent, or 12.8-million hectares. This means that it is the third-largest province in South Africa. Located in the centre of the country, with ideal soils and climate, the province is an extremely important food producer and the environmental health of the province is therefore vital to the food security of the country.

The province boasts a strong conservation mindset, not only from within the DESTEA but also from land owners generally.

Prior to the adoption of the Free State Protected Area Expansion Strategy there were already 240 formally declared Nature Reserves in the province. Since the inception of the Biodiversity Stewardship programme an additional 53 000 hectares of private land have been declared and added to the conservation estate. Priority focus is now on extending these conservation areas into the remaining natural areas of the province thereby conserving wetlands, rivers, terrestrial ecosystems and species for future generations.

In addition to the formal conservation areas, there are over 300 000 hectares of game and mixed-species ranches. The province generates over R600-million per annum from the local hunting industry, which maintains many huntingsupport businesses such as taxidermists, curio producers, etc. ■

State Province

Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the Free State’s unique selling propositions.

Growing the tourism sector

The Tourism Unit of DESTEA is providing market access for local operators.

ESTEA’s Tourism Unit’s objective is to grow the tourism sector’s contribution to the Free State economy. In achieving this, various activities and functions are performed, which include:

FDree S tate Province is situated in the heart of South Africa and shares borders with Lesotho and six other provinces. It provides easy access to the main ports of Durban, East London and Port Elizabeth.

The Free State is an attractive business and investment destination. The province is at the centre of South Africa and the dominant sectors are agriculture, mining, manufacturing and the tertiary sectors, making it ideal for transport logistics and agro-processing.

• Creating a conducive environment for tourism to thrive

• Formulating and implementing a Provincial Tourism Sector Strategy to guide tourism activities in the province

• Providing market access opportunities both locally and internationally to provincial tourism enterprises

Companies locating to Free State not only enjoy the opportunity to source inputs at competitive prices, but also to benefit from domestic, regional and international markets for their products and services. Because South Africa has been engaging with our economically large trading partners, access to international markets is facilitated through various trade preferences and free-trade agreements.

• Roll out programmes to enhance visitor services and experience

• Facilitate and promote tourism education and capacity-building for the tourism sector

• Promotion of tourism safety through among others, programmes such as the Provincial Joint Operational and Intelligence Structure (Provjoints), with law enforcement agencies, and also through implementing the Tourism Monitors Programme.

As far as long-term investment is concerned, there are industrial parks and a Special Economic Zone (SEZ) that are supported by the Department of Trade, Industry and Competition. Industrial parks are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu.

Maluti-A-Phofung SEZ is situated in Tshiame.

• Promote the culture of tourism and service excellence

Journey to Service Excellence

• an idyllic climate

The Free State’s strengths for inward investment are boosted by:

• openness to business, trade and foreign investment

• abundance of natural resources

• Promote transformation of the tourism sector for inclusive tourism economy, as well as providing support to youth and women in tourism

• low factory rentals

• Africa’s leading telecommunications network

• Facilitating events tourism to reduce seasonality and enhance geographic spread

• incentive packages uniquely developed for Special Economic Zones

• incentives associated with the revitalised industrial parks

• Facilitate funding for initiatives that seek to develop and grow tourism in the province

Free State Development Corporation (FDC) support services for priority sectors such as agro-processing and manufacturing

• recreational and lifestyle facilities.

Select investment opportunities include:

• Agriculture and agroprocessing

• Tourism and property development

• Medical and pharmaceutical production and distribution

• Manufacturing

The J2SE will focus on nominating a small town in the rural tourism nodes and assisting the town to develop a service excellence-orientated culture in their organisations and different structures with strong media attention and focus during the activation. A town will be identified and the principles of Service Excellence will be communicated to all organisations. A criterion has been developed for the nomination which has been shared and discussed with relevant stakeholders. A number of activities will be implemented in anticipation of the big media event to launch J2SE Town.

• Renewable and clean energy

At its core, the J2SE aims to bring together the entire town including restaurants, accommodation facilities, tourist attractions, police, banks and petrol attendants, among others, to be informed, trained and exposed to the four components of the SANS 1197:2012. A secondary objective of this programme is to establish a local Tourism Service Excellence structure or to link with existing structures to build a sustainable service culture. ■

• Medical tourism.

world-class transport and telecommunications infrastructure

TAILOR-MADE LEASE TERMS

The MAPSEZ offers prospective investors various types of lease terms tailor-made to suit their business needs. The investors can either enter lease-only contracts, where they lease the land and construct their own factories on the land or where they choose to renovate existing factories at preferential lease rates.

PROXIMITY TO MAJOR AGRICULTURAL PRODUCTION AREAS

MAPSEZ is geographically located within one of the country’s biggest farming regions. Potatoes, soybean, sorghum, sunflower and wheat are some of the natural resources cultivated in the eastern Free State. This makes MAPSEZ an ideal investment destination for food processors and other agroprocessing businesses.

INVESTMENT PROMOTION

The SEZ is also well suited for general manufacturing, offering a convenient production base for light and medium manufacturing operations. With excellent logistics links to the

country’s industrial heartland, the Port of Durban and the southern Bloemfontein/Cape Town route, MAPSEZ is an obvious choice for investors seeking cost-effective location to service domestic and export markets.

Since inception MAPSEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R4.8-billion. From this pipeline MAPSEZ is proud to announce that it has secured investments from five investors to the value of R1.4-billion in various sectors such as agroprocessing, chemical blending and synthetic-hair manufacturing. With the addition of these investors, there are now 23 operating businesses within the SEZ with a total investment value of approximately R5.1-billion.

Furthermore, the additional investments have created a total of 162 new jobs, bringing the total number of jobs created within the SEZ to approximately 1 288. MAPSEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline which will create an estimated 1 431 new jobs. Get in touch with our team and let’s see how we can grow the economy while creating meaningful job opportunities for communities. ■

Establishing a business in South Africa

South Africa has eased the barriers to doing business for locals as well as international companies and individuals.

new legislation, no new Close Corporations can be created but CCs can convert to companies.

Registration of company

The company must be registered with the Companies and Intellectual P roper ties Commission (CPIC) in Pretoria within 21 days of the company being started There are a range of administrative procedures that need to be fulfilled.

Bank account

A business bank account must be opened in the company’s name with a bank in South Africa.

Registration with the receiver of revenue

• As a Provisional Taxpayer

South Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straightforward process with assistance being offered by organisations such as the Department of Trade, Industry and Competition and provincial investment agencies like the Free State Development Corporation (FDC).

South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country.

The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, the FDC can offer specific advice about the business environment in the province.

Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under

• As a VAT vendor

• For Pay As You Earn (PAYE) income tax payable on money earned by employees

• For Standard Income Tax on Employees

Registration with the Department of Labour Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment Insurance Fund (UIF). Register with Compensation Commissioner for Compensation Fund: Files with the Compensation Fund (in the Department of Labour) for accident insurance (Workmen’s Compensation).

Registration with the local authority

Relevant only to businesses dealing in fresh foodstuffs or health matters.

Other procedures

• Checking exchange control procedures (note that non-residents are generally not subject to exchange controls except for certain categories of investment).

• Obtaining approval for building plans

• Applying for industry and export incentives

• Applying for import permits and verifying import duties payable

• Registering as an exporter if relevant and applying for an export permit.

Business entities

or she has tried to find a suitably qualified local employee prior to hiring a foreigner?

INDUSTRIALPROPERTYTORENTINHARRISMITH FDCisrentingout18850sqmstandalonefactoryincludingFurniture ManufacturingMachinery,Equipment,andFurnitureforBusiness Operation..

INDUSTRIALPROPERTYTORENTINHARRISMITH FDCisrentingout18850sqmstandalonefactoryincludingFurniture ManufacturingMachinery,Equipment,andFurnitureforBusiness Operation..

ThefactoryisSituatedatSite2277inHarrismithandcloseproximitytoallamenities,on mainarterialroutesandQuickaccessontoN3Freeway.

• Is the prospective employee appropriately qualified and do they have the relevant experience?

ThefactoryisSituatedatSite2277inHarrismithandcloseproximitytoallamenities,on mainarterialroutesandQuickaccessontoN3Freeway.

Thisfactoryoffersthefollowing: SprinklerSystem.

4RollerDoors

Thisfactoryoffersthefollowing:

Business permits

Security uardHouse

SprinklerSystem.

Wellfencedandsecured

There are a variety of forms which businesses can take, including private and public companies, personal liability companies, non-profit companies, state-owned companies and even branches of foreign companies (or external companies).

4RollerDoors

Ampleparking

3phasepowerwith100amps

Security uardHouse

Wellfencedandsecured

8toilets,6officesandboardroom,reception,kitchenandseparatewarehouseablutionswith shower

Ampleparking

3phasepowerwith100amps

Occupationavailableimmediately.PleasecontactMrTefoMatlaformore informationortoview:

8toilets,6officesandboardroom,reception,kitchenandseparatewarehouseablutionswith shower

Tel 0514000800Email tefo fdc.co. awww.fdc.co. a

Foreign nationals who wish to establish their own business or a partnership in South Africa must, apart from having sufficient funds to support themselves and their family, be able to invest at least R2.5-million in the business.

Occupationavailableimmediately.PleasecontactMrTefoMatlaformore informationortoview:

Branches of foreign companies fall under Section 23 of the Companies Act of 2008 and are required to register as “external companies” with the CIPC. An external company is not required to appoint a local board of directors but must appoint a person resident in South Africa who is authorised to accept services of process and any notices served on the company. It must also appoint a registered local auditor and establish a registered office in South Africa.

Patents, trademarks and copyrights

Trademarks (including service marks) are valid for an initial period of 10 years and are renewable indefinitely for further 10-year periods. Patents are granted for 20 years, normally without an option to renew. The holder of a patent or trademark must pay an annual fee in order to preserve its validity. Patents and trademarks may be licensed but where this involves the payment of royalties to non-resident licensors, prior approval of the licensing agreement must be obtained from the dtic. South Africa is a signatory to the Berne Copyright Convention.

Permits for foreign nationals Work permits

In considering whether or not to grant a work permit, the Department of Home Affairs will first evaluate the validity of the offer of employment by conducting a number of checks to confirm the following:

• Has the Department of Labour been contacted?

• Has the position been widely advertised?

• Is the prospective employer able to prove that he

FDCISZEROTOLERANCETOFRAUDANDCORRUPTION.PLEASEREPORTFRAUDAND CORRUPTIONINCIDENTSTOTHEFRAUDHOTLINE0800212154

Tel 0514000800Email tefo fdc.co. awww.fdc.co. a

CORRUPTIONINCIDENTSTOTHEFRAUDHOTLINE0800212154

The funds must originate overseas, be transferable to South Africa and belong to the applicant (ie emanate from the applicant’s own b ank account). The business must also create jobs for South African citizens. After six months to a year, proof will have to be submitted that the business is employing South African citizens or permanent residents, excluding family members of the employer.

Appl ications for work permits for selfemployment can only be lodged at th e South African Consulate or Embassy in the applicant’s country of origin. The processing fee is US$186. The applicant would also have to lodge a repatriation guarantee with the consulate/embassy equivalent to the price of a one-way flight from South Africa back to his or her country of origin.

This guarantee is refundabl e once the applicant has either left South Africa permanently or obtained permanent residence. Any application for an extension of a business permit may be lodged locally. The processing fee per passport holder is R425. Some countries also need to pay R108 per return visa.

A list of co untries t o which this applies is available from the Department of Home Affairs.

The FDC assists investors in applying for the relevant work permits to conduct their business.

What can the FDC do for you?

The FDC will help new businesses by assisting in project appraisal and packaging, putting investors in touch with relevant agencies and government departments, a lerting i nvestors t o i nvestment incentives and setting up join t ventures where it is required. ■

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 a nd incentives are an important part of t he 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 develop-

ment (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).

Manufacturing

Manufacturing

Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding.

Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding.

A second phase of the programme was launched in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere.

A second phase of the programme was launched in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere.

The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors.

The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors.

Aimed at smaller companies, the maximum grant is R30-million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.

Aimed at smaller companies, the maximum grant is R30-million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.

Other incentives

Other incentives

Other incentives that are available to investors as well as existing businesses in more than one sector include the following:

Other incentives that are available to investors as well as existing businesses in more than one sector include the following:

• Technology and Human Resources for Industry Programme (THRIP)

• Technology and Human Resources for Industry Programme (THRIP)

• Support Programme for Industrial Innovation (SPII)

• Support Programme for Industrial Innovation (SPII)

• Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises

• Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises

• Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure

• Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure

• Co-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives

• Co-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives

• Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations.

• Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations.

Incentives for SMMEs

Incentives for SMMEs

A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include:

A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include:

• Small Medium Enterprise Development Programme (SMEDP)

• Small Medium Enterprise Development Programme (SMEDP)

Programme (SMEDP)

Programme (SMEDP)

• Isivande Women’s Fund

• Isivande Women’s Fund

• Seda Technology Programme (Stp).

• Seda Technology Programme (Stp).

• Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business Development that exists to promote SMMEs.

• Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business Development that exists to promote SMMEs.

Trade-related incentives

Trade-related incentives

The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods. ■

The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods. ■

Online Resources

Department of Trade, Industry and Competition: www.thedtic.gov.za

Department of Trade, Industry and Competition: www.thedtic.gov.za

Free State Development Corporation: www.fdc.co.za

Free State Development Corporation: www.fdc.co.za

Industrial Development Corporation: www.idc.co.za

Industrial Development Corporation: www.idc.co.za

Official South African government incentive schemes: www.investmentincentives.co.za

Official South African government incentive schemes: www.investmentincentives.co.za

Online Resources

Programme (SMEDP)

10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

HOT EMERGING MARKET

Growing middle class, affluent consumer base, excellent returns on investment.

LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT

SA is the location of choice of multinationals in Africa. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech.

01. 05.

FAVOURABLE ACCESS TO GLOBAL MARKETS

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

02. 06.

MOST DIVERSIFIED ECONOMY IN AFRICA

South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination.

ADVANCED FINANCIAL SERVICES & BANKING SECTOR

SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

07.

YOUNG, EAGER LABOUR FORCE

SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

03. 09.

04. 08.

PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

ABUNDANT NATURAL RESOURCES

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

10.

EXCELLENT QUALITY OF LIFE

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

The giant SASKO Bethlehem Mill employs 96 people and mills 144 000 tons of wheat annually. Its three production lines make cake flour and white-bread flour while a blending facility produces brown-bread meal and complete mixes. Credit: SASKO

Agriculture

Transformation through training is working.

SECTOR INSIGHT

have been given to the trust by the provincial government to help them get started.

Athree-way partnership is delivering results in terms of giving emerging farmers a better chance of success. The Centre for Sustainable Agriculture at the University of the Free State, Standard Bank and the Free State Department of Agriculture and Rural Development came together to launch the Agribusiness Transformation Programme in 2019. The programme has a focus on improving three kinds of access: to information, markets and finance.

A skills programme targets emerging farmers who have at least three years of farming experience, either own their own land or farm on rented land and live permanently on their farms. The first groups of 25 farmers per year have graduated from classroom and practical training.

Various agro-business skills are taught in the classroom phase, including animal management, crop production, water and soil management and pasture management. The two-year mentorship which follows is overseen by local Standard Bank staff and experts from the department and the university.

The Integrated Vrede Dairy Project, which was in the news for all the wrong reasons during the period of State Capture, was handed over, in the words of the Provincial Premier in the State of the Province address, to its 65 “rightful beneficiaries” in the course of the 2021/22 financial year. A trust representing these owners has a 51% stake with the balance available to private investors. A total of 583 dairy animals

The provincial government is also taking the initiative in promoting cannabis as an agricultural product of the future. Six sites have been identified at Bethlehem, Ficksburg, Kroonstad, Viljoenskroon, Wesselsbron and the Glen Agricultural Training Institute, which will be used as a research site.

The Glen Agricultural Training Institute is a public institution of the Department of Agriculture and Rural Development and specialises in the higher and further education training band. The campus comprises nearly 4600ha. The Modder River runs to the south of the site, with the Renosterspruit as tributary.

Five agri-parks are being constructed in each of the Free State’s district municipalities. The concept brings together farmers, traders and agroprocessors at convenient sites. Support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market.

The Vrede Dairy Project has been handed over.

Emerging farmers are earning qualifications and learning new skills through the Agribusiness Transformation Programme. Credit: Standard Bank

As part of the agri-parks programme a warehouse is under construction at Springfontein and the Thaba Nchu abattoir is being upgraded. In Sediba, Farmer Production Support Units supplied a tractor and implements to participants.

Private companies

The SASKO Bethlehem Mill has a total of 96 employees and mills 144 000 tons of wheat every year. Bethlehem was chosen because of its proximity to excellent wheat-producing areas and for its strategic location in terms of logistics: the busy N3 freeway is just 90km away.

Transnet Freight Rail (TFR) has plans to double volumes of grain transported out of its Bethlehem facility. VKB Agriculture is one of the companies that will benefit if TFR can increase its capacity to 550 000 tons for the season, as it plans.

VKB is already a diverse group, with the capacity to produce soybean meal and soybean cake and flour from its plants, mills and factories. Grain Field Chickens, a large abattoir in Reitz, is one of the company’s biggest facilities in the province. The Industrial Development Corporation (IDC), which has a 23% stake in the project, aims to help develop the Free State as the poultry hub of South Africa. VKB has six agro-processing companies including VKB Flour Mills and Free State Oil and is active in auctioning, storage, packaging and fuel sales, among other activities. VKB’s headquarters are in Reitz in the eastern part of the province and the group is one of the province’s largest employers.

The Imbani Homsek Group is an integrated dairy-products producer with one of the biggest Ayrshire herds in the world. The head office of Country Bird Holdings is in Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird Logistics controls 45 chilled and frozen vans.

ONLINE RESOURCES

Agricultural Research Council: www.arc.agri.za

Bothaville: www.bothaville.info

Free State Department of Agriculture and Rural Development: www.ard.fs.gov.za

Grain SA: www.grainsa.co.za

Clover has three factories in the Free State: Bethlehem (milk powder, whey mixtures and creamers); Frankfort (butter, the largest such factory in the country, where ghee and roller dried milk powder is also made) and in Heilbron (whey, buttermilk, condensed milk and packaging).

Bothaville hosts the country’s largest agricultural festival, NAMPO Harvest Day. Bothaville falls under the North West in the organisational chart of giant agricultural company Senwes, which has its headquarters in Klerksdorp. The rest of the Free State is divided into three regions by Senwes, which deals with about 20% of the country’s oilseeds and grain through its 68 silos.

The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), potatoes (33%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). Red meat and dairy are other important products. Game hunting is a significant sector, and several large Free State farms have been converted from stock to game farms.

Crop production represents about two-thirds of the province’s gross agricultural income. The main crops are maize and wheat. Sunflowers, sunflower seeds, sorghum and soy beans are other major crops. The Mangaung Fresh Produce Market plays a vital role in the sector, catering as it does to householders, bulk buyers, informal traders, agents and farmers. ■

Agroprocessing is an important part of the Free State economy. The production lines of the Bethlehem Sasko Mill process about 144 tons of wheat every year. Credit: SASKO

Mining

Miners are looking to renewable energy for power.

Harmony Gold announced in June 2022 that it had secured a loan and signed an agreement to buy 30MW of solar photovoltaic energy. The company’s Free State assets will benefit from this, the first phase of Harmony’s renewable energy strategy which will see a further 137MW rolled out at other mines.

Harmony has established an independent power producer for the construction of the three PV plants that will comprise the Free State plant. These plants will mitigate 65 000 tons of carbon dioxide emissions in their first 12 months of operation; 1.3-terawatt hours of clean energy is expected to be delivered over their 20-year lifespan.

The solar plant projects were jointly developed by Harmony, Energy Group (a specialist advisor and investor in industrial clean energy projects in Southern Africa), and BBEnergy (a South African engineering company that specialises in solving engineering problems in the energy and water fields).

The project was funded by a project-finance debt solution from Rand Merchant Bank, a division of First Rand Bank Limited, and with the support of African Clean Energy Developments (ACED), equityfunded by African Infrastructure Investment Managers and Mahlako Energy Fund.

The plants rank among the biggest solar PV plants for private offtake in South Africa to date and the first energy is expected to flow from the plants in March 2023. Many other South African miners are expected to follow Harmony’s lead.

Gold mining

Historically, the north-west part of the province was famous for gold, with Harmony Gold’s Bambanani mine forming an essential part of Welkom’s economy for many years. Bambanani is in the final stages of its life-of-mine but there are other areas where Harmony Gold is still extracting gold and investigating possible expansion programmes.

The company is conducting an exploration programme to confirm the geological model of Target North and further define a potential block of well-mineralised Ventersdorp Contact Reef. Various challenges, not least of which was the Covid-19 pandemic, caused the reduced volume but this was outweighed by an increase in the recovered grade. AngloGold Ashanti sold most of its assets to Harmony Gold, two of which, Great Noligwa and

Kopanang, are in the Free State. The complex includes one uranium plant, four gold plants and one sulphuric acid plant. These assets increased Harmony’s underground resource base in South Africa by nearly 40%. The mines include Tshipong and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at Welkom.

Some of the unions active at the gold mining operations of mining and metals processing group Sibanye-Stillwater were unable to reach an agreement on wage talks early in 2022, which led to a strike followed by a lock-out. The National Union of Mineworkers (NUM) and the Association of Mineworkers and Construction Union (AMCU) had refused the wage offer but Solidarity accepted. Despite this, all workers (including those affiliated to the union UASA) were locked out. The threemonth stalemate ended in June with a three-year agreement brokered by the Commission for Conciliation, Mediation and Arbitration. Sibanye-Stillwater is investigating a possible new

Gold miners went on strike for three months.

SECTOR INSIGHT

project next to its existing Beatrix mine. Gold prices rose appreciably during the Covid-19 pandemic. The company’s Beatrix mine, with a life-of-mine projected to 2025, produced 196 698 ounces of gold in 2019. Beatrix also holds 26.97-million pounds of uranium resources.

Gold mines in the Free State also supply a substantial portion of the total silver produced in the country, and large concentrations of uranium occurring in the gold-bearing conglomerates of the goldfields are extracted as a by-product.

Other minerals

The Lejweleputswa District Municipality in the north-west of the province is the site of considerable activity in the mining of industrial minerals, with six companies currently active. Matsopa Minerals, for example, runs a bentonite mine at Koppies between Heilbron and Vredefort. Sandstone and sand-mining operations are underway in Qwaqwa, Fouriesburg, Senekal, Sasolburg and Zastron. Limestone and calcrete occur in the western Free State where salt is also panned. Production is concentrated around the Florisbad salt pan, north-west of Bloemfontein.

The mining sector makes up 11% of provincial GDP. A minerals

ONLINE RESOURCES

Minerals Council South Africa: www.mineralscouncil.org.za

National Department of Mineral Resources and Energy: www.dmre.gov.za

South African Mining Development Association: www.samda.co.za

beneficiation strategy has been developed because this is a key area for potential growth. Petra Diamonds’ Koffiefontein mine is on the western edge of the province, about 80km from Kimberley. The mine is regarded as a low-grade deposit, but the diamonds produced are of high value. White stones of excellent quality are produced, and fancy pink diamonds are sometimes found. The Voorspoed mine of De Beers Consolidated Mines closed in 2018.

De Beers, the South African government and the South African diamond-cutting industry have launched a project to encourage diamond beneficiators. Among the first companies involved are Thoko’s Diamonds, African Diamonds, Nungu Diamonds and Kwame Diamonds. Coal is mostly found in the northern part of the Free State. The Sigma-Mookraal mine is run by Sasol Mining and has the capacity to supply Sasol Infrachem in Sasolburg with two-million tons of coal per year. Seriti Resources has purchased the New Vaal Colliery from Anglo American.

Together with two other mines in Mpumalanga Province, Seriti paid R2.3-billion. New Vaal is in the middle of a triangle of three towns that play an important part in industrial production: Vereeniging, Sasolburg and Vanderbijlpark. The mine employs more than 900 people and supplies about 15-million metric tons of coal to Eskom’s Lethabo power station annually. ■

Harmony is exploring at Target North. Credit: Harmony

geochemistry. Work completed to date has confirmed the Buvu target area as having potential for an unrecognised centre of epithermal hydrothermal alteration and mineralisation.

Target North exploration site.

8 Harmony Gold Mining Company Limited

Oil and gas

Gas resources at Virginia are even bigger than first thought.

Sproule, a resources accreditation agency, has given an updated report on the helium and methane reserves in the Virginia gas field, owned by Renergen subsidiary Tetra4.

The results were even more positive than previous estimates, with helium reserves up by 620% and methane reserves by 427%. The field covers 187 000ha in the region of Virginia, Theunissen and Welkom. Hiring has increased rapidly since 2019 as the project ramps up from the first phase in which a pilot compressed natural gas (CNG) plant was constructed in 2016. The second phase encompasses liquid natural gas (LNG) and helium. Production of helium is expected to grow from 350kg per day to five tons in the second phase.

A major milestone was achieved in July 2022 when ‘natural gas to plant’ was achieved. This test allows for the system to be comprehensively tested, with the inlet line from the gas-gathering system opened to the process plant and then on to the natural gas filtration and pre-compression system.

The Covid-19 crisis has spurred Renergen to create something called Cyro-Vacc, a system of transporting and storing vaccines using helium that allows for up to 35 days where there might be no electricity available for cooling.

The SpaceX rocket that launched in 2021 used 11 tons of helium to propel itself off the ground. Every computer microchip in the world is produced in the presence of helium and the world uses 85 tons of it every day. Although it’s a very useful element, it’s also a very difficult element. The result of that is that Renergen, the owner of the Tetra4 company that holds the first and only onshore petroleum production right issued by the Department of Mineral Resources and Energy (DMRE), has had to import much of its equipment and many of the skilled personnel it needs to commercialise the gas field.

Methane has a strong potential for use in the transport sector. The logistics sector was first sector to respond to the potential of Virginia find. Bulk Hauliers International Transport (BHIT) has signed an agreement to take LNG to fuel 50 of its trucks, which should lead to lower operating and maintenance costs. South African Breweries is another client.

Renergen has also signed an agreement with TotalEnergies for distribution and sales. Renergen intends equipping filling stations with LNG at strategic locations across South Africa to cater for the logistics industry. The first two such stations will be Total stations in

Johannesburg and Durban that will be rebranded in green. One station is planned for Harrismith on the busy N3 highway which links these two cities.

The potential of another was revealed in 2021 when Renergen agreed to sell LNG to glass manufacturer Consol. Bespoke depots will be developed to cater to industrial clients such as Consol.

Tetra4 has a R218-million loan from the Industrial Development Corporation to build a 107km pipeline network from Virginia and the Overseas Private Investment Corporation (OPIC), an agency of the US government, will lend Renergen $40-million (more than R600-million) over 12 years to build a gas plant in the Free State. The area around Virginia has proven reserves of 25-billion cubic feet.

Natref refinery

The Natref refinery in Sasolburg may have its life extended by the introduction of new technology. With every operator in fossil fuels under

The life of the Natref refinery could be extended.

SECTOR INSIGHT

pressure to come up with cleaner methods, the joint operators of the refinery, Sasol and TotalEnergies, have announced that a new way of producing low-sulphur diesel is on the cards.

As of July 2022, the Natref refinery was the only functioning South African refinery, so its strategic importance can not be underestimated. It is a technologically-advanced facility, which refines heavy crude oil into petrol, diesel, commercial propane, jet fuel and bitumen. The refinery has also started on 10-year emissions-reduction programme.

The chemical complex at Sasolburg is the economic driver of the oil and gas sector for the province. One of the Sasol companies at Sasolburg, Sasol New Energy, is moving the group away from reliance on fossil fuels. In 2020 Sasol called for bidders construct an embedded 10MW solar PV facility at Sasolburg. The

ONLINE RESOURCES

Petroleum Agency South Africa: www.petroleumagencysa.com

South African Oil and Gas Alliance: www.saoga.org.za

South African Petroleum Industry Association: www.sapia.co.za

company’s larger goal across all its sites is eventually to procure 600MW of renewable energy and achieve a 10% greenhouse gas (GHG) emission reduction by 2030.

Sasolburg Operations is one of the five operating hubs that forms part of the Southern African Operations and is a 100%-owned facility. Sasolburg Operations includes all operations on the Sasol One and the Sasol Midland sites.

The integrated manufacturing facility is responsible for the production of base and performance chemicals. It also produces electricity and other utilities and provides sitesupport services to enable the manufacturing processes taking place on site.

The African Oil Blending Corporation (AOBC) has announced that it will spend R130-million on repurposing and upgrading its Harrismith lubricant blending facility. The new focus will be on producing water-based and monoethylene glycol-based coolants for the industrial and automotive sectors.

The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed methanegas exploration rights in KwaZulu-Natal and natural gas exploration permits in the Free State. Early surveys suggest that the Free State has 23-billion cubic feet of gas underground. Tests have begun in the Karoo in search of shale gas. ■

The Virginia Gas Project has achieved a significant testing milestone. Credit: Renergen

Manufacturing

Industrial parks are promoting manufacturing.

Manufacturing makes up 9% of Free State gross domestic product, and this comprises 4% of South Africa’s total. The Free State Regional Industrialisation Policy is under review to ensure integration of infrastructure, bulk service provision, industrial sites and export and tax incentives to attract investment.

A specific programme to promote manufacturing aims to do this by revitalising industrial parks. One of the first such parks in the initiative, which is led by the National Department of Trade, Industry and Competition (dtic), is the Botshabelo Industrial Park (pictured).

Located east of Bloemfontein, in 2021 fully 108 of the park’s 144 factory premises were occupied and second-phase funding of R50-million has been approved.

The other parks receiving support are at Phuthaditjhaba and Thaba Nchu where it is hoped that improved infrastructure will attract investment, which in turn will stimulate economic growth and create jobs.

Further north, the strategically located Maluti-A-Phofung Special Economic Zone (MAP SEZ) has attracted R1-billion from investors. Kevali Chemicals became the first beneficiary of the dtic’s Black Industrialists Scheme (BIS). A grant of R35-million allowed the company to acquire machinery and equipment to start a new line of manufacturing in the MAP SEZ. By early 2022, 164 jobs had been created within the SEZ.

Business hubs in Ficksburg and Koffiefontein are designed to support SMMEs. The Contractor Development Programme has signed contracts with 71 small businesses to do road maintenance in the province.

The Free State Provincial Government’s Business Development Support Programme includes measures to ensure that SMMEs benefit from government procurement spend and support with filling in documents related to tax compliance and bid documents.

Sasolburg in the northern Free State is a key asset in South Africa’s chemicals industry. Sasol has the biggest presence but entities such as Omnia and AECI are other major companies which give the Free State the lead in this sector which relies on advanced technology.

The existing manufacturing sector covers chemicals, agroprocessing, textiles, carpets, engineering, packaging, furniture

ONLINE RESOURCES

Chemical and Allied Industries’ Association: www.caia.co.za

Free State Development Corporation: www.fdc.co.za

South African Textile Federation: www.texfed.co.za

SECTOR INSIGHT

Jobs are being created at the Maluti-A-Phofung Special Economic Zone.

and jewellery. About 20% of the Free State’s manufacturing sites are devoted to food and beverages, with soft drink giant Coca-Cola Fortune operating a large bottling plant in Mangaung. Landzicht Wine Cellar distributes 2.4-million litres of wine every year from Jacobsdal.

Harrismith is home to Nouwens Carpets and Boxmore Plastics. Boxmore Packaging’s new PET beer bottles are the first PET bottles specifically designed for beer on the SA market.

Empire Gloves makes industrial gloves. Kroonstadbased Octa Engineering makes specialised rail carriages for the mining sector. In Bloemfontein, Transnet Engineering manufactures new wagons for the Transnet group, including iron ore and cement wagons and fuel tankers. ■

Young people can attend digital skills programmes.

ADigital Hub in the Botshabelo Industrial Park has been launched as a way of connecting citizens and giving people a chance to develop digital skills.

The National Electronic Media Institute of South Africa will be running a Digital Skills Programming initiative which will benefit 4 000 unemployed young people.

Coding and Robotics as a subject has been introduced in 111 primary schools and 50 secondary schools in the province as part of the provincial government’s digital access programme.

Speaking in parliament in 2022, the Minister of Communications and Digital Technologies, Khumbudzo Ntshavheni, said that every South African will be given access to the Internet. Likening the provision of Internet access to utilities such as water and electricity, the Minister noted that advances in technology and the upcoming release of data spectrum will make it possible for national government to take this step. Vodacom has spent R550-million over the three years to 2022 in the Northern Cape and the Free State. Part of the infrastructure investment programme was to connect remote villages and to increase network coverage. New 3G and 4G enabled base-station sites were installed in 25 urban centres and in 15 rural areas.

According to figures compiled by Stats SA in 2019, only 5.4% of households in the Free State had access to the Internet at home. Zero-rated sites are available through ConnectU, which allows people to browse job portals or look up essential information on health and education. Vodacom has also launched low-priced voice and data deals for pensioners.

ONLINE RESOURCES

Independent Communications Authority: www.icasa.org.za

Technology Innovation Agency: www.tia.org.za

Universal Service and Access Agency of South Africa: www.usaasa.org.za

A zero-rated e-School platform enables learning from home. To support this, Vodacom Central Region provided 30 routers and 300 tablets to three Early Childhood Development centres and to connected learners in QwaQwa. Forty schools received 200 laptops and computer centres. As of 2021, National Treasury has appointed four companies as service providers to government, through its new mobile communication services contract, RT15-2021. The contract covers all entities of the state and is expected to allow for significant cost saving through better controls.

Vodacom has created the Citizen Engagement Platform as a means of improving and managing service delivery. To enable better communication between citizens and the South African Police Service (SAPS), Vodacom launched the MySAPS app.

MTN Business enabled thousands of pupils to keep studying remotely during the Covid-19 pandemic and it has also helped state officials collect revenue more efficiently. MTN Enterprise Solutions allows state bodies to customise their shared voice, data, Closed User Group voice usage and SMS bundles at good rates. This is also scalable as usage increases or the department in question rolls it out at a larger scale. ■

Vodacom has built 40 base stations.

SECTOR INSIGHT

Vodacom Foundation

Tourism

Visitors are encouraged to “Travel Differently”.

SECTOR INSIGHT

Rural tourism is showing potential.

The global pandemic closed down the tourism sector and it will take some time to recover. The provincial government provided some relief by earmarking tourism venues as sites for quarantine.

New markets are being targeted through programmes such as “Travelling Differently”. The aim is to appeal to people who have previously been excluded from experiences such as game drives, bird watching, fishing, hiking and camping.

The “Free State CampOut Experience” was launched in November 2021 at Maria Moroka Nature reserve, the first of a series of events hosted in various provincial resorts to further encourage eco-tourism among city dwellers.

Free State tourism authorities are reaching out to neighbouring provinces and the Kingdom of Lesotho to coordinate a regional strategy for tourist products. Other participants include the North West Province, Fezile Dabi District Municipality and the National Department of Environmental Affairs, Forestry and Fisheries.

Another thrust is rural tourism, which is targeted as a subsector with great growth potential. Products such as the Bothobapelo Country Lodge and the Dinkoeng Tented Camp and Adventure based in Monontsha in QwaQwa are examples of what can be achieved with investment and commitment.

Heritage is another sector with possiblities. A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole with statues of Oliver Tambo and Fidel Castro. A museum and statue at Brandfort to commemorate Winnie Madikizela-Mandela is planned.

Other sites with potential that are the subject of upgrades include the Thaba Nchu Airfield and the Phakisa Raceway in Welkom.

ONLINE RESOURCES

Bloemfontein Tourism: www.bloemfonteintourism.co.za

Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs: www.destea.gov.za

Free State Gambling, Liquor and Tourism Authority: www.gla.fs.gov.za

Bloemfontein’s newest hotel is the 88-room Premier Splendid Inn. Built on the site of the old Stanville Inn, the property has been converted into a R95-million hotel with conference facilities over five floors. Protea Hotels has four properties in the Free State, two in Bloemfontein, one in Harrismith and the Protea Hotel Clarens. The Tsogo Group’s properties include the four-star Southern Sun Bloemfontein and the SUN1 Bloemfontein. Tsogo Sun Gaming runs the Goldfields Casino in Welkom. The City Lodge Bloemfontein has 151 rooms, and there is a Road Lodge at the airport. The Rantsoareng Group operates exclusively in the Free State and has three properties, the biggest of which is the President Hotel in Bloemfontein.

Sun International runs the Lesotho Sun and the Maseru Sun in neighbouring Lesotho. In Bloemfontein, the Windmill Casino and Entertainment Centre offers slot machines and gaming tables, plus conference facilities. The fourstar Willow Lodge has 80 rooms. The Naledi Sun Hotel and Casino is about 65km from Bloemfontein. The Golden Gate Highlands National Park in the Maluti Mountains is one of South Africa’s great parks. ■

The Premier Splendid Inn, Bloemfontein.

Development finance and SMME support

Skilled mentorship pays off for SMMEs.

Seed funding and investment are critical in helping small, medium and micro-enterprises get started, but sometimes good advice over an extended period can be just as valuable.

Tehilaa Golden CC, a clothing manufacturer, more than doubled its annual turnover to R11-million with the support of the SAB Foundation’s 18-month Tholoana Enterprise Programme. Tholoana offers skilled mentorship, business development tools and training, access to peer networks and finance. Founder Cherilyn Lucena (pictured) also expanded her workforce from 46 to 135.

The programme invests in entrepreneurs, particularly women, youth, people in rural areas and persons with disabilities. The SAB Foundation reports that as many as 80% of small businesses fail within their first five years in South Africa.

The SAB Foundation has provided over R8-million in grant funding and business support to 70 entrepreneurs in the Free State. Collective turnover has grown exponentially since the programme began in 2018.

The Yes4Youth programme is a business-led collaboration that aims to get young people into work. The Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA) is collaborating with Standard Bank on the Yes4Youth initiative, in which 60 unemployed youth were offered their first job opportunity in 2021. The idea is to introduce young people to the world of work and to foster a spirit of entrepreneurship.

DESTEA assists an average of 800 enterprises annually. The Industrialisation Support Incentive Programme paid out R10-million in 2021/22 to 30 enterprises (13 women-owned, six youth-owned). Support ranged from rental subsidies and the provision of equipment to set-up costs for emerging and established manufacturers. A 172ha business park in Sasolburg designed to incubate black industrialists is a joint venture between the National Department of Trade, Industry and Competition (the dtic) and Sasol. There are five buildings on the site, training is provided, and companies have access to Sasol’s diverse supply chains.

The dtic’s Enterprise Investment Programme (EIP) is successfully supporting Extractive Technologies, a company in the electro-technical

ONLINE RESOURCES

Free State Development Corporation: www.fdc.co.za

National Department of Small Business Development: www.dsbd.gov.za

Small Enterprise Development Agency: www.seda.org.za

SECTOR INSIGHT

sector. This is a focus area of national policy and the targeted company used its grant to create additional employment for youth in the Sasolburg area.

The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include:

• The Black Business Supplier Development Programme, a cost-sharing grant to promote competitiveness

• The Co-operative Incentive Scheme, a 100% grant.

The Small Enterprise Development Agency (Seda) is a subsidiary of the DSDB and supports entrepreneurs. Seda focusses on training and administrative support.

The major banks all have SMME offerings. Standard Bank runs a Community Investment Fund and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million. ■

Yes4Youth is having a positive effect.

Education and training

A CUT team attended the 2022 Enactus World Cup.

SECTOR INSIGHT

data screening. The first phase of a major upgrade of the Hotel School of the CUT is complete.

New chancellor

There were many causes for celebration at tertiary institutions in the Free State in 2021 and 2022.

In July 2022 a team from the Central University of Technology (CUT) was announced as the winners of the 2022 Enactus South Africa National Competition at the Sandton Convention Centre for their crop farming project, Village Fa. They beat 12 other student-led Enactus projects in South Africa to secure the title.

As one of four finalists selected for the Ford College Community Challenge (C3), run in partnership with non-profit organisation Enactus Global, the Ford Motor Company Fund and Ford South Africa, the Enactus CUT team used its $5 000 grant to establish crop farming and introduce vermiculture to Gladstone Village, located in Thaba Nchu, as a means of improving the economic development of the area. Vermiculture uses worms in composting. The team focused on creative approaches to dealing with protection of the environment, training underprivileged communities, job creation and income generation. Ford sponsored the team to represent South Africa, along with 32 other countries, that participated in the 2022 Enactus World Cup in Puerto Rico.

The CUT has four faculties: Engineering, Built Environment and Information and Technology, Health and Environmental Sciences, and Humanities and Management Sciences. Researchers at units such as the Centre for Community, Environmental and Industrial Development tackle important regional issues. The CUT has started training programmes in artificial intelligence, 3D cloud computing and

The University of the Free State has a new chancellor. In 2020 Professor Bonang Francis Mohale became the university’s eighth chancellor but the official inauguration took place in 2021. Professor Mohale is the President of Business Unity South Africa (BUSA), Professor of Practice at the Johannesburg Business School’s College of Business and Economics and Chairman of both the Bidvest Group Limited and SBV Services.

In his inaugural address, Professor Mohale stressed the importance of empowering universities to become “inclusive centres of excellence”. He noted how this could be done:

• to be awake to persistent inequalities and how these continue to shape a sense of belonging, ownership, identity, access, language, symbols, attitudes and expectations

• to nurture young people to come out of these institutions not only skills, but with a sense of social justice, critical thinking and curiosity

The University of the Free State has a new chancellor.

Prof Francis Petersen, Rector and Vice-Chancellor of the University of the Free State, Prof Bonang Francis Mohale, Chancellor of the UFS and Mr David Noko, Chairperson of the UFS Council.

• to conceptualise ethical frameworks that will guide societal engagement with universities

• to promote public ownership of higher education institutions, where the public recognise their role as both beneficiaries and stakeholders

• to develop a social justice approach to higher education, where universities propel democratic engagement and advocate for academic freedom.

As part of the celebration, Dr Sipho Pityana, a former BUSA president, was awarded an honorary doctorate by UFS.

The University of the Free State has 158 researchers rated by the National Research Fo undation (NRF), two A-rated scientists and five tier-one SARChi research chairs. The university has 18 international research partnerships and produces an average of 240 postgraduate research degrees every year.

Training

AgriFree State and the provincial government cooperated in 2021/22 to provide work experience opportunities to 117 unemployed graduates. Within the provincial government, 50 officials are working towards a National Diploma in Public Administration. Another 149 unemployed young people in three locations completed the Public Administration Learnership Programme. Several Sector Education and Training Authorities (SETAs) are involved in offering training in the Free State. merSETA (Manufacturing, Engineering and Related) provided R42.1-million to enable the provincial government to offer skills training to 650 young people. A total of 2 572 unemployed young people have benefited from skills development programmes supported by various SETAs.

The NQF 5 Building Inspectorate Programme offered by the LGSETA (Local Government) and the CUT will benefit 1 000 TVET college graduates. Furthermore, the CUT and National Home Builders Registration Council will train 695 people at the NQF 7 Level to increase the number of available trainers.

These training programmes are supported by placements with government departments and with private businesses: unemployed graduates are supported by the province on stints at companies and the programmes can include graduate internships, learnerships, short-skills programmes and workintegrated learning methods. The province’s road-building unit

ONLINE RESOURCES

Central University of Technology: www.cut.ac.za

Flavius Mareka TVET College: www.flaviusmareka.net

Free State Department of Education: www.education.fs.gov.za

University of the Free State: www.ufs.ac.za

has linked up with TVET college graduates to provide specific work training in that field.

Two-hundred tertiary bursaries will be provided by the provincial government in the 2022/23 financial year. Thus far, the provincial bursary programme has benefitted 749 students at South African institutions and a further 353 who studied abroad, at cost of R248-million.

A national policy of promoting training in critical trades has been adopted. Two of the three campuses of Flavius Mareka TVET College are designated Centres of Specialisation, for electrical work at Sasolburg and plumbing at Kroonstad. The Mphohadi campus of the college is also in Kroonstad.

The Free State has about 14 000 students at four Technical and Vocational Education and Training (TVET) colleges, taught by 400 lecturers. All of the colleges have multiple sites. Maluti TVET College in Phuthaditjhaba, for example, offers classes at eight sites. Motheo TVET College operates in Bloemfontein and Thaba Nchu, while Goldfields TVET College is headquartered in Welkom with some classes offered in Thabong and a satellite campus at Virginia (Meloding). ■

The Central University of Technology team was crowned Enactus National Champions for 2022 with a community farming project in Thaba Nchu.

Promoting and developing small business

The National African Federated Chamber of Commerce and Industry is active in the Free State.

NAFCOC’s main objective is to promote, unite and encourage the development of small business in South Africa in general and black entrepreneurs in particular, thereby drawing the majority from the peripheries of the consumption-based economy to the frontlines of production-based economic activity and decision making processes.

NAFCOC Free State responded in a special way to address the distress faced by members during lockdown. In 2020, the chapter:

• Lobbied for localised provincial funding during the lockdown.

• Campaigned for the regulation of township businesses (trading permits and adherence to bylaws).

• Assisted small and informal businesses in applying for Covid-relief funding.

• Worked with government on a programme to assist people living with disability to gain access to markets and procurement opportunities.

• Encouraged youth to be more involved in agriculture and try to find solutions to the lack of access to funding.

• Worked with Standard Bank to assist small enterprises to open business accounts.

Vision To be the leading voice of business in South Africa.

Mission To develop and promote economic growth among existing and new businesses.

Values Empowerment, dignity, integrity, hard work and commitment. ■

Contact details

Chairperson: Tshepo Matsaba

Tel: 083 485 7883

Email: matsabat@nafcocfs.org.za

National website: www.nafcoc.org.za

BUSINESS CHAMBERS IN THE FREE STATE

Free State Black Business Chamber

Contact: Mr Lucky Motsamai Cell: 066 204 5295

Free State Youth Chamber of Business and Commerce

Contact: Mr Sam Motlogeloa Cell: 081 442 8928

Mangaung Chamber of Commerce and Industry

Contact: The President Tel: +27 51 522 1710

Phenomenal Women

Contact: Ms Thato Mokhothu Cell: 071 383 4183

Vredefort Tourism Association

Contact: Ms Renee de Jong Cell: 071 448 4332

Email: info@fsbbc.co.za

Email: yccifs@gmail.com

Email: President@bcci.co.za

Email: vredefortinfo@gmail.com

NAFCOC members applying for permits.

Free State Provincial Government

A guide to Free State’s provincial government departments. Visit: www.freestateonline.fs.gov.za

Office of the Premier

Mr Mxolisi Dukwana

4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9300

Tel: +27 51 405 5496 | Fax: +27 51 405 4803

Website: www.freestateonline.fs.gov.za

Department of Agriculture and Rural Development

MEC: Mr Teboho Mokoena

Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360

Tel: +27 51 861 8509 | Fax: +27 51 861 8452

Website: www.dard.fs.gov.za

Department of Cooperative Governance and Traditional Affairs

MEC: Mr Ketso Makume

7th Floor, OR Tambo House, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9301

Tel: +27 51 405 5719

Website: www.cogta.fs.gov.za

Dept of Economic, Small Business Development, Tourism and Environmental Affairs

MEC: Mr Thabo Meeko

Bojanala Building, 113 St Andrews Street, Bloemfontein 9301

Tel: +27 51 404 9600 | Fax: +27 51 400 4732

Website: www.destea.gov.za

Department of Education

MEC: Mr Makalo Mohale

Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300

Tel: +27 51 404 8430 | Fax: +27 51 404 8269

Website: www.education.fs.gov.za

Department of Health

MEC: Ms Nokwanje Leeto

Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300

Tel: +27 51 408 1108 | Fax: +27 51 408 1950

Website: www.health.fs.gov.za

Department of Human Settlements

MEC: Mr Ketso Makume

7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets, Bloemfontein 9300

Tel: +27 51 405 3379 | Fax: +27 51 403 3699

Website: www.humansettlements.fs.gov.za

Department of Police, Roads and Transport

MEC: Ms Mcqueen Letsoha-Mathae

4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301

Tel: +27 51 409 8849 | Fax: +27 51 409 8864

Website: www.policeroadstransport.fs.gov.za

Department of Public Works and Infrastructure

MEC: Ms Kathleen Mahlatsi

Office 310, OR Tambo House, Cnr Markgraaff and St Andrews Streets, Bloemfontein 9301

Tel: +27 51 405 3909 | Fax: +27 51 405 4490

Website: www.publicworks.fs.gov.za

Department of Social Development

MEC: Ms Motshedise Koloi

Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300

Tel: +27 51 409 0555 | Fax: +27 51 409 0618

Website: www.socdev.fs.gov.za

Department of Sports, Arts, Culture and Recreation

MEC: Ms Limakatso Mahase

Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300

Tel: +27 51 407 3520 | Fax: +27 51 407 3541

Website: www.fssacr.gov.za

Provincial Treasury

MEC: Ms Gadija Brown

Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300

Tel: +27 51 405 4229 | Fax: +27 51 405 4152

Website: www.treasury.fs.gov.za