Limpopo Business 2013
The 2013 edition of Limpopo Business is the seventh edition of this highly successful publication that since its launch in 2007 has established itself as the premier business and investment guide to the Limpopo Province. Limpopo Business is unique as a business journal that focuses exclusively on Limpopo.
limpopo Business the guide to Business and Investment in limpopo Province ERVICE DELIVERY IMPROVEMENT PLAN 2009/2012 www.limpopobusiness.co.za | www.frontiermarketnetwork.com 2013 edition contents contents LIMPOPO business 2013 edition Published by Global Africa Network (Pty) Ltd 9 10 16 18 26 36 Introduction Foreword9 Limpopo Business is a unique guide to business, investment and tourism in Limpopo. Special features Regional overview of Limpopo Province Limpopo’s fruit and vegetables are exported in large volumes, while the platinum and coal sectors still have potential for growth. 10 Limpopo’s towns are growing fast Platinum mining and energy projects are driving development. 16 De Hoop Dam brings life to vast region Steelpoort is set to become a ‘second Rustenburg’. 18 Medupi Power Station A pressure test has been done and coal has been delivered – the world’s fourth-largest plant is gearing up to start delivering power. 26 Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. 30 Destination Limpopo Tourism36 Limpopo is targeting regional tourism. Limpopo business 2013 2 contents Economic sectors 48 53 56 69 76 79 86 Agriculture48 Limpopo is a national leader in fruit exports. Food and beverages Limpopoâ€™s extensive agricultural production feeds a strong food and beverages sector. 53 Mining56 Limpopo has vast reserves of coal and platinum. Engineering Mining is the key driver of engineering activity in Limpopo. 69 Transport76 A new heavy rail line may be built to carry coal from the Waterberg district. Water79 Major and minor schemes are underway throughout Limpopo. Energy82 New uses for platinum are being found in the energy field. Media86 Limpopo residents have many choices when it comes to newspapers and radio stations. Technology88 Limpopo is looking to technology for solutions in several sectors. Banking and financial services Technology is making banking easier for people in rural areas. 90 Development finance and SMME support Limpopo is a priority region for the Industrial Development Corporation. 98 Limpopo business 2013 4 “IT’S ALL ABOUT GETTING THE JOB DONE” THE NEW F-SERIES BACKHOE LOADERS GET MORE FLEXIBILITY, INCREASED PRODUCTIVITY AND GREATER EFFICIENCY FROM THE NEW CAT® F-SERIES BACKHOE LOADERS. The range of improvements on the F-Series include: • extended bucket reach • integrated load-sensing hydraulics • improved visibility • reduced fuel consumption. Get the job done with the new Cat® F-Series backhoe loaders. For more information contact our call centre on 0800 21 22 48 or visit www.barloworld-equipment.com Follow us on Facebook Barloworld Equipment Southern Africa Follow us on Twitter @Barloworldequip contents 112 122 128 15 0 50 km Beitbridge Education112 Limpopo’s tertiary institutions are doing practical research. Government South African National Government An overview of South Africa’s national government departments. 122 Limpopo Provincial Government A guide to Limpopo’s provincial government departments. 128 Limpopo Local Government A guide to the district and local municipalities in Limpopo. 136 ZIMBABWE Reference MOZAMBIQUE 0 25 miles Evangelina Musina Pafuri Alldays Tshipise Tom Burke Waterpoort Oorwinning Makhado Thohoyandou R81 Kruger Park N11 e Christo Senwabarana N1 National Steilloopbrug Giyani Sector contents 46 Morebeng R81 Gilead Modjadjiskloof Groesbeek Seshego Tzaneen Gravelotte Phalaborwa Mokopane POLOKWANE r Zebedelia Ofcolaco R40 N1 Mookgophong Lebowa Kgomo Hoedspruit Index144 Maps Limpopo locator map Limpopo regional map Limpopo municipalities 13 15 138 Crecy Klaserie la-Bela Modimolle N11 Burgersfort Marble Hall Pilgrim’s Rest Graskop Groblersdal Lydenburg Mpumalanga Sabie Hazyview Gauteng Stoﬀberg White River Limpopo business 2013 6 PLATINUM NO MATTER HOW VALUABLE A RESOURCE, OUR PEOPLE WILL ALWAYS BE WORTH MORE. SO TO ADDRESS A NEED FOR SUSTAINABLE HOUSING, OUR PLATINUM BUSINESS PARTNERED WITH THE DEPARTMENT OF HUMAN SETTLEMENTS TO PROVIDE 20 000 HOUSES FOR OUR EMPLOYEES IN LIMPOPO AND NORTH WEST. WITH OUR INVESTMENT OF MORE THAN R1.4 BILLION, OUR PLATINUM EMPLOYEES WILL BE ABLE TO ENJOY THE COMFORTS OF HOME – LIKE PORTIA MONEBI, A MINER AND NOW A PROUD HOMEOWNER. WE ARE IMPROVING OUR PEOPLE’S LIVING CONDITIONS AND SUPPORTING THE NATIONAL HOUSING POLICY. IT IS ANOTHER PARTNERSHIP TURNING RAW MATERIALS INTO BUILDING MATERIALS. PORTIA MONEBI Homeowner, North West Province FIND OUT MORE AT GETTHEFULLSTORY.CO.ZA PRODUCING SOMETHING MORE PRECIOUS THAN PLATINUM: HOMES Real Mining. Real People. Real Difference. credits Limpopo business 2013 www.limpopobusiness.co.za Limpopo Business is published by Global Africa Network (Pty) Ltd Editorial & production Publisher Editor Research and writing Creative director DTP operator Assistant editor Production assistant Chris Whales Karen Kühlcke John Young Ian Jamieson Colin Carter Katie Reynolds Anjé Robberts ISSN 1993-0119 Advertising Sales director Mark Leven-Marcon Key accounts manager Loudon Cito Advertising representatives Action Africa, Colleen La Gorce, Debbie Bender-Overmeyer, Jeremy Petersen, Nathalie Horswell, Rashaad Essop, Shiko Diala and Veronica Dean-Boschoff. Sales support manager Zenobie Knox Sales support assistant Nadia Dicks Managing director Clive During Financial controller Brett Watson Administration and accounts Charlene Steynberg, Natalie Koopman Distribution Lizé Fourie Printing CTP Administration Distribution Limpopo Business is distributed internationally on outgoing and incoming trade missions, through the Limpopo Economic Development Agency (LEDA); to 115 foreign offices in South Africa’s main trading partners around the world; at top international trade fairs; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, companies, major stores and business-class lounges. Member of the Audit Bureau of Circulations Published by Global Africa Network (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales, Richard Pembroke Physical address: 3rd Floor, Sunclare Building, 21 Dreyer Street, Claremont 7700, Cape Town, South Africa Postal address: PO Box 44573, Claremont 7735, South Africa Tel: +27 21 657 6200 • Fax: +27 21 674 6943 Email: firstname.lastname@example.org • Website: www.gan.co.za Copyright Limpopo Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Disclaimer While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Eastern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information. Photo credits Photographs: MediaClubSouthAfrica.com, Dept of Water Affairs, Flickr, Palabora Mining Company, Anglo American, Impala Platinum, SA Tourism, Limpopo Dept of Tourism, Greenway Farms, Khoroni Hotel, Stock.xchng, Exarro, Mall of the North, Geoff Brown, Philip Mostert, Morguefile, Cranbrook Limited. Cover photographs: (De Beers Venetia mine) Philip Mostert, (workers) Anglo Platinum, (tea, tomatoes) Veer, (baobab) Dreamstime, (dam) DWA, (leopard) iStockphoto, (ore truck) Anglo American. Limpopo business 2013 8 foreword Limpopo Business A unique guide to business, investment and tourism in Limpopo. T he 2013 edition of sectors (see sector index on Limpopo Business is the p47). Special features in this seventh edition of this issue focus on the two megahighly successful publication developments underway in THE GUIDE TO BUSINESS AND INVESTMENT IN LIMPOPO PROVINCE that since its launch in 2007 the province – the Medupi has established itself as the Power Station (p26) and the De Hoop Dam (p18), as well as premier business and investthe boom towns of Lephalale ment guide to the Limpopo and Burgersfort (p16). Province. Limpopo Business is Global Africa Network unique as a business journal (www.gan.co.za), the pubthat focuses exclusively on lisher of Limpopo Business, Limpopo and that also carspecialises in business-tories full Audit Bureau of Circulations (ABC) certification, business print and electronic meaning its print run and circupublications, producing a lation of 15 000 copies is indeseries of officially endorsed, pendently audited and verified. region-specific, annual print Limpopo Business was launched as a print journals. Every province in South Africa is journal to meet the need for a comprehen- now covered by this unique range of joursive and well-researched business guide nals: Northern Cape Business , Free State to the province. A number of complemen- Business, Western Cape Business, KwaZulutary electronic features have subsequently Natal Business, Gauteng Companies, Eastern been introduced to give participants in and Cape Business, Mpumalanga Business and North readers of the journal a wider range of com- West Business. A national business guidebook, munication options. These include the website, South African Business, was added to the stable www.limpopobusiness.co.za, which includes an in 2011. (See www.gan.co.za to order copies of online record of all of the content from the print these journals.) journal; and an e-book version available through Global Africa Network thanks the dedicated a hyperlink on the website’s home page. sales team and the professional and committed New for 2012 was the online platform Frontier writers, editors and designers who worked Market Network (www.frontiermarketnetwork. so hard to produce this edition of Limpopo com), a business network for fast-growing Business. We thank the Limpopo provincial ‘frontier’ markets, which builds on the offering of government departments, municipalities, comour popular TradeInvest websites. The commu- panies, parastatals and other organisations that nity comprises companies, government organisa- provided us with information and supported tions and individuals involved in doing business, this undertaking. investing, promoting or supporting deal transacChris Whales tions in rapidly developing economies. The 2013 edition of Limpopo Business Publisher, Global Africa Network includes a well-researched and up-to-date Email: email@example.com economic overview of the province (see p30) www.limpopobusiness.co.za and detailed overviews of the region’s major www.gan.co.za LIMPOPO BUSINESS SERVICE DELIVERY IMPROVEMENT PLAN 2009/2012 www.limpopobusiness.co.za | www.frontiermarketnetwork.com The Heartland of Southern Africa - development is about people! 9 2013 EDITION limpopo business 2013 Limpopo province to national gross domestic product (GDP) is a respectable 7.2% but, as the National Development Agency wrote in 2009, ‘much more still needs to be done to improve the quality of life’ for many of the poor people living in the province. This remains true today. by John Young The non-delivery of school textbooks in 2012 put the province in the national spotlight for the wrong reasons. National government impopo is strategically located near to intervened in Limpopo in 2012, sending a team the economic heartland of South Africa of administrators to sort out problems in a (Johannesburg is 300km from Polokwane), number of provincial government departments. and on the N1 highway connecting South Good news for the province came from the Africa to its neighbours in the Southern public entity, Trade and Investment Limpopo African Development Community to the north (TIL). As of January 2012, TIL reported tracked through Zimbabwe. Polokwane, the provin- investment into the province of R7.8-billion, cial capital, has an international airport and including: there are a further two regional airports at • R1.2-billion in foreign direct investment Hoedspruit and Phalaborwa. The rail network • R1.5-billion in local investment is mostly devoted to getting the products of • R200-million in expansions • R4.8-billion in capital expenditure by the province’s many mines to the coast. Limpopo Province’s landmass of 125 755km government accounts for 10.3% of South Africa, and the A further R1-billion of investment was provincial population of 5.5 million repre- retained in the province because TIL intersents 10.4% of the national population. As a vened to resolve issues relating to water largely rural province, Limpopo’s contribution and power services. Limpopo’s fruit and vegetables are exported in large volumes, while the platinum and coal sectors still have potential for growth. Huge infrastructure projects could transform the regional economy. a regional overview of L special feature Massive mining projects account for much of the province’s revenue. Manufacturing in the province is centred on mining areas (smelters and refineries), agricultural estates (juices and concentrates) and Polokwane (which has a strong suit in food and beverages). Coal and platinum mining are the two components of the prominent mining sector that have the greatest potential for growth. Mining contributes 27% to provincial gross domestic product (GDP). Within Limpopo, approximately 400 prospecting and mining licences have been granted across a wide range of minerals. These include the largest diamond mine in South Africa, the biggest copper mine in South Africa, the biggest open-pit platinum mine in the country and the biggest vermiculite mine in the world. The province has 41% of South Africa’s platinum group metals (PGMs), 90% of South Africa’s red-granite resources and approximately 50% of the country’s coal reserves. Antimony, a highly strategic mineral found in large quantities in China, is another of Limpopo’s major assets. Two of the largest engineering projects in the history of South Africa are nearing completion in Limpopo, and have the potential to boost the region’s economy enormously. Limpopo business 2013 The power station at Medupi will add 4 764 megawatts to the national grid and has already given the local economy of Lephalale a massive boost. The huge De Hoop Dam, which forms part of the Olifants River Water Resources Development Project (ORWRDP), is vital to the province’s future. Access to water is one of the key elements in any discussion of economic growth in Limpopo Province, especially as the mining and agricultural sectors are so important. In terms of the ORWRDP, some 23 platinum mines stand to benefit. In agricultural terms, Limpopo is very rich. Vast quantities of fruit and vegetables are exported from the province. Almost every kind of subtropical fruit flourishes in the eastern half of the province. Abundant fields of avocados, mangos, paw-paws, litchis and tomatoes stretch as far as the eye can see. Cotton and potatoes are other major products, while citrus and tea plantations are prevalent in the central and northern areas. Livestock raising and hunting are carried out in the drier western and northern regions. Several livestock farms have been converted to private game farms in recent years, mirroring a national trend. 12 photo: Anglo american special feature ZIMBABWE MOZAMBIQUE BOTSWANA Limpopo NAMIBIA Mpumalanga North West Gauteng SWAZILAND Free State Northern Cape LESOTHO KwaZuluNatal Eastern Cape Western Cape Regions Limpopo has five district municipalities: Capricorn District Capricorn is the economic centre of Limpopo, Mopani District with the provincial capital Polokwane contrib- Giyani is the administrative capital of the district and is key to the local economy. The uting 13% of the provincial GDP. Polokwane has a number of manufacturing public sector is one of the largest employers concerns. The Zebediela Citrus Estate is one of in the district. The key sectors are agriculture the biggest citrus estates in South Africa, and and mining. Mopani has an established foodthe cultivation of potatoes and tomatoes is done manufacturing industry, in canned, preserved on a large scale in the district. and dried-fruit production and vegetable juices. Phalaborwa is the gateway to the Kruger Greater Sekhukhune District National Park. It has a good airport and is a Government is the largest employer in this tourism hub. Palaborwa Mining Company (Palsouthern district, followed by agriculture and amin) is the major economic driving force in the hunting. The vast majority of households are area. State-owned phosphate and phosphoric rural (94%), with a poverty rate of 69.9%. acid producer Foskor is another major employer. Groblersdal is the district capital. The regionâ€™s Sasol Nitro Phalaborwa produces phosphoric fertile lands produce maize, tobacco, peanuts, acid and deflourinated acid. vegetables, sunflower seeds and cotton on a The Marula Festival is held in Phalaborwa in large scale. Agriculture makes up 25% of the February every year. local economy, with the value of the regionâ€™s gross production estimated at R250-million. Burgersfort is an important town because of platinum mining. 13 limpopo business 2013 special feature Limpopo Province is growing increasingly popular with local and international tourists. A subtropical climate and fertile soils combine to make greater Tzaneen very productive in terms of fruit and vegetables. Limpopo’s secondmost populous city has a population of 80 000. The Letaba Valley produces a large proportion of South Africa’s mangos, avocados and tomatoes. Forty sawmills operate in the area, drawing on the heavily forested hills around the city. One of the major road links between Gauteng and the Kruger National Park also passes through the area, providing excellent links for tourism and business. District Municipality and the University of Venda. The Tshivhase tea estates are not far from the town and a new project is cultivating exotic trees and ornamental shrubs. The town is on the Ivory Route and hosts the Venda Cultural Museum. Other attractions include an ancient baobab tree, the Dzata Ruins, the Museum of the Drum, the mystical Lake Fundudzi and Nwanedi Provincial Park. Waterberg District The mining sector is the largest contributor to regional GDP, while agriculture is also signifiVhembe District cant. Several towns in the district are located The Vhembe District borders on both Zimbabwe in the mineral-rich Bushveld Igneous Complex. and Botswana. The district’s administrative The district also features the riches of the capital is Thohoyandou. Vhembe’s vast bush- Waterberg Coal Fields, iron ore (at Thabazimbi) veld supports commercial and game farming and tin and platinum at Mookgophong. The and the district has considerable cultural and town of Lephalale is at the heart of the region’s historical assets. The major economic sector is coal-mining and power-generation sectors. agriculture, both in terms of commercial and The area around Mokopane is one of the richest subsistence farming. Game farming is a growing agricultural zones in South Africa, producing subsector, as is eco-tourism. De Beers’ Venetia wheat, tobacco, cotton, beef, maize and peanuts. Mine, situated just west of Musina, is South The bubbling hot springs of Bela-Bela mark it as Africa’s largest diamond producer. a popular tourism destination, and the district Situated in the north-east of the province, offers many luxury golf estates. fairly close to the Punda Maria Gate of the Kruger National Park, Thohoyandou is the administrative centre of Thulamela Local Municipality, Vhembe Limpopo business 2013 14 photo: South african tourism/flickr LIMPOPO PROVINCE 0 25 miles Evangelina Pafuri Alldays Waterpoort Makhado Senwabarana Steilloopbrug Morebeng Gilead Groesbeek Mokopane Zebedelia N1 R81 N1 R81 N 0 50 km Beitbridge Musina ZIMBABWE Motorway Palapye Tshipise Oorwinning Thohoyandou Main Road Railway Mahalapye N11 Tom Burke Kruger National Giyani Park MOZAMBIQUE BOTSWANA Monte Christo Lephalale Modjadjiskloof Seshego Tzaneen Gravelotte Phalaborwa Ofcolaco Lebowa Kgomo Crecy 15 Mookgophong Modimolle N11 Elmeston POLOKWANE R40 Sentrum Vaalwater Thabazimbi Hoedspruit Klaserie Burgersfort Marble Hall Groblersdal Lydenburg Pilgrimâ€™s Rest Graskop Sabie Hazyview Bela-Bela North West Gauteng special feature Sun City StoďŹ€berg Mpumalanga White River limpopo business 2013 special feature Limpopo’s towns are growing fast Platinum mining and energy projects are driving development. T wo of Limpopo’s towns feature on the South African Cities Network list of the fastest-growing urban areas in the country. Polokwane is ranked first in terms of economic growth for the period 2005-2010 (5.5%) and Lephalale (3%) is 14th. And there is no question that the burgeoning developments around Burgersfort/Steelpoort in the east of the province will put that area on the list very soon. The CEO of property The Mall of the North is a massive new development. developer Cranbrook Limited, Dirk Conradie, says, ‘Burgersfort and Lephalale’s expected growth in the short to Polokwane has good hotel and conferencing medium term is exponential, and both will soon facilities and is well situated as a starting point be transformed from small towns to modern for tourism trips into the province and beyond. African cities.’ Unusually, the city has its own game reserve on 3 200 hectares of semi-bushveld land. Several annual festivals are held in PolokPolokwane wane, including the Mapungubwe Arts Festival. The centrally located city of Polokwane is the The Easter celebrations of the Zion Christian capital of Limpopo. Located on the Great North Church at nearby Moria attract up to a million Road (N1 highway) and almost equidistant people every year. The retail sector has recently been strengthfrom the high-density population of greater Johannesburg and the neighbouring countries ened by the completion of the Mall of the of Botswana, Zimbabwe and Mozambique. North. This R1.2-billion project offers 75 000 Polokwane’s recently upgraded international square metres of rentable space, and will help airport is ideally situated. to keep in Limpopo the estimated R300-million Polokwane is the province’s main centre for that commuters spend annually in Pretoria industry, commerce, education and medical services, and Johannesburg. The development was put and it hosted matches in the 2010 Soccer World Cup. together by Resilient Property Investment Large industrial concerns such as Silicon Fund (Resilient), the Moolman Group, and Smelters (one of the biggest of its kind in the Flanagan Gerard. The Moolman Group is also world) and a big brewery run alongside at least responsible for a Makro outlet that went up in 600 smaller industrial enterprises. Polokwane in 2011. Limpopo business 2013 16 photo: Mall of the northedibeng Eco Estate, Cranbrook Ltd. special feature between Moolman Group, Flanagan Gerard, and Uniqon Wonings) Eskom’s huge new Medupi Power Station at • Waterberg Security Village, units priced from R545 000 (Central Developments) Lephalale is the major development in the province’s western region. It is being built next The town has a tarred airfield, three hospitals to the existing Matimba Power Station. and the Lephalale FET College. Located on the Thousands of workers have moved to Lepha- Mokolo River, Lephalale is near to the D’Nyala lale and more are on the way as the power plant and Mokolo nature reserves. Game farms and rises from the ground. Major companies such as hunting are growing sectors of the tourist Murray & Roberts, Grinaker-LTA and Sasol are industry in the region. committing thousands more staff members to work in the area. Billions are being spent by Burgersfort Exxaro to mine coal to supply the plant. Eskom reports that the project will contribute Several platinum producers are increasing pro0.34% to South Africa’s gross domestic product. duction volumes in the east of the province Lephalale’s GDP will increase by 95%. The popu- around Burgersfort, known as Platinum City. lation of the area is expected to double in 10 Property prices have soared in the area in years, and the provincial government has com- recent years. The Dikolong Spatial Development pleted a Lephalale Integration Report, which Initiative corridor development is intended to predicts that the town will be a major city by further enhance economic growth, and the huge the year 2030. De Hoop Dam is certain to have a big impact. Burgersfort is on the Watervals River and near Among major developments are: • Hangklip Industrial Park, between the new to the confluence with the Steelpoort River. Good power station and the existing Matimba soil in the region also allows for fruit farming Power Station (Professional Development (mostly grapes and citrus), grain, cotton and Consortium Holdings and Pam Golding tobacco planting and the commercial cultivaProperties) tion of several varieties of vegetable. • Ledibeng Eco-Estate, 2 362 stands for resiCity Press reported in 2012 that three new dential and business use (Cranbrook Limited) shopping malls have been constructed, with • Silverleaf Developers is spending plans advanced for a private hospital, a casino R600-million on a 42 000m2 shopping mall and two private schools. in Lephalale (Silverleaf is a joint venture Resilient is the lead developer in the Burgersfort Mall, which has the potential to become a 475 000m2 project. Cranbrook Limited has a number of developments underway in Burgersfort: • Spekboom River Estate • Motaganeng Lifestyle Development and Light Industrial Park is a R1.5-billion multi-purpose property development. It will have more than 900 residential units and a mix of commercial and industrial sites. Lephalale photo: cranbrook limitedLedibeng Eco Estate, Cranbrook Ltd. Ledibeng Eco-Estate in Lephalale. 17 limpopo business 2013 special feature De Hoop Dam brings life to vast region Steelpoort is set to become a ‘second Rustenburg’. At full capacity, the De Hoop Dam will store 347-million cubic metres of water. W ithout water, there is no life. This is will all expand and new ones are planned. All also true of mining, the backbone of of this needs water. the Limpopo economy. The De Hoop Martin told construction industry magazine Dam is the biggest dam South Africa has built built that he thinks the dam will be filled in less in decades, and will change the lives of tens of than four years, although this will depend on rainfall and run-off volumes. thousands of people. Steelpoort in south-eastern Limpopo was for At full capacity, the De Hoop Dam will store many decades a small village, famous only for 347-million cubic metres of water. In terms of its association in oral history with the founding the Olifants River Water Resources Development of the Bapedi nation and as the scene of some Project (ORWRDP), which is expected to cost skirmishes in the Anglo-Boer War. about R20-billion altogether, the De Hoop Dam According to Martin Knoetse of the National will link up with the Loskop Dam (361-million Department of Water Affairs (DWA), in five years cubic metres) and the Flag Boshielo Dam (180time, Steelpoort will become a ‘second Rusten- million cubic metres). The De Hoop Dam will burg’ as a result of the delivery of water from have cost just over R3-billion when complete. De Hoop. Like Rustenburg, the area around The Steelpoort River is a tributary of the OlifSteelpoort is rich in minerals. The 10 mines that ants River, which is the key component of the already operate in the vicinity of Steelpoort catchment area that serves eastern Limpopo Limpopo business 2013 18 photo: department of water affairs special feature When complete, the dam will supply water to more than 250 000 people, as well as the local mining industry. and Mpumalanga. The Olifants River System (and associated systems such as the Blyde Irrigation Scheme) is part of the region that is South Africa’s greatest producer of citrus and subtropical fruits. The importance of a steady supply of water to the mining sector (in the area south and east of Polokwane) cannot be overstated in assessing growth prospects for this sector. Some 23 platinum mines will ultimately benefit from the ORWRDP. The Sekhukhune District is predominantly rural and its citizens are poor. The dam will supply water to more than a million people living on the Nebo Plateau and Mokopane, Polokwane and Lebowakgomo. National Minister of Water and Environmental Affairs Edna Molewa told Sekhukhune residents in 2012 that the dam project had created: • 1 150 construction jobs • 528 road realignment jobs • 250 housing construction jobs About 80% of the workforce was local, and she said that a further 5 000 jobs will be created in the area in the future because of new industries being established. In the short term, the construction of the Bulk Distribution System to get the water from the dam to different parts of the country will create yet more employment. A concrete-placement record was broken on the De Hoop Dam site in 2011, when 103 000 cubic metres of concrete was placed in a period of 21 days, using a new roller-compacted concrete mix. The product, an immersion vibrated rollercompacted concrete (IVRCC) mix, is going to be applied at building sites around the world, according to a report in Engineering News. It will have a South Africa label, and is likely to be popular because the product’s impermeability means that a concrete skin is no longer needed. A local team of contractors developed the IVRCC with the help of a Spanish specialist. Fly ash is increasingly being used to replace the cement content of concrete as it is more environmentally sustainable. A particular brand of fly ash, DuraPoss Pro, saves about one ton of CO₂ emissions for every ton of fly ash used in the binding process. Ash Resources is the company supplying the fly ash. Ash Resources has played a major role in the De Hoop Dam construction project. The company is a partnership between Lafarge South Africa (70%), Ash Resources staff (5%) and a local company owned wholly by women, Peotona (25%). The main road contractor is a joint venture between Hillary, Liviero and Eigenbau. The main civil contractor for the dam is DWA Construction West, and subcontractors B&E International (fine and coarse aggregate supply, crusher run and riprap), Limpopo PR & Construction (drilling and blasting) and Twin Cities (cement supply). Companies such as Vela VKE Construction have been active in supplying roads around the new dam. Following the contours of the Sekhukune Mountains, the road construction process included crossing three rivers and some very steep gradients. photo: department of water affairs 19 limpopo business 2013 focus Record-breaking construction effort at De Hoop Dam The Department of Water Affairsâ€™ dedicated construction unit, Construction West, has made significant progress in the Olifants River Water Resources Development Project (Phase 2A) underway in Limpopo. De Hoop Dam will be one of the biggest dams in South Africa with a total concrete volume of more than one million cubic metres. The Chief Directorate: Construction Management is subdivided into different directorates The Department of Water Affairsâ€™ construction spread over the entire country, and employs unit was established in the early 1930s and has a total workforce of approximately 5 000, been functioning efficiently ever since. The key consisting of more than 90% black employees, focus areas include: the construction of large 20% female employees and 40% youth. The dams, rehabilitation of existing dams, bulk- skills available in the construction management water infrastructure, canals, reservoirs, pump component include: programmers and planstations, water-purification works, river-gauging ners, quantity surveyors, geotechnical specialstructures, roads, bridges as well as general ists, contract administration specialists, design building work. specialists, environmental specialists as well as Overview Limpopo business 2013 20 focus with this as a catalyst, to economically supply water to towns, industries and poorly serviced communities in the Sekhukhune area. The De Hoop Dam is the only feasible option to supply water to the Nebu Plateau, where about 800 000 people reside. Olifants River Water The construction of De Hoop Dam was then Resources Development Project approved by Cabinet in June 2004. ApplicaThe Olifants River Water Resources tions for environmental authorisation started Development Project (ORWRDP) consists of in 2004 and initial planning and investigations a number of phases. Phase 1 was the raising also commenced. Towards the end of 2005, of Flag Boshielo Dam that was completed in the Department of Water Affairs: Engineering 2006. Phase 2A is the construction of the new Services started with the design process. De Hoop Dam that is currently underway in the The dam wall is being constructed immediately Limpopo Province. Phases 2B to 2H include downstream of the confluence of the Steelpoort bulk-water infrastructure consisting of pipe- and the Klip rivers, a tributary joining from the lines, reservoirs, pump stations, balancing eastern side. dams and river-gauging structures. Provision has also been made for the potential The purpose of the project is mainly to to release water for ecological reasons in the unlock economic potential and to improve Steelpoort and Olifants rivers. the prospects for social development within De Hoop Dam will be one of the biggest dams in South Africa with a total concrete volume of Limpopo Province. more than one million cubic metres. De Hoop Dam Project (Phase 2A) Due to the high construction costs and the The President, in his 2003 State of the Nation timeframes associated with constructing speAddress, announced the construction of a dam cifically mass-gravity water-retaining structures, in the Olifants River system to unlock the rich the use of RCC (roller-compacted concrete) was mineral deposits in the Limpopo Province and, developed and has been used extensively by legal specialists. The departmentâ€™s largest construction activity is currently in progress in South Africaâ€™s Limpopo Province, where construction of De Hoop Dam is well underway. Immersion vibration of roller-compacted concrete. 21 Limpopo business 2013 focus The contractor has set a number of records for the volume of concrete placed in a month. the Department of Water Affairs for the past 10 to 20 years. Due to the continuous placement of RCC, the total construction time is reduced, which in turn reduces the total construction cost of the project. illegal industrial action was experienced for more than two months. By November 2012, the project was approximately 90% complete. Construction of the dam provided employment opportunities for more than 1 100 people, 80% of whom were local labour. A section of the provincial road between Middelburg and Burgersfort was submerged by the new De Hoop Dam and therefore required realignment. The realigned route of about 20km passes the new dam on the western side and Main features of De Hoop Dam Gross storage capacity (million m3) Catchment area (km2) Approximate length (m) Approximate height (m) Total excavation â€“ dam footprint (m3) Total excavation â€“ quarry (m3) Total estimated concrete volume of the dam (m3) 347.4 2 865 1 017 88 415 000 1 300 000 1 100 017 Construction of the dam Site establishment for the dam commenced in June 2007, the first-stage river diversion was in place in December 2007, and the first concrete placed in June 2008. The first-stage river diversion consisted of earth-fill embankments (diversion channels) constructed towards the left of the outlet works and spillway, allowing for construction activities to commence in the position of the outlet works and a section of the spillway. The second-stage river diversion was in place in July 2009, and consisted of a diversion culvert constructed immediately next to the outlet works and allowing for construction activities to commence towards the spillway and left-bank vicinity. During October 2012, successful third- and fourth-stage river diversion was achieved. The river flow is therefore currently under full control of the outlet works, with the structure ready for impoundment and storage of water. Severe Limpopo business 2013 22 focus includes two bridges over the Steelpoort River. Numerous access roads were also required. Numerous challenges have been experienced during the construction process. Some of these challenges include: a deeper excavation requirement due to geological reasons, optimising the concrete-mix development in order to ensure international best practice, as well as the procurement of construction materials and establishment of a quarry (sufficient in size) to provide for the vast amount of required aggregate. De Hoop Dam is part of governmentâ€™s Accelerated and Shared Growth Initiative for South Africa (AsgiSA) and is considered a flagship project for the Department of Water Affairs, with the departmental construction unit, Construction West, responsible for construction of the dam. The design of the dam was also conducted De Hoop Dam: upstream view. 23 Limpopo business 2013 focus Construction of the outlet works in progress. When completed, the dam will be one of the largest in the country. Limpopo business 2013 24 focus Concrete placement in progress. in-house by the Department’s Chief Directorate: Engineering Services. In order to keep South Africa at the forefront of roller-compacted-concrete dam construction, the contractor utilised international expertise in order to assist with concrete-mix development. This has resulted in the department becoming a world leader in RCC construction technology as it effectively developed immersion-vibrated roller-compacted concrete (IVRCC). IVRCC is a high-paste concrete mix that can be placed by means of large equipment such as bulldozers and vibratory rollers (10T), but can also be vibrated against the formwork by means of hand-held poker vibrators. This eliminates the need for ‘skin concrete’ as is normally the case in the construction of RCC dams worldwide. The development of IVRCC is recognised throughout the world of RCC as a ground-breaking achievement and will change RCC dam construction as we know it. Further to this achievement, the contractor attempted to break the South African record for the volume of concrete placed in a month during November 2010. The previous record of 40 600m3 was bettered during this record attempt, and a total concrete volume of 103 000m3 was placed in 21 days. A further attempt to break this record was conducted during November 2011 and proved to be extremely successful. A total concrete volume of 131 000m3 was placed in 28 days. Concrete placement of this magnitude has never been attempted in the past and it is believed that this record will stand for the foreseeable future. Conclusion The Department of Water Affairs’ construction unit strives to ensure a better life for all and to alleviate water shortages in South Africa as well as to reduce poverty in the local and poorly serviced communities. De Hoop Dam Construction West Tel: +27 13 260 1110/1 Website: www.dhcw.co.za 25 Limpopo business 2013 special feature Medupi Power Station A pressure test has been done and coal has been delivered – the world’s fourth-largest plant is gearing up to start delivering power. T wo major milestones were reached in the long-running narrative of the construction of the Medupi Power Station in western Limpopo in the course of 2012 – one of the plant’s boilers was subjected to a pressure test, and the first coal was delivered to the site. Work on Medupi began in 2007, and South Africa’s need for new electrical power has grown considerably since then. Medupi Power Station will add 4 764 megawatts of power to the national grid. Medupi is being constructed next to the existing Matimba Power Station in Lephalele, near the western border of Limpopo. The R120-billion power station has a planned operational life of 50 years and will comprise direct dry-cooled units such as those already in use at neighbouring Limpopo business 2013 Matimba. The dry-cool design requires less water than other designs, an important consideration in the dry north-west. In June 2012, President Jacob Zuma was on hand when the first boiler’s 600km of steel piping was subjected to a pressure test (Mail & Guardian). Eleven more boilers must be constructed and tested before the plant can reach full capacity. One unit is expected to be operational by the last quarter of 2013, with the other units coming on stream at eight-month intervals thereafter. The first coal was delivered to the massive site in October 2012, by a specially constructed conveyor belt that transported the feedstock from Exxaro’s Grootgeluk mine more than 5km away. The same mine sends coal 7km to the nearby Matimba Power Station. 26 photo: philip mostert special feature The coal stacker at Medupi is automated, and the system can deliver coal at a rate of 4 000 tons per hour. As of July 2012, the construction site was employing 17 644 workers, with nearly 50% of them drawn from Lephalale. Strikes hit the site in September, with subcontractors accused by workers of not complying with labour regulations. The impact of the construction process of Medupi on the town of Lephalale and the surrounding district has already been profound. In the longer term, every aspect of the economy of the north-west sector of the Waterberg District will receive a boost from the project: the number of children in schools, retail volumes, and services supplied to the increased population. Eskom and the consortium doing the bulk of work on the site have engaged the local community by joining the Lephalale Development Forum to decide on what projects should be done in terms of corporate social investment. In September 2012, 14 tenders were advertised in local newspapers for work on schools, crèches, community halls and home-based care centres (Mogol Post). The value of these investments is R28-million, most of which will be paid to local contractors. Eskom and Exxaro will spend about R150-million on building a new road in the area. Property developments are taking place in response to the influx of investment in the area. Ledibeng Eco-Estate, a development led by Cranbrook Limited, and the Hangklip Industrial Park are just two examples. A conveyer belt to the Medupi site. Alstom Power won the contract to supply and install the turbines at Medupi (and Kusile). ACTOM Protection & Control is supplying the protection equipment for the plant’s turbine generators, an R18-million contract. The contract for the steam generators (Hitachi Power) is worth R38-billion. The civil engineering is being done by the Medupi Power Station Joint Venture, including Grinaker-LTA and led by Murray & Roberts. Companies in the Murray & Roberts group operating at Medupi are Murray & Roberts Construction (formerly Concor, chimneys), Murray & Roberts Projects (working with Hitachi on the boilers), Genrec (structural steelwork) and Energy Fabrication (boiler ducting and bunkerplate work). Contracts Clyde Bergemann Africa (CBZ) is responsible Several of South Africa’s biggest engineering, for fly-ash handling and conditioning, together procurement and contracting (EPC) firms with 15% of the boiler-cleaning technology are involved in the Medupi project, many in contract at Medupi. CBZ is a subsidiary of Clyde consortiums and joint ventures due to the Bergemann Germany, which is a world leader in complexity and size of the tasks required. the field of cleaning technology and ash handling. The EPC contract for the low-pressure serOther contractors busy on the project include vices on the site was awarded to LP Services, led SPX Corporation (pulse-jet fabric filters, air preby Lesedi Nuclear Services, a company that is heaters, and the manufacture of pressure parts), part of the international group AREVA NP. Other GEA (design, manufacture, supply and erection members of the consortium are Industrial Water of the air-cooled condensers) and Afrimat, in Cooling (cooling systems) and Wetback Contracts partnership with local suppliers, Chobe Crushers, (fabrication and construction). a supplier of aggregate. photo: Exarro/geoff brown 27 limpopo business 2013 CRANBROOK LIMITED INFRASTRUCTURE DEVELOPMENT IN HIGH-GROWTH GEOGRAPHIES Cranbrook Limited was established in 2003 as Cranbrook Property Projects (Pty) Ltd. The Company procured tracts of land in Limpopo Province, attained development rights, taking the development process through detailed engineering design to the construction of infrastructure and housing within these projects. Our current developments in Limpopo consist of: • Spekboom River Estate – Burgersfort • Motaganeng Lifestyle Development – Burgersfort • Motaganeng Light Industrial Park – Burgersfort • Ledibeng Eco Estate - Lephalale These are all mature and current developments, providing, on an ongoing basis, property for sale and property assets for rental. The combination of the world recession, South African National Credit/Banking Act and changes to the South African Minerals and Petroleum Act forced permanent market changes within our industry. In order to maintain an optimal growth path the company adapted its strategies and structure with a strong focus on becoming a ‘Holistic Property Development Company in the South African Mining Sector’. The company’s refreshed Vision is to be the preferred property development supplier to the mining and supporting sectors within South Africa, into SADC and then Africa. With this focus on the future Cranbrook is ideally positioned to: • Optimise the upturn in the Resources Sector in Africa as predicted in 2013/2014/2015 by 70% of mining Executives. • Optimise the upturn in the Property Sector in South Africa as predicted in 2013/2014/2015 by those in the know for e.g. Prof Virully from UCT. The key is in the provision of a holistic property development solution, consisting of: • Technical Capability • Company Structure • Understanding Market Demand (mining and support sector) • Access to Financial Resources The established business model consists of: • Creating property/building stock for sustainable mining and support sector establishment • Selling of the property/building stock • Re-investing in rental income stock or sellable stock to the mining and support sector The Core Activities of the Company consists of: • Client Relationship Management at Senior Management, Regional Management and Operational Management level • Infrastructure • Top Structure development • Maintenance Positioning itself in terms of its competitive landscape the company’s key criteria include: • Holistic Solution Provider • A South Africa and Africa view • A Niche mining / support sector • A Strong property asset base • Correct soft skills (legal, engineering, financial, etc) • Sustainability (succession planning / corporate structure) Motaganeng Lifestyle Development The Motaganeng Lifestyle Development is situated in the Tubatse Municipality – Burgersfort. The development includes approximately 600 residential stands, 400 residential clusters, 50 light industrial stands, 10 office stands, a hospital stand (now owned by Netcare) and a large regional commercial stand. The development consists of Ext 34 and Ext 35 in Burgersfort and the infrastructure of the Motaganeng Lifestyle Development in Burgersfort was completed in 2008. Spekboom River Estate The Spekboom River Estate is situated in the Tubatse Municipality – Burgersfort. The development includes approximately 1 900 residential stands, a school and business stand and consists of seven extensions in Burgersfort. The infrastructure of the Spekboom River Estate Ext 52 in Burgersfort is complete and the extension consists of approximately 313 residential stands. Ledibeng Eco Estate The Ledibeng Eco Estate is situated in the Lephalale Municipality (Waterberg) – Lephalale (Ellisras). The development includes approximately 2 400 residential stands, 288 residential cluster units, three school stands and a medium sized commercial stand. The development consists of six extensions in Lephalale and the infrastructure of the Ledibeng Eco Estate Ext 70 and Ext 97 in Lephalale is complete (863 stands). MOTAGANENG SPEKBOOM Tel No: Fax No: E-mail: Website: +27 (0) 12 665 5308 +27 (0) 12 665 5611 firstname.lastname@example.org www.cranbrook.co.za Postal Address PO Box 14562, Clubview, 0014 Physical Address Greens Office Park, Charles de Gaulle Crescent, Highveld, 0014 LEDIBENG LIFESTYLE DEVELOPMENT Burgersfort R I V E R E S T A T E E C O E S T A T E Burgersfort Lephalale jhafrika LimpopoBus2013 special feature Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment. South Africa fact file Capital: Pretoria Population: 51.8 million Area: 1 220 813km2 GDP: R2 964-billion (2011) GDP growth: 3.1% (2011) Income per capita: R58 549 (2011) CPI: 6.1% y/y (April 2012) PPI: 6.6% y/y (April 2012) Unemployment: 25.5% (Q3 2012) Gini Index: 57.8 (2009 UN Report) Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 6.2 4.1 6.2 6.5 2.9 -6.3 4.0 4.6 2.7 Q2 5.7 7.4 6.7 3.1 4.5 -2.8 2.8 1.0 3.2 Q3 6.7 5.6 4.8 5.0 1.8 1.8 3.1 1.7 Q4 4.3 2.7 6.4 6.0 -1.7 3.5 4.5 3.2 Annual 4.6 5.3 5.6 5.5 3.6 -1.5 2.9 3.1 Gross domestic product South Africa’s real gross domestic product (GDP) growth slowed to a 2.7% increase on a quarteron-quarter seasonally adjusted annualised (q/q saa) basis – 2.1% year-on-year (y/y) in the first quarter of 2012 from 3.2% q/q saa (2.9% y/y) – in the fourth quarter of 2011 (Table 1). The largest industries, as measured by their nominal value added in the first quarter 2012, were finance, real estate and business services, making up 19.3% of the economy, and general government services making up 14.6%. The q/q saa changes in value added by the primary, secondary and tertiary sectors were -11.2%, 6.4%, and 3.0% respectively, during the first quarter of 2012. What is noteworthy, however, is that the mining sector – the number-one export industry in the country – declined by 16.8% q/q saa in the first quarter, due in part to a six-week illegal strike at Impala Platinum, the world’s secondlargest platinum miner. Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GDP (R-m) 1 020 007 1 168 699 1 260 693 1 415 273 1 571 082 1 767 422 2 016 185 2 262 502 2 398 155 2 661 434 2 964 261 GDP per capita (R) 22 899 25 831 27 631 30 297 33 176 36 844 41 525 46 072 48 318 53 088 58 549 Table 2: GDP and GDP per capita at current prices. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA limpopo business 2013 30 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction (contractors) Wholesale and retail trade, catering and accommodation Transport, storage and communications Finance and insurance, real estate and business services Personal services General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices Source: Statistics South Africa Value in millions (R) 63 984 2 260 381 357 756 78 532 120 420 386 430 220 060 565 224 183 493 434 224 2 670 504 293 757 2 964 261 % Real change from 2010 -.04 0.2 2.4 1.3 0.8 4.4 3.3 3.5 2.4 3.9 3.0 4.4 3.1 % of GDP 2.2 8.8 12.1 2.6 4.1 13.0 7.4 19.1 6.2 14.6 90.1 9.9 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Trade: imports and exports partners in April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade South Africa’s international trade has risen deficit in April 2011 to R36.5-billion, compared sharply over the last 10 years (Table 4). In with R7.5-billion in the first four months of 2011. 2004, the value of imports rose above that of A record R17.4-billion deficit was set in exports. Tables 5 and 6 show the largest import January 2009, but as exports began to improve, and export sectors respectively, for April 2012. so the deficits narrowed in 2009 to become Important import sectors in April 2012 were surpluses in 2010. South Africa recorded its first machinery (R15.9-billion), mineral products – annual trade surplus in seven years in 2010 of chiefly crude oil (R13-billion), transport equip- R4.8-billion, following a few stronger than ment (R10.9-billion) and chemicals (R5.4-billion). expected surpluses on the trade account during On the export side, the most important sectors the year. In 2012, however, the rise in the oil were mineral products, chiefly coal and iron ore price in the first few months, coupled with a (R14.8-billion), precious metals and diamonds sharp reduction in platinum exports, saw the (R10.2-billion), base metals (R7-billion) and non-SACU foreign trade balance firmly in the red. transport equipment (R4.6-billion). The old myth that a weaker rand leads to more Most of South Africa’s foreign trade takes place exports is once again disproved by the facts, as with Asia, the United States and Germany (Tables import growth was 23.5% in 2011, while export 7 and 8). In 2011, China, the United States and growth was 19.9% when the rand was weaker Japan were, in descending order, the country’s due to a R15-billion deficit. Prior to November top export markets, while top import-source 2011, when the rand had been stronger, export countries were China, Germany and the US. growth had exceeded import growth. In 2010, South Africa recorded a trade deficit of when the rand was strong because export growth R9.9-billion for its trade with non-Southern of 14.9% exceeded import growth of 8.1%, there African Customs Union (non-SACU) trading was a R4.8-billion surplus, the first annual surplus 31 limpopo business 2013 special feature Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Imports in R-m 147 356 187 608 216 033 275 427 258 839 306 927 351 665 465 040 561 194 727 632 541 173 585 219 722 637 Exports in R-m 165 555 210 373 251 330 314 102 275 581 296 246 331 405 396 529 491 253 663 099 513 864 590 207 707 511 Sector 1. Machinery, mechanical and electrical 2. Mineral products 3. Transport equipment 4. Chemical products 5. Base metals 6. Plastics, rubber 7. Textiles 8. Optical, medical, photographic 9. Foodstuffs, beverages 10. Vegetable products Total Value in R-m 15 903 12 991 10 880 5 420 3 190 2 591 1 726 1 579 1 433 1 045 62 028 Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: www.sars.gov.za. Table 5: South Africa’s top 10 import sectors, April 2012. Source: Source: www.sars.gov.za since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe (122), Ivory Coast (123), Kenya (105), Tanzania (97), Argentina (95) and India (84). Sector 1. Mineral products 2. Precious metals and diamonds 3. Base metals 4. Transport equipment 5. Machinery, mechanical, electrical 6. Chemicals 7. Vegetable products 8. Foodstuffs, beverages 9. Plastics, rubber products 10. Pulp and paper 11. Animals, animal products Total Value in R-m 14 841 10 239 6 968 4 613 4 460 3 350 1 738 1 497 1 126 779 378 52 154 Foreign direct investment and public investment South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRIC (Brazil, Russia, India and China) countries in the upcoming 12 months, according to Grant Thornton’s 2011 International Business Report (IBR) on M&A activity. SA was invited to join the BRIC grouping in 2011. South Africa also fared well in a number of other indices. It was ranked 45th out of 133 on the World Economic Forum’s Global Competitiveness limpopo business 2013 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za 32 special feature Index for 2009/10, and improved to 54 out of 139 countries in 2010/11. It was 32nd out of 181 countries in the World Bank and International Finance Corporation’s Doing Business 2009 report, and 34 out of 183 in 2010. This study measures the time, cost and hassle for businesses to comply with legal and administrative requirements. South Africa was at number 35 in 2008. Public-sector infrastructure investment, the expansion of electricity generation and distribution capacity by electricity supplier Eskom, upgrades to ports and railways by state-owned enterprise Transnet, and major road-construction projects remain the major challenges for the economy, but government continues to invest strongly in all areas. The ratio of fixed capital investment to GDP rose consistently over the five years to the end of 2008, to reach 24.6%, just below the government’s target of 25%. A cut-back in both government and private-sector fixed investment saw the ratio drop to 18.9% in the fourth quarter of 2010, before starting a slow recovery. General government fixed investment had the first quarterly increase in the second quarter of 2011 after nine quarters of decline. Total fixed investment has now increased for eight consecutive quarters and should continue to support growth going forward. Consumer spending has been robust, even as households repaired their balance sheets. Country 1. China 2. Germany 3. USA 4. Japan 5. Saudi Arabia 6. India 7. UK 8. Iran 9. Nigeria 10. Italy Value in R-m 103 174 77 396 56 944 34 377 32 294 29 220 28 965 27 121 22 655 19 574 The last time household expenditure growth exceeded income growth on a q/q saa basis was back in the fourth quarter of 2007. The result of this, as well as a marked reduction in interest rates, was that the household debt to income ratio fell to 74.6% in the fourth quarter of 2011 from 75.6% in the third quarter of 2011 and a peak of 82.7% in the first quarter of 2008. The debt service ratio eased to 6.7% in the fourth quarter from 6.8% in the third quarter, and is now at levels last reached in 2005. Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 15.70 16.00 16.50 17.70 19.70 21.05 23.20 20.30 18.80 Q2 16.00 16.20 16.00 18.60 21.20 22.44 22.40 19.88 19.00 Q3 15.90 16.20 17.00 18.90 20.40 24.02 21.20 19.40 18.90 Q4 16.00 16.20 17.10 19.70 20.20 24.64 20.30 18.90 18.90 Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za Country 1. China 2. United States 3. Japan 4. Germany 5. UK 6. India 7. Switzerland 8. Netherlands 9. Zimbabwe 10. Mozambique Value in R-m 90 210 61 044 55 635 42 684 29 001 22 224 22 902 22 902 17 776 17 680 Table 7: South Africa’s top 10 import source countries in 2011. Source: www.sars.gov.za Table 8: South Africa’s top 10 export markets, in 2011. Source: www.sars.gov.za 33 limpopo business 2013 PROFILE Seda Limpopo Jewellery Incubator The Seda Limpopo Jewellery Incubator seeks to contribute to the production and utilisation of knowledge and evidence that supports the integration of jewellery manufacturing and design by SMMEs into sustainable business ventures. The Seda Limpopo Jewellery Incubator (SLJI) is a small-business-focused Limpopo-based incubator. It was established to contribute towards creating economic opportunities through developing and supporting emerging jewellery businesses from disadvantaged communities. SLJI’s vision is to become a world-class centre of excellence in SMME jewellery manufacturing and designing, by training disadvantaged youth, providing business skills training, and mentoring and coaching budding entrepreneurs, thus becoming a recognis- • To influence national thinking and action on able brand in Limpopo, throughout South Africa, small business development in jewellery the Southern African Development Community design and consumption (SADC) and internationally. SLJI’s commitment • To ‘mainstream’ technical university graduto diversity and equality in the jewellery ates into jewellery small business ventures industry aims to: in and around South Africa • To provide business skills training, mentoring • Actively promote the production of jeweland coaching to budding entrepreneurs lery for the South African and international Philosophy and methodology markets • Train learners in jewellery design and SLJI’s philosophy is to help the people of manufacturing Limpopo benefit from the abundant mineral • Foster and promote a culture of entrepreneur- resources by participating in production of ship among marginalised black communities value-added jewellery products that meet • Unlock the energy and potential of all tech- international standards and market needs. nical graduates (in jewellery) from institutions of higher learning Contact details • Consistently act to challenge and eliminate all forms of discrimination and negative Key contact person: behaviour in the jewellery industry Joseph Makuvaza, CEO Email: email@example.com Mission Tel: +27 15 293 0214 • To inspire sustainable jewellery manufac- Physical address: 120 Rivier Ladine, turing and designing strategies that promote Polokwane the welfare of marginalised people Limpopo business 2013 34 destination Limpopo A guide to Business and leisure travel services, conferencing and accommodation in Limpopo province special feature destination overview Tourism Limpopo is targeting regional tourism. Sector Highlights Six new nature reserves are to be declared. • A new Park Inn by Radisson hotel will open in Polokwane in 2013. • Limpopo is South Africans’ secondfavourite destination. • A third casino is planned for the province. • The Kruger National Park is a great asset. major companies • Tsogo Sun • Protea Hotels • Forever Resorts • Legend Lodges, Hotels • Tiveka Game Lodge • Limpopo Wildlife Resorts • Park Inn by Radisson • Limpopo Gambling Board north, to the bright geometric house designs of the Ndebele people in the Sekhukhune District. Although most of the province’s resorts and lodges are in private hands, the province has three national parks, and the provincial government runs 54 nature reserves of different types. The combined land area of Limpopo’s national, provincial and private game and nature reserves is 3.6-million hectares. and Resorts The beauty of Limpopo Province is unparalleled. DESTINATION limpopo 2013 36 PHOTO: LIMPOPO tourism agency L impopo Province has superb tourism assets that include the bare bushveld of the north, misty mountains in the central highlands, hot springs, a unique cycad forest, great golf courses and the northern part of the Kruger National Park. There are numerous private game reserves and a large number of provincial game and nature reserves. Adventurous visitors can choose from off-road biking, hunting, elephant rides and tough 4x4 trails. A vast array of cultures extend from the Rain Queen and her people in the central districts, to the myth-inspired art of the Venda in the destination overview In 2012, the provincial government announced that it would be declaring a further six areas as nature reserves. It also declared its support for the establishment of three new UNESCO Biosphere Reserves: Vhembe, Waterberg and Kruger-to-Canyon. According to the Limpopo Premier’s office, the tourism sector employs about 22 414 people. In 2010, the number of domestic tourists increased to 16.9%, making Limpopo second only to KwaZulu-Natal as a domestic destination. The Limpopo Tourism Agency is pursuing a multinational tourism strategy, with the Limpopo-Zambezi brand initiative forming the cornerstone of the presentation to an international tourism exposition in Germany in 2012. The National Department of Tourism has plans to increase the sector’s contribution to the national economy to R338-billion by 2015, of which R125-billion will be direct. Where South Africa attracted 9.9 million foreign visitors in 2009, the plan is to host 13.5 million by 2015. International arrivals in South Africa increased by 10.5% in the first six months of 2012, according to the National Department of Tourism. There were 1.1 million foreign visitors in that period, compared to about 993 364 in the first six months of 2011. The launch of the first direct flights between Beijing and Johannesburg by South African Airways was a contributing factor in this growth. Local success The annual Emerging Tourism Entrepreneur of the Year Awards (ETEYA) celebrate the achievements of black entrepreneurs who have been in business for fewer than five years, employ fewer than 50 people and have a turnover of not more than R5-million. In 2011, Limpopo’s South African Reatswelela Travel Centre won third place in the national awards ceremony. Based in Polokwane, this nine-person operation has expanded operations into the North West Province. The owner of Tiveka Game Lodge, Tiveka Mathumbu, was among the ETEYA finalists in 2010. With the support of the Tourism Enterprise Partnership (TEP), the Small Enterprise Development Agency (Seda) and Limpopo Tourism and Parks, Tiveka has transformed a farm with six chalets on it to a 30-room resort, complete with game drives and conference facilities. This is an example of how the growing tourism sector can provide opportunities. Hotels and casinos Rezidor Hotel Group will open a Park Inn by Radisson in Polokwane in 2013. This is the group’s third hotel in South Africa, with the others located in Cape Town and Johannesburg. The new hotel will be very close to the Peter Mokaba sports complex and near the local golf course. The Rezidor Hotel Group intends opening hotels in each of South Africa’s nine provincial capitals and the biggest economic centres. Another big hotel group to be represented in Polokwane is Tsogo Sun. The Garden Court Polokwane has 180 rooms ranging from executive suites to family rooms. The Protea Hotel group has three hotels in the province. In the capital city of Polokwane, the Protea Hotel Landmark has PHOTO: khoroni hotel Thohoyandou 37 DESTINATION limpopo 2013 destination overview Limpopo Province is home to abundant fauna and flora, and is very popular with tourists. 80 rooms and six conference venues. Just outside the city is Nature the Protea Hotel Ranch Resort where guests can walk with lions. The hotel is on a 1 000-hectare nature conservancy and The National Department specialises in catering for weddings. In Mokopane, the Protea of Tourism is facilitating the Hotel The Park has 125 rooms and can cater for up to 400 upgrade of a lodge in the conference delegates. The three-star hotel recently added 25 Vhembe District. Wisani Lodge is about a 20-minute drive self-catering units. The Fusion Boutique Hotel in the provincial capital offers from the Punda Maria gate of five-star quality in 30 en-suite rooms and two exclusive suites. the Kruger National Park and Sun International runs the Meropa Casino and Entertainment is in an area particularly rich World near Polokwane. In the province’s northern regions at in birdlife. This communityThohoyandou, there is the Khoroni Hotel, Casino and Conven- owned project is in need tion Resort. This is a Peermont venture and there is a three-star of a private investor with Peermont Metcourt Hotel in the complex. about R10-million to invest The Limpopo Department of Economic Development, Envi- in upgrading the lodge’s six ronment and Tourism (LEDET) announced in 2011 that the two chalets and adding another casinos and the limited-payout machine sites run by Vukani 14. A master plan and enviGaming had created more than 830 jobs. The three companies ronmental impact assessment collectively contributed about R700 000 to community projects report already exists. and bursaries. A number of resorts in a The Limpopo Gambling Board has invited potential casino oper- variety of climatic regions ators to apply for licences to operate in the Burgersfort area in fall under the control of the the Greater Sekhukhune District, but a dispute about the process provincial body branded as has led to a delay in the issuing of a licence. This is an area that is Limpopo Wildlife Resorts. booming because of the building of new platinum mines and the Fourteen of the province’s expansion of old ones. resorts have been targeted for DESTINATION limpopo 2013 38 photo: flowcom/flickr destination overview refurbishment, creating 320 temporary and 120 permanent jobs. Annual revenue of R10-million is expected to be gained from these revamped resorts, which include these facilities in the Waterberg: • Nylsvley Birding Lodge, a registered RAMSAR wetland area • D’nyala Game Lodge • Mokolo Dam • Nwanedi Resort (Vhembe District) • Modjadji Nature Resort (Mopani District) • Blouberg Nature Reserve Adventure tourism has become a fixture in the province. (Capricorn District) • Tambotie River Lodge (Sekhukhune District) The exclusive Jackalberry Safari Lodge (16 guests at a time) lies to the east within the Thornybush Game Reserve, which is a reserve of Private game reserves, 10 500 hectares of pristine bush just outside the Kruger National Park. resorts and lodges Forever Resorts encompass the warm-water springs of The area adjacent to the the southern Waterberg (Warmbaths at Bela-Bela), the exotic Kruger National Park is par- baobab trees of the north (Tshipise Resort), the adventurous ticularly rich in private game offerings of the Blyde River Canyon (Swadini Resort) and the reserves, some of which are true bushveld experience on the edge of the Kruger National regarded as among the finest Park (Phalaborwa Safari Park at Phalaborwa Gate). All but the luxury tourist offerings in the latter of these resorts have conference facilities ranging from world. The Sabi Sand Game 130 to 700 delegates. Reserve has several accommodation options within its Tourism routes 65 000 hectares, ranging from and clusters the luxurious to the ultraluxurious. Like the Manyeleti The Bush to Beach Tourism Route covers sites and sights Game Reserve to its north, between Phalaborwa and the east coast of Mozambique, an Sabi Sand effectively forms example of Limpopo’s successful partnership with a neighthe western boundary of the bouring country. A grant of more than R600 000 from the Kruger Park, with animals free Limpopo Local Economic Development Programme aims to link to roam in and out of the pri- the poorer rural communities along the route with the more vate reserves. mainstream economic nodes. Open Africa is the lead agent in Legend Lodges, Hotels and developing community tourism. Resorts has three properties in From game reserves in Limpopo (including the Kruger National Limpopo. Both Entabeni Safari Park) to the beaches of Xai-Xai in Mozambique, the route has Lodges and the Legend Golf & been supported by private operators and investors and is thereSafari Resort are located within fore able to offer excellent products and services to complement the Entabeni Safari Conserv- the natural scenery. The Bush to Beach Tourism Route is one of ancy in the Waterberg District. several such routes in the province, including: photo: south african tourism/flickr 39 DESTINATION limpopo 2013 destination overview • Kruger to Canyon, linking Phalaborwa to the Blyde River Canyon through the Kruger National Park • Seraki Blouberg, in the Blouberg mountain range, including two nature reserves and encompassing the land of the 160 000 people living in 117 traditional settlements • Land of Legends, in the land of the VhaVenda (northern Limpopo). Thohoyandou is the hub for exploring the area around the Soutpansberg mountain range that contains more than 500 species of trees. Features include the sacred sites of Lake Fundudzi, the Thathe Vondo Forest and the Phiphidi Waterfall. A 3 000-year-old baobab, 43 metres around, is found near Sagole Spa Other tourism routes in the province include: the African Ivory Route, the Golf Route, the Limpopo Valley Route, the Mapungubwe Route, the Ribolla Open Africa Route, the Soutpansberg-Limpopo Birding Route, the Valley of the Olifant Route, and the Waterberg Biosphere Experience. especially in the Limpopo Valley and in the Olifants and Blyde River canyons in the east of the province. Mountain biking is a favourite pastime in the Magoebaskloof area, while quad-biking can be found in several parts of the province. Hunting: The centre of hunting is the north-western town of Lephalale, with other northern towns like Alldays, Vivo, Musina and Dendron near to private game farms on which hunting is undertaken. This lucrative activity is strictly controlled by the Professional Hunters’ Association (PHA), Outdoor pursuits with certain restrictions in National parks: The Kruger National Park covers nearly 20 000 place to protect the long-term square kilometres and attracts more than a million visitors future of the environment. The annually. It has six ecosystems, 1 982 species of plants, 517 PHA estimated the value of species of birds and 147 species of mammals – including each the industry in 2010 at R7.6of the ‘Big Five’: lion, leopard, African elephant, African buffalo billion. A Thabazimbi game and rhinoceros. auction in 2012 achieved a The Marakele National Park is situated on the Waterberg turnover of R69.8-million, but escarpment in the south-west of the province, relatively near the individual price achieved to Gauteng. The Sterkstroom River runs through it and it is home in 2009 for a single buffalo to elephant, rhino and rare vultures. bull (R3.4-million) is an indiAdventure tourism: The mountains of the Waterberg, the Sout- cation of the potential of pansberg and the northern reaches of the Drakensberg offer this market. opportunities for abseiling, caving, kloofing and rock-climbing. Birding: The Blouberg White-water rafting and tubing are other popular activities, Nature Reserve is an excellent site for Cape vultures, containing as it does one of Online resources the largest breeding coloLimpopo Department of Economic Development, Environment nies. Four birding routes and Tourism: www.ledet.gov.za criss-cross the province, Limpopo Tourism and Parks: www.golimpopo.com illustrating the diversity of birds found in the province’s Limpopo Wildlife Resorts: www.lwr.co.za varied terrain. More than Open Africa. www.openafrica.org 600 bird species have been Polokwane Show: www.polokwaneshow.co.za recorded. South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net Tourism Enterprise Partnership: www.sahiddentreasures.co.za Tourism Grading Council of South Africa: www.tourismgrading.co.za DESTINATION limpopo 2013 40 destination profile Fusion Boutique Hotel Fusion Boutique Hotel is fit for any king or queen – whether of the blue jeans and sneakers brigade or ball gown and stiletto devotees. True to its five-star status, a stay at this unique establishment is characterised by personalised attention, plush interiors and a striking infusion of art. Description of services Eat Fusion Boutique Hotel’s fine-dining restaurant, Saskia, is reminiscent of Rembrandt’s wife and muse. Guests recline amid modern versions of traditional paintings by the master while indulging in the chef’s fusions of traditional dishes with a contemporary twist. Other experiences include a terrace lunch, a private dining experience in one of the separate areas or even a party or anniversary dinner in the wine cellar. The pleasures of the coffee bar leave caffeine addicts – as well as those less inclined to the addictive black gold – eager for more. Fusion provides luxury at affordable prices. country, Fusion provides a five-star experience to anybody. The client base consists of 70% business clients in the executive market and around 30% leisure guests from around the country. The restaurant and conferencing facilities are used by the local community. Slumber Guests can enjoy one of the 30 lavishly decorated junior suites or three themed master suites. The marble bathrooms are fully equipped with under-floor heating and heated towel rails. Special extras include an in-room massage, bath and pillow menu, 24-hour cappuccino and latte service as well as a mini bar stocked to preference. Key facts and figures Year established: 2009 No of staff: 113 Major clients: Government, KPMG, Absa, FNB, Standard Bank, Xerox, CIDB, CETA Contact details Key contact people: Maria du Plessis, Owner (CEO) Janine Bornman, Assistant to owner Tel: +27 15 291 4042 Fax: +27 15 291 3153 Email: Janine@fusionhotel.co.za (marketing) firstname.lastname@example.org (reservations and enquiries) Physical address: 4 Schoeman Street, Polokwane Postal address: PO Box 1418, Polokwane 0700 Website: www.fusionboutiquehotel.co.za Work Four conference rooms, with smaller breakaway areas, cater for up to 200 guests. They are decorated in black and gold and enhanced by the works of well-known local artists. The facilities are equipped with state-of-the-art technology. The venue hosts company launches, workshops, dinners and corporate events. Target markets Because of the affordability of the product in comparison to other similar hotels in the 41 DESTINATION limpopo 2013 h accommodation Garden Court Polokwane Garden Court Polokwane is a hotel owned and operated by Tsogo Sun. It is the biggest hotel by room and bed nights in Limpopo. Garden Court Polokwane offers guests the perfect base from which to conduct business or discover some of the regionâ€™s natural and historic attractions, including the Magoebaskloof Rainforest, Bakoni Malapa Cultural Museum, the Ebenezer Dam, which offers excellent boating and angling, Debegeni Falls with its tranquil picnic spots in a forest setting, and Zebediela, one of the largest citrus estates. Visitors en route to the Kruger National Park and game reserves in Botswana also enjoy this hotel as a stopover destination. The Peter Mokaba Stadium is just three kilometres from the hotel. Rooms are set in an attractive garden setting where guests feel at home. Rooms are spacious and offer all the amenities that one may need to feel comfortable. Garden Court Polokwane caters to all kinds of tourists. Description of facilities In-room amenities ensure a comfortable stay. The Matsakeng Restaurant offers buffet breakfasts, and Ă la carte and bathrooms, bedrooms, bedroom corridors, buffet dinners. hotel lobby, bar and restaurant. Guests can spend a relaxed evening in the Lapologa Lounge enjoying a variety of drinks mixed to their individual tastes. The hotel was refurbished in November 2007 and improvements were made to the DESTINATION limpopo 2013 All rooms are fitted with Internet connectivity and DStv bouquet. There is an on-site outdoor pool and fitness centre, and the Pietersburg Rugby/Cricket Club offers opportunities to play golf, tennis and 42 accommodation squash. The hotel is also close to various swimming pools. h Description of services • Secretarial, facsimile and Business services PC/printer services are available • Internet connectivity in all hotel, public and rest areas • Internet workstation desk • Air conditioning in public Hotel services The hotel is ideal for visitors en route to nearby game areas reserves, such as the Kruger National Park. • Laundry and valet • Safety-deposit box • Wake-up calls • City centre, located 1km from the hotel. Taxi • Doctor and dentist on call service available at nominal charge. • Parking facilities • Travel services can be arranged through the • Open parking for 120 cars – no charge Guest Assistance Desk. • Pet policy – small pets allowed Key facts and figures Room services • Air conditioning • AM/FM radio • Remote-controlled colour television with • Modem connection • In-room Internet connectivity • Direct-dial telephone • Coffee/tea-making facilities • Hairdryer • Iron/ironing board (on request) • Private bath • Separate wardrobe • Work desk with lamp • Guest-room voltage: 220V • Room service available for meals from 6:30pm to 10pm cable/satellite All rooms have: Year established: 1973 Number of staff: 90 CONTACT DETAILS Key contact people: Hopewell Dlomo, General Manager Sarah Mohapi, Deputy General Manager Mkhuseli Nkobo, Reservations Supervisor Tel: +27 15 291 2030 Fax: +27 15 291 3150 Email: email@example.com Physical address: Cnr Thabo Mbeki and Paul Kruger streets, Polokwane 0700 Postal address: PO Box 784, Polokwane 0700 Website: www.southernsun.com Transport services • Polokwane International Airport, located 10km from the hotel. Taxi service available at nominal charge. Transport available to and from: 43 DESTINATION limpopo 2013 destination profile Limpopo Gambling Board Legal gambling has the potential to be a lucrative source of income for a provincial economy, and Limpopo Gambling Board is tasked with regulating the gambling industry in Limpopo. Limpopo Gambling Board was established in terms of the Limpopo Gambling Act, Act 4 of 1996 as amended. Limpopo Gambling Board is listed in the Public Finance Management Act (PFMA) as a Schedule 3C Public Entity. • Monitoring compliance with the Limpopo Vision Limpopo Gambling Board envisages a credible, viable and regulated gambling industry in Key facts and figures the province, which provides exciting leisure Year established: 1996 opportunities that contribute to economic No of staff: 54 development. Turnover/budget: R53 827 091 Gambling Act, the National Gambling Act, the Financial Intelligence Act of 2001 and other relevant legislation • Monitoring compliance with bid commitments • Eradicating illegal gambling • Promoting responsible gambling Mission Limpopo Gambling Board is committed to the promotion of the gambling industry for the benefit of the people of the province, by ensuring: • Compliance with the law • Provision of appropriate leisure facilities • Sustainable local economic development BEE status % black directors: 86% % black staff: 87% Contact details Key contact people: Serobi Maja, Chief Executive Officer Yvonne Mathabatha, Chief Financial Officer Londani Mathavhane, Senior Manager: Compliance Tel: +27 15 295 5581 Fax: +27 15 295 3566 or 086 505 3460 Email: firstname.lastname@example.org Physical address: 22 Schoeman Street, Polokwane 0699 Postal address: Private Bag X9520, Polokwane 0700 Website: www.lgb.org.za Description of activities The Board is responsible for overseeing and controlling gambling activities in the province through: • Licensing of individuals and companies to conduct gambling and related activities • Registering of persons engaged in gambling operations • Registering of gambling devices • Collection of appropriate taxes and levies • Ensuring compliance with all legislation in connection with gambling Main services and initiatives Limpopo Gambling Board focuses on: DESTINATION limpopo 2013 44 FREE MEMBERSHIP OF FRONTIER MARKET NETWORK The Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. GET CONNECTED. JOIN TODAY. Membership is FREE and beneﬁts include: • • access to a database of investment and business opportunities access to the latest market intelligence including market updates, country and regional proﬁles, news and analysis and research reports • connection to a network of over 120 000 people, companies and service providers operating in frontier markets access to a range of services required to complete transactions such as legal, research or due diligence services • Register at www.frontiermarketnetwork.com to begin your membership 36 48 53 56 80 82 98 key sectors Overview of the main economic sectors of the Limpopo province Tourism���������������������������������������������������������������������������� 36 Agriculture���������������������������������������������������������������������� 48 Food and beverages������������������������������������������������� 53 Mining������������������������������������������������������������������������������� 56 Engineering������������������������������������������������������������������� 69 Transport������������������������������������������������������������������������� 76 Water�������������������������������������������������������������������������������� 80 Energy������������������������������������������������������������������������������� 82 Media�������������������������������������������������������������������������������� 86 Technology�������������������������������������������������������������������� 88 Banking and financial services���������������������������� 90 Development finance and SMME support����������������������������������������������������� 98 Education��������������������������������������������������������������������� 112 South African National Government������������� 122 Limpopo Provincial Government�������������������� 128 Limpopo Local Government������������������������������ 136 Business organisations����������������������������������������� 143 limpopo business 2013 OVERVIEW Agriculture Limpopo is a national leader in fruit exports. Sector Highlights Afgri is spending about R180-million on its soya plant in Mokopane. • Westfalia Nursery produces more than 130 000 trees per year. • The province’s biggest tomato grower has 8 000 full-time employees. major companies L impopo’s location gives it a strategic advantage in terms of providing fresh produce to Gauteng, the densely urbanised economic heartland of South Africa. The Vhembe District in the far north and the Letaba Valley in the eastern Mopani District are major contributors to the Johannesburg Fresh Produce Market, with Limpopo growers as a group contributing about 45% of the produce sold at Africa’s biggest market. Cattle and game ranching occur in the higher and drier areas of the province, while the lower-lying regions are rich in fruit, tea, citrus and vegetables. One of the best-known products of the region is marula fruit, used to make Amarula Cream liqueur. Some of South Africa’s biggest agricultural businesses are located in Limpopo, with the province’s fruit and vegetables forming a significant portion of the nation’s export offering. Although parts of Limpopo are well-watered, many areas are dry, which means that irrigation projects take on enormous importance. Four irrigation schemes below the Flag Boshielo Dam have prospered (542 hectares in extent). All four schemes have potato crops, with Krokodil also having a maize component. Limpopo business 2013 • NTKLA • Afgri • ZZ2 • Westfalia • Letaba Citrus Processors • Tshivhase Tea Estate • Valley Farms • Royal Macadamia • Green Farms Nut • Limpopo Agribusiness Development Corporation (LADC) • TechnoServe Company Commercial farming Most of South Africa’s large co-operatives have become companies over the last few years. The two most active in Limpopo are NTKLA (with its headquarters in Modimolle) and Afgri, South Africa’s biggest agricultural company, which is based in Centurion. NTKLA is a shareholder in Venda Roller Mills in 48 photo: chris kirchoff OVERVIEW Thohoyandou and operates 10 grain silos, 23 retail outlets, 28 flour depots and one coldstorage facility. A 2011 decision by the board of Afgri will see the companyâ€™s soya plant in Mokopane (Nedan) receive a capital injection of R180-million. Some of the worldâ€™s biggest farming enterprises operate in Limpopo. Westfalia, part of the Hans Merensky Group, is the largest avocado grower, while ZZ2 is the biggest fresh tomato enterprise. Westfalia, which produces significant quantities of mango, litchi, citrus and macadamia nuts, also has three agriprocessing plants in the province. Avocado oil is processed in Tzaneen, juice and avocado puree is made at Politsi and dried mangoes are produced at Hoedspruit. Westfalia has large farms in the Letaba River Valley (Constantia Estate), the Hoedspruit district (Marieskop Estate) and in the Mooketsi Valley (Goedgelegen Estate). Organic avocados are also farmed in KwaZulu-Natal. The Westfalia Nursery produces more than 130 000 trees every year. Westfalia Technological Services has six teams researching areas such as pathology, horticulture and genetic resources. ZZ2 is the major brand of Bertie van Zyl (Pty) Ltd, which produces 160 000 tons of tomatoes per year. The company also specialises in onions, both of which appear in different forms under 12 brand names. The company farms in four areas of the province: Mooketsi, Politsi, Polokwane and Musina; and has farms in the Western and Eastern Cape. The company has 8 000 full-time employees and is increasing its production of avocados and litchis. When the Financial Mail did an in-depth study of commercial agriculture in January 2012, it devoted a page to the carrot operation of Greenway Farms. Summer cultivation is done in Gauteng, but in the winter months, huge fields at Mookgopong are devoted to carrots that are sold under the Rugani brand. According to the company, it supplies about 45% of the fresh-market carrots consumed in Southern Africa. Approximately 7 000 hectares are planted on a two-year cycle, which produces about 39 000 tons of carrots per year (Carrot Country, Summer 2011). A R6-million carrot combineharvester is the only one of its kind in South Africa. Greenway Farms sponsored and co-hosted the 35th International Carrot Conference in November 2011. photo: greenway farms In the winter months, large tracts of land are devoted to growing carrots. 49 limpopo business 2013 OVERVIEW Research and technology The Agricultural Research Council’s (ARC’s) Animal Production Institute is helping Limpopo farmers improve the quality of their bulls, which have low breeding rates. Artificial insemination and embryo transfer are being used to improve the calving rates of 40% for small-scale farmers (in commercial farming, calving rates can reach 85%), and mortality rates of up to 50%. In the commercial sector, farmers do not expect to lose more than 2% of their calves before they are weaned. The Technology Innovation Agency (TIA) is investing R24-million in this national project (the Nguni Cattle Assisted Reproductive Technologies) to improve the quality of the country’s beef herd. LimDev is training 150 farmers across five districts in basic ICT skills. The aim is to help them gain access to markets and information that they can use to improve their productivity. The Limpopo Agro-Food Technology Station (LATS) at the University of Limpopo monitors and works on the quality of food produced in the province, especially by small businesses and co-operatives. The University of Limpopo’s School of Agricultural and Environmental Sciences runs an outreach programme called the Centre for Rural Community Empowerment (CRCE) which does important research on the sustainability and viability of projects. Training has been rolled out to 215 farmers and 16 extension officers for training in e-Agriculture through the INSPIRE programme, a Finnish-funded project to extend computer skills to farmers. The Limpopo Department of Agriculture’s (LDA’s) Digital Doorways, a scheme to roll out Internet access, is operating in Mopani, Sekhukhune and Capricorn districts. The Ratanang Project in Sovenga is utilising permaculture methods to create income through selling vegetables. This is a joint project of Food & Trees for Africa (FTFA) and Pioneer Foods, and in 2011 was generating turnover of R18 000 per month in sales to the Spar Market in Polokwane and traders in Sovenga. Irrigation technology is at the heart of a project in Strydkraal in Sekhukhune, where MBB Consulting Engineers has designed a 300-hectare scheme to produce maize and potatoes. An experienced commercial farmer will oversee the management of the scheme, which is funded by the LDA and is intended to benefit the community of Ikageng. Food security A national rural development strategy has been established by the National Department of Agriculture, Forestry and Fisheries, Limpopo business 2013 (DAFF), the key component of which is food security. The entire value chain of agriculture is under scrutiny, with the aim to help smallscale farmers by improving infrastructure, creating new markets and assisting them to gain access to the big buyers such as supermarkets. In many areas, private companies such as South African Breweries, Woolworths and Pick n Pay are already on board. Massmart is committed to creating opportunities for emerging farmers through its Direct Farm Programme. DAFF aims to increase the number of smallholder producers in the country from 200 000 by 50 000 in 2014. As the DAFF strategic plan says, ‘There is a need to coordinate and integrate all the support provided to smallholder and subsistence producers.’ Memorandums of understanding have been signed with three Chinese provinces (Anhui, Jilin and Henan), and the province is in talks with DAFF about putting mangos and avocados, two of Limpopo’s biggest products, on the priority list of exports to China. Investment agency Trade & Investment Limpopo (TIL) has identified specific investment opportunities: private partnerships to resuscitate state irrigation schemes, cut flowers, baby vegetables, almonds, table grapes and pork. Sunflowers, soya beans and maize are other crops that hold great potential for growth. A R2.2-million project near Tzaneen aims to improve food 50 OVERVIEW a loan of R1.25-million that is being used to prepare 10 hectares. TechnoServe is handling the loan and has found an experienced farmer to mentor the three new farmers: the mentor’s remuneration will depend on the production levels of his charges. Crops The Levubu Valley in the north is particularly fertile, with guavas and macadamia nuts among the crops that thrive there. Valley Farms is a successful enterprise that grows fruits such as mangoes and guavas, and produces concentrates, purées and dried fruits. The processing plant was bought in 2008 by the national government on behalf of the local community. Limpopo is well known for its vast and plentiful citrus and tea estates. The Zebediela Citrus Estate has been bought by the Bjatladi community with the support of the Limpopo Local Economic Development Programme, and the focus has shifted from bulk supply to producing smaller, consumer-friendly quantities. The revival of the Tshivhase Tea Estate has not only given South Africans a truly local tea, it has also boosted employment in Limpopo. A number of brands have been developed, including Midi Gold, which is the premium blend of the estate. Like the other teas, it is processed locally at the Mukumbani Tea Factory. Letaba Citrus Processors is a part of African Realty Trust, which also owns two large farms: Letaba Estates and Richmond Estates. Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo. Soft and time-sensitive fruits, like avocados, are exported out of the Port of Cape Town and transported to that city by truck. Citrus is taken to the ports of Durban or Maputo. Cotton is grown at Loskop, North and South Flats, Wiepe and Dwaalboom/Thabazimbi. There are 2 855 hectares under irrigation and a further 326 hectares of dry-land operations. Limpopo provides about 32% of the national harvest. A national goal is to get small producers to produce a quarter of the national crop. An initiative by Cotton SA to assist more than 60 farmers in the Moutse region is contributing to that goal. Through seed company Monsanto, Cotton SA distributed 57 bags of seed in time for planting in the 2011 season, which allowed for a yield of more than 800kg. security. The Limani Project is a joint undertaking of Pioneer Foods, Trees for Africa and the Dreamfields Foundation. Schools receive seeds, tools and lessons in how to grow organic gardens. The Limpopo Agribusiness Development Corporation (LADC) has a budget of R93-million to engage with communities in creating sustainable projects. One example of a project is the Integrated Poultry Project, designed to counter the need to import poultry into the province. The implementation of a scheme to make certain towns hubs for the distribution of agricultural produce will also promote food security. NGO TechnoServe and food-supply company Qutom are helping three emerging Limpopo farmers produce 700 tons of tomatoes for Woolworths and other markets. The Woolworths Foundation made Macadamias Few other agricultural sectors have experienced the kind of exponential growth that has occurred with macadamia nuts. Growing conditions for this popular nut are ideal in the Levubu and Tzaneen areas. photo: muffet/flickr 51 limpopo business 2013 OVERVIEW The value of the sector in 2011 was given as R850-million by the South African Macadamia Growers’ Association. Where there were one million trees in 1996, there are now more than four million, covering 17 000 hectares. Neighbouring Mpumalanga is the other big macadamia province. About 95% of annual production is exported, primarily to the US, Europe and Asia. In 2009, the two biggest markets for South African nuts were the US and Europe. There are about 450 farmers growing the nuts, but this includes several large farms, some of which have integrated operations in which the farms supply their own cracking factories. There are 14 cracking factories in South Africa. The sector employs about 4 500 people, of which 1 500 are permanent employees. The macadamia nut has high protein, calcium and potassium content. Macadamia oil is popular and ground macadamias can be used as a healthy substitute for wheat flour. farming group that grows the ZZ2 tomato, with the name derived from the famous European breed and the name of the farmer who started it all, Bertie van Zyl. Hunting More than half of South Africa’s game-hunting farms are in Limpopo, and this multi-million-rand industry is growing fast. Growth rates of over 6% have been experienced in this sector since the early 1990s. There are some concerns that the reduction in the number of livestock such as cows may have a detrimental effect on the ability of the province to provide enough food. The Limpopo Local Economic Development Programme has forwarded R800 000 to the Waterberg District Municipality, Ecosystems and Afrivet Business Management to investigate ways for Limpopo to do better in this market. International demand for venison is in the region of 50 000 tons per year, but South Africa only supplies about 2 000 tons of it – a clear opportunity for Limpopo entrepreneurs to grow their share of the market. Livestock Government planning at provincial level includes the promotion of red and white meat ‘clusters’ along all the development corridors identified in the province. This includes the promotion of hygienic practices, the establishment of small-scale abattoirs and assistance in marketing of products. The province has approximately one million beef cattle, about 7.5% of the national herd. A new indigenous breed of cattle has been developed called the Pinz2yl, from breeding Pinzgauer and Nguni stock. This is an initiative of the same Online resources Agro-Food Technology Station, Limpopo University: www.ul.ac.za ARC-Institute for Tropical and Subtropical Crops: www.arc.agric.co.za Citrus Growers Association: www.cga.co.za Deciduous Fruit Producers Trust: www.dfpt.co.za Food & Trees For Africa: www.trees.co.za Limpopo Department of Agriculture: www.lda.gov.za Limpopo Local Economic Development Programme: www.limpopoled.com National Department of Agriculture, Forestry and Fisheries: www.daff.agric.za South African Fruit Farms: www.safruitfarms.com South African Macadamia Growers’ Association: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net Limpopo business 2013 52 OVERVIEW Food and beverages Limpopo’s extensive agricultural production feeds a strong food and beverages sector. T he marula fruit and the Mopane worm are synonymous with Limpopo. The well-known Amarula Cream liqueur, a Distell product, is growing its market around the world. The latest place where it has taken off is India, and in 2011, the drink won a gold medal at a major international competition, Concours Mondial de Bruxelles. In 2012, a new plants and oil-extraction facility opened in Tzaneen. A joint initiative of the National Department of Science and Technology (DST) and Sasol ChemCity, the Nkowankowa Demonstration Centre will investigate whether fruits and plants can be made into oils. The Council for Industrial and Scientific Research (CSIR) and the Vaal University of Technology are also involved. There are several large-scale chicken producers in the province, such as Mike’s Chickens, but small-scale broiler production of chickens has the potential to grow enormously. The Limpopo Agribusiness Development Corporation is running an Integrated Poultry Project to counter the need for imports from Brazil. In the broader sector, small operators such as Wegraakbosch Farm & Dairy in Magoebaskloof, winners of national awards for its organic cheeses, co-exist with huge corporations that control thousands of hectares of produce. About 220 000 tons of fruit is processed by Granor Passi, one of Limpopo’s biggest food and beverages enterprises. With facilities in Polokwane and Letsitele, the company makes a number of products including fruit juices, citrus oils and pulp. Westfalia has three large processing plants. McCain has a production facility in the province and Rhodes Vegetable Products Limpopo is a major canner of tomatoes and sweet corn. Enterprise Foods’ emulsions and canning plant in Polokwane is capable of making more than 1.3 million Vienna sausages per day and 500 tons of polony every week. Enterprise is the biggest employer in the provincial capital. Sector Highlights Oil from the baobab tree could become another distinctive Limpopo product. • Amarula Cream liqueur won an international gold medal in 2011. major companies • Enterprise • Sasko • Westfalia • Granor Passi Other well-established firms in the province include Kanhym (meat processing), Sasko (a large wheat mill in Polokwane and six bakeries around the province) and Daybreak Farms, which runs a large broiler chicken farm at Bela-Bela. The central and eastern parts of Limpopo, especially around Tzaneen, are wellsuited to tea cultivation. CocaCola is distributed through the Coca-Cola Fortune franchise, and Polokwane is the site of one of South African Breweries’ seven breweries. Online resources Consumer Goods Council of South Africa: www.cgcsa.co.za Limpopo Department of Agriculture: www.lda.gov.za Limpopo Local Economic Development Programme: www.limpopoled.com Marula Festival: www.phalaborwa.co.za 53 limpopo business 2013 message Improving food security is a priority Minister for Agriculture, Forestry and Fisheries Tina Joemat-Pettersson highlights the priorities of the department in improving the lives of ordinary South Africans. The ‘right to food’ as enshrined in our Constitution and the Freedom Charter, demands a rethinking of our past approaches to food security. We can produce enough food, but whether the poor can afford the food on the shelves largely determines South Africa’s food-security status as a country. High food prices and food-price volatility will be one of the greatest challenges to our nation over the next few years. This will further be exacerbated by high fuel and high energy prices. To curb these challenges, smallholder farmers will be assisted with the provision of livestock, tractors, implements, seeds and fertilisers. ‘One family, one vegetable garden’ should be the mantra of each and every family in South Africa. Agro-processing Tina Joemat-Pettersson We will increase agro-processing investments as a means of reinvigorating specific strategic value chains such as soya beans, rooibos, beverages, fruit and vegetables, and forestry. R50-million will be allocated for the promotion of local agroprocessing businesses. An equitable-food-security economy will improve access to markets for especially smallholder farmers. It is important that we seek to increase the extent to which we export processed rather than unprocessed agricultural products. The entire value chain of biofuels will also be a priority. A s the Department of Agriculture, Forestry and Fisheries (DAFF), we believe that the goal of a developmental state can only be reached when our people gain access to food within an economy that promotes sustainable livelihoods. For this reason, our draft food security policy and zero hunger strategy promotes equity and prioritises the eradication of poverty and reduction of inequality among our people. Employment Food processing and agro-industries have provided jobs, demonstrating growth of over 25 000 agricultural jobs in the sector for the third quarter of 2011. A further 6 000 agriculture-related jobs were created in the fourth quarter of 2011, which is a yearon-year growth of 3%. This has brought the total employment in the sector to 630 000. International trade South Africa’s trade of both primary and processed agricultural products has grown from R10-billion worth of exports in 1996, Limpopo business 2013 54 message to about R48-billion in 2011. Our wine exports are soaring, notwithstanding the recent global economic slowdown. We are now exporting three times more wine than we did a decade ago. Exports of fish and fish products have rapidly expanded in China and Cameroon. Timber and forestry products are gaining ground in China and Indonesia. We are exporting more and more maize to Zimbabwe. Despite our success story as a country that is a net exporter of food, international trade has yet to include more black farmers in the equation. As a department we are committed to changing this. Our department is positioning itself to participate in a meaningful way in BRICS. The department will open offices in Russia, India and Brazil, in addition to the one which is already operating in China. upgrading of agricultural colleges • Various projects such as grain storage facilities and rehabilitated irrigation schemes in the former homelands, fencing including border fences and animal quarantine facilities at our borders To support these initiatives the Comprehensive Agricultural Support Programme (CASP) is allocated R1.5-billion, of which over R52.5-million will Funding allocation be used for infrastructure The department is the custodian of South Africa’s forest at the agricultural colleges, resources, which cover over 40 million hectares of the coun- R322-million for the extension try’s land surface area. The forest sector employs about 201 025 recovery plan, R762-million workers and provides approximately 77 000 direct jobs and for infrastructure (mostly on30 000 indirect jobs. The Forestry and Natural Resources farm), and R398-million for Management branch will get R1.2-billion during this financial flood-damaged infrastructure year to manage our forests and natural resources. in disaster areas. Our country has been plagued by natural disasters and animal In addition, the Land Care diseases. Between December 2010 and January 2011, we had allocation for the coming year devastating floods in a number of provinces. We have begun is R115-million, while the Ilima/ the process of implementing the Flood Assistance Scheme, with Letsema programme gets a its emphasis on infrastructure repairs. An amount of more than total of R415-million. R990-million has been made available through the MTEF period I appeal to all members of until 2014/15 as part of the scheme. the department and readers of Animal disease outbreaks have presented serious challenges this publication to look deep to our industry. Our department will have to improve on its into your work and your hearts capacity to deal with such disasters, as they impact adversely and ask what more you can do to contribute to making South on the rural economy. R954-million is allocated for plant and animal production, Africa a better country. Together, including inspection and laboratory services, and R935-million we can work towards food for agricultural research, which represents a substantial increase security for all. over the previous year’s allocation. Furthermore, R868-million is allocated to food security initiatives and R349-million for extension support services, including new-farmer development support. Our ‘Strategic Integrated Project 11’ on agro-logistics and rural infrastructure (part of the integrated infrastructure plan approved by the Cabinet and the Presidential Infrastructure Coordinating Commission) includes plans for the following: • Fresh-produce marketing depots for smallholder farmers • Production infrastructure for crops and animals • The revitalisation of various irrigation schemes, including the Vaalharts-Taung irrigation scheme • The refurbishment and 55 limpopo business 2013 OVERVIEW Mining Limpopo has vast reserves of coal and platinum. The Tumela One shaft situated between the towns of Northam and Thabazimbi. L impopo is extraordinarily rich in minerals. Platinum occurs on both limbs of the Bushveld Igneous Complex (BIC), and the Waterberg District is seen as the answer to South Africa’s coal needs for the next several decades. The platinum sector was rocked by violent strikes in the two main platinum-producing provinces in 2012. The worst disruptions happened at a mine in the neighbouring North West Province, but Limpopo mines were also affected, and demands for higher wages came at the same time that the price for platinum reached its lowest level in two years. Most analysts believe that the price for the metal will recover in 2013, if only because of reduced production. Labour and electricity costs have risen markedly, and everyone connected to the platinum sector (businesses, government and labour) will have to reassess how to keep doing business. There is no doubt business to be done, with demand for platinum group metals (PGMs) very much linked to the modern global economy and high-technology products of every sort: catalytic converters and fuel cells are just two examples. Demand for jewellery (especially from China) is also expected to keep increasing. The provincial government reports that the mining sector constitutes 27% of Limpopo’s gross domestic product (GDP). Total employment in the mining sector increased from 870 000 in 2009 to 962 000 in 2010 (Stats SA). Limpopo business 2013 Sector Highlights Palabora Mining Company is South Africa’s largest copper producer. • Sasol is contemplating a new coal mine in Limpopo. • Polokwane is the site of Africa’s biggest charcoal producer. • Anglo Platinum has decided to be more active in its joint ventures. major companies • Northam Company 56 photo: anglo american • Anglo Platinum • Impala Platinum • Exxaro Resources • De Beers • Palabora Mining OVERVIEW Silicon Smelters (the largest charcoal producer in Africa) and Anglo Platinum’s smelting facility, one of three run by the company, are both located in Polokwane. Northam Platinum’s metallurgical complex at its Zondereinde mine processes Merensky and UG2 ores separately. • Rapid progress is being made in finding new applications for • • • • Sector news • Iron Mineral Beneficiation Services (IMBS), in a joint • venture with the Industrial Development Corporation, is spending R150-million • on a plant to convert ironore waste material into usable elements in the manufacture of steel. The demonstration plant in Phalaborwa will produce • 50 000 tons per year and is intended as a precursor to an R800-million plant that will produce 500 000 tons per year. IMBS has among its shareholders Jonah Capital and Russian company OAO Severstal. • PGM numbers South Africa supplied 4.5- million ounces of the sixmillion ounces of platinum needed by the world in 2010, according to marketing agency Johnson Matthey. South Africa has, in percentages of world supply of Platinum Group Metals: • 75% platinum • 35% palladium • 86% rhodium • platinum, with two research centres (HydrogenSA and Catalysis) working on ideas: 18 platinum fuel cells have been sold to the mobile-phone sector (Engineering News, October 2012), and Anglo Platinum powered an underground locomotive with a hydrogen fuel cell for the first time in 2012 (Reuters). Exxaro has decided not to partner Coal of Africa in developing coking coal resources in the Makhado area. Exxaro delivered the first coal to the Medupi Power Station from its Grootgeluk mine in 2012. Sasol is conducting a pre-feasibility study into starting a new coal mine in Limpopo. Platinum Group Metals Ltd announced a new platinum find in the Waterberg in March 2011. PTM is listed in Toronto and New York. Ferrox Holdings is planning to develop a mine, concentrator and smelter in Limpopo. Targeted minerals are titanium, vanadium and iron ore. In December 2012, Rio Tinto and Anglo American announced that they had found a buyer for their 74.5% share of Palabora Mining Company (Palamin). Palamin owns a copper and magnetite mine and a vermiculite mine. The deal with the Industrial Development Corporation (IDC) and three Chinese companies values the company at R5.3-billion (Reuters). At the University of Limpopo, the Materials and Modelling Centre has a nationally appointed Chair in Computational Modelling of Materials. The chair, which is funded by the National Department of Science and Technology and the National Research Foundation, is held by distinguished Professor Phuti Ngoepe. High-level research is undertaken into magnesium and titanium compounds and into issues such as the nanostructures of lithium-ion, which are relevant to the electric-car industry. Corridor Mining Resources, a subsidiary of the Limpopo Economic Development Enterprise (LimDev), has signed a memorandum of understanding with Coal India Limited to explore four blocks in the province. Garnett-Adams Management Consulting has been appointed to lead the development of a mining-supplier park outside Steelpoort. Xstrata Lion Ferrochrome has established a community trust that will benefit from the park. The first 22 companies that have agreed to move in include engineering and freight-logistics companies. Chromite The largest concentrations of chromite are found on the eastern limb where Samancor runs Eastern Chrome Mines at Steelport (with three concentrators) and ASA Metals’ upscaled smelting 57 limpopo business 2013 OVERVIEW THE BUSHVELD IGNEOUS COMPLEX Kwanda Diamonds Polokwane BOTSWANA M’Kwena Boikgantsho Limpopo Kwanda Thabazimbi Northam Bela-Bela Sedibelo Mokopane Dwaalkop Limpopo Bokoni Ga-Phasha Twickenham Marula Modikwa Dishaba & Tumela Union Pilanesberg Groblersdal Two Rivers Mototolo Der Brochen Everest Booysendal BRPM Zeerust Impala Rustenburg RPM Brits Pandora Lonmin Eland Pretoria Johannesburg North West Crocodile River Mpumalanga Witbank Towns Mines De Beers Consolidated Mines will spend R15-billion for upgrades to its Venetia mine, west of Musina. Venetia is by far the most important part of De Beers’ South African operation, accounting for 3.1 million of the 5.4 million carats recovered by the company from its six operations. Gauteng Iron ore Kumba Iron Ore’s Thabazimbi Mine produced 900 000 tons of iron ore in 2011. The company invested R9.2million in corporate social investment projects. Kumba’s Project Phoenix will extend the life of this huge iron-ore Coal mine beyond 2016, when the Limpopo contributes 4% of coal mining in South Africa, according ArcelorMittal contract comes to the National Department of Mineral Resources, but it seems to an end. The pre-feasibility likely that within the next three decades, the province will be stage of Project Phoenix is supplying about half of South Africa’s coal. due for completion in 2013, Coal is massively in demand because of South Africa’s urgent but the expectation is that need for more electricity. Limpopo’s Waterberg coal field is esti- new methods of mining can mated to contain about 75-billion tons of coal. Among the com- produce higher volumes of panies either actively mining or prospecting are Sasol, Exxaro iron ore in the future. Resources, Coal of Africa, Eskom and Anglo Coal. One of the biggest expansions of a coal mine is underway at Phosphate Exxaro’s Grootgeluk Mine. An amount of R9-billion has been set aside for the project. The mine will supply the new Eskom power The Phalaborwa phosphate station at Medupi with 14.6-million tons of coal every year for mine of Foskor has recently 40 years. increased its capacity to Coal of Africa is active in Limpopo. Its subsidiary, Limpopo Coal, 2.85 million tons. It uses the intends mining at the Vele colliery in the far north of the province. phosphate rock it mines to manufacture phosphate fertiliser and phosphoric acid. Copper furnaces now produce 400 000 tons of charge chrome per year at Dilokong Chrome Mine, located between Burgersfort and Polokwane. ASA Metals is a joint venture between the LimDev and China’s Eastern Asia Metals Investment Company. South Africa produces 39% of the world’s chromite. Palamin has South Africa’s biggest copper mine. The mine is the only South African mine to produce refined copper. The mine produces about 80 000 tons of refined copper every year, and the refinery produces continuous cast rod for the domestic market and cathodes for the export market. Limpopo business 2013 Platinum The total value of South Africa’s platinum industry is $7.5-billion out of a world 58 OVERVIEW industry worth $9.8-billion. These figures for 2010 were arrived at by Engineering News, using the value of the year’s shipments and average metal prices. The addition of rhodium and palladium takes South Africa’s PGM value to $10.5-billion in a world industry worth $15.5-billion. South Africa produces about 75% of the world’s platinum. The biggest player in the platinum market, Anglo Platinum, is investing close to R6-billion in expanding operations at Potgietersrust Platinum North. In 2011, the company sold 2.6 million platinum ounces, a 3% increase on 2010. AngloPlat is also increasing capacity at its Twickenham Mine (about halfway between Polokwane and Burgersfort). The R7-billion project is expected to start producing 180 000 ounces per year in 2018, despite some delays. At Modikwa, the site of the first discovery of platinum in the area, Anglo Platinum is in a 50/50 joint venture with African Rainbow Minerals Mining Consortium (ARMMC). ARMMC is owned by ARM Platinum (83%) and by Modikwa Communities (17%). Anglo Platinum has restructured operations at Amandelbult on the western limb by separating operations into two mines: Dishaba and Tumela. In 2011, Anglo Platinum stated that it would no longer be a passive investor, and is going to be much more active in the running of its joint ventures. Bokoni Mine (on the northern tip of the eastern limb) was going to be subject to major investment from Atlatsa, but ongoing strike action was costing the company R5-million per day in November 2012. Amplats owns 49% of this asset. Implats’ major Limpopo asset is a 73% holding in Marula (eastern limb) which is 50km north of Burgersfort. Jubilee is the minority shareholder. Lonmin runs the Limpopo Mine near Polokwane on the Eastern limb of the BIC, but most of its mines are in North West Province. Lonmin’s other Limpopo assets include the Baobab Mine, a concentrator and a half share (with Mvelaphanda Resources) of the Doornvlei project. Northam’s mine on the western limb is regularly producing 300 000 ounces annually (and should continue to do so until 2028). Junior mining companies active in Limpopo include Lesogo Platinum (the Phosiri Project on the eastern limb), Nkwe Platinum and Bauba Platinum. Other minerals Andalusite, a vital component in spark-plug ceramics, is mined near Thabazimbi and at Maroelasfontein in the west of the province. The Consolidated Murchison Mine (ConMurch) at Gravelotte, just west of Phalaborwa, is the single-biggest producer of antimony in the world outside China, producing about 20% of the world’s supply. Attapulgite is mined by G&W Base and Industrial Minerals at Dwaalboom. Sephaku Holdings is optimistic about tin, copper, and fluorspar mineralisation at its site west of Mokopane. Online resources Chamber of Mines of South Africa: www.bullion.org.za Geological Society of South Africa: www.gssa.org.za Mining Qualifications Authority (MQA): www.mqa.org.za National Department of Mineral Resources: www.dme.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za 59 limpopo business 2013 interview A sound strategy for growth Managing director of Palabora Mining Company Anthony Lennox highlights the factors that have led to the company’s continued success and growth. Anthony Lennox How does the Palabora Mining Company ensure that it remains the leading producer of copper and its by-products in South Africa? We have a great asset, committed people, supportive host communities and, above all, a solid business case and a strategy to drive this business to 2030. Please tell us about the Palabora Foundation, and highlight how the Foundation actively seeks to build enduring relationships with the Ba-Phalaborwa communities. Since its inception, Palabora Mining Company has been involved in the development of the local communities. In 1986, the Palabora Foundation, which is the mine’s sustainable development arm, was established to empower the community through development and to assist the locals to be self-reliant. The Palabora Foundation is involved in numerous community upliftment and socioeconomic-development projects. In 2012, the budget for the Palabora Foundation was R32-million. The Foundation is involved in education, health and other projects in the community. The mine, through its socioeconomic-development fund, created opportunities for several small to medium-sized business ventures in the community. In 2012, the company’s budget for socioeconomic development and enterprise development was R35-million. Anthony Lennox was appointed as managing director at Palabora in July 2010. Anthony has been with Rio Tinto for four years. He headed the Rio Tinto Energy’s Kestrel coal mine in Australia prior to joining Palabora. Anthony held senior management roles with BHP Billiton, including corporate vice president: health safety & environmental, and president of the Cannington mining operation. He has a deep and impressive career in the mining industry. He is a mining engineer and holds a Bachelor of Engineering (Hons) degree from the University of New South Wales. Limpopo business 2013 We have a great asset, committed people, supportive host communities and, above all, a solid business case and a strategy to drive this business to 2030. – Anthony Lennox How does the company attract and retain staff? Companies stand or fall by the calibre of their people. There are many reasons why people want to join certain companies. It may be because they have proud histories or impeccable reputations, they are innovative, have a culture of diversity, have the spirit of togetherness, develop skills, or offer a wealth of opportunity. Palabora 60 interview offers all these, which is why we attract and 9.2(3) a and b of the Mine Health and Safety retain special people. It never ceases to amaze Act (MHSA). The personal monitoring results are how many long-service awards – some up to reported to the chief inspector as required by 20, 30 and 40 years – we hand out every year chapter 22.9(2) of the MHSA. We also comply or how willing Palabora people are to take on with the Rio Tinto Management system and and beat the challenges we face in the busi- performance standard requirements. This ness we are in. includes the monitoring of airborne pollutants, noise, thermal stress, hand, arm and whole body vibration, ergonomics, Legionella as well as potable water, among others. Training aims to assist provincial government Please tell us about the ongoing programmes that work to minimise the environmental damage that may result from the company’s operations. – Anthony Lennox Palabora is committed to reducing its impact on the environment in which it operates by Does the company offer skills development managing its activities in an environmentally and training? responsible manner. Palabora has incorpoSkills-development training provides short job- rated the Rio Tinto Environmental Policies related skills-training courses to unemployed and Standards into the site Safety, Health, youth in construction masonry, construction Environmental and Quality (SHEQ) policy and carpentry, clothing production and food prepa- the standards and procedures that guide the ration. This enables trainees to seek employ- operations in how to manage and limit the ment in the formal and informal sectors, to start impact on the environment. This ultimately their own business or further their studies with contributes towards a sustainable approach further education and training institutions. The to the way natural resources are used and training aims to assist provincial government undisturbed aspects are conserved for future with its implementation of education and skills- generations. Dust is generated throughout the training programmes in the area to improve the mining process. Several programmes have education and skills base within surrounding been put in place to either prevent dust from communities. Trainees registering for the becoming airborne or to alleviate the environcourses pay a nominal fee, making it affordable mental impact of dust. for the trainees, while the Foundation heavily Palabora has an extensive alien-plant eradication programme, which has been undertaken subsidises these courses. for over 15 years, and the maintenance proHow does the company safeguard the health gramme is effective in keeping the spread of and wellbeing of its employees? alien plants in check. Occupational health is a cross-disciplinary area concerned with protecting the health and welfare of people engaged in work or employment. The goal of all occupational health programmes is to foster a safe work environment. It may involve interactions among many areas, including occupational medicine, occupational hygiene, public health, chemistry and health physics among others. At Palabora, the occupational hygiene department identifies and reports the health risks as required by Section with its implementation of education and skills-training programmes in the area to improve the education and skills base within surrounding communities. 61 limpopo business 2013 PROFILE Palabora Mining Company Palabora Mining Company Limited extracts and beneficiates copper and other by-products in the Ba-Phalaborwa area of Limpopo Province. Palabora is South Africa’s only producer of refined copper and provides the local market with 85% of its copper requirements. Palabora was incorporated in South Africa in August 1956. Palabora was owned and managed by Rio Tinto. On 5 September 2012, Rio Tinto and Anglo American announced their intention to sell their respective 57.7% and 16.8% effective interests in Palabora. On 11 December 2012, Rio Tinto announced that it reached a binding sales agreement with a consortium that is committed to the on-going sustainable management of Palabora. The consortium comprises South African and Chinese entities led by the Industrial Development Limpopo business 2013 Corporation (IDC) and China’s Hebei Iron & Steel Group. The sale was subject to customary regulatory approvals in South Africa and China which were expected to take four to six month. During this transition, Rio Tinto continues to run Palabora operations efficiently and safely. Vision A leader in the mining industry through the company’s performance. Mission To safely and profitably extract and convert minerals and metal from the Palabora ore body. 62 PROFILE Objectives Palabora’s four strategic objectives, which are key drivers towards the achievement of its vision are: • Create a strong enterprise • Optimise operations • Resource for success • Sustainable long life Values • Integrity • Courage • Caring • Teamwork Operations The copper operations comprise an underground mine, a concentrator, a copper smelter with anode-casting facilities and an associated acid plant, an electrolyticrefinery tank house, a rod-casting plant and by-product recovery plant. The vermiculite operation comprises an openPalabora is at the forefront of mining pit mining operation and recovery plant. technologies and innovation. Overseas subsidiaries in the US, the UK and Singapore perform the marketing believes that all injuries, occupational illnesses of vermiculite. and incidents are preventable. An employer of choice From the time the mine started operations in the mid-1960s, Palabora has been at the forefront of employment practices in the local mining industry. Palabora employs approximately 2 200 people. The conditions of employment are competitive in the industry. All employees and contractors undergo entrance and exit medical examinations when joining and leaving the company. During their course of employment they are subject to routine medical examinations. Routine examinations are risk based and provide a comprehensive health profile of each employee. The Human Resources division seeks to be an Contact details active partner in the facilitation of the company’s objective of ‘Resourcing for Success’, Key contact person: and creation of a self-motivated and progres- Keith Mathole, General Manager: Corporate sive Palabora workforce that is focused on Affairs and Company Secretary business objectives, while achieving personal and career growth, as well as self-fulfilment. Tel: +27 15 780 2182 Fax: +27 15 780 2061 Health Email: email@example.com The safety and health of employees at Palabora Postal address: PO Box 65, 1 Copper Road, Mining Company is of utmost importance and Phalaborwa 1389 is a key principle in an efficient and profit- Website: www.palabora.com or able operation. Therefore, the company firmly www.riotinto.com 63 limpopo business 2013 focus Ensuring long-term sustainability The Palabora Foundation is spearheading community projects for the benefit of those in the Ba-Phalaborwa region. S ince its inception, Palabora Mining Company has been involved in the development of the local communities. In 1986, the Palabora Foundation, which is the mine’s sustainable development arm of Palabora, was established to empower the community through development and to assist the locals to be self-reliant. The company’s strategic intention is to support local economic development in order to reduce the economic dependence of Ba-Phalaborwa on the mining industry. The vision of the Palabora Foundation is to be a leading and sustainable socioeconomic development foundation for the sought-after marula oil. Women in the Lowveld benefit of Ba-Phalaborwa. area have been exploiting the fruit of the indigIn 2012, Palabora injected R27-million in enous marula tree for many years, often setting enterprise-development projects to benefit the up informal market stalls at the roadside to sell indigenous communities around Ba-Phalaborwa. marula juice, marula beer and other products. The 30TEN+5 programme was introduced, wherein Phalaborwa’s famous Amarula liqueur factory has 45 carefully selected local entrepreneurs would also provided informal income to local people, receive the necessary training, operational and/ mainly women, through selling to the factory. or financial support to their existing enterprises Marula nuts have been pressed to make oil with the intention of accelerating such enter- in other areas such as Tzaneen and Bushbuckprises and to assist them to grow and to ben- ridge, but the Palabora Foundation’s project is efit from the investment. The beneficiaries of the first time that marula oil has been utilised the programme come from the Ba-Phalaborwa in the area. Each woman involved in the project local communities of Makhushane, Mashishimale, has a genuine stake in the business that she Selwane, Maseke and Majeje. can use to uplift her family. Being so scarce, marula oil is an expensive and sought-after product, both for cosmetics and for culinary Marula oil extraction project use, but the relatively low yield (no more than The Palabora Foundation’s latest CSI pro- 30%) ensures that few formal businesses have ject directly interprets its mission statement, made the effort to extract it, as it simply does ‘Empowering the community through develop- not make enough profit to make it worthwhile. ment’, by exploiting a freely available natural product, the marula nut. The Foundation has set Waterbok Farm (Pty) Ltd up a co-operative business model for women from five villages, enabling them to produce Waterbok Farm was successfully claimed in Limpopo business 2013 64 focus upgraded with a new machine that increased production to 500 tiles per day. With financial assistance through the 30TEN+5 project, a new tile-making machine will be purchased, which will increase the current daily tile-production capacity by 400%. This new plant will ensure long-term sustainability and will provide additional employment to 12 members of the local community. Hluvukani prides itself on having a goodquality product at an economically viable price. The co-operative was also awarded a silver certificate as a non-profit organisation in 2008, and nominated for the community Builders of the Year in 2005 by Old Mutual and the Sowetan. The Palabora Foundation manages a bursary scheme that contributes towards the development of highly skilled professionals in different fields of study, by providing financial support to deserving students in Ba-Phalaborwa. In 2011, an amount of R2-million was approved by the Palabora Mining Company. Hluvukani roof-tile project The bursary caters for the following fields of Hluvukani Tiling is a small, established manu- study: Science and Mathematical Sciences, facturing facility in Majeje that started manu- Engineering Commerce, Medicine, Informafacturing roof tiles for the local community in tion Technologies, and Studies in Town and 1998. These tiles were handmade individually Regional Planning. from moulds until 2003, when the plant was 2010 by the community of Selwane Waterbok Farm (Pty) Ltd is 100% owned by the Selwane Community Property Association (CPA). The farm has been operating as a productive crop farm operation since the beginning of 2010, and is still in the process of rebuilding and expanding its capacity to become a successful commercial vegetable crop farm. In 2010, the farm paid out approximately R1-million in wages to workers from the Selwane community. This amount increased to R1.69-million in 2011, with a budget of R1.8-million in 2012. Farming operations commenced in January 2010 with the support of Palabora and the Department of Agriculture. This Waterbok Selwane Farming project is a private-public partnership with the Selwane CPA, the Limpopo Department of Agriculture and Palabora, in partial fulfilment of the Palabora Mining Companyâ€™s Social Labour Plan Commitment to the Ba-Phalaborwa Municipality and the Selwane community. This local economic development (LED) initiative aims to support economic farming activities in one of the poorest identified communities in South Africa. A specific focus is placed on women, youth, marginally employed or under-employed, the landless, survivalist entrepreneurs and people working in the emerging-enterprise sector. Mangena tomato farm Mangena tomato farm is situated in Mashishimale, and had a humble beginning in 2005. Today, under the leadership of Samuel Mangena, it is a thriving vegetable farm employing 15 locals and growing a variety of vegetables. With the assistance of the 30TEN+5 project, additional lands have been made available with a drip-irrigation system, which will increase Mangenaâ€™s capacity to supply the community and local markets with fresh vegetables. The Palabora Foundation, with Limpopo Business Support Agency (LIBSA), is also assisting the Mangena farm in changing ownership to a closed corporation in order to ensure longterm sustainability. Palabora bursary scheme 65 limpopo business 2013 focus Housing project for employees Implats actively assists its employees in becoming first-time home owners and focuses on creating sustainable communities in its labour-sending areas. M anagement at Impala Platinum Holdings Limited (Implats) firmly believe that the company’s success is dependent on the economic viability of its operations. As such, the upliftment of the surrounding communities and, in particular, the continued improvement in housing and living conditions for employees and their families is of paramount importance. Driven by this conviction, the company has invested millions of rands into a programme that Implats’ housing initiative actively promotes encourages employees to become home owners. home ownership among employees. In this regard, the company provides employees with an interest-free loan of up to one-third of the value of the house, effectively providing consist of 2 420 houses, with the total project the initial deposit. This reduces the banks’ risk cost estimated at R1-billion. In promoting local economic development, while increasing their appetite to grant bonds. Employees benefit immediately as there is a locally owned companies surrounding these market for houses and they obtain positive operations will be given an opportunity to tender housing equity from day one. for the building of 100 units. Implats has also developed social amenities The housing programme kicked off in 2007, with the construction of 1 700 units at Sunrise and has actively promoted and co-funded, with View in Rustenburg. The development was built the provincial government and the Impala Bafoand funded by Implats and the houses were sub- keng Trust, a primary and high school, which sequently sold at cost price to employees. This enrolled its first learners in 2013. project is sold out. Further, a greening programme has ensured A second development in Rustenburg, Platinum that in excess of 6 000 mature indigenous trees Village, was initiated in 2012. Proclamation has have been planted in these areas. recently been completed and the initial phase Terence Goodlace, CEO of Implats, says, of the infrastructure project will be completed ‘I maintain that what most differentiates our initiatives from what our peers are doing is the by 2013. In addition, Implats has recently signed two principle of ownership. Occupation is one thing; further contracts, together worth R198-million, equity in the home in which one lives is quite for the building of more houses. The first is a another. Ultimately, our vision is to engender a R140-million two-year contract to add more sense of belonging on the part of the people housing at Platinum Village in Rustenburg, and who live in these new developments.’ the second is a R58-million contract to build houses near the Marula mine close to Burgersfort. For more information, email investor@ The completed Platinum Village will ultimately implats.co.za or visit www.implats.co.za Limpopo business 2013 66 PROFILE Verder Pumps South Africa Verder Pumps SA was established in 2002 and has since grown to become a leading pump supplier throughout South Africa and sub-Saharan Africa. Description of business minimal operaVerder Pumps SA (VPSA) has a reputation for tional downtime. providing reliable, cost-effective, efficient and long-lasting pumping solutions. We specialise Mag drive in the supply of positive-displacement pumps centrifugal Ledibeng Eco Estate pumps to a variety of industries, including mining, The Verdermag pumps offer a Our pumps flow range from Verderflex – reduce Peristaltic pumps 0.3 to 300m3/h Verderflex peristaltic pumps offer unrivalled per- between -29˚C downtime and minimise maintenance costs. formance in a tough and uncompromising envi- and 120˚C, and ronment. Some of its key features are no rotor maximum operbreakage, unique hose design and no bearings ating pressure of 21 bar – ideal for pumping heavy-duty chemical applications and capable thus no replacement of expensive parts. of handling solids and volatile liquids. The sealVerderflex – a tough pump less design guarantee a leak-fee operation. Ideal for handling abrasive liquids and slurries Some of the product features are zero leakage, with a high solid content. less energy, less friction and less wear and tear. water and wastewater treatment, chemical processing, food processing, agriculture and many more. Verdermag – a leak-free pump Verderflex Dura – a reliable pump Combines the compactness of a close-coupled pump with all the benefits of the traditional long-coupled pump. Air-operated double diaphragm pumps Screw-channel pumps HUS – no clogging guaranteed HUS screw-channel pumps are excellent pumps for media containing long fibres. The design guarantees a blockage-free operation. Some of the product features are low maintenance cost and dry or submerged pumping. Verderair – a versatile pump The Verderair (VA) double diaphragm pumps’ flow ranges from 0.1 up to Contact details 1 050 litres per minute and pressures up to 8.4 bar. The air-valve design guarantees a non- Key contact people: stalling operation, even at low pressure and Mauritz Smith, Sales Engineer does not need any lubrication. The pump can Laetitia Moller, Marketing Manager handle very abrasive products and it can run Keith Gass, Managing Director dry indefinitely without damage. Some of the Tel: +27 11 704 7500 Fax: +27 11 704 7515 benefits of the Verderair are reduced mainte- Email: firstname.lastname@example.org nance costs, low downtime for maintenance and Website: www.verder.co.za 67 limpopo business 2013 PROFILE Coal of Africa Coal of Africa Limited is an emerging developer and producer of high-quality thermal and coking coal. Coal of Africa Limited (CoAL) operates only in South Africa, and the primary listing is on the Australian Stock Exchange, with secondary listings on both the Alternative Investment Market of the London Stock Exchange and the Johannesburg Stock Exchange Limited (JSE). begun, following a significant resource upgrade in May 2012. Responsible development CoAL is committed to the responsible development and management of its collieries and projects. It seeks to support and comply with CoAL has three operating collieries in South environmental, social and all other legislation, Africa, including one in the building phase, as and to engage regularly and transparently with well as a valuable suite of exploration and all stakeholders. While CoAL acknowledges development projects, enabling CoAL to grow that mining has an environmental impact, it will seek to mitigate this impact and ensure that well into the future. it leaves an enduring, positive social and ecoOperations and projects nomic legacy, particularly for those communities • Vele Colliery in Limpopo Province com- surrounding its operations. menced production of thermal coal in January 2012, with testing of coking coal A key milestone achieved during 2012 was the underway. Vele is currently ramping up to development and sign-off of an integrated sus2.7-million tons per annum (Mtpa) run-of- tainable development policy and framework for mine production targeting 1.0 Mtpa saleable CoAL. The next critical step is giving effect to this coking-coal product. framework. This framework will be used to track • CoAL has Mooiplaats Colliery, Vuna Colliery its sustainability journey and to map out the speand Woestalleen Complex in Mpumalanga cific roles and responsibilities. It will become an Province. Vuna is scheduled to close in integral part of performance management and April 2013, but the Woestalleen wash plant capacity-building by defining key performance and rapid-load-out facility will remain oper- indicators and targets in each area of operation ational for several years. Mooiplaats has and impact; and mapping the tools and systems approximately 12 years of resource at current needed in support of each commitment. production rates. Strategic discussions with parties in the area are underway to optimise Contact details the potential synergies at Mooiplaats. • CoAL also has the Makhado Project in Limpopo Key contact person: Province. Its Definitive Feasibility Study (DFS) Sakhile Ndlovu, Investor Relations Manager was prepared for review during 2012. • MbeuYashu (Greater Soutpansberg Project), Tel: +27 11 575 4363 Fax: +27 11 576 4363 also located in Limpopo, is a project whose Email: email@example.com assets were acquired from Rio Tinto and Physical address: 2nd Floor, Gabba Building, Kwezi Mining in April 2012. The process The Campus, 57 Sloane Street, Bryanston of applying for permits for this project has Website: www.coalofafrica.com Limpopo business 2013 68 OVERVIEW Engineering Mining is a key driver of engineering activity in Limpopo. Sector Highlights South Africa’s previous engineering records are being smashed by big projects in Limpopo. • Goba’s work on the Brakspruit Rail Bridge earned the 2011 Project of the Year award. major companies • Goba • Barloworld • BKS • TWP Projects • Grinaker-LTA • Transnet Engineering • Genrec • SEW Eurodrive • Wade Walker • Aurecon Companies that base themselves in an area such as Phalaborwa, as Gage SpeThe coal conveyer system from Grootgeluk Mine to Medupi. cialists does, are well placed to provide services to the he De Hoop Dam and the Medupi Power Station represent mining, energy and transport two of the greatest engineering projects ever undertaken industries. in South Africa. These, and a number of new and existing Another company sermining projects, are keeping the engineering sector in Limpopo vicing this sector is Transnet very busy. Engineering, whose AuxilMajor waterworks such as the Mokolo and Crocodile Water iary Business delivers clean Augmentation Project in the west of the province are among the wagons and tarpaulins for other projects engaging the province’s engineers. Transnet Freight Rail to transSEW Eurodrive, a major international company that special- port these minerals. Clean ises in drive engineering and drive electronics, has an indus- wagons are important as trial-gears plant in the neighbouring province of Mpumalanga, a safety consideration, as because it is close to the platinum, magnetite, phosphate and Phalaborwa is a centre for copper-mining operations of the eastern parts of Limpopo. phosphate rock mining and T photo: exxaro/planetkb 69 limpopo business 2013 OVERVIEW phosphorous can be harmful to the environment. A 2011 derailment on the Brakspruit Bridge fortunately only led to harmless rock phosphate being scattered in the river bed. The positive result of the accident was the award, by Transnet Capital Projects, of its 2011 Project of the Year to engineering firm Goba for the innovative temporary structure that allowed freight to continue along the line, and for its new concrete bridge deck. The biggest project of all is Eskom’s Medupi Power Station, which is the subject of an article elsewhere in this publication. It is a massive undertaking. Grinaker-LTA is responsible for the chimneys, among many things, while subsidiary Trident Steel is providing some of the steel for the boiler superframes, turbine halls and overhead cranes. BKS Group is responsible for the auditing and design of all of the project’s steel structures, while General Electric will supply the switchgear system, and DSE Structural Engineers & Contractors is doing the air pre-heater structure. The list of firms and subcontractors is very long indeed. To supply Medupi with coal, Exxaro is increasing capacity at its Grootgeluk mine, and for that, it needs engineers. Among the major companies active in this project are Arup, PRG Electrical Engineering & Services, Stefanutti Stocks Civils, LSL Consulting, SSG Consulting and Engineering & Limpopo business 2013 Projects Company. The overall cost of the project is estimated at R9.5-billion. Murray & Roberts subsidiary Wade Walker (electrical, control and instrumentation engineering) had by September 2012 laid 220km of cabling at the two new plants at the mine. The complexities of the mining industry provide great scope for the giant trucks and loaders of earthmoving companies such as Barloworld Equipment, which has branches in Polokwane and Phalaborwa, and the specialist skills of drill suppliers. Aurecon is involved in both big water projects in the province: the Olifants River Water Resources Development Project and the Mokolo and Crocodile Water Augmentation Project. Aurecon was also a key contractor on the project to upgrade the Peter Mokaba Sports Complex in time for the 2010 Soccer World Cup. The new No 17 Shaft at Impala Platinum’s mine has been described by the company as the biggest single Engineering, Procurement and Construction Management (EPCM) project it has ever awarded. Commissioning of the main shaft will happen in 2015, with full production set to begin in 2018. TWP Projects, sold in 2012 by Basil Read to WorleyParsons, has the contract to sink the shaft. Among the other engineering concerns involved with this project are M&R Civils, Shaft Sinkers, Louwill Engineering and Bluhm Burton Engineering. For its No 16 Shaft, Impala Platinum contracted Read Swatman & Vogt as the lead EPCM company, with Wade Walker, ABB South Africa and NIC Instruments & Engineering among the other contractors. Bateman has delivered a platinum concentrator to Ridge Mining and done major work for phosphates company Foskor at its plant in Phalaborwa. In the northern part of the province, Blasting & Excavating, a subsidiary of the Basil Read Group, is in the process of completing a R138-million drilling contract with De Beers’ Venetia Diamond Mine. Online resources Consulting Engineers of South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Institute of Civil Engineering: www.civils.org.za South African Institution of Chemical Engineers: www.saiche.co.za Southern African Institute for Industrial Engineering: www.saiie.co.za Steel and Engineering Industries Federation of South Africa: www.seifsa.co.za 70 interview Converting customers to superior drive technology Jonathan McKey, SEW Eurodrive’s sales manager for Mpumalanga, talks about the company’s campaign to increase its presence in Limpopo Province. Jonathan McKey What are the company’s main products and services? The main products are geared motors, drive electronics, industrial gears, servo motors and related services. SEW Eurodrive is present wherever there is motion, so you will find us in more than 80% of all industries, including mining, food and beverage, timber, automotive, ports and water treatment to name a few. Tell us about your involvement in specific projects in Limpopo Province. SEW Eurodrive has been involved with the changing and improvement of applications in certain process plants, as well as in mines serviced by SEW. In a joint effort with an agent, SEW Nelspruit is currently expanding its footprint in Phalaborwa. What are your objectives in terms of expanding SEW’s business in Limpopo? We have started an intensive campaign in Lephalale (Ellisras) and surrounding areas. To attain a stronger presence in these areas we have recently employed three new sales engineers to dedicate time to this region. Ultimately, our goal is to be an unrivalled force in the power-transmission industry. Could you explain SEW’s Complete Drive Management (CDM) Maintenance Management, which was launched in September 2012? SEW Eurodrive now offers maintenance management at the plant, system and component level for all of the installed drive technology at manufacturing companies. The benefits for customers include greater transparency, optimised maintenance, better spare-parts availability and a reduced number of parts held in stock. The CDM includes the technical data of all motors, gear-motors, industrial gear units and frequency inverters, their usage information and classification of their condition, as well as required maintenance measures if necessary. Jonathan McKey joined SEW Eurodrive in May 2002 and filled various roles before being appointed sales manager of the Nelspruit operation in 2012. He has been involved in supplying applications for the following industries, which are prevalent in the Lowveld and Limpopo: sugar, mining, board manufacturing, sawmilling, agricultural, pulp and paper processing plants. He has built successful relationships with organisations mining the Eastern Limb in the Steelpoort area, and SEW converted many of the mining entities who, at the time, were using competitors’ products. 71 limpopo business 2013 PROFILE Transnet Engineering Transnet Engineering, (formerly known as Transnet Rail Engineering) an operating division of Transnet SOC Limited, is the backbone of South Africa’s railway industry. Transnet Engineering (TE) has nine productfocused businesses, 132 depots, six factories and about 13 000 employees countrywide. The organisation is dedicated to inservice maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, diesel and electric locomotives as well as wheels, rotating machines, rolling stock equipment, port maintenance, castings, auxiliary equipment and services. An African focus While the focus of TE’s activities is mainly on the South African market, investment in research and development to service the specific requirements of Africa and the rest of the world has of reliability and availability. During upgrades, led to an ever-expanding range of rolling stock tractive effort is increased through the addiproducts and a comprehensive list of satisfied tion of microprocessor-wheel-slip control – customers. The proximity of the coastal plants to enhancing fleet-revenue-generation potential. major ports facilitates the movement of products to and from overseas markets. Wagon business: provides heavy maintenance, general overhauls, modifications, upgrades, The organisation’s competency is based maintenance and new builds. TE is an original on its sound knowledge of the technolo- equipment manufacturer (OEM) of wagons. gies embedded in its products, supported The wagon business is a major supplier of by ongoing research and development and new wagons to the heavy-haul coal and ironexceptional product application experience. ore fleets with tare ratios as high as 5:1. Other wagon types supplied are cement, car carriers, TE’s business units intermodal and fuel tankers. Transnet Engineering has four customer-facing businesses, with five internal-support opera- Coach business: performs heavy maintenance tional businesses: of coaches, general overhauls, modifications and upgrades. Modernisation of South Africa’s Locomotive business: does heavy refurbish- large DC suburban fleet is one of the busiment, general overhauls, upgrades, manufac- ness’ main markets, and its modular upgrade turing, maintenance and assembly of various designs extend the economic lifespan of the types of locomotives. Dedicated staff operating sets. During upgrades, passenger and driver from depots and factories close to the main ergonomics are enhanced wherever possible, rail freight corridors maintain a fleet of 2 200 while safety and operating performance are locomotives per annum, ensuring high levels increased. Designs include dining, lounge and Limpopo business 2013 72 PHOTO: RAILWAYS AFRICA PROFILE kitchen cars, sleeper and sitter coaches and power units. Port and terminal business: the ports business is not new, as TE has been maintaining and manufacturing straddle carriers for Transnet Port Terminals (TPT) for years. The ports business is now positioned to maintain all ports and terminal equipment and machinery. The long-term view is to get this business involved in assembly of all new port equipment. The internal support operational businesses are: Foundry: TE has two foundries in Pretoria and Bloemfontein. They manufacture castings to support the refurbishment programme of TRE. Rotating machines: refurbishes and maintains all the rotating components that are found in rolling stock, such as traction motors. This Auxiliary business: offers both products and business is now involved in the assembly of services for rail cargo as well as ISO connew traction motors for the 43 class locomo- tainer refurbishing and wagon cleaning. It tives. All traction motors are qualified and supplies newly manufactured, repaired and load-tested to full capacity on back-to-back washed tarpaulins and accessories, product motor test facilities. Electrical work includes diversity extends to cargo canopies, scotches, repair and manufacture of motor field coils, lashing chains, road trailer tarpaulins, boat complete rebuilding, rewinding and repair of covers, tents and other PVC material products, armatures and the repair and calibration of trimming and cargo protection equipment. instrumentation. Committed to the future The organisation takes seriously its moral and legal duty to ensure the health and safety of Wheel business: the assembly of new wheels all employees. This obligation also extends to as well as the refurbishment and maintenance clients, the communities in which it operates of the existing fleet of wheels. The main activ- and to the protection of the environment. ities comprise wheel re-profiling, machining of axles, centres and tyres, fitting of wheel Contact details bearings, driving gears and motor suspension tubes, as well as centre re-tyreing, journal Tel: +27 12 391 1304 burnishing and crack detection through ultra- Fax: +27 12 391 1371 sonic testing from factories and depots on the Email: firstname.lastname@example.org main cargo routes. Website: www.transnet.net Rolling stock equipment: manufactures parts and sub-assemblies for locomotives, coaches and wagons. Processes involve laser cutting, bending, welding, forging and fabrication of carbon and stainless steels. It also repairs and upgrades components to extend the lifespan of rolling stock. This includes refurbishing of brake valves and cylinders, couplers, pantographs and the overhaul of diesel engines, turbo-chargers and compressors. With its greatest assets being its people and their skills, Transnet Engineering is committed to many initiatives, such as the talent management programme, relationship building, performance management, transformation, a comprehensive lifestyle well-being programme, as well as engineering bursaries and apprenticeship training to name but a few. PHOTO: transnet engineering 73 limpopo business 2013 focus Providing auxiliary logistical services to companies in Limpopo The Auxiliary Business unit of Transnet Engineering provides specific services to companies in Limpopo. ransnet Engineering, an operating division of Transnet Limited, is the backbone of South Africa’s railway industry with nine product-focused businesses, 132 depots, six factories and more than 13 000 employees countrywide. One of the product-focused businesses is the Auxiliary Business, which has a national platform and which operates in two places in Limpopo Province – Phalaborwa and Pienaarsrivier. T Phalaborwa Depot Wagons are washed at the Phalaborwa Depot. arriving with the train and makes repairs on any products (tarpaulins) that might need repairing. This repair site also serves the Nelspruit area by repairing sugar-wagon tarpaulins. The Phalaborwa Depot is one of the country’s high-volume, intensive areas in terms of tarpaulin repair as is evident by the tonnage of magnetite and rock phosphate commodities moved. The employees are required to work at a fast pace as the trains have to adhere to a tight schedule to move product consistently on a daily basis. This is achieved through the application of Lean and Lean Six Sigma methodologies, where operational efficiencies are the key focus in meeting pre-set targets. The Phalaborwa Depot is strategically located next to the two mines that the business serves, namely: • Foskor Mine, which mines magnetite and rock phosphate • Palabora Mining Company (PMC), which mines magnetite, copper and vermiculite The Auxiliary Business is providing services to Transnet Freight Rail (TFR), which transports Foskor and PMC commodities, with the bulk of it going to the ports of Richards Bay and Maputo in Mozambique for export. These services include: Repairing tarpaulins The Auxiliary Business inspects the tarpaulins Limpopo business 2013 74 focus Tarpaulin washing Tarpaulins are washed with high-pressure water machines (WAP cleaning) where these tarpaulins are interchangeable for use with different commodities. This ensures that tarpaulins are available for trains even if tarpaulins are lost or stolen in transit. traffic, ore and minerals) that have been washed and have small holes that can be sealed before loading. This is to prevent the commodity falling out of the small openings of the wagons and thereby causing environmental spillage. Loading of canopies The Auxiliary Business assists in the loading of Cleaning wagons canopies on wagons that were cleaned for rock The business cleans wagons on TFRâ€™s request phosphate loads at the request of clients with which, depending on the request, could be either low tonnages (for example, Sasolburg orders). wet cleaning (done through WAP cleaning) or When Palabora Mining Company needs dry cleaning (sweeping). This is done in order to canopies they are loaded from the Auxiliary prevent contamination of loads. Business yard into wagons for transporting the The business is meeting environmental objec- vermiculite loads. tives on reusing water though the treatment plant that was built in 2009. This treatment plant is Pienaarsrivier Depot of a high standard and can accommodate a vast volume of water. It is equipped with top-of-the- The Pienaarsrivier Depot is located on the clientâ€™s siding, where loading of fluorspar range equipment and has a large reservoir. Safety is of critical concern to Transnet Engi- takes place. Activities undertaken at this neering and so the Auxiliary Business in Phalaborwa depot include the cleaning of wagons that ensures that any excess residue removed from were loaded with coal. During the rainy season, the wagons is disposed of in the correct area employees of the Auxiliary Business load canoand as per occupational health and safety regu- pies on the wagons for the fluorspar loads. The lations. The platform facility has been designed business is currently upgrading the Pienaarsrivier with ergonomic factors in mind as well as the facility by adding a platform to help prevent any safety of Transnet employees. environmental or safety risks that may occur as a result of the cleaning of the wagons. Distribution of auxiliary equipment Tarpaulins needing repair are collected on the Corporate social investment arrival of the train and are sent to the repair workshop. After the tarpaulins are repaired, they Corporate social investment is of great imporare correctly placed on each wagon before the tance to the Auxiliary Business. The container train goes for loading on the mines. This service business is one of the product-focused busiis offered as far away as Komatipoort if there are nesses of Auxiliary and has been involved wagons that have missing tarpaulins. in a number of the Transnet CSI projects by Cement wagons that arrive via Maputo without providing expert services relating to the contarpaulins are also handled by the Auxiliary version of containers into offices, classrooms, Business. washing facilities, libraries and even police staThe Auxiliary Business also does work for small tions. Examples of such services include the companies that want to move their commodities Matklerekeng and Bakenberg Container Police by selling or leasing tarpaulins to them and, where Stations, which were donated by Transnet in needed, preparing the train or covering wagons the past and are scheduled to be maintained in 2013. with tarpaulins. Contact the Customer Care Line on Sealing of wagons 0860 111 345 to explore ways in which Sealing of wagons is done on CR wagons Transnet Engineering Auxiliary Business can (a specific type of wagon designed for loose bulk add value to your auxiliary logistics needs. 75 limpopo business 2013 OVERVIEW Transport A new heavy rail line may be built to carry coal from the Waterberg District. Sector Highlights More than 100 delegates attended a national Road Traffic Management System roadshow in Polokwane in 2012. • Freight logistics hubs are planned at Polokwane and Musina. • Transnet Freight Rail aims to carry 35% of Limpopo’s fruit. major companies • Transnet Freight Rail • Passenger Rail Agency • SA Airlink • Roads Agency of • South African National Limpopo Roads Agency Limited of SA L impopo’s strategic position as a regional hub gives it an advantage in some respects, but also brings its own set of challenges. A vast number of vehicles pass through the province and use its facilities in the course of delivering goods to all parts of Southern Africa. Polokwane’s airport is strategically placed for easy access to the whole region, and the province’s road and rail links are major national and regional assets. The Provincial Government of Limpopo has set aside R5-million for the establishment of freight logistics hubs at Polokwane and Musina. The N1 highway, ‘The Road to the North’, is the busiest road, and growing mining operations are putting pressure on secondary routes. Transnet Freight Rail (TFR) is determined to lead the country in getting larger quantities of freight moved from road back to rail. TFR is conducting a feasibility study into building a major new rail link to connect the coal-rich Waterberg District to the • Value Group • Imperial Logistics • Barloworld country’s ports. An extension of 464km would cost about R37-billion. If more coal mines are developed (which may only happen if the line is built), then capacity could be ramped up in stages from the current four-million tons per year to about 80-million tons. All of this would be delivered to Richards Bay via the line through Mpumalanga and KwaZulu-Natal. Getting the province’s resources to ports is a point Limpopo business 2013 76 photo: morgue file OVERVIEW Transnet Freight Rail is determined to move larger quantities of freight from road to rail. of great interest. An article in the Mail & Guardian in 2011 reported on plans to build a new deep-water port in Mozambique to compete with Richards Bay as a conduit for minerals and other raw materials. A 1 100km rail network spreading across Southern Africa (to the north of South Africa) would deliver these goods to the port. A number of banks and mining houses are already said to be involved in the R56-billion project, which will have a major impact for mining companies in Limpopo if it comes to fruition. four major regional depots outside of Gauteng: in Cape Town, Durban, Nelspruit and Polokwane. This illustrates the importance of Limpopo and its capital city in the logistics chain in South Africa. Logistics giant IMPERIAL Logistics Southern Africa has 70 companies in its group structure, including Kobus Minaar Transport, a concern that began in Tzaneen transporting fruit and vegetables. Much of the agricultural produce of the province has to be delivered to ports in a hurry because of the delicate nature of the fruit. Avocados, of which Limpopo is the country’s premier supplier, are particularly easy to bruise, and so companies such as Freezerlines, Fast ‘n Fresh and Cold Chain have developed specialist techniques in getting these fruits to market and to port undamaged. Grindrod has a Perishable Cargo division that specialises in transporting cargo by air. Limpopo’s mining industry is the other major driver of the transport and logistics sector. National government has spent ever-increasing amounts of money on road allocations over the last five years, increasing at a rate of 16% every year. The National Minister of Transport says that South Africa needs R75-billion for road maintenance in the five years to 2015. Limpopo is one of the provinces most Roads in need of urgent work on its roads. Large national logistics comSouth African National Roads Agency Limited (Sanral) has pany Value Group has only successfully raised several billion rands through bonds and photo: transnet Freight rail 77 limpopo business 2013 OVERVIEW capital markets in pursuit of its mandate to finance, manage and maintain the national road network. The province has a backlog of 15 630km of gravel roads that are due to be converted to tar. Only 30% of the roads in the province are tarred. Roads Agency Limpopo, of which the provincial government is the sole shareholder, accounts for nearly half of the budget of the Limpopo Department of Roads and Transport. In 2012, more than 100 delegates attended a roadshow in Polokwane on the proposed national Road Traffic Management System, a self-regulation system that asks operators to follow a strict set of standards. Air Polokwane International Airport (PIA) is wholly owned by the provincial government and run by Gateway Airport Authority Ltd (GAAL), an agency of the Department of Roads and Transport. The airport has undergone a R35-million upgrade and been transformed into a regional hub. It has the potential to be an important regional cargo airport. SA Airlink caters mainly to the business market and offers 21 flights to Johannesburg six days a week. The airline also provides links between Phalaborwa and Johannesburg, and between Hoedspruit and Johannesburg and Cape Town. Many game reserves have airstrips and regional airports in the eastern part of the province provide easy access to the Kruger National Park. Eastgate at Hoedspruit is situated within an airforce base and has the second-longest runway in South Africa, long enough to serve as an emergency landing area for Space Shuttles. Phalaborwa’s airport is notable for its Africanthemed terminal, which includes a zebra-patterned floor. Musina, near the border with Zimbabwe in the north, hosts the province’s other regional airport. Rail History was made in August 2012 when a 35-wagon freight train travelled from Polokwane to Pretoria with a single driver at the wheel. Patricia Mangau became the first South African to operate without a driver’s assistant, something pioneered in Australia and Brazil. Transnet Freight Rail (TFR) has plans to increase its share of the transport of Limpopo’s fruit from 5% in 2009 to 35% in 2014. TFR contends that if this happens, the cost of transporting this fruit will come down from R1.9-billion to R1.7-billion, with the number of annual road trips declining from 55 000 to 32 000, and concomitant improvements in carbon emissions. The Limpopo Freight Rail Initiative is being implemented in the Sekhukhune District. The Passenger Rail Agency of South Africa (Prasa) is set to spend about R123-billion on upgrading and modernising the country’s rail system and rolling stock. This would include an investment in the building of 360 new coaches every year for two decades. Online resources Air Traffic and Navigation Services: www.atns.co.za Civil Aviation Authority: www.caa.co.za Eastgate Airport: www.eastgateairport.co.za Great North Transport: www.gntpassenger.co.za Limpopo Department of Roads and Transport: www.ldrt.gov.za Railroad Association of South Africa: www.rra.co.za Roads Agency Limpopo: www.ral.co.za South Africa Bus Operators Association: www.saboa.co.za South African National Roads Agency Limited: www.sanral.co.za South African Rail Commuter Corporation Ltd: www.sarcc.co.za Transnet Freight Rail: www.transnet.net Limpopo business 2013 78 OVERVIEW Water Major and minor schemes are underway throughout Limpopo. Sector Highlights Lephalale Local Municipality was Limpopo’s top Blue Drop municipality in 2012. • Foskor has won a national award for its water-reduction strategies. • The Mokolo Crocodile Augmentation Project will supply Medupi Power Station. major companies • National Department of • Lepelle Northern Water • Trans-Caledon Tunnel • Aurecon • Polokwane Municipality The local and district municipalities of Mopani, Sekhukhune, Capricorn and Mogalakwena are served by Lepelle Northern Water (LNW). Authority Water Affairs T photo: department of water affairs he National Department of Water Affairs (DWA) has attached a figure of R570-billion to the amount of investment needed in South Africa’s water supply chain in the years to 2022. Water-resources infrastructure alone is said to need R162-billion. Limpopo is the site of two of the biggest of these projects: the Mokolo Crocodile Augmentation Project (west) and the Olifants River Water Resources Development Project in the east. The latter scheme is covered elsewhere in this publication. Large parts of Limpopo Province are very dry, and getting water to these areas presents logistical challenges for the five district municipalities that act as water-service authorities. Limpopo has three climatic regions: the escarpment (subhumid with annual rainfall of more than 700mm), the semi-arid Middleveld and Highveld, and the arid and semi-arid Lowveld. North Parts of Limpopo’s northernmost district are very dry. Surface water mainly originates in the mountainous areas and is regulated by several dams in the upper and middle reaches of the rivers. Overexploitation of groundwater is a problem. An innovative watercatchment project run by limpopo business 2013 79 OVERVIEW second-year meteorology overall winner of the Water Conservation and Water Management students of the University of Sector Awards 2012. The awards were created by the DWA. Pretoria is providing a commuLonminâ€™s Marikana platinum mine project draws water nity in the Soutpansberg with from no fewer than five river catchments, most of which are tributaries of the Crocodile Marico River. clean drinking water. Instead of relying on When the Olifants River Water Resources Development Protankers to bring water to their ject is fully developed, it will be supplying water to 23 platinum dry area, schoolchildren in the mines. The De Hoop Dam is at the centre of the scheme. of Tshiavha village collect Water developments in the Sekhukhune District water from giant sheets that have not been restricted to the De Hoop Dam. The distrap the water that gathers as trict municipality published figures in 2011 to show that fog. Three-metre-high nets set 16 484 households had access to piped water in 2009 (comup around the school provide pared to 8 728 in 2000). Five water projects with 65 associated about 2 500 litres per day. schemes had delivered other water infrastructure, including pipes to get water to Moutse from the Loskop Dam. Mopani District Municipality ranked third in Limpopo when West the 2012 Blue Drop Awards were handed out. The Mokolo Crocodile Augmentation Project is designed Polokwane to supply water to Medupi, the new power station being built The Water and Sanitation Services branch of Polokwane Municiat Lephalale, and to the coal- pality operates five water-purification plants and three sewagemining operations that will purification plants. As part of its Regional Water Scheme feed it. A pump station and a programme, Polokwane provides water to the residents of 45km pipeline between the the rural areas of Mothapo, Mothiba and Makotopong. A 600site of the power station and kilolitre reservoir was built and new pipes were laid. the Mokolo Dam is being built Polokwaneâ€™s water earned Blue Drop status for the third year by the Trans-Caledon Tunnel in a row in 2012. Authority. Construction of a new water-testing laboratory on the Mokolo Crocodile Consult- campus of the University of Limpopo began in October 2012. ants, a group of five consulting Capricorn District Municipality will fund the establishment and firms that includes Aurecon, functioning of the laboratory. Mocha Lab has been operating in Polokwane since 2008, is providing engineering services to this project. and has the capability to provide services to the mining and Lephalale Local Municipality engineering sector, as well as to water authorities. won the Blue Drop Award for 2012 as the best-performing municipality in Limpopo, with support from service providers Exxaro and Eskom. The municipality achieved a Blue Drop Online resources score of 92.8%. National Department of Water Affairs: www.dwa.gov.za Olifants River Forum: www.orf.co.za East and south South African Association of Water Utilities: www.saawu.co.za Foskor has reduced water Water Research Commission: www.wrc.org.za intake from 16 790-million Trans-Caledon Tunnel Authority: www.tcta.co.za litres per annum to 5 840Water Institute of South Africa: www.wisa.org.za million litres. The company was Limpopo business 2013 80 PROFILE Lepelle Northern Water Lepelle Northern Water is committed to delivering quality water services and supporting water authorities in achieving their mandate. Lepelle Northern Water (LNW) was established an advanced stage to supply industrial water in April 1997, in terms of Chapter Six of the from De Hoop Dam (after its completion) to Water Services Act, No 108 of 1997. LNW’s the mines in Sekhukhune District Municipality. primary mandate is to provide bulk-water Industrial water supply is being investigated in services to other water services institutions, the areas of Musina and Tzaneen municipalities. such as municipalities, mines and industries. The same act further directs that a water board The main challenge faced by LNW in the realican provide secondary water-related services, sation of its mandate is that water demand is such as water reticulation, cost recovery and more than the supply at other schemes. Even revenue management, water demand manage- though this is the reality, LNW is continually ment and water conservation, catchment man- striving towards supporting the municipaliagement, technical support and can also act ties in the development of water-demandas the implementing agent for capital projects. management (WDM) strategies and their implementation. LNW has provided resources Area and scale of supply to Mogalakwena Municipality in the developLNW’s area of supply covers approximately ment of its WDM strategy, and work there is 80 000 square kilometres in the Limpopo progressing in the right direction. Province. LNW is currently covering 39% of its area of service, which is 51.56% of the Expansion of operations population of Limpopo Province. LNW oper- LNW plans to expand its operations to the ates various schemes in various districts. rest of the province and discussions have started with Vhembe District Municipality, and LNW’s total asset value is in excess of Lephalale and Mookgophong municipalties. R780-million and it currently operates 11 schemes as well as three waste-waterContact details treatment works. In the past financial year, the water schemes produced 284 megalitres per Key contact person: day of potable water and 54 megalitres per day Simon Mpamonyane, of industrial water. The total capacity of the Communications Officer waste-water-treatment works is 6.85 megalitres per day and LNW intends adding a number of Tel: +27 15 295 1800 Fax: +27 15 295 1912 new waste-water-treatment works in the future. Email: email@example.com or firstname.lastname@example.org LNW’s mandate Physical address: 3 Landros Mare Street, The primary mandate of LNW is to provide Polokwane 0700 bulk-water services to other institutions. LNW Postal address: Private Bag X9622, also provides industrial water to mines in Polokwane 0700 the Ba-Phalaborwa Municipality. Plans are at Website: www.lepellewater.co.za 81 limpopo business 2013 OVERVIEW Energy New uses for platinum are being found in the energy field. Sector Highlights Anglo Platinum has demonstrated an underground mining locomotive powered by fuel cells. • Medupi Power Station will greatly increase South Africa’s power capacity. • Cow dung is powering two villages in the Giyani region. • SunEdison is putting up R2.6-billion for solar projects. Fuel cell units are being used to run mining locomotives. I n the short and medium term, coal continues to rule the roost • Eskom as a feedstock for power stations, but national and provincial • Anglo Platinum planners are looking to a more sustainable long-term future. • Project 90x2030 The Matimba Power Station nearby will continue to hold its • Mapfura Makhura title as the world’s largest dry-cooling plant only until such time Incubator as Medupi is commissioned. Matimba has installed capacity • Alternative Energy of 3 990 megawatts, but functions closer to 3 700 megawatts. Development Its new neighbour Medupi will add 4 764 megawatts to the Corporation national grid. • Thupela Energy Major efforts are being made to find ways to create more • SunEdison power from renewable resources. Limpopo has lots of platinum, and there are exciting possibilities in possible energy applicafuel cells. Although the first tions for the mineral. In May 2012, Anglo Platinum, one of the province’s biggest application is intended to companies, launched its first underground-mining locomotive create power to run the coal to be powered by a fuel cell. Platinum coating greatly enhances mine, the company that is runthe hydrogen absorption capacity of fuel cells. The locomotive ning this fuel cell power plant was developed together with Vehicle Projects, Trident South is Anglo Platinum. Africa and Battery Electric (Reuters). Anglo Platinum is a 17.5% In November 2012, SunEdison unveiled R2.6-billion in shareholder in Johnson Matfunding for solar projects that will produce 58 megawatts and they Fuel Cells. Anglo Platinum bought the second-hand be bought by Eskom. Anglo Coal’s operations at Lephalale produce a huge amount demonstration unit from UTC of methane gas. A third of this gas is now being used to power Power, a US company. It can …Continued on pg 84 major companies Limpopo business 2013 82 photo: anglo american PROFILE Kinross Energy Newblak Investments is a project-development company for renewable-energy projects. Kinross Energy is a wholly owned subsidiary of Newblak Investments. The aim of Newblak Investments is to introduce technologies not previously available in South Africa through partnerships with experienced original equipment manufacturers (OEM) from developed countries. • The company is in the feasibility stage of a 40 000-ton-per-year torrefication plant in the Greater Letaba Municipality at a rail siding, for easier access to rail final product where desired. Currently in discussions with power utilities abroad for their coal-fired power station’s co-firing requirements, as part of mitigation strategies in abatement of CO2 emissions. The company’s ambitions are to go further upstream in local manufacturing of components for these projets, which will begin once the plants are operational (at the end of 2013 or early 2014). Dr Ian De Villiers, Managing Director Region of operation All current activities are in Limpopo, but the company aims to spread the projects and facilities nationally. Key target markets Industrial clientele Sector Industrial (private power/own use) and manufacturing Key facts and figures Year established: 2008 No of staff: 5 BBBEE level: 3 Recent projects • Final feasibility stage for a 10MW photovol- Contact details taic project in the Molemole Municipality of Key personnel the Limpopo Province. Generated power will Dr Ian De Villiers, Managing Director be transmitted through the Eskom national Dr Tshegofatso Mabelane, Director grid to an industrial client in close proximity. • Pre-feasibility stage for a 7.2MW bio- Key contact person mass power plant within the Polokwane Tshediso Mabelane, General Manager Municipality. The plant will be constructed at an industrial client’s site, in collabora- Tel: +27 11 794 3825 Cell: +27 83 330 1989 tion with a state-owned enterprise, and the Fax: +27 11 794 1337 generated power will be connected to the Fax: 086 550 4191 (SA only) clients substation for its own use. Feedstock Email: email@example.com will be provided by using sawdust and other Email: firstname.lastname@example.org biomass fines sourced from the client’s own Physical address: 313 Boundary Road, feedstock. North Riding, Randburg 2194 Postal address: PO Box 3926, Honeydew 2040 83 limpopo business 2013 OVERVIEW produce up to 200 kilowatts of electricity. Bioethanol, biodiesel and methane gas from waste and renewable resources are among the types of biofuels being investigated. A new set of national government guidelines has shifted the emphasis towards finding fuel stock from crops that are unlikely to affect food security, like sugar cane, sugar beet, canola and sunflower seeds. Limpopo is well placed to exploit these crops and has several other advantages as a potential green economy: • Thousands of hectares of open space that could be traded in the carbon-trading market • High solar intensity • Relevant mineral deposits such as silica, which are useful in making solar products • A well-established and well-equipped agricultural sector, capable of producing crops for use as biofuel The Mapfura Makhura Incubator (MMI) is one of the most exciting initiatives in Limpopo. With representatives and support from the Limpopo Department of Agriculture, the CSIR, Seda, the Agricultural Research Council and the University of Limpopo, among others, MMI aims to promote small, medium and micro enterprises while simultaneously igniting the biofuels industry. NGO Project 90x2030 has a demonstration site in Limpopo, showing off the latest Limpopo business 2013 technology in renewable energy. At Tshulu-HaMakuya, the 20-unit computer room of the Tshulu Trust is powered by a solar-photovoltaic system, as is the lighting for the facility. A number of other innovative projects are showing that energy can be obtained from many sources. Methane gas: Waste from 17 000 pigs on a farm near BelaBela has halved the electricity bill of the operation. Humphries Boedery is a 520-hectare farm that uses 9 000 tons of pig effluent to create a gas that is then converted by a generator into electricity. According to the Sunday Times, the farm’s own plant supplies about 70 kilowatts of power and is the only private biogas power plant connected to the national grid. The technology consultants on this farm project, Cape Advanced Engineering, claim that four piggeries can power 200 homes. Photovoltaic: The Waterberg region may soon have a commercial photovoltaic plant. The National Department of Environmental Affairs has accepted the first scoping report prepared by Savannah Environmental on behalf of Thupela Energy. The proposed plant is in Modimolle Local Muncipality. Cow dung: Cow dung has been put to good use in villages near Giyani. With the help of the Netherlands Wild Goose Dutch Development Organisation and Mpfuneto Community Support, a biogas digester has been installed in the villages of Gawula and Mahlathi to supply 180 households, massively reducing firewood needs. Zinc air fuel cells: Mining group Exxaro is sponsoring the rollout of alternative energy near its remote Tshikondeni mine east of Musina. The Alternative Energy Development Corporation (AEDC) has installed zinc air-fuel cells in homes and in street lights. With this technology, oxygen and zinc combine in fuel cells to generate renewable energy. Online resources African Biofuels: www.africanbiofuels.co.za CDM Africa Climate Solutions: www.cdmafrica.com Mapfura Makhura Incubator: www.biodieselmmi.co.za National Department of Energy: www.energy.gov.za Southern African Biofuels Association: www.saba.za.org Sustainable Energy Africa: www.sustainable.org.za 84 OVERVIEW Media Limpopo residents have many choices when it comes to newspapers and radio stations. T he Polokwane Observer, a local newspaper in the Media24 stable, won the best newspaper award in the Independent Established Paper category in 2012, the fourth time it has won the top award at the Local Media Awards in as many years. The Steelburger/Lydenburg News won Best Front Page in the Free Sheet category, Die Pos photographer Herman Steyn was named Press Photographer of the Year and the Bushbuckridge News won a sports-reporting accolade. The Local Media Awards are presented by Sanlam and the Media Development and Diversity Agency (MDDA). In addition to daily national newspapers like Beeld, Limpopo has a varied and competitive community newspaper industry. Lin Media is an umbrella body of independent newspapers, comprising nine titles with a print run of 60 000 copies per week. The group has more than 400 000 readers a week, with titles operating in Tzaneen (Bulletin) and other areas. Lin aims to attract more regional and national advertisers via its larger footprint and to improve reporting through news sharing. Northern Media Group is a division of Caxton & CTP and has its own printing press. It publishes several weekly titles, the majority of which are sold as newspapers. These include Capricorn Voice, Northern Review, Limpopo Informant, Bosvelder and a Herald for each of Phalaborwa, Hoedspruit, Letaba and Mopani. A further three titles are distributed free. Sector Highlights The Polokwane Observer has won a top national award for four years running. • Lin Media titles reach 400 000 readers every week. major companies • Limpopo Independent • Northern Media Group • Media24 • Polokwane Observer The SABC runs three radio stations in Limpopo. Munghana Lonene FM broadcasts in Xitsonga to nearly a million daily listeners, while Phalaphala FM targets young Tshivenda speakers. Thobela FM is a full-spectrum Sepedi radio station with just over two million listeners per day. Capricorn FM, launched in 2007 by MSG Afrika Media, has been successful in attracting listeners in the LSM 6-10 bracket. The other commercial station with significant reach in Limpopo is 94.2 Jacaranda, which is owned by Kagiso Media. Community radio stations include Radio Bushbuckridge, Univen Community Radio, Mohodi FM, Radio Turf, Radio Botlokwa and Mokopane Community Radio. Newspapers Radio Moletjie Community Radio was another winner at the national awards in 2012: the Polokwane-based station won Best Community Radio Station. Online resources Lin Media: www.linmedia.co.za Munghana Lonene FM: www.mlfm.co.za Newspaper Association of Southern Africa (NASA): www.printmedia.org.za Northern Media Group: www.reviewonline.co.za/nmg-group/ Polokwane Observer: www.observer.co.za South African Broadcasting Corporation: www.sabc.co.za Limpopo business 2013 86 Your gateway into the Limpopo Province Limpopo Combo Are you looking for a gateway into the Limpopo consumer market that will give you instant access to more than 4.5 million Sepedi (Northern Sotho), XiTsonga and TshiVenda speakers? Step onto the threshold and into the world of Limpopo Combo, where your message will be broadcast on Thobela Fm, Munghana Lonene Fm and Phalaphala Fm, to an eager audience of modern, intelligent graduates and young professionals in all the major language groups in the province – at cost effective rates. About 70% of Limpopo Combo listeners fall within the highly sought after LSM 5-8 segments – people that hunger for information, aspire to learn and who are positive about the future of the province and the country. The three powerful SABC radio stations Thobela Fm, Munghana Lonene Fm and Phalaphala Fm – all based in Limpopo – have carefully crafted content in a programme mix that embraces the concept of edutainment: it is always thoroughly entertaining but never fails to educate. Limpopo Combo airwaves are designed to convey information that inspires and messages that hit home, without ever having to alienate the audience. Expect good, wholesome radio that will have both little Danny and his Granny begging for more – Limpopo Combo’s content is suitable for the whole family and speaks to each and everyone. Thobela Fm, Munghana Lonene Fm and Phalaphala Fm present South Africa’s most northern citizens with the ins and outs of their world in the languages of their heart and tongue: From news and current affairs (including weather, traffic, sport and financial updates) to lifestyle features (including food and nutrition, health and beauty, fashion and décor); empowerment features (education, business, finance, legal matters, science and technology, careers); and a good dollop of entertainment (gig guides, DIY, travel tips, dramas and soapies, birthday wishes, listeners’ choice and so much more). These three commanders of the northern airwaves use technology to their and your advantage and the stations’ on-air presenters are iconic, if their following on social media platforms such as facebook and twitter, is anything to go by. Imagine getting your message aired and appreciated by specifically targeted millions. The SABC grants you the opportunity to own a feature (or more than one) across all three stations. Speak to your SABC sales consultant for a tailormade solution that will see your brand soar. To advertise please call 011-714-7000 visit us www.groupsalesandmarketing.co.za OVERVIEW Technology Limpopo is looking to technology for solutions in several sectors. Sector Highlights Embryo transfers promise better cattle productivity. • Farmers are delivering feedstock for biodiesel. • A technology hub is mooted for Limpopo. major companies • Technology and Human Resources for Industry Programme • Small Enterprise Development Agency • Support Programme for Industrial Innovation • Technology Innovation Agency P Resources for Industry Programme (THRIP, National Research Foundation) • Seda Technology Programme (stp, Small Enterprise Development Agency). The THRIP programme, which supports about 235 projects every year, delivered four olokwane hosted the National Technology Awards national winners in various ceremony in October 2011, a signal that Limpopo categories. SPII gives financial support Province is committed to putting technology to work to find solutions. to small and large companies In the audience that saw the 31 finalists vie for top hon- to help them develop techours during the two-day exhibition, were 400 schoolchildren nologies to the point where from all over the Capricorn District. The awards ceremony is they can produce and sell a hosted by the National Department of Trade and Industry (dti), product. Winners from the and brings together three important programmes that support SPII programme included a technological innovation: company that invented an • Support Programme for Industrial Innovation (SPII, managed ultrasonic cutting device for its confectionery, a company by the Industrial Development Corporation) Limpopo business 2013 • Technology and Human 88 photo: catwabacounty/flickr OVERVIEW that developed cellphone and Internet technologies to remind patients to take chronic medication, and the development of a web-based school-management system. The Small Enterprise Development Agency (Seda) is active in supporting small businesses, and its Technology Programme has several incubators around the country. The Jewellery Incubator in Polokwane helps entrepreneurs in the field to develop and market products. Another Seda enterprise is the Mapfura-Makhura Incubator, a biodiesel initiative in the south of the province that aims to get emerging farmers to cultivate soybeans and sunflowers as feedstock for biofuel. The Technology Innovation Agency (TIA) is also active in the agricultural sector in Limpopo. This dti agency, in collaboration with the Agricultural Research Council (ARC), is rolling out a scheme to address the shortage of cattle bulls and productivity levels among the cattle of poorer farmers. Small-scale farmers have 40% of the national herd, but contribute a scant 5% to beef production. Artificial insemination and embryo transfers are being used to improve this situation. TIA is responsible for the Limpopo Agro-Food Technology Station (LATS), which is located at the University of Limpopo. LATS aims to help farmers convert primary agricultural products into saleable products. The Agricultural Research Council has other technological programmes in Limpopo Province, as part of its international obligations and partnerships. The Limpopo River Basin is the subject of a Challenge Programme on Food and Water (CPFW), that is, in turn, part of a broader international Global Agricultural Research Partnership. In the 2011/12 financial year, the Limpopo Economic Development Enterprise (LimDev) registered two projects with National Treasury for: • The establishment of a Limpopo technology hub • The creation of a shared broadband for the province The State Information Technology Agency (Sita) supports a wide range of national and provincial departments and municipalities across the province, and is working on establishing a comprehensive provincial network. Sita has a client base of more than 5 000 offices, and offers services in wide-area network (WAN) support, support of the provincial mainframe, ICT training and website development, among others. Intermediate computer-literacy classes are being provided at some Limpopo schools by the Internet Service Providers’ Association (ISPA), and the CoZa Cares project of Uniforum SA. Maths Centre has received funding from the Citigroup Foundation to help it expand the Anglo American project for maths and science using specially developed software. ICT company Edukite Learning Services is the developer. The sponsorship includes digital tablets and projectors to be used in the training of teachers. Developments in the energy sector are covered in a separate section of this book, but it is relevant here to note that modern technology is behind the proposal to develop a photovoltaic plant in the western part of Limpopo, and the more radical proposal to start using hydrogen as a source of energy. Limpopo is rich in the platinum group metals (PGM) that are vital to the process of making hydrogen a useable resource. Online resources Limpopo Economic Development Enterprise: www.limdev.co.za Mapfura-Makhura Incubator: www.biodieselmmi.co.za National Department of Science and Technology: www.dst.gov.za National Department of Trade and Industry: www.thedti.gov.za National Research Foundation: www.nrf.ac.za Seda Technology Programme: www.seda.org.za Support Programme for Industrial Innovation: www.spii.co.za State Information Technology Agency: www.sita.co.za Technology and Human Resources for Industry Programme: htttp://thrip.nrf.ac.za Technology Innovation Agency: www.tia.org.za 89 limpopo business 2013 OVERVIEW Banking and financial services Technology is making banking easier for people in rural areas. T he percentage of South Africans who use banks is steadily increasing. The Finscope 2010 survey found that 77% of adults (more than 25 million people) are ‘financially included’, and that 63% of that group use formal banking services. This is in sharp contrast to the 2003 figure of about 50%. South Africa’s retail bankers are aiming to close the gap still further and are offering a range of products to draw the previously unbanked into the formal system. The unique features of Limpopo’s population distribution, with most residents living in rural areas, give the provincial banking and financial sector its own character. All of the province’s cities and towns are well served by banks and insurance companies, which offer a full range of services. Limpopo has its own bank, VBS Mutual Bank, which grew out of the Venda Building Society and operates mainly in the northern parts of the province. The Public Investment Corporation holds 34% of equity. The head office is in Makhado and the credit department operates out of Thohoyandou. The tragic events that unfolded at the platinum mine of Marikana in the neighbouring province of North West brought unsecured microlending into sharp focus in 2012. Dozens of people died violently in the space of a few days in August. Investigations by the National Credit Regulator (NCR) showed that many Sector Highlights Microlending practices in mining towns came under the spotlight in the course of 2012. • Capitec Bank topped four million clients in 2012. • Standard Bank’s publicsector profile is growing. major companies Limpopo business 2013 90 photo: stock.xchng • Standard Bank • Nedbank • Absa • First National Bank • Capitec Bank • VBS Mutual Bank • African Bank • Ubank OVERVIEW miners were and are victims of illegal lending. Thirteen lenders were raided by the NCR (Moneyweb). It is thought that miners’ debt exacerbated the tense situation that arose during the strike. Ubank is owned by a trust that is managed by the Chamber of Mines and the National Union of Mineworkers (NUM). It has about 100 branches and a strong presence in Limpopo. Ubank has about half-a-million clients, significantly less than its main competition, African Bank (about 2.3 million) and Capitec Bank. African Bank has been expanding its services to include credit cards and insurance, but its main business is as the credit provider for Ellerines Holdings Retail Stores, including Fairdeal, Town Talk, Ellerines, Lubners, Furniture City and Furncity. New retail bank Capitec Bank has made remarkably quick progress in gaining market share – and not only among the previously unbanked. A clientbase growth of 31% in the 2011/12 year proved this, and took the bank’s total number of clients up to 4.2 million. As of August 2012, Capitec Bank had 534 branches, with 40 locations in Limpopo Province. This is still some way short of giants such as Absa and Standard Bank, which have about 800 and 680 respectively. Standard Bank is moving rapidly to achieve its ambitious goals in public-sector banking: in two years it has almost doubled its market share and now provides banking services for about 20% of the municipal market in South Africa. Limpopo local municipalities Modimolle and Metsimaholo were signed in 2011, with the Sekhukhune District Municipality switching to Standard Bank in 2012. Engineering and construction group Murray & Roberts is engaged with the mega-project that is the Medupi Power Station, and like the Standard Bank Group, it is a global company. Standard Bank Group is the joint global coordinator, bookrunner, underwriter and sponsor of Murray & Roberts’s R2-billion rights offer. This is the largest-ever transaction in this sector. New products and technology • FNB offers EasyPlan for first-time banking customers. The bank’s eWallet product, whereby money can be sent to cellphones, is proving very popular. A Pay2Cell system allows for the transfer of money from one FNB account to another using only a cellphone. • In 2009, Absa rolled out Absa Transact at specific entry level and inclusive banking (Elib) branches. These 63 branches represent 8% of Absa’s branch network, but they generate 35% of loans. Of Absa’s 11.8 million retail customers, 2.6 million use cellphone banking and 1.3 million use the Internet. • Standard Bank community banking initiative offers a low-cost cellphone banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spaza shops. • The Nedbank Business Banking division is part of a decentralised system that aims to gain insight into local conditions. The bank has developed specific products to support businesses in the tourism sector. The bank’s reach into rural area has been enhanced by its branch-in-a-box concept. Online resources Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Institute of Bankers in South Africa: www.iob.co.za National Credit Regulator: www.ncr.org.za Office of the Auditor-General of South Africa: www.agsa.co.za Ombudsman for Banking Services: www.obssa.co.za Public Investment Corporation: www.pic.gov.za 91 limpopo business 2013 interview Bringing banking to the people Standard Bank Limpopo’s Mita Koebe highlights the bank’s efforts to bring convenient and affordable banking services to the residents of Limpopo. Mita Koebe Please tell us about Standard Bank’s operations in Limpopo. Standard Bank celebrated its 150-year anniversary in South Africa in 2012. Our first Limpopo branch opened in Pietersburg in 1918. This is now known as the Polokwane branch, located on the corner of Landross Mare and Thabo Mbeki streets. Standard Bank’s provincial leadership and functional heads in Limpopo operate from our main office in Polokwane. The provincial leadership takes care of our diversified businesses, from Business Banking (which includes agriculture, SMMEs, franchising, and corporate) to Public Sector, Private and Personal Banking. The functional heads provide necessary support. We have a team of 747 personnel providing excellent customer experiences through our broad representation across the province. Standard Bank has 50 branches, 352 ATMs and 581 AccessPoints across the province. We also have 13 Business Banking suites and four Private Banking suites in Limpopo. What is your short- to medium-term outlook for the economy of Limpopo? Mineral production and government’s public infrastructure spending will be key drivers of economic growth. Growth is anticipated in the following areas in particular: • Burgersfort, Mokopane and Northam – platinum mining • Lephalale/Soutpansberg – coal mining and electricity generation • Phalaborwa – phosphate, copper and magnetite from dumps, and diamond mining in Musina Please highlight some of the major finance deals that Standard Bank has concluded in the province. Standard Bank Limpopo has, through our business banking team, provided significant financing for the acquisition of assets in the province in 2012. The bulk of these transactions were done in the transport and manufacturing industries, as well as in the agricultural and public sectors. Substantial lending has also been extended by means of workingcapital finance and term finance. Our specialists in the franchising, Mita Koebe has worked in the banking industry for 18 years. She has been a foreign exchange officer, and a manager of the Services Centre, People and Services, and Provincial Services. Mita was also the regional head of the Bushveld and Capricorn districts. Her qualifications include a B.Com in Industrial Psychology. Limpopo business 2013 92 interview Standard Bank has implemented AccessPoints in some communities that allow customers to access banking services without having to visit a branch. agriculture and public sectors have added tremendous value to our clients operating in these sectors. Some of the successful transactions concluded relate to: • Funding of business-expansion strategies • Agricultural production finance and finance of land acquisition • Establishment and expansion of manufacturing and processing plants • Public-sector investments in infrastructure development and for working capital in general To what do you attribute Standard Bank’s success in structuring these finance deals? Our success is a combination of factors, including the strength of the broad Standard Bank Group, the loyalty of our customers, the calibre of leadership in the province, a customer-focused operating model, and the valuable knowledge, skills and expertise of our staff. What effect has Standard Bank’s community banking initiative had on extending banking services to the unbanked in the province? Standard Bank is the first bank in the country to partner with local retailers already operating in rural communities, local townships and urban areas, running small businesses or spaza shops. Customers can now walk to a Standard Bank ‘AccessPoint’ that offers A total of 581 AccessPoints have been installed thus far in various rural and urban locations, such as townships, spaza shops and small businesses. services such as cash-in (putting money into your account), cash-out (taking money out of your account), money-transfer services, purchasing pre-paid airtime and/or electricity, and performing account balance enquiries. The 581 AccessPoints have already proven highly successful, as shown in the high volume of transactions and increases in cash balances at the spaza shops. This innovative concept has created a multitude of benefits including direct job creation opportunities for the people of Limpopo, as well as indirectly stimulating further job opportunities in the SMME market. Standard Bank has recruited an incommunity mobile sales force countrywide, and Limpopo employs 119 AccessAgents whose primary responsibility is to take banking services to the communities. 93 limpopo business 2013 focus A focus on education Standard Bank has a proud history of community upliftment and empowerment projects in Limpopo Province. Some of Standard Bank’s recent corporate social investment (CSI) projects include: • Tau-Tlou Primary School: Situated in the Sekhukhune District Municipality, this is one of the ’94 schools for Madiba’. It was given funds to build a borehole, as well as for other school needs. • Mohlalamorudi High School: In 2012, the bank sponsored prizes for 20 matric learners and agreed to continue to partner the school in 2013. • Sekhukhune FET College: Standard Bank made a financial contribution to Sekhukhune FET College CN Phatudi Campus towards the award ceremony that recognised high achievers in 2012. • Burgersfort Primary School: Prizes were sponsored for the golf day to assist the school to raise funds to improve its facilities. The bank also allows the school to bring learners to the bank every year to teach and educate learners about financial wellbeing. • Julian Muller Primary School: The bank assisted with the feeding scheme for school children in Grobersdal. • Standard Bank also supports the Palabora Foundation’s Programme for Technical Careers (Protec) that aims to provide a source of high-capability students for Palabora Mining, as well as other local companies and industries. • Retina South Africa, a home for the blind. • Cancer Association of South Africa’s (Cansa’s) Health sector Standard Bank’s Employee Community Involvement Programme has a staff matching facility, where individual donations are matched rand-for-rand by the bank. The following are some matched donations (by staff members) made to the communities in Limpopo during the years 2010, 2011 and 2012: Limpopo business 2013 Shavathon received funds to support those that live with cancer. • In October 2010, Standard Bank raised funds through the participation of its staff in the annual Cansa relay in Polokwane. Staff have supported this event for a number of years. • Mahwelereng Centre of Hope received funds to support and care for children with disabilities. • Standard Bank has supported Burgersfort Home-Based Care for a number of years, where it assists with advice and the donation of groceries for the home-based care project. In Limpopo, staff has made contributions to the following community organisations: • Tonda Lushaka Community Home: a daycare centre for under-privileged children in Makhado. • Association for Persons with Disabilities: a home for persons with disabilities in Penina Park, Polokwane. • Mahwelereng Centre of Hope: an orphanage and disability centre for children in Mokopane. www.standardbank.com/corporatesocial investment.aspx 94 listings Key provincial contacts A guide to key Standard Bank personnel in Limpopo Province. Provincial Head Limpopo Province Mita Koebe Tel: +27 15 290 8205 Fax: +27 15 290 8354 Email: mita.koebe @standardbank.co.za Provincial Head Business Banking Cobus Wells Tel: +27 15 290 8359 Fax: +27 15 290 8302 Email: cobus.wells @standardbank.co.za Provincial Sales Head Sithembiso Khumalo Tel: +27 15 290 8307 Fax: +27 15 290 8354 Email: sithembiso.khumalo @standardbank.co.za Provincial Head Public Sector Banking Kagisho Mathosa Tel: +27 15 290 8313 Fax: +27 15 290 8302 Email: kagisho.mathosa @standardbank.co.za Provincial Home Loans Manager Ernest Letsoalo Tel: +27 15 290 8310 Fax: +27 15 290 8392 Email: ernest.letsoalo @standardbank.co.za Provincial Private Banking Manager Verna Jooste Tel: +27 15 290 8389 Fax: +27 15 290 8302 Email: verna.jooste @standardbank.co.za Provincial Agric Manager Johan Van Stade Tel: +27 15 290 8379 Fax: +27 15 290 8302 Email: johan.vanstade @standardbank.co.za Provincial Financial Consultant Manager Anthony Kganyago Tel: +27 15 290 8319 Fax: +27 15 291 3139 Email: anthony.kganyago @standardbank.co.za Provincial Vehicle & Asset Finance Manager Ilze Stoffberg Tel: +27 15 290 8319 Fax: +27 15 291 3139 Email: ilze.stoffberg @standardbank.co.za Polokwane & Louis Trichardt Local Market Manager Ayesha Harri Tel: +27 15 299 8328 Fax: +27 15 291 3139 Email: ayesha.harri @standardbank.co.za Mokopane Local Market Manager Oliver Moorcroft Tel: +27 15 299 8328 Fax: +27 15 291 3139 Email: oliver.moorcroft @standardbank.co.za Limpopo Provincial Office Physical address: 50 Schoeman Street, 1st Floor, Standard Bank Square, Polokwane Postal address: PO Box 74 Polokwane 0700 95 limpopo business 2013 Financial institutions can play a critical role by facilitating access SME assistance is a very complex field as the needs of each SME are different. While funding or finance is important, it is not necessarily the biggest obstacle SMEs face – access to markets is an absolute necessity to any entrepreneur. Unemployment and poverty remain the continent’s key challenges into the foreseeable future, and the solution to global unemployment lies in the development and support of small and medium sized enterprises and the entrepreneurs. Small businesses employ almost 60% of the employable population of South Africa today, and over 12 million South Africans rely directly on small businesses for their livelihood. However, research shows that 60% of SMEs fail in their first year of operation and 22% in the second year. The dependency on small enterprises as a result validates the need to create an environment that sustains and nurtures small enterprises. Myriad of problems face many SMEs today and these range from funding to knowledge and/ or skills. While many believe in considering and identifying SME challenges in their individuality, Absa takes a more communal approach and attribute the problem to a ‘lack of access’. We go beyond traditional banking and find other ways of assisting with nurturing small businesses from their start up phase right through their growth, development and expansion stages. As an engaged South African corporate citizen, Absa provides both financial and non-financial solutions for sustainable growth and development to small and medium-sized enterprises. Our value proposition to SMEs considers business from three different but interconnected perspectives - access to markets, access to funding and access to business support. • Access to markets Contrary to popular belief, the largest obstacle facing SMEs is not funding or a lack thereof – access to markets is. Absa believes that the lack of access to Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7. business opportunities is a big challenge for SMEs. The ability to penetrate existing markets or create new markets is not an easy feat when there are established businesses with many years of operations. Essentially a business without a client or a customer is not a business at all, irrespective of how well-funded it is. Among the preferential procurement challenges for corporate buyers is the inability to locate and identify suitable suppliers who meet their targeted profile. For the SMEs, the challenge has been accessing these corporates to secure supplier contracts. The market is there but the linkages do not exist. Absa’s virtual marketplace, called the Procurement Portal, allows suppliers to be visible to corporate buyers. They can search for specific suppliers in a particular region, of a certain profile and with a particular capacity. The Procurement Portal also encourages corporates to buy more services and products from SMEs, facilitates financial independence and offers a range of non-traditional funding solutions. So, find the market and the money will find you. • Access to funding Access to funding is often seen as a major stumbling block by SMEs due to lack of funds. This involves financial services related offerings, for an example, bank accounts, access to finance, access to working capital and so forth. Absa offers procurement finance, which is a cashflow lending solution that provides funding to SMEs who have secured contracts with reputable corporates. Our funding covers the business from the purchase order stage (Vendor Finance) to post-invoice issue stage (Invoice Clearing). • Access to business support The last important challenge facing SMEs is of a more structural nature given the history of our country and the general lack of an entrepreneurial culture in SA. The reasons for failure are not the technical inability of the SME (e.g. a bad plumber) but rather a lack of general business skills. Recent research shows reasons range from a lack of management competence (16%), to poor book keeping and record management (12%), poor financial management (34%), sales and marketing problems (11%). To address this, Absa has nine Enterprise Development Centres (EDCs) located throughout the country with the sole purpose of providing a supportive environment for SMEs. The centres offer equipment and computers as well as knowledgeable staff to assist where necessary. Absa’s view is that you do not need to own a computer but you need to have access to one. The Absa SME Index We have gone a step further by recently launching the Absa SME Index aimed at providing valuable information on the current state of SMEs in the country and the level and challenges of employment in South Africa. By creating an SME Index we aim to provide valuable information that will allow SMEs to make better and informed decisions, will allow policy makers to make relevant policy decisions and inspire those aspiring to become entrepreneurs to make the leap. The reality is that SMEs do not have an economist desk, they do not have a currency expert and they require access to solid and reliable information that will help them grow their businesses. For more information contact Enterprise Business on 0860 04 03 02 or email us on email@example.com OVERVIEW Development finance and SMME support Limpopo is a priority region for the those investing in SMME support in the country. Sector Highlights Business Partners has launched a venture capital fund. • Co-operatives are getting backing from Seda. • A black empowerment group gained shares in a mining-contracting company with help of the NEF. major companies Many agencies offer development finance to start-ups. M Development Agency ining and energy investments in the western and eastern • Small Enterprise regions of Limpopo Province are bringing many new Finance Agency people into these areas. Apart from driving up sale and • National Empowerment rental prices for property, this demographic shift is providing Fund opportunities for the emerging business sector, particularly in • Industrial Development the service industry. Corporation The city of Polokwane was South Africa’s fastest-growing urban • Khula area between 2005 and 2010, with a growth rate that was better • Anglo American Zimele than 5%. The South African Cities Network study that came to • Absa this conclusion also noted that further research was needed to establish the reasons, but a growing economy is a good incubator Some 48% of the for entrepreneurship. 45 900 jobs created or saved According to research done by Absa, SMMEs were supporting by IDC initiatives will be 60% of the country’s employable population in 2011, against a created in rural areas. The IDC also takes sharefigure of just 18% in 1998. There are a number of bodies that support small, medium and holdings in companies to micro enterprises in Limpopo, and development finance institu- provide the capital required tions are making it easier for new businesses to start up. for these companies to scale The Industrial Development Corporation (IDC) is the source up production or to offer of a great deal of developmental funding in South Africa. In new products. the 2011/12 financial year, the corporation’s funding grew to Limpopo projects R13.5-billion, with a large amount being spent in rural attracting the funding supareas. Limpopo Province is one of the IDC’s priority regions. port of the IDC include an • Small Enterprise Limpopo business 2013 98 PHOTO: ANGLO AMERICAN OVERVIEW Nguni-cattle-breeding scheme, a new hospital in Lebowakgomo, the development of a ferrochrome smelter and a facility for making coking-coal briquettes. A new national body came into existence in the 2011/12 financial year: the Small Enterprise Finance Agency (sefa). An IDC body, sefa will do the work previously done by three separate bodies, and will get loans out to small businesses as quickly as possible. The Small Enterprise Development Agency (Seda) is a subsidiary of the National Department of Trade and Industry (dti) and is one of the most active agencies in supporting entrepreneurs. The Seda Limpopo Jewellery Incubator (SLJI) develops entrepreneurship among jewellers in Limpopo. In 2011/12, 295 potential businesses were turned into trading entities by the Seda Technology Programme nationally, with more than 1 500 jobs being created. Seda has initiated a national programme designed to make co-operatives and jointly owned enterprises stronger. As part of the Cooperatives and Community Public Private Partnership (CPPP) programme, Seda is supporting a project in Tarentaal. The National Empowerment Fund (NEF) launched the Enterprise Development Fund (EDF) in 2011, with the intention of supporting blackowned businesses. The NEF is another organ of the dti and has put up R75-million for the EDF, and intends getting another R50-million from private companies. An NEF investment of R45-million into LA Crushers, a miningcontracting company based in Phalaborwa, enabled a black economic empowerment (BEE) group to acquire a 46% share in the company. The company employs 500 people. The Development Bank of Southern Africa (DBSA) is a major funder of public projects. It announced in 2012 that it planned to invest heavily in public health (R20-billion), water, sanitation and energy (R40-billion), transport infrastructure (between R30-billion and R50-billion). All major projects under the control of the Provincial Government of Limpopo will have a ‘triple localisation procurement thrust’ to assist SMMEs and co-operatives. Private initiatives All of the major banks have SMME offerings. Absa Bank’s SME Fund is driven by its Small Business Division, Standard Bank runs a Community Investment Fund and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million. The commercial division of FNB has sections that deal with Start-up Funding and BEE Funding. A private initiative that is doing extraordinarily well in creating employment is Anglo American’s Zimele. It has launched more than 900 businesses with a combined annual turnover approaching R2-billion. Zimele has established 29 small business hubs in areas such as Mokopane and Burgersfort. Business Partners launched a R400-million venture capital fund in 2012. Fifteen percent of the capital will fund startups, with the balance being used for buyouts and acquisitions. Business Partners has a failure rate of 30%, far better than the national average. Online resources Business Partners: www.businesspartners.co.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Land and Agricultural Development Bank of South Africa: www.landbank.co.za Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Empowerment Fund: www.nefcorp.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za Zimele: www.anglozimele.co.za 99 limpopo business 2013 focus Funding products and services The National Empowerment Fund (NEF) has approved over R4.4-billion (October 2012), a milestone which has supported more than 30 000 jobs countrywide. regulations Established by the National Empowerment • return on investment Fund Act No 105 of 1998, the NEF is a • the possibility of co-funding with another driver and a thought-leader in promoting and public- or private-sector institution facilitating black economic participation through the provision of financial and non- Contact details for the NEF financial support to black-empowered businesses as well as by promoting a culture of Head Office : Gauteng Province savings and investment among black people. Physical address: West Block, 187 Rivonia Road, Morningside 2057 Tel: +27 11 305 8000 Fax: +27 11 305 8001 Funding from Call centre: 086 184 3633 / 0861 (THE NEF) R250 000 to R75-million Email: firstname.lastname@example.org (Funding), The NEF is an agency of the dti mandated to email@example.com (General Enquiries) promote black economic participation. Its funding mandate is guided by the Codes of Eastern Cape Province Good Practice on Broad-Based Black Economic Physical address: 7b Derby Road, Empowerment, as well as by the Industrial Policy Berea, East London 5241 Action Plan. The NEF provides business loans Tel: 0861 NEF ECP (0861 633 327) from R250 000 to R75-million across a range Email: firstname.lastname@example.org of sectors, for start-up, expansion and equity acquisition purposes. A key requirement for Free State Province NEF funding is for the investees to be directly Physical address: 34 Fountain Towers, Corner involved in the operations of their businesses. Zastron and Markgraaf Street, Westdene, Bloemfontein Tel: 0861 NEF FSP (0861 633 377) Funding criteria Email: email@example.com Each application for funding is assessed in terms of the following criteria: KwaZulu-Natal Province • minimum percentage of black ownership or Physical address: Smart X-Change Building, interest 5 Walnut Road, Durban 4001 • black women empowerment Tel: 0861 NEF KZN (0861 633 596) • black managerial and operational involvement Email: firstname.lastname@example.org • commercial viability of the business • specific product criteria Limpopo Province • job creation Physical address: Suite 8, Biccard Park, • geographic location of the business (rural/ 43 Biccard Street, Polokwane 0699 urban/disadvantaged areas) Tel: 0861 NEF LIM (0861 633 546) • community involvement Email: email@example.com Limpopo business 2013 Mandate • compliance with all the relevant laws and 100 focus Mpumalanga Province Physical address: Trust Building, 16 Brander Street, Nelspruit 1200 Tel: 0861 NEF MPU (0861 633 678) Email: firstname.lastname@example.org North West Province Physical address: 32B Heystek Street, Sunetco Office Park, Ground floor, Rustenburg 0299 Tel: 0861 633 697 Email: email@example.com Product/Fund Entrepreneurship Finance Procurement Finance Franchise Finance Acquisition Finance Expansion Capital New ventures Capital Markets Description For starting a new business For tenders and contracts For pre-approved franchise licenses For black investors to acquire a stake in medium to large companies For growing an existing business Participation in greenfield projects Listing on the JSE or its junior Altx markets Funding amounts R250 000 – R10-million R250 000 – R10-million R250 000 – R10-million R2-million – R75-million R250 000 – R75-million R5-million – R75-million R2-million – R75-million Western Cape Province Physical address: Suite 2818, 28th Floor, Absa Centre, 2 Riebeek Street, Cape Town 8001 Tel: 0861 NEF WCP (0861 633 927) Email: firstname.lastname@example.org The NEF has BEE Facilitator status**, which can help black shareholders Liquidity and Warehousing and companies wishing to sell a stake while keeping the shareholding black *Rural and Community Development Fund For agri-processing, tourism, mining and beneficiation, manufacturing, etc Venture-capital fund investing in early stage projects for the purpose of developing strategic industrial capacity in poverty nodes, in renewable energy, outsourcing, tourism, manufacturing, mining business process and mineral beneficiation, etc R2-million – R75-million R1-million – R50-million *Strategic Projects Fund R1-million – R75-million On average, the NEF’s business loans are repayable over four to seven years, and up to 10 years where marked with an asterisk (*). **In 2008 the NEF was awarded BEE Facilitator status by the dti in terms of the provisions of statement 100 of the Codes of Good Practice on B-BBEE. The NEF’s BEE Facilitator status means that equity investments held by the NEF in any company are automatically regarded as 100% black-owned, including 40% owned by women and 10% by black designated groups. The equity stakes would also be regarded as unencumbered, resulting in the company receiving a perfect ownership score in respect of the stakes held by the NEF. 101 limpopo business 2013 PROFILE Small Enterprise Development Agency The Small Enterprise Development Agency aims to enhance the competitiveness and sustainability of small enterprises by providing needs-based programmes, products and services. The Small Enterprise Development Agency (Seda) is an agency of the South African Department of Trade and Industry (the dti). Seda was established in December 2004, through the National Small Business Amendment Act, Act 29 of 2004. products to assist businesses in various phases of operation: Seda Business Talk provides practical answers and guidance to potential entrepreneurs wanting to start their own business and get it right the first time. Assistance provided includes: • Business advice and information • Small enterprise training • Business registration Seda Business Start provides businesses with instruments and techniques to plan their operations for a better chance at success. Focus is placed on: • Business planning • Business counselling • Access to finance • Business support Seda Business Build provides entrepreneurs with professional services to help them build a stronger business. Assistance includes: • Capacity-building systems • Mentorship • Tender advice/procurement • Export readiness • Franchising Seda Business Grow provides the skills and knowledge to increase a business’s market share. Seda can assist with: • Business-systems development • Co-operative support • Growth strategies It is mandated to implement government’s small-business strategy, design and implement a standard and common national delivery network for small-enterprise development, and integrate government-funded smallenterprise support agencies across all tiers of government. Seda provides business development and support services for small enterprises through its national network, in partnership with other role-players in small-enterprise support. Seda also implements programmes targeted at business development in areas prioritised by the government. Seda has an established national network of branches covering every province, district and municipality. In Limpopo, Seda has a branch in each of the five district municipalities. Daniel Monyela, Acting Provincial Manager Products and services All Seda branches provide a series of packaged Limpopo business 2013 102 PROFILE Key programmes • Franchise Support Programme promotes Seda Vhembe Branch Donald Hlongwane, Acting Branch Manager Tel: +27 15 962 4284 Fax: +27 15 962 4285 Email: email@example.com Physical address: Old Mutual Building, Old Group Scheme Offices, Mphephu Road, Thohoyandou 7950 Seda Capricorn Branch Peter Maredi, Branch Manager Tel: +27 15 290 8720 Fax: +27 15 290 8736 Email: firstname.lastname@example.org Physical address: 1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699 Seda Waterberg Branch Steve Botha, Branch Manager Tel: +27 15 491 2168 Fax: +27 15 491 7361 Email: email@example.com Physical address: Old Nedbank Building, 40 Retief Street, Mokopane Seda Mopani Branch Marcus Mukumela, Branch Manager Tel: +27 15 307 1735 Fax: +27 15 307 2233 Email: firstname.lastname@example.org Physical address: 27 Peace Street, 1st Floor, Prosperitas Building, Tzaneen 0850 Seda Sekhukhune Branch Seshunkoane Mathabatha, Branch Manager Tel: +27 13 265 1617 Fax: +27 13 265 1617 Email: email@example.com Physical address: Lefa Business Centre, Madibong Village, Jane Furse, Sekhukhune Seda Hotline: 0860 766 3729 0860 SMME PAY franchising businesses to new and current entrepreneurs by advising them about potential franchisee and franchisor opportunities • Export Development Programme develops export-ready small enterprises that are globally competitive and able to grow markets both locally and internationally • Trade Point Programme forms part of the wider network to help local small and medium enterprises participate in global trade • Seda Technology Programme seeks to stimulate economic growth and development through facilitating technological transfer, increasing the accessibility to, and utility of, technologies and offering technical support to small enterprises • Cooperatives and Community Public Private Partnerships (Coops and CPPP) Programme promotes the establishment and growth of viable, sustainable co-operatives and collectively owned enterprises • Women Owned Enterprise Development Programme promotes the development of women-owned enterprises through various capacity-building programmes focusing on women • EMPRETEC Programme promotes the use of entrepreneurial competencies Contact details Seda Limpopo Daniel Monyela, Acting Provincial Manager Tel: +27 15 297 1139 Fax: +27 15 297 4022 Email: firstname.lastname@example.org Physical address: 2nd Floor, Maneo Building, 73 Biccard Street, Polokwane Postal address: Postnet Suite 32, Private Bag X 9307, Polokwane 0700 103 limpopo business 2013 focus Biodiesel incubator assists small-scale farmers Seda hopes that the activities of the Mapfura-Makura Incubator will improve the prospects for small-scale farmers in Limpopo. T he Department of Science and Technology (DST) commissioned a study to investigate alternative sources of energy that could be used by the petrochemical industry for the production of fuels. In 2003, a report was released that stated it would be possible to blend biodiesel, produced from soybeans and sunflower seeds, with the current coal or crude-based diesel. The Agricultural Research Council (ARC), through its Sustainable Rural Livelihoods (SRL) division, approached the DST with a proposal to use available technologies to assist black small-scale farmers and make them the primary producers of the crops for biodiesel production in South Africa. The Mapfura-Makhura Incubator (MMI) started at Tompi Seleka Farmers Training College in Limpopo Province in January 2006. Incubatees receive training to enhance their business and managerial skills in order to optimise the yields of crops, primarily sunflowers and soya beans, required for biodiesel production. • Biodiesel-value-chain development and • Market development support (MDS) • Enterprise-development support services • Co-operative-development support services • Technical support services Incubation model The incubation model of MMI is such that incubatees have to complete a full three-year incubation period while receiving capacity-building on crop production (sunflower and soya beans), business skills and technical skills development. When incubatees graduate from the incubation programme, they receive post-incubation support and are expected to be sustainable after graduation from the programme. support services Benefits Farmers who partake in this initiative are expected to produce high-quality crops and will, in return, receive subsidised inputs, a guaranteed market and all the benefits derived from the value chain. The incubator seeks to derive maximum benefit for the farmers by involving other role-players who will guarantee the sustainability of the biodiesel production plant. Partaking in the full biodiesel production value chain will ensure that farmers become more profitable. For more information, call +27 13 268 9324/9335, email email@example.com or visit www.biodieselmmi.org.za Strategic objective To use the biodiesel-production value chain as the pathway for the integration of small-scale resource-poor farmers and their respective communities in the Limpopo Province, into the agribusiness mainstream, thereby contributing towards the national imperative of poverty alleviation and creating job opportunities. Products and services • Biodiesel production Limpopo business 2013 104 focus The Cooperatives and Community Public Private Partnership Programme This programme supports non-traditional organisational forms of business, and focuses on creating opportunities in rural areas. Background Seda’s Cooperatives and Community Public Private Partnership Programme (Coops & CPPP) was formed at the end of 2008 and combines the previous Sector Development and Cooperatives Programme and the revived CPPP Programme. The programme supports non-traditional enterprise organisational forms with a special focus on rural areas and use of local resources. By creating the programme, Seda’s ability to satisfy the needs of rural clients is enhanced. The programme focuses on the following sectors: • Agribusiness • Cultural tourism • Mining and mineral beneficiation • Trading and auxiliary services • Establish linkages with other government initiatives that support co-operatives and collectively owned enterprises • Increase access by co-ops and collectively owned enterprises to information, business skills training and markets • Foster a culture of cooperation among co-operative beneficiaries Offerings • Development of viable business plans • Development of marketing and feasibility • • • • • • • studies Due diligence Capacity-building Facilitation of access to finance Facilitation of access to markets Promoting value additions Ensure compliance to statutory requirements Conduct market research Vision To provide leadership in the establishment and growth of viable, sustainable co-operatives and collectively owned enterprises in various sectors, and to facilitate their successful participation in the economy. Contact details Capricorn, Waterberg and Vhembe Districts Garley Tshivhase, Regional Facilitator Tel: +27 15 297 1139 Email: firstname.lastname@example.org Purpose • Promote the establishment of co-operatives Capricorn, Mopani and Sekhukhune Districts and collectively owned enterprises in part- Elizabeth Makondo, Regional Facilitator nership with other stakeholders Tel: +27 15 297 1139 Email: email@example.com 105 limpopo business 2013 focus Facilitating growth and innovation Seda Technology Programme aims to develop and support innovative technology-based platforms for the creation and support of sustainable, globally competitive SMMEs. S eda Technology Programme (Stp) is a division of the Small Enterprise Development Agency (Seda), which focuses on sustainable enterprise development through technology business incubation, monitoring, evaluation, improvement of service and product quality and standards, and technology-transferfunding services and support. Stp seeks to stimulate economic growth and development through facilitating technological innovation, increasing the accessibility of, and utility of, technologies and technical support for small enterprises, while as the same time improving the sustainability and international competitiveness of small enterprises supported through the programme. Stp, as a programme of the Department of Trade and Industry (dti), is therefore responsible for the provision of both financial and non-financial technology transfer, business incubation and quality support services for small enterprises. All the services are provided through the three units of Stp: Incubation, Technology Transfer, and Quality and Standards. Technology Transfer The objective of the Technology Transfer Unit is to promote and facilitate the transfer of technology that is appropriate, effective and competitive to small enterprises. The unit offers the following services: • Grant funding for the acquisition of technology, such as equipment and machinery, to facilitate technology transfer • Improving access to technology information by small enterprises • Improving access to technology-transfer funding through structured referrals to funding institutions • Linking inventors/universities or science councils with small enterprises or entrepreneurs with matching needs • Facilitating technology partnerships between businesses locally and internationally • Applications for funding are facilitated through Seda branches and incubators countrywide Incubation The Incubation Unit is designed to strengthen technology commercialisation and harness the entrepreneurship of the technology community in South Africa. This support directly helps inventors and new enterprises to use technology optimally in improving the competitiveness of their products and services. Furthermore, it facilitates access to business infrastructure, strategic guidance, financial and legal advice, and creates an environment of learning and sharing in which information, experiences and ideas are freely exchanged. Limpopo business 2013 Quality and Standards The key mandate of the unit is to ensure that small businesses have access to Quality Improvement Programmes that can give small enterprises a sound foundation to be competitive and sustainable. The unit offers: • Management systems development, implementation and training • Product testing and product certification • Product design and packaging • SMME management systems auditing 106 focus Seda extends its reach Seda is making use of an information kiosk to enhance its reach in Limpopo Province and provide quality information in areas where Seda has only a periodic physical presence. S eda Limpopo has installed an information kiosk (Freedom Toaster) in Limpopo Province. This information kiosk is a selfcontained electronic information unit that displays preloaded business information to entrepreneurs and the general public, which can then be downloaded to CD, DVD or USB flash drive. This easily operated system is computer based, with the interface done via a 19-inch touch screen. The unit is Seda branded. Additional information is provided on Seda products and services as follows: • Business packages (Seda Business Talk, Start, Build & Grow) • Training programmes • Export programmes and assistance • Co-operatives and CPPP programme • Franchising • Local programmes The following basic templates can be downloaded from the information kiosk: • Fax cover • Memo • Purchase order (MS Word) • Price increase • Request credit from a supplier Content • Job offer to a new employee Local small-business owners and prospective • Invoice template entrepreneurs are able to view and download • Purchase order (MS Excel) a variety of informative content from the kiosk. • Marketing budget plan Examples of the information available at the • Product catalogue kiosk include: • Employee time card • Introduction to Seda • SWOT analysis template • How to compile a business plan • Various accounting documents • Diagnostic assessments • SMME information websites Updating information • Business idea checklist • Financing your business Updates of information will be done through • Client success stories Seda. The system allows for remote updates. • Seda news • Research publications • Information on broad-based black economic empowerment • Intellectual property • Targeted procurement • Seda Technology Programme Seda Limpopo selected the following location: Get Ready Information Services Address: Old Police Station, Malamulele Tel: +27 15 851 0100 Location of kiosk Downloads 107 limpopo business 2013 PROFILE Limpopo LED Resource Centre The Limpopo LED Resource Centre aims to contribute to the reduction of poverty, unemployment and marginalisation in Limpopo Province. The Limpopo LED Resource Centre (LLEDRC) is a non-profit association incorporated under Section 21 of the Companies Act and formally registered with the CIPC (formerly CIPRO). Its board of directors reflects the basic stakeholder alliance behind the LLEDRC, and consists of senior officials and representatives in Limpopo Province from government, the university and the South African Local Government Association (SALGA). The work of the LLEDRC is carried out through four interlinked supporting units, each headed by an experienced adviser in his or her particular field, and in the overall area of developing local economies. The four units are: • Training and capacity building • Policy and research • Knowledge and information • Project development and implementation and publications on and for local economic development, through: • Providing research and support for policy initiatives in Limpopo Province that enhance and develop the policies of national and provincial government in the local and municipal sphere • Providing the provincial government and municipalities of Limpopo Province with the capacity to provide institutional support for local economic development in their areas of responsibility, through developing the Resource Centre • Publishing research and documentation on the development of local economies and related questions, both in hard copy and electronic form. The intention is to be the publisher of a website on these issues that is at the centre of a network of bodies in the public, private and tertiary education sectors. The network should focus on the quality and content of LED modules and courses in the tertiary education sector, in a bid to introduce elements harmonising these and elevating their content within a context of best national and international practices. The Resource Centre therefore undertakes and disseminates evidence-based policymaking research on pro-poor local economic growth, and manages and implements national and donor-funded programmes Contact details dealing with many aspects of pro-poor local economic development of a mainly rural Key contact person: nature. At the same time, it trains and capaci- Tashveer Bodhi, Adviser: Knowledge tates office bearers, councillors and officials, Management and Information in government, municipal structures, co-operatives and community property institutions Tel: +27 15 295 7002 to enable them better to develop their local Email: firstname.lastname@example.org economies. Physical address: 29 Hans van Rensburg Street, Polokwane, Limpopo 0700 The main object of the centre is to provide Website: www.limpopoled.org.za research and support, capacity building Limpopo business 2013 108 interview Leading the quest for knowledge management Advisor (Knowledge and Information) Tashveer Bodhi points out the various successes achieved by the Limpopo LED Resource Centre. Tashveer Bodhi What is the role played by effective and efficient knowledge and information management in local economic development? The sharing of knowledge and information and how this is done is crucial to the sustainable development of local economies. In this context, knowledge and information have to be actionable and in order to achieve this goal we are using various tools and techniques including online, advanced information technology software, the intranet, social and print media. At a human-capacity level, we have introduced dialogues sessions, seminars, workshops and we write thought leadership pieces on related and relevant topics. Which specific interventions are you making in local economies? We train and capacitate office bearers, councillors and officials in government and municipal structures, co-operatives and community property institutions (CPIs) to enable them to develop their local economies. Currently, we are training 1 760 ward committee members in the Vhembe and Waterberg Districts in ward governance and project management. Previous successful projects include: an economic development action plan for 41 villages in the Waterberg District, community waste collection in Mopani District, development of the Makgato/ Munnik Conservancy and related training centre, identifying viable products in the agricultural market in Sekhukhune District and a joint venture within the macadamia nut cluster in Vhembe District. Has the Limpopo LED Resource Centre entered into partnerships with any like-minded institutions? We have forged links with the South African Local Government Association, the Department of Science and Technology, the Department of Co-operative Governance, Human Settlements and Traditional Affairs and the University of Limpopo. The latter relationship has enabled us to tap into the intellectual capital of this institution. We also work with private sector institutionsâ€™ CSI units even though our main target is the public sector. Tashveer Bodhi is in charge of LLEDRCâ€™s knowledge and information management hub. A seasoned campaigner in this specialist area, Tashveer is keen to see the unit attain the status of an unrivalled knowledge and information management hub. Among Tashveerâ€™s long list of specialist qualifications are: a diploma in business management and administration, a national certificate in principles and practices of knowledge management, and a national certificate in advanced project management. 109 limpopo business 2013 PROFILE National Youth Development Agency The National Youth Development Agency is a South African youth development agency aimed at creating and promoting coordination in youth development matters. The merger of the National Youth Commission • Youth advisory and information services and Umsobomvu Youth Fund formed the • National youth fund National Youth Development Agency (NYDA). The agency was formally launched on 16 June 2009. Key performance areas • Economic participation Mandate • Effective and efficient management of The raison d’être of the NYDA is to initiate, resources facilitate, implement, coordinate, design • Information services and communication and monitor youth development interven- • National youth service tions aimed at promoting economic par- • Policy, lobby and advocacy ticipation and social cohesion. To achieve • Research, monitoring and evaluation this goal, the NYDA has and implements the • Social cohesion following responsibilities: • Lobby and advocate for integration and Key facts and figures mainstreaming of youth development in all Year established: 2009 spheres of government, private sector and civil society Contact details • Initiate, implement, facilitate, design and coordinate youth development programmes Key contact people: • Monitor and evaluate youth development Steven Ngubeni, Chief Executive Officer interventions Magadeline Moonsamy, • Mobilise youth for active participation in civil Chief Operations Officer society engagements Khathutshelo Ramukhumba, Chief Financial Officer Target group • The NYDA is targeted at youth aged between 14 and 35 years • Emphasis is given to young persons with disabilities • Bias is towards peri-urban, semi-rural and rural areas • Community projects are prioritised Functions • National youth service and social cohesion • Economic participation • Policy, research and development • Governance, training and development Limpopo business 2013 Tel: +27 15 294 0800/1 Fax: 086 606 6563 Call centre: +27 86 00 YOUTH (96884) Email: email@example.com Physical address: Shop no 10, Crescent Building, 60 Schoeman street, Polokwane Postal address: PO Box 982, Halfway House, Johannesburg 1685 Website: www.nyda.gov.za 110 Amongst many achievements, we have disbursed over R97 million worth of loans and given over 200 000 youth information through our NYDA service delivery access points. With your assistance, we can do more to ensure more youth limitless. The National Youth Development Agency (NYDA) was established in 2009 with the mandate of initiating, designing, co-ordinating, evaluating and monitoring programmes aimed at integrating the youth into the economy and society in general. Whilst the NYDA has done extremely well in creating job opportunities and supporting young people to contribute towards the South African economy, Much more can be done through more partnerships. Partner and/or support us with financial and non-financial services to extend these much needed services and programmes to more young people. OVERVIEW Education Limpopo’s tertiary institutions are doing practical research. Sector Highlights Limpopo’s accounting students can now do nationally accredited courses in Limpopo. • Hundreds of new artisans have been trained on the site of the Medupi Power Station. • The Development Facilitation and Training Institute (DevFTI) is housed in the Turfloop Graduate School of Leadership. of 74% on their Cambridge International General Certificate of Secondary Education. The Cambridge exams are ith significant parts of the province having been for- written globally by 16-yearmerly run by allegedly inefficient homeland govern- olds in private schools. ments during the apartheid era, large areas have little Sumbandila is backed by or no infrastructure, especially in the field of education. the DG Murray Trust, NedNinety-one percent of Limpopo’s schools are in Quintile’s bank and several companies 1-3, which places them in the poorer section of the range, with that donate through Marwyn Quintiles 4-5 representing the best-resourced schools. This Investments Ltd. fact presents formidable challenges to educational planners Nedbank has spent about and practitioners. The non-delivery of school textbooks in the R7-million on community course of 2012 focused unwelcome attention on the delivery projects, including education, in Limpopo since 2008. Nedof resources to state schools in the province. The Limpopo Development Enterprise (LimDev) is piloting a bank Fundisa is a maths and range of educational projects through its INSPIRE programme. science tutorial programme Ten schools in each of the province’s five districts will receive and more than 600 children an interactive device that can be used in the classroom. The attended this year’s matric 50-school pilot will cost R3-million to implement and is an revision programme. example of how ICT can assist teachers in the classroom. The Sumbandila Scholarship Trust, operating in the Vhembe Universities District, is achieving some notable successes with its support for bright children from poor backgrounds. The 2011 class of The Nedbank Chair of Accsupported children at Ridgeway College scored an average ounting was an important Limpopo business 2013 These hard-working beneficiaries of the Sumbandila Scholarship Trust scored remarkably good marks in an internationally benchmarked certificate of secondary education in 2011. W 112 photo: sumbandila scholarship trust OVERVIEW part of the University of Limpopo’s strategy to get national accreditation for its accounting classes, which has been achieved. Other major contributions came from: • FASSET, the sector SETA, R10-million in bursaries • Absa Bank, R3-million in staff salary subventions • Thuthuka Project supported by the National Skills Fund, R97-million The two main tertiary academic institutions are doing research into the key challenges facing the overwhelmingly rural province in which they are located: water and food security. The University of Limpopo (UL) has two campuses: Turfloop (40km east of Polokwane) and Medunsa campus (just north of Pretoria). A task force appointed by national government recommended in 2011 that Medunsa, a medical university, again become a separate entity. The Turfloop Graduate School of Leadership is based in Edupark, Polokwane, and offers three masters degrees. These are the Master of Business Administration (MBA), the Master of Public Administration (MPA) and the Master of Development (MDev). There are also short-term management certificate courses which range in duration from six to 12 months. The Development Facilitation and Training Institute (DevFTI) is housed in the Graduate School of Leadership. DevFTI has an outward focus, with training provided About 91% of Limpopo schools are inadequately resourced. for NGOs and government departments in various parts of Africa. UL’s Materials Modelling Centre has gained an enviable reputation through its work on the development of metal alloys and polymers, especially as applied to platinum. Medunsa has a Diarrhoeal Pathogens Research Unit. The University of Venda for Science and Technology (Univen) is situated in Thohoyandou in the far north-eastern part of the province. Univen has eight schools, with Environmental Sciences, Agriculture and Rural Development and Forestry illustrating the practical emphasis of the institution. The School of Environmental Sciences is planning to establish a mining-engineering programme. In 2012, a building and renovation programme worth R340-million was announced. New structures will include residences and buildings for Health and Sciences and Animal Biotechnology, a music studio and a language and media laboratory. The University of South Africa (Unisa), which mostly has correspondence students, has a regional support centre in Polokwane and agencies at Makhado and Giyani. Further Education and Training Further Education and Training (FET) Colleges offer courses that are designed to fit in with the needs of industry. There are seven FET colleges in Limpopo: Capricorn College for FET, Lephalale College, Mopani East College, Mopani South College, Sekhukhune College, Vhembe College and Waterberg College. Capricorn College has three campuses, each of which has a slightly different focus. The city campus in Polokwane offers business studies, engineering and National Curriculum Vocation PHOTO: ANGLO AMERICAN 113 limpopo business 2013 OVERVIEW of their studies, the students were placed with mining or engineering companies for three months. The Limpopo Department of Economic Development, Environment and Tourism (LEDET) gave out 193 bursaries in the financial year to March 2012, and had another 173 young people on an internship programme. The Medupi Power Station Joint Venture (Grinaker-LTA, Murray & Roberts and Concor) has a training facility where about 1 300 local people have been trained to qualify for jobs on this complex building site. Far in the north of the province, De Beers has established a Skills Development Centre, linked to its Venetia Mine. The centre caters not only to mine employees, but also for local school pupils and adults from the community of Alldays. Impala Platinum, with Limpopo subsidiary Marula Platinum, has a partnership with the National Department of Mineral Resources and the Da Vinci Institute for Technology Management that focuses on the training of black women in the mining industry. A Master of Science degree in Technology and Innovation is available to candidates, several of whom are now in management positions at Impala Platinum. Anglo Platinum (Amplats) has a new Mining Training Centre (Eastern Limb) at its Twickenham mine, which will also deliver training and assessment to staff of other operations. Artisan skills are in high demand in Limpopo Province. (NCV) subjects. Seshego (outer Polokwane) has an engineering focus, while Senwabarwana is situated in a rural area and concentrates on teaching hospitality and hairdressing. At Lephalale FET College, students can study Business Studies, Hospitality, Engineering Studies, Nature Management and Computer Science. The college has a satellite campus at Modimolle. Murray & Roberts is training hundreds of artisans at the Tlhahlong training centre, in partnership with the college and the merSETA. Siemens has supported this centre with significant capital investment. Waterberg College operates as five business training centres across two municipalities, namely Lepelle-Nkumbi and Mogalakwena. Training In 2011/12, 47 students completed artisan courses in tool, die and mould skills at Steelpoort and Lephalale. At the completion Online resources Capricorn College for FET: www.capricorncollege.co.za Council of Higher Education: www.che.ac.za Lephalale FET College: ww.lephalalefetcollege.co.za Mining Qualifications Authority: www.mqa.org.za Sumbandila Scholarship Trust: www.sumbandila.org Turfloof Graduate School of Leadership: www.ul.ac.za University of Limpopo: www.ul.ac.za University of South Africa: www.unisa.ac.za University of Venda for Science and Technology: www.univen.ac.za Waterberg College: www.waterbergcollege.co.za Limpopo business 2013 114 PHOTO: SURFACE WARRIOR/FLICKR PROFILE Lephalale FET College Lephalale FET College’s motto is ‘Education equals knowledge, and therefore equals power. Arm yourself with power.’ Vision It is the college’s desire to offer members of the community quality and career-oriented lifelong-learning opportunities, at an affordable price, to enable them to play a productive role in society. Accredited IT courses National Certificate End-user Computing, A+, Pastel, International Computer Drivers Licence, Keyboard, Microsoft Word, Excel, Access, PowerPoint, Internet and e-mail, Outlook. A variety of artisan training in the construction field is being introduced in 2013. Employers may also request any other tailormade training for their employees. If the college does not yet have an accredited training course required by a client on offer, a reputable, accredited private service provider would be contracted to do this training on site. Programmes offered • • • • • National Certificate (Vocational) Office Administration Engineering and Related Design Hospitality IT and Computer Science Electrical Infrastructure Construction Engineering Studies Report 191 Mechanical Engineering, Electrical and Electronic Engineering are offered only at the Lephalale Campus (full-time and part-time). Contact details Business Studies Report 191 Central Office and Lephalale Campus Tel: +27 14 763 2252 N4 to N6 Business Studies are offered at both Fax: +27 14 763 2253 the Lephalale and Modimolle campuses (full- Email: firstname.lastname@example.org or time and long-distance). Email: email@example.com Physical address: 2 Ngoako Ramatlhodi Drive, Nature Management Onverwacht, Lephalale, Limpopo, 0557 A NQF level 6 Diploma in Nature Management is Postal address: Private Bag X210, offered full-time at the Lephalale campus only. Lephalale, 0555 Skills courses A variety of short skills courses are on offer, but other short skills courses are offered on demand, eg. Bush Cooking, Hunting Lodge Catering, Capping and Carcass Processing, Meat Cutting, Cold-meat Processing, Tracking, First Aid, Nature Guide NQF 4, Housekeeping, Cooking, Bartending, Lodge Maintenance, Office Etiquette, Photography, Sewing, Snake Identification and Bite Treatment, Snake Handling, Business Accounting, Auto CAD and Sepedi. Modimolle Campus Tel: +27 14 717 3807 Fax: 086 510 5506 (SA only) Email: firstname.lastname@example.org Physical address: LeGrant Building, Nelson Mandela Drive, Modimolle, 0510 Postal address: PO Box 3579, Modimolle, 0510 Website: www.lephalalefetcollege.co.za 115 limpopo business 2013 PROFILE University of Limpopo Finding solutions for Africa. The University of Limpopo (UL) is a university in the Limpopo Province of South Africa. It was formed in January 2005, by the merger of the University of the North and the Medical University of Southern Africa. Medunsa Campus is situated to the north-west of Pretoria. Its grounds extend over some 350 hectares adjoining the Ga-Rankuwa Township. Turfloop Campus nestles in the foothills of the Hwiti (Wolkberg range) in Mankweng, midway between Polokwane and the spectacular splendour of Magoebaskloof. A graduation ceremony at the University of Limpopo. • School of Oral Health Sciences To be a leading African university focused on • School of Pathology and Pre-Clinical Sciences the developmental needs of its communities • School of Health Sciences and epitomising academic excellence and • School of Medicine innovation. • School of Health Care Sciences Mission A University which responds actively: a) To the development needs of its students, its staff members and its communities b) Through relevant and high quality higher education and training, research and engagement, and c) In partnership and in collaboration with its different stakeholders Vision The faculty comprises: Faculty of Humanities The Faculty of Humanities offers a range of programmes, leading to certificates, diplomas and degrees, which will equip students with the knowledge, skills and values needed in the country’s modernising communities, the Southern African region and the world at large. The faculty comprises: • School of Education • School of Languages and Communication Studies • School of Social Sciences Faculties Faculty of Health Sciences The Faculty of Health Sciences (FHS) organises its education, research and service activities towards addressing the priority health and social care concerns of the community, region and the nation that it has a mandate to serve. Limpopo business 2013 Faculty of Science and Agriculture The Faculty of Science and Agriculture strives to be recognised as the best afrocentric faculty in these subjects, and comprises: 116 PROFILE • School of Mathematical and Computer Sciences • School of Agricultural and Environmental Sciences • School of Molecular and Life Sciences • School of Physical and Mineral Sciences Faculty of Management and Law The Faculty of Management and Law offers a stimulating environment poised to enable the acquisition of knowledge, business expertise and ideas that will equip students on their quest to become the leaders and shapers of South Africa’s economic landscape, and comprises: • School of Economics and Management • School of Law • Turfloop Graduate School of Leadership (TGSL) • School of Accountancy (SoA) of Agriculture, Rural Development and Land Administration, broadened the scale of its farming expertise and community outreach to the Mpumalanga community. To ensure that the project gets off the ground successfully, the university is responsible for providing technical and advisory expertise. It is important that citizens respect and honour those who died for a good cause and, in this vein, the university honoured its student leader, Abram Onkgopotse Tiro, who delivered a famous speech known as the Turfloop Testimony in 1972. This speech, which was critical of apartheid education policies, later led to Onkgopotse’s expulsion from the university and his humanity studies. But his name at the university will not be forgotten. The University of Limpopo Student Trust Fund honoured Eunice Maluleke, cofounder of Uthingo Trust, by bestowing the prestigious 2012 Onkgopotse Tiro Excellence Award on her. Recent projects The University of Limpopo prides itself on remaining the epitome of elegance in steering programmes and events that respond to the needs of both society and the academic world. Promoting its stakeholders, students and society lie at the heart of UL’s mission. For this reason, it is important to highlight some epoch-making events, from which the University emerged as a catalyst for community development. Organised crime has become a thorny issue that robs the country of millions of rands. But at this moment, there is a lack of policy to deal and define the problem. UL successfully united intellectual luminaries from different corners of Africa in a quest to find Afrocentric solutions to Africa’s crime problem, when it hosted the first-ever All Africa Conference on Organised Crime and Contemporary Criminal Justice. Contact details Faculty of Health Sciences Prof E Holland, Executive Dean Tel: +27 12 521 4961 Email: email@example.com Faculty of Humanities Dr MA Rampedi, Acting Executive Dean Tel: +27 15 268 4896 Email: firstname.lastname@example.org Faculty of Science and Agriculture Prof HJ Siweya, Executive Dean Tel: +27 15 268 2208/2142 Email: email@example.com Faculty of Management and Law The Nguni Cattle Development Project, a tri- Prof P Msweli, Executive Dean partite partnership between the University of Tel: +27 15 268 2685 Limpopo, Industrial Development Corporation Email: firstname.lastname@example.org (IDC) and Limpopo Department of Agriculture continued with efforts to empower local farmers. In 2012, the university, together with the IDC and Mpumalanga’s Department 117 limpopo business 2013 PROFILE Capricorn College for FET Capricorn College for FET aims to be the leading provider of academic programmes that are designed to address the skills gaps in Limpopo Province. At Capricorn College for FET, theory is complemented by relevant practical equipment. Capricorn College for FET is a product of a merger of three colleges with very distinct and diverse historical backgrounds. These were: the former Pietersburg Technical College (PTC), Bochum College of Education and the former Northern Province Community College (NPCC). Capricorn College for FET has become the first-choice institution for further education for many young people, as the programmes offered directly respond to the priority-skills demands of the South African economy. The college also offers theoretical and practical learning. Logo The logo symbolises academic and technological success, and contains the motto: ‘Achieving Excellence Together.’ Mission Capricorn College for FET’s mission is to achieve its vision by offering responsive, flexible and quality programmes that are accessible to all learners through formal learning, skills development and learnerships. This is achieved by forming partnerships with relevant stakeholders, making use of committed human capital and employing appropriate physical and fiscal resources. Capricorn College for FET will achieve this mission by striving for the following strategic goals: Vision To be the leading further education and training institution of excellence. Limpopo business 2013 118 PROFILE • Continue to ensure that sound democratic governance and management processes are in place to create an atmosphere conducive for teaching and learning, and continue to work with its stakeholders in order to improve quality and accessibility of educational opportunities. • Develop, strengthen and ensure quality student support as well as implementation of responsive, student-centred vocational and career programmes. • Continuously strive to improve administrative efficiency and effectiveness by employing competent human resources, and develop quality systems that will permeate every process, system, classroom activity, programme and service. • Continuously strive to improve fiscal and physical resources in accordance with Public Finance Management Act (PFMA) and Generally Accepted Accounting Principles (GAAP) management and administration of resources, as well as implementation of vocational and career programmes in accordance with relevant policies in campuses. Finance, Economics and Accounting, Transport and Logistics, Electrical Infrastructure Construction, Engineering and Related Design (motor mechanic, welding and fitting and turning), Civil Engineering Construction (plumbing, building and carpentry), Mechatronics, Information Technology and Computer Science, Process Plant Operations, Tourism, Hospitality and Safety in Society. Report 191 or Nated programmes Marketing Management, Human Resources, Financial, Business, Public, Management Assistant, Clothing Production, Tourism, Hospitality, Electrical, Mechanical, Civil and Chemical Plant Operation. Skills programmes Clothing Production, Furniture Manufacturing and Leather-work. Target markets Anybody who has passed a minimum of grade 10, businesspeople and government departments that needs to equip their staff with various skills in order to enhance service delivery in the workplace. Values In its endeavour to achieve these strategic goals, Capricorn College for FET is committed to the following: Respect: Treat others as they would like to be treated. Abusive or disrespectful treatment is not tolerated. Students and staff strive for fairness and equality. Integrity: Committed to work with customers openly, honestly and sincerely. Communication: An obligation to communicate effectively. Excellence: Satisfied with nothing less than the very best in everything it does. Key facts and figures Year established: 2002 No of staff: 435 Contact details Key contact people: Humphrey Motsepe, Marketing and Communication Sammy Malapane, Student Support Manager Tel: +27 15 291 3115/8 Fax: +27 15 291 2767 Programmes Email: email@example.com The college offers National Certificate Physical address: 16 Market Street, Vocational (NCV), Report 191 or Nated pro- Polokwane 0700 grammes and skills programmes, which are Postal address: Private bag X9674, broken down as follows: Polokwane 0700 Website: www.capricorncollege.co.za National Certificate Vocational (NCV) Office Administration, Management, Marketing, 119 limpopo business 2013 interview Proactively addressing skills shortages Ronald Khorombi Madzhie, CEO and principal of Capricorn College for FET, highlights some of the skills development and financial assistance options available to prospective and current students. Ronald Khorombi Madzhie Do you feel that the collegeâ€™s programmes adequately address the skills shortage in the province? The mining sector in the province is in need of artisans in the form of boilermakers, electricians, welders and mechatronics technicians to conduct its daily responsibilities. We offer many subjects that cater to these fields. The message that Sasol in Secunda was desperately looking to employ 50 artisan boilermakers and welders on a permanent basis was sent to the college in 2012 from the Department of Higher Education and Training (DHET), and is testament to the relevance of the programmes that we offer. A programme like Information Technology and Computer Science is also in high demand, as there are employment opportunities in this field. Capricorn College is the only college in the province that offers Safety in Society and Mechatronics. These programmes respond to shortage of skilled law enforcement, as well as the skills shortage in hydraulics and programming. The college not only addresses the skills shortage in the province, but nationally. How are the practical components of study addressed? The college has equipped workshops to offer the practical components according to specified subject guidelines. There are workshops that have been accredited by SETAs, where learners develop their skills. Learners and lecturers also visit the workplace for experience and exposure. Are there bursary schemes available for students who require financial assistance? Yes, the bursaries are administered by the National Student Financial Assistance Scheme (NSFAS), on behalf of the DHET. The college assists all students who meet the criteria for each academic year. The DHET FET Bursary Scheme offers students 100% tuition, transport and accommodation, which is paid based on student attendance and performance. This is a free bursary, not a loan. www.capricorncollege.co.za Ronald Khorombi Madzhie matriculated in 1973 and proceeded to obtain a number of qualifications. In 1976, he was awarded a BA (University of Limpopo), in 1978 he obtained a UED (University of Limpopo), in 1982 he was awarded a BA Honours (UNISA), in 1996 he obtained an MA (Miami University), and in 2002 he was awarded a DMS (MANCOSA). He is currently meeting the theoretical requirements of an MBA with MANCOSA. Limpopo business 2013 120 PROFILE Sekhukhune FET College Sekhukhune FET College aims to become a globally attractive and recognised education and training institution. Sekhukhune FET College is a South African courses, for instance: Generic Management, public institution accredited by Umalusi (the Marketing Management, Tourism Management, body responsible for quality assurance of pro- Information Technology and Computer Science, grammes offered at general and FET institu- Electrical Infrastructure Construction, Finance, tions) and governed by the Further Education Economics and Accounting, Civil Engineering and Training Colleges Act (No 16 of 2006 as Construction, Manufacturing and Assembly, amended). The college is a result of the merger Engineering and Related Design, Fabrication process between two colleges, namely CS and Extraction, and Office Administration. Barlow and CN Phatudi, in order to change the Sekhukhune FET College has also achieved FET landscape. all quality management system requirements Approach and was certified as ISO: 9001:2008 comThe results-orientated approach of pliant during the year 2006 (certified by Alpha Sekhukhune FET College ensures academic Certification Services). The certificate certifies integrity and the ability to reach competitive that all the college’s processes are structured results. The college boasts excellent facilities, for customer satisfaction at all times. such as well-equipped workshops, computer centres and business simulations that afford Core values students the opportunity to develop hands-on • Integrity workplace skills. • Excellence • Accountability Staff are equipped to implement the new SAQA • Collaboration unit standards for the National Certificate • Responsive Vocational (NCV) and the NQF Level 2-4 qualifications. The college has ample accredited Contact details outcomes-based education (OBE) lecturers, assessors, moderators and verifiers that ensure Key contact person the quality of all training. Abicky Golane, Marketing Officer Mission To provide quality education and training programmes that respond to the needs of the community through: • Relevant programmes • Affordable fee structures • Accredited programmes • Accessible learning environment Tel: +27 13 269 0278 Fax: +27 13 269 0450 Email: firstname.lastname@example.org Email: email@example.com Physical address: Stand No 676, Motetema Postal address: Private Bag X 8660, Groblersdal 0470 Website: www.sekfetcol.org Programmes The college provides various study opportunities in the National Certificate Vocational 121 limpopo business 2013 listings South African National Government An overview of South Africa’s national government departments. S outh Africa is a constitutional democracy with a three-tier system of government and an independent judiciary. The three tiers of government – national, provincial and local – all have legislative and executive authority in their own spheres, and are defined in the Constitution as ‘distinctive, interdependent and interrelated’. Legislative authority is vested in parliament, which is situated in Cape Town and consists of two houses, the National Assembly and the National Council of Provinces. Parliament is bound by the Constitution and must act within its limits. The president, elected by the National Assembly from among its members, is the executive head of state and leads the cabinet. The president may not serve more than two five-year terms in office. The cabinet consists of the president, the deputy president and ministers. State institutions created to support constitutional democracy are the Public Protector; the Human Rights Commission; the Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities; the Commission for Gender Equality; the Auditor-General and the Electoral Commission. Performance, Monitoring and Evaluation in the Presidency Minister: Collins Chabane Physical address: Room 116, 2nd Floor, West Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5331/4 Fax: +27 12 321 8870 Email: firstname.lastname@example.org Website: www.thepresidency.gov.za The Presidency President: Jacob Gedleyihlekisa Zuma Deputy President: Kgalema Motlanthe Departments in the Presidency National Planning Commission Minister: Trevor Andrew Manuel Physical address: Room 242, 2nd Floor, East Wing, Union Buildings, Government Avenue, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 Fax: +27 12 300 5795 Email: email@example.com Website: www.thepresidency.gov.za limpopo business 2013 National Government Departments Dept of Agriculture, Forestry and Fisheries Minister: Tina Joemat-Pettersson Physical address: 1st Floor, Block DA, 20 Agriculture Place, cnr Steve Biko Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria 0001 Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: firstname.lastname@example.org Website: www.daff.gov.za 122 listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church street, cnr Steve Biko and Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: email@example.com Website: www.dac.gov.za Department of Basic Education Minister: Matsie Angelina Motshekga Physical address: Sol Plaatjie House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: firstname.lastname@example.org Website: www.education.gov.za Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: email@example.com Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard Masenyani Baloyi Physical address: 87 cnr Hamilton and Proes streets, Arcadia, Pretoria 0001 Postal address: Private Bag X804, Pretoria 0001 Tel: +27 12 334 0705 Fax: +27 12 326 4478 Email: firstname.lastname@example.org Website: www.cogta.gov.za Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: email@example.com Website: www.dcs.gov.za Department of Defence and Military Veterans Minister: Nosiviwe Mapisa-Nqakula Physical address: 4th Floor, Block 5, Armscor Building, cnr Delmas Avenue and Nossob Street, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: firstname.lastname@example.org Website: www.dod.mil.za Department of Economic Development Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: email@example.com Website: www.economic.gov.za Department of Energy Minister: Elizabeth Dipuo Peters Physical address: Travenna Office Campus, 75 Meintjies and Schoeman streets, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: firstname.lastname@example.org Website: www.energy.gov.za limpopo business 2013 123 listings Department of Environmental Affairs Minister: Edna Molewa Physical address: North Tower, Fedsure Forum Building, cnr Pretorius and Lilian Ngonyi streets, Pretoria Postal address: Private Bag X447, Pretoria 001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.environment.gov.za Department of Health Minister: Aaron Motsoaledi Physical address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8085/81 Fax: +27 12 395 9165 Email: firstname.lastname@example.org Website: www.doh.gov.za Department of Higher Education and Training Minister: Blade Nzimande Physical address: Sol Plaatje House, 123 Schoeman Street, Pretoria Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 Fax: +27 12 323 5618 Email: email@example.com Website: www.dhet.gov.za Department of Home Affairs Minister: Grace Naledi Mandisa Pandor Physical address: FSI Building, 909 Arcadia Street, Hatfield, 0083 Postal address: Private Bag X741, Pretoria 0001 Tel: +27 12 432 6622 Fax: +27 12 432 6637 Email: firstname.lastname@example.org Website: www.home-affairs.gov.za limpopo business 2013 Department of Human Settlements Minister: Tokyo Sexwale Physical address: Govan Mbeki House, 240 Walker Street, Sunnyside, Pretoria Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Email: email@example.com Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite Nkoana-Mashabane Physical address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 0431 Fax: +27 12 323 1502 Email: firstname.lastname@example.org Website: www.dirco.gov.za Department of Justice and Constitutional Development Minister: Jeffrey Thamsanqa Radebe Physical address: Salu Building, 28th Floor, cnr Thabo Sehume and Francis Board streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 Fax: +27 12 315 1749 Email: email@example.com Website: www.justice.gov.za Department of Labour Minister: Mildred Oliphant Physical address: 215 Laboria House, cnr Schoeman and Paul Kruger streets, Pretoria Postal address: Private Bag X117, Pretoria 0001 Tel: +27 12 392 9620 Fax: +27 12 320 1942 Email: firstname.lastname@example.org Website: www.labour.gov.za 124 listings Department of Mineral Resources Minister: Susan Shabangu Physical address: 4th Floor, Block 2C, Trevenna Campus, Cnr Meintjies and Schoeman streets, Sunnyside Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3999 Fax: +27 12 444 3145 Email: email@example.com Website: www.dmr.gov.za Department of Police Minister: Nathi Mthethwa Physical address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2819 Email: firstname.lastname@example.org Website: www.saps.gov.za Department of Public Enterprises Minister: Malusi Gigaba Physical address: Suite 401, 1090 Infotech Building, Arcadia Street, Hatfield, Pretoria Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1098 Fax: +27 12 431 1039 Email: email@example.com Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Street, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: firstname.lastname@example.org Website: www.dpsa.gov.za Department of Public Works Minister: Thembelani (Thulas) Nxesi Physical address: 6th Floor, AVN Building, cnr Skinner and Andries streets, Pretoria Postal address: Private Bag X229, Pretoria 0001 Tel: +27 12 406 1967 Fax: +27 12 310 5182 Email: email@example.com Website: www.publicworks.gov.za Department of Rural Development and Land Reform Minister: Gugile Nkwinti Physical address: 3rd Floor, Old Building, 184 Jacob Mare and Paul Kruger streets, Pretoria Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 8911 Fax: +27 12 323 3306 Email: firstname.lastname@example.org Website: www.ruraldevelopment.gov.za Department of Science and Technology Minister: Derek Hanekom Physical address: 3rd Floor, Building No 53, CSIR Campus, Meiring Naude Road, Brummeria, Pretoria Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6798 Fax: +27 12 349 1041/8 Email: email@example.com Website: www.dst.gov.za Department of Social Development Minister: Bathabile Olive Dlamini Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria Postal address: Private Bag X901, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 12 321 2502 Website: www.dsd.gov.za 125 limpopo business 2013 listings Department of State Security Minister: Siyabonga Cyprian Cwele Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700/57/91 Fax: +27 12 367 0749 Website: www.nia.dov.za Department of Sport and Recreation South Africa Minister: Fikile Mbalula Physical address: Regent Building, cnr Queen and Vermeulen streets, Pretoria Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 0795 Website: www.srsa.gov.za Department of Tourism Minister: Marthinus van Schalkwyk Physical address: 10th Floor, North Tower, Fedsure Forum Building, cnr Pretorius and Van Der Walt streets, Pretoria Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 310 3611 Fax: +27 12 322 0082 Email: firstname.lastname@example.org Website: www.tourism.gov.za Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: email@example.com Website: www.thedti.gov.za limpopo business 2013 Department of Transport Minister: Benedict Martins Physical address: Room 4111, Forum Building, cnr Struben and Bosman streets, Pretoria Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3860 Fax: +27 12 328 3194 Email: firstname.lastname@example.org Website: www.transport.gov.za Department of Water Affairs Minister: Edna Molewa Physical address: 1035 Sedibeng Building, 185 Schoeman street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 7817 Email: email@example.com Website: www.dwa.gov.za Department of Women, Youth, Children and People with Disabilities Minister: Lulu Xingwana Physical address: 36 Hamilton street, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 359 0011 Fax: 086 676 3390 (SA only) Email: firstname.lastname@example.org Website: thepresidency.gov.za Government Communication and Information System (GCIS) Physical address: 356 Midtown Building, cnr Sisulu and Madiba streets, Pretoria Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 314 2127 Fax: +27 12 325 2030 Email: email@example.com Website: www.gcis.gov.za Independent Complaints Directorate (ICD) Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria 126 listings Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: firstname.lastname@example.org Website: www.icd.gov.za National Treasury Minister: Pravin Jamnadas Gordhan Physical address: 40 Church Square, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 315 5372 Fax: +27 12 323 3262 Email: email@example.com Website: www.treasury.gov.za Public Service Commission Physical address: Commission House, cnr Hamilton and Ziervogel streets, Arcadia, Pretoria Postal address: Private Bag X121, Pretoria 0001 Tel: +27 12 352 1000 Fax: +27 12 325 8382 Email: firstname.lastname@example.org Website: www.psc.gov.za Police Civilian Secretariat Physical address: 217 Pretorius Street, Vanerkom Building, Pretoria Postal address: Private Bag X922, Pretoria 0001 Tel: +27 12 393 2520 Fax: +27 12 393 2538 Email: email@example.com or firstname.lastname@example.org Website: www.nationalsecretariat.gov.za South African Revenue Service Physical address: Lehae la Sars Building, 299 Bronkhorst Street, New Muckleneuk, Pretoria Postal address: Private Bag X923, Pretoria 0001 Tel: +27 12 317 2000 Fax: +27 10 208 5005 Website: www.sars.gov.za Statistics South Africa Physical address: The De Bruyn Park, 170 Andries Street, Pretoria Postal address: Private Bag X44, Pretoria 0001 Tel: +27 12 310 8911 Fax: +27 12 310 8500 Email: email@example.com Website: www.statssa.gov.za National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance. Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth. 127 limpopo business 2013 listings Limpopo Provincial Government A guide to Limpopoâ€™s provincial government departments. Office of the Premier Physical address: Mowaneng Building, 40 Hans van Rensburg Street, Polokwane 0700 Postal address: Private Bag X9483, Polokwane 0700 Tel: +27 15 287 6000 Fax: +27 15 291 3911 Email: firstname.lastname@example.org Website: www.limpopo.gov.za Department of Education Physical address: Department of Education Building, cnr Biccard and Excelsior streets, Polokwane 0699 Postal address: Private Bag X9489, Polokwane 0700 Tel: +27 15 290 7625 Fax: +27 15 297 0885/086 531 0539 Email: email@example.com Website: www.edu.limpopo.gov.za Department of Agriculture Physical address: Temo Towers, 69 Biccard Street, Polokwane 0699 Postal address: Private Bag X9487, Polokwane 0700 Tel: +27 15 294 3000 Fax: +27 15 294 4506 Email: firstname.lastname@example.org Website: www.lda.gov.za Department of Health and Social Development Physical address: 18 College Street, Polokwane 0699 Postal address: Private Bag X9302, Polokwane 0700 Tel: +27 15 293 6000 Fax: +27 15 293 6150 Email: email@example.com Website: www.dhsd.limpopo.gov.za Department of Economic Development, Environment and Tourism Physical address: Evridiki Towers, 20 Hans van Rensburg Street, Polokwane 0699 Postal address: Private Bag X9484, Polokwane 0700 Tel: +27 15 293 8527 Fax: +27 15 293 8317 Email: firstname.lastname@example.org Website: www.ledet.gov.za Department of Local Government and Housing Physical address: 20 Rabie Street, Hensa Building, Polokwane Postal address: Private Bag X9485, Polokwane 0700 Tel: +27 15 284 5557 Fax: +27 15 291 3988/086 576 7847 Email: email@example.com Website: www.limpopo.coghsta.gov.za Limpopo business 2013 128 MULTIMEDIA listings Department of Public Works Physical address: 43 Church Street, Polokwane 0699 Postal address: Private Bag X9490, Polokwane 0700 Tel: +27 15 284 7000 Fax: +27 15 284 7040 Email: firstname.lastname@example.org Website: www.dpw.limpopo.gov.za Tel: +27 15 290 2900 Fax: +27 15 295 8979 Email: email@example.com Website: www.dssl.limpopo.gov.za Department of Sport, Arts and Culture Physical address: Olympic Towers, 21 Biccard Street, Polokwane 0699 Postal address: Private Bag X9549, Polokwane 0700 Tel: +27 15 284 4009/8 Fax: +27 15 284 4500 Email: firstname.lastname@example.org Website: www.sac.limpopo.gov.za Department of Roads and Transport Physical address: 39 Church Street, Polokwane 0699 Postal address: Private Bag X9491, Polokwane 0700 Tel: +27 15 295 1000 Fax: +27 15 294 8006 Email: email@example.com Website: www.ldrt.gov.za Provincial Treasury Physical address: Ismini Towers, 46 Hans van Rensburg Street, Polokwane 0699 Postal address: Private Bag X9486, Polokwane 0700 Tel: +27 15 298 7000 Fax: +27 15 295 8873/7010 Email: firstname.lastname@example.org Website: www.limtreasury.gov.za Department of Safety, Security and Liaison Physical address: 32 Schoeman Street, Polokwane 0699 Postal address: Private Bag X9492, Polokwane 0700 Limpopo coat of arms The colours, animal and plants used on Limpopo Province’s coat of arms symbolise the most important elements of the province’s history, industry and resources. Colours Black represents the key demographic of the province; green symbolises the province’s strong agricultural sector; gold symbolises the rich mineral wealth beneath the Limpopo earth; white symbolises peace and tranquillity; red is the colour of warmth and love, but also high energy and power. Baobab The ‘upside-down’ tree is steeped in mystery and legend, probably stemming from its ability to provide food, water, shelter and relief from sickness. Limpopo is home to one of the world’s largest and oldest baobab trees, measuring 24m in height and 39m in width. Buffaloes The grey buffalo, indigenous to Africa, represent unity, strength and political stability in the province. Cycads The crest made of leaves from the cycad plant – an endangered species only found naturally in Limpopo – symbolises Limpopo’s royalty and traditional leadership. Landscape The green-and-black landscape represents the province’s mountains and rich agricultural fields. Motto The motto of ‘peace, unity and prosperty’ captures both the spirit and the dreams of the peaceful, humble, yet ambitious people. 129 Limpopo business 2013 PROFILE Department of Cooperative Governance, Human Settlements and Traditional Affairs The department is committed to delivering on its mandate, and contributing to a greater South Africa for all. The Provincial Department of Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA) is responsible for providing services in Limpopo Province within its realm of responsibilities, as created by the provincial government under the Constitution of the Republic of South Africa. These responsibilities include: • Housing beneficiary approvals °° Low-cost housing °° Rental housing °° Subsidised housing • Property owning °° Registering land or property (title deeds administration) °° Changing details in the land register • Land acquisition °° Buying land from private owners • Disaster-relief services °° Preparing for, reporting and implementing action in the event of a flood, veld fire or stampede • Township establishment approval offices °° Demarcation and allocation of sites °° Land-use management services for business operation sites • Traditional affairs °° Formalisation of traditional authorities °° Installation of traditional leaders °° Initiation-schools permits °° Indemnity services at traditional councils Service delivery – Striving to attain recognised standards of service quality, and maintain continuous improvement in service delivery. Innovation – Toiling in the pursuit of excellence and innovation in the use of ICT to enhance public service delivery. Integrity – Conducting business with integrity at all times, to inculcate a culture of honesty and accountability among employees. Prudence – Exercising prudence and economy in the running of the department, and in pursuance of its goals and the objectives of government. Transparency – Ensuring transparency in all areas in order to build trust and confidence with all stakeholders. Fairness – Treating all customers, suppliers and employees with fairness and equity at all times. Corporate model CoGHSTA operates within the governmentwide outcomes-based model, the MediumTerm Strategic Framework of the South African government, which is derived from the fiveyear manifesto of the ANC. Values The department’s values are underpinned by the Batho Pele principles: Limpopo business 2013 • Economic growth, decent work and • Fight against crime and corruption sustainable livelihoods Key manifesto areas 130 PROFILE • Provision of social and economic infrastructure • Support the training and development of • Rural development, food security and land officials and office-bearers • The provisioning of operation support to reform • Education and health housing functions in terms of applicable • Cohesive and sustainable communities legislations and acts • Sustainable resource management and use • Implement the Provincial Multi-Year Housing • Creation of a better Africa and a better world Delivery Plan • Rehabilitate dysfunctional infrastructural Service Delivery Improvement Plan facilities within the context of economic and The department has implemented a comprehensive plan that aims to tackle and improve service delivery in Limpopo Province. The core objectives are to: • Vigorously implement the five-year strategic plan in line with the public service regulations • Strengthen support for municipalities in order to allow them to play their constitutional role diligently and effectively, including better planning, monitoring and evaluation at local government level • Facilitate local developmental planning to provide an enabling environment for proper allocation, generation and management of resources in line with the Provincial Growth and Development strategy • Continue to assist municipalities to build capacity to allow them to accelerate service delivery, particularly for critical programmes such as Free Basic Services, Housing, Local Economic Development and supporting the Ward Committee System • Deepen cooperative governance • Facilitated service delivery, economic • Develop capacity for mitigation and • Improve client awareness of services rendered and access to remedial/corrective procedures • Maintain the governmental service standards • Improve organisational efficiency and build a culture of service excellence prevention of disasters development and poverty alleviation social development Contact details Tel: +27 15 294 2000 / +27 15 284 5000 Fax: +27 15 295 4190 Email: email@example.com Physical address: Hensa Towers Building, 20 Rabe Street, Polokwane 0700 Sourced from www.coghsta.limpopo.gov.za Prestigious award for CoGHSTA MEC Clifford Motsepe, MEC for CoGHSTA, received a Diamond Arrow Award for being the most proactive political figure in Limpopo. Clifford received the award for his leadership role in transforming the local government sphere and doing the utmost to fast-track service delivery in the province. This includes the establishment of the Provincial Audit Outcome Oversight Inter-governmental Relations (IGR) Forum and intervention to resolve problems at the Mogalakwena Municipality. The department of CoGHSTA, under leadership of MEC Motsepe, also received an award for best service delivery. The purpose of the PMR Awards is to create a global and unique marketing tool for the company, department or institution; to enhance excellence in industry; to set Clifford Motsepe a benchmark in industry and to create an opportunity for companies and institutions whereby a team or division can be recognised for their hard work. 131 limpopo business 2013 message Striving for progress MEC for Cooperative Governance, Human Settlements and Traditional Affairs Nkomotana Clifford Motsepe shares his plans for building a truly inclusive and progressive Limpopo Province. Department of the Year. We are still titleholders of the 2008 Govan Mbeki Award. We are the only Human Settlements department nationally that has received a clean audit, and have been duly recognised by the Auditor-General. Not because we can, but because the people we work with are loyal and true servants of the province; they understand the urgency with which the services are to be provided to the people of Limpopo, and that these services cannot be postponed because many indeed have died awaiting them. The meaning behind these awards is that as a department, province and nation we should not be overwhelmed and begin to forget the core mandates enshrined in the Constitution and manifesto of the ruling party, the African National Congress (ANC), decoded in the 12 outcomes of the Medium Term Strategic Framework. Nkomotana Clifford Motsepe The department will ensure that accelerated infrastructure development becomes an integral part of urban planning and development in our province. Decisions regarding infrastructure determine urban form, and cannot be isolated from human settlements. David Masondo, the Treasury Member of the Executive Council, stated the following during his 2012 budget speech: ‘Total spending for the Department of Cooperative Governance, Human Settletake, with both hands, the ments and Traditional Affairs is R2 374-billion.’ This is an increase responsibility as the new of 1.88% growth from the 2011/12 budget of R2 330-billion. executing authority of the • R1.5-billion is a conditional grant for housing and human Department of Cooperative settlements, which makes up 62% of the entire budget Governance, H u m a n • 32.8% will make possible the implementation and moniSettlements and Traditional toring of the local government turnaround strategy to realise Affairs (CoGHSTA) to lead this the 2014 clean audit goal multi-award-winning depart- • Compensation of employees is kept at an average of 5.2% ment, building on a rich legacy growth over the three years of excellent stewardship. For • R80-million has been allocated to increase the salaries of the past three years, this our traditional leaders department has scooped over 21 awards, both provincially Good governance and nationally. The Premier’s office also recognised our Our 2011/12 budget speech prioritised good governance and excellence, and for three con- a focused support to municipalities. We have seen substantial secutive years we have been compliance with the good governance obligations within our acknowledged as the Best municipalities. Limpopo business 2013 I 132 message We will strive to ensure that good governance is firmly applied in all 30 municipalities. However, we have noted instances where in some municipalities, behaviour that is not in line with good governance practices is occuring. The department has swiftly intervened without failure to address these misbehaviours. Local government turnaround We will intensify the implementation of the local government turnaround strategy in all 30 municipalities, with a dediOperation Clean Audit outcomes cated focus on good governDuring the launch of Operation Clean Audit in July 2009 ance, financial management, in Boksburg, as a country, we set ourselves specific targets leadership and performance and outputs. management. In 2011, 15 out As councillors, we committed to the country and its people of 30 municipalities had credthat by end 2010/11 financial year, no municipality or govern- ible Integrated Development ment institution will obtain disclaimer or adverse audit opinion. Plans (IDPs). It is with dismay that I report that we have fallen short of our At this moment we have 20 undertaking. In the 2009/10 financial year, nine municipalities out of 30 municipalities who received disclaimers, no municipality received adverse reports, have credible IDPs. This is an while in the 2010/11 financial year, eight municipalities received improvement from 15 to 20 in disclaimers and three received adverse reports. the previous MEC IDP assessOur planned intervention for the 2012/13 financial year will ment process. It is our plan focus on municipalities improving record management, conducting to ensure that by the end of frequent bank reconciliations, and improving compliance with 2013/14 all our municipalities will have credible IDPs. supply-chain-management processes. Since 2009, the department has built nearly 50 000 quality houses for Limpopo residents. 133 limpopo business 2013 message the Regional Bulk Infrastructure Grant for water projects has been made available in the 2012/13 financial year to the province through the Department of Water Affairs (DWA). We continue to do everyHighlights of some of the key projects include: Sekhukhune thing in our power to ensure (R140-million), Waterberg (R55-million), Mopani (R38-million). that our aim of reaching the The De Hoop Dam in Sekhukhune is also nearing completion, Millennium Development and about R889-million has been provided for the bulk distribuGoals (MDGs) is on course. tion network around De Hoop Dam over the next three financial During the budget speech for years through the Regional Bulk Grant programme. the 2011/12 financial year, we announced that 1 064 Human settlements delivery households in Hlalanikahle in Makhuduthamaga, 855 house- As part of the departmentâ€™s Integrated Human Settlements holds in Dzwerani in Thulamela, programme, we aspire to bridge the divide between all races, and 512 households in rich and poor. The innovative programmes are changing our Makatjane and Sekgweng in landscape and reversing apartheid settlements patterns. Our Polokwane will be electrified. programme is indeed in line with the National Vision 2030. We are pleased to announce that since 2009, we have built We are pleased to announce that Dzwerani and Makatjane 46 743 quality houses for our people. This translates in puthave been completed while ting roofs over the heads of 186 972 people. Our target for the Sekgweng and Hlalanikahle are 2011/12 financial year was to build 13 410 houses. being finalised. We are also delighted to announce that in the next financial A total of R235-million has year, planning will start in earnest for the construction of yet been allocated through the Inte- another Community Residential Units (CRU) project in Lephalale. grated National Electrification It is envisaged that this CRU, will yield no less than 250 units. In Programme (Eskom grant) to the Medium Term Expenditure Framework (MTEF) period, similar electrify households in Limpopo projects will follow in all our provincial growth-point municipalities. for the 2012/13 financial year. The Minister of Human Settlements, together with the departA further R2 463-billion has ment, launched the â€˜Each One Settle Oneâ€™ campaign in 2011 in been allocated through the Thabazimbi. With this campaign, we call upon individual donors, municipal infrastructure grant companies and mining houses to build houses for families that for provision of basic services are in need. We have a stern belief that this programme will help to households in the province reduce the burden on the government, as business will also be for the 2012/13 financial year. playing its role in the human settlements agenda. In partnership However, the challenge we with an Anglo Platinum mine, we are building 8 000 houses for face is the capacity of some mine employees through the Finance Linked Individual Subsidy municipalities in the province Programme (FLISP). to utilise the grant funding provided for basic services. Lephalale Provision of basic services We have completed the report on seepage for Lephalale Municipality. We further outlined our plans of building a new city in that part of our province. We are pleased to report that we The multi-year water pro- have commenced installing bulk infrastructure in Lephalale. This jects reported in the pre- project should be completed by the end of the 2012/13 financial vious budget year are all at year. The people of Limpopo will be relieved that government is advanced stages of develop- at the forefront of all developments in Lephalale. ment. Furthermore, an allocation of R481-million through Sourced from the Budget Vote speech 2012/13. Bulk infrastructure grant Limpopo business 2013 134 focus CoGHSTA rewarded for its service delivery Limpopo Department of Cooperative Governance, Human Settlements and Traditional Affairs is still the best when it comes to service delivery. T first runner-up for the Seshego Community Residential Unit (CRU) under the category Best Rental Stock Project. The delighted MEC for CoGHSTA, Clifford Motsepe, was accompanied by senior officials to collect the award. He has praised his department for being crowned Best Service Delivery Department for the second time after the department won in this category in 2008. ‘We have won Recognising, rewarding these awards due to a number of partnerships and motivating and programmes we have embarked on as a The purpose of the Govan Mbeki awards is department,’ said MEC Motsepe. to motivate all stakeholders in the housing ‘We have managed to build no fewer than industry to harness human and other 20 000 houses in partnership with Anglo resources in accelerating housing delivery to Platinum mine through the national ‘Each improve the lives of millions of the nation’s One Settle One’ campaign. CoGHSTA is poor by building sustainable human settle- the only department that has initiated an ments, providing a choice of quality housing innovative campaign called My Home My opportunities with secure tenure, access to Pride, which seek to encourage housing water and sanitation, and social, economic beneficiaries to look after their property,’ and recreational facilities. he emphasised. ‘I would like to thank the entire CoGHSTA The award honours the role-players in the housing value chain, including developers and staff for a job well done. Please continue to do building contractors that have committed to a sterling job. The people of Limpopo deserve partner with government in building sustainable better and better services, and we will strive human settlements and making the millennium to achieve them at all costs,’ he said. development goals achievable by 2014. Sourced from www.coghsta.limpopo.gov.za he Limpopo Department of Cooperative Governance, Human Settlements and Traditional Affairs (CoGHSTA) scooped the award for the Best Service Delivery Department again. This was announced at the National Govan Mbeki Human Settlements Awards held at Gallagher Estate in May 2012. A legacy of success The department pocketed a cash prize of R2-million, a certificate and a trophy after it outdid its counterpart provinces of Gauteng and the Eastern Cape. Raesetja Property Developers, representing Limpopo, also got 135 limpopo business 2013 listings Limpopo Local Government A guide to the district and local municipalities in Limpopo. S outh African local government has undergone considerable transformation over the past decade, as outlined in the Constitution of South Africa (1996). The Local Government: Municipal Structures Act of 1998 reduced the total number of municipalities in the country from 843 to 284 (now 283) and laid out criteria for determining whether an area should have a Category A Municipality (Metropolitan Municipalities), a Category B Municipality (Local Councils or Municipalities) or a Category C Municipality (District Municipalities). Six Metropolitan Municipalities were created, namely the City of Cape Town Metropolitan Municipality in the Western Cape, the City of Tshwane Metropolitan Municipality, Ekurhuleni Metropolitan Municipality and the City of Johannesburg Metropolitan Municipality in Gauteng, eThekwini Municipality in KwaZulu-Natal and Nelson Mandela Bay Municipality in the Eastern Cape. Forty-seven District Municipalities were identified (Limpopo has five district municipalities, namely Capricorn District Municipality, Mopani District Municipality, Vhembe District Municipality, Waterberg District Municipality and Greater Sekhukhune District Municipality), as well as 230 Local Municipalities (with 24 in Limpopo). In July 2008, the Municipal Demarcation Board proposed that Mangaung (Free State), Buffalo City (Eastern Cape) and Msunduzi (KwaZulu-Natal) municipalities change from Category B local municipalities to Category A metropolitan municipalities. Mangaung and Buffalo City were subsequently granted metropolitan status. Lepelle-Nkumpi Municipality Tel: +27 15 633 4500 Fax: +27 15 633 6896 Website: www.lepelle-nkumpi.gov.za Molemole Municipality Tel: +27 15 501 0243 Fax: +27 15 501 0419 Website: www.molemole.gov.za Polokwane Municipality Tel: +27 15 290 2100 Fax: +27 15 290 2106 or 086 608 0290 (SA only) Website: www.polokwane.gov.za Capricorn District Municipality Mayor: Makgabo Mapoulo Physical address: 41 Biccard Street, Polokwane 0699 Postal address: PO Box 4100, Polokwane 0700 Tel: +27 15 294 1000 Fax: +27 15 294 1292 Email: firstname.lastname@example.org or email@example.com Website: www.cdm.org.za Local municipalities encompassed: Aganang Municipality Tel: +27 15 295 1400 Fax: +27 15 295 1401/1447 Website: www.aganang.gov.za Blouberg Municipality Tel: +27 15 505 7100 Fax: +27 15 505 0296 Website: www.blouberg.gov.za Limpopo business 2013 Sekhukhune District Municipality Mayor: Mogobo David Magabe Physical address: 3 Wes Street, Groblersdal 0470 Postal address: Private Bag X8611, Groblersdal 0470 Tel: +27 13 262 7300 Fax: +27 13 262 5849 Email: firstname.lastname@example.org or 136 listings email@example.com Website: www.sekhukhune.gov.za Local municipalities encompassed: Elias Motsoaledi Municipality Tel: +27 13 262 3056 Fax: +27 13 262 2547/4530 Website: www.eliasmotsoaledi.gov.za Ephraim Mogale Municipality Tel: +27 13 261 8400 Fax: +27 13 261 2985 Website: www.ephraimmogalelm.gov.za Fetakgomo Municipality Tel: +27 15 622 8000 Fax: +27 15 622 8026 Website: www.fetakgomo.gov.za Greater Tubatse Municipality Tel: +27 13 231 1000 Fax: +27 13 231 7467 Website: www.tubatse.gov.za Makhudutamaga Municipality Tel: +27 13 265 8645 Fax: +27 13 265 1975/1076 Website: www.makhuduthamaga.gov.za Greater Letaba Municipality Tel: +27 15 309 9246 Fax: +27 15 309 9419 Website: www.greaterletaba.gov.za Greater Tzaneen Municipality Tel: +27 15 307 8000 Fax: +27 15 307 8049/48 Website: www.tzaneen.gov.za Vhembe District Municipality Mayor: Tshitereke Matibe Physical address: Old Parliament, Government Complex, Tusk Venda Street, Thohoyandou 0950 Postal address: Private Bag X5006, Thohoyandou 0950 Tel: +27 15 960 2000/2008 Fax: +27 15 962 0904 Email: firstname.lastname@example.org Website: www.vhembe.gov.za Local municipalities encompassed: Makhado Municipality Tel: +27 15 519 3000 Fax: +27 15 516 1195 Website: www.makhado.gov.za Musina Municipality Tel: +27 15 534 6100 Fax: +27 15 534 2513 Website: www.musina.gov.za Mutale Municipality Tel: +27 15 967 9600 Fax: +27 15 967 9677/9654 Website: www.mutale.gov.za Thulamela Municipality Tel: +27 15 962 7500 Fax: +27 15 962 4020 Website: www.thulamela.gov.za Mopani District Municipality Mayor: Joshua Leswafo Matlou Physical address: Government Building, Main Road, Giyani 0826 Postal address: Private Bag X9687, Giyani 0826 Tel: +27 15 811 6300 Fax: +27 15 812 4301 Email: email@example.com Website: www.mopani.gov.za Local municipalities encompassed: Ba-Phalaborwa Municipality Tel: +27 15 780 6300 Fax: +27 15 781 0726 Website: www.ba-phalaborwa.gov.za Greater Giyani Municipality Tel: +27 15 811 5500 Fax: +27 15 812 2068/1683 Website: www.greatergiyani.gov.za Waterberg District Municipality Mayor: Tlotlanang Rosina Mogotlane Physical address: Harry Gwala Street, Modimolle 0510 Postal address: Private Bag X1018, Modimolle 0510 Tel: +27 14 718 3300 Fax: +27 14 717 2931 137 limpopo business 2013 listings Email: firstname.lastname@example.org Website: www.waterberg.gov.za Local municipalities encompassed: Bela-Bela Municipality Tel: +27 14 736 8000 Fax: +27 14 736 3288 Website: www.belabela.gov.za Lephalale Municipality Tel: +27 14 763 2193 Fax: +27 14 763 5662/086 534 3440 Website: www.lephalale.com Modimolle Municipality Tel: +27 14 718 2000 Fax: +27 14 717 4077 Website: www.modimolle.gov.za Mogalakwena Municipality Tel: +27 15 491 9630 Fax: +27 15 491 9755 Website: www.mogalakwena.gov.za Mookgophong Municipality Tel: +27 14 743 6600 Fax: +27 14 743 2434 Website: www.mookgophong.gov.za Thabazimbi Municipality Tel: +27 14 777 1525 Fax: +27 14 777 1531 Website: www.thabazimbi.gov.za MUNICIPALITIES IN LIMPOPO PROVINCE Musina Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality ZIMBABWE Musina Mutale Waterberg Lephalale Alldays Vhembe Blouberg Makhado Tshipise Thulamela Thohoyandou MOZAMBIQUE Makhado BOTSWANA N11 N1 R81 Greater Giyani Kruger National Park District Management Area Kruger National Park Lephalale Mogalakwena Lephalale Aganang Molemole Greater Letaba Capricorn R81 Waterberg Greater Tzaneen Tzaneen Mopani Ba-Phalaborwa Mokopane Thabazimbi Modimolle Polokwane POLOKWANE Lepele-Nkumpi Fetakgomo Phalaborwa R40 Maruleng Bohlabela (Cross-border Municipality) Kruger National Park District Management Area N1 N11 Thabazimbi Mookgophong Mookgophong Modimolle Sekhukhune Makhuduthamaga Ephraim Mogale Greater Tubatse Bushbuckridge Bele-Bela Bela-Bela North West Gauteng Greater Groblersdal Mpumalanga Limpopo business 2013 138 LEPHALALE LOCAL MUNICIPALITY POSTAL: Private Bag X136 Lephalale 0555 • PHYSICAL: Cnr. Joe Slovo & Douwater Road Civic Centre, Onverwacht • TEL: 014 763 2193 • FAX: 014 763 5662 • EMAIL: munic@ lephalale.gov.za • WEB: www.lephalale.com Geography and Location This municipality is situated in the north western part of Limpopo Province and it borders Thabazimbi, Modimolle, Mogalakwena and Blouberg Municipalities. It is a gateway to Botswana as it borders Botswana to the west, with four international border posts: Stockpoort, Groblersburg, Zanziba and Platjan. 14 000km²). The town of Lephalale is located a mere 280km from Tshwane and is a recognised gateway to Botswana and other Southern African Countries. The town Lephalale is located approximately 40km from the border of Botswana. It is situated between 23º30’ and 24º00’ south latitude, 27º30’ and 28º00’ east longitude. Main Industries / Business Sectors Lephalale has been identified by Limpopo Employment Growth and Development Plan as a petrochemical cluster and has attained the status of national development node. The Waterberg coal fields which boast more than 40% of the total coal reserve of South Africa are located in Lephalale. The Municipality is on the verge of huge economic development related to mining and energy generation due to the recent development of a new power station and expansion of mining activities. The construction of the 40 000MW power station known as Medupi next to Matimpa Power Station is at an advanced stage and the building of a third one is under consideration by Eskom. Investigation by Sasol for the exploration of a coal to liquid plant has reached an advanced stage. The tourism industry is important to the economy of the area and will continue to be given attention in this regard. Agriculture, especially red meat production, is a potential economic activity which is likely to grow within the municipal area. Cllr Jack Maeko, Mayor Main Resources / Attractions Nestled at the spur of the Waterberg Mountains, Lephalale is a place of peace and breathtaking beauty. Enjoy a walking trail through the awe-inspiring D’Nyala Nature Reserve and Marekele National Park, or enjoy the spectacular Mokolo Dam and Nature Reserve. Discover why Lephalale is called “The heartbeat of the Waterberg bushveld”. As part of the Waterberg Biosphere, the Lephalale area is richly blessed with pristine natural beauty and an abundance of fauna and flora. Lephalale offers an infinite variety of scenic contrasts and encompasses the unique Waterberg wilderness with its extraordinary beauty, boasting superb vistas, mountain gorges, clear streams and rolling hills. Rich in geological sites and rock art, it is a strong drawcard for the region, suggesting its links to many previous generations. Rossina Boloka, Speaker LIMPOPO From top: A variety of industry and development opportunities within the Lephalale Municipality. Key Facts and Figures Above: Lephalale’s new shopping mall. Lephalale Municipality is the biggest municipality in the Limpopo province (covering PROFILE South African Local Government Association An association of municipalities that is at the cutting edge of quality and sustainable services. The South African Local Government Association (SALGA) is an organisation mandated by the new South African Constitution to assist in the wholesale transformation of local government in South Africa. Role In line with its constitutionally defined mandate, SALGA set out its role as follows: • Represent, promote and protect the interests of local government • Transform local government to enable it to fulfil its developmental role • Enhance the role of provincial local government associations as provincial representatives and consultative bodies on local government • Raise the profile of local government • Be recognised by national and provincial governments to be the national representative of local government and consultative body in respect of all matters concerning local government • Ensure full participation of women in local government • Act as the National Employers’ Organisation for the municipal and provincial member employers • Regulate the relationship between the members and the employers within the meaning of section 213 of the Labour Relations Act, No 66 of 1995 • Provide legal assistance to its members (at its discretion) in connection with matters that affect employee relations Cllr David Magabe, Chairperson Thapelo Matlala, Provincial Executive Officer government associations as representatives of organised local government. The Act allows organised local government to designate up to 10 part-time representatives to the National Council of Provinces (NCOP) in the national parliament, and to further nominate two persons to the Financial and Fiscal Commission (FFC), which advises the finance ministry on budget issues. They participate in intergovernmental structures and are therefore able to influence national and provincial legislation and to gauge the impact of such legislation on local government. Contact details Key contact people: Thapelo Matlala, Provincial Executive Officer Tebogo Matlou, Strategic Support Manager Tel: +27 15 291 1400 Fax: +27 15 291 1414 Email: email@example.com Physical address: 127 Marshall Street, Polokwane Website: www.salga.org.za Mandate The Organised Local Government Act of 1998 recognises SALGA and the nine provincial local Limpopo business 2013 142 listings Business organisations These organisations are a helpful first port of call for anyone wishing to invest or do business in Limpopo. Greater Tzaneen Chamber of Commerce Physical address: 6 Peace Street, Tzaneen 0850 Postal address: PO Box 1960, Tzaneen 0850 Tel: +27 15 307 6394 Fax: 086 566 1186 (SA only) Email: firstname.lastname@example.org Polokwane Chamber of Business Physical address: 20 Landros Mare Street, Polokwane 0699 Postal address: PO Box 53, Polokwane 0700 Tel: +27 15 296 1374 Fax: 086 537 1259 Email: email@example.com Website: www.pcob.co.za Mokopane Chamber of Commerce and Industry Physical address: 40 Thabo Mbeki Street, Mokopane 0601 Postal address: PO Box 320, Mokopane 0600 Tel: +27 15 491 8458 Fax: +27 15 491 8460 Email: firstname.lastname@example.org Soutpansberg Chamber of Commerce Physical address: 22 Joubert Street, Louis Trichardt 0920 Postal address: PO Box 65, Makhado 0920 Tel: +27 82 308 0472 Fax: +27 15 516 5857 Email: email@example.com Website: www.soutpansbergchamber.co.za 143 limpopo business 2013 index INDEX Absa Enterprise Business������������������������������������������������������������������������������������������������������������������������������������������������ 96 Anglo American Platinum��������������������������������������������������������������������������������������������������������������������������������������������������� 7 Barloworld Equipment��������������������������������������������������������������������������������������������������������������������������������������������������������� 5 Capricorn College for FET�����������������������������������������������������������������������������������������������������������������������������������118, 120 Capricorn District Municipality�����������������������������������������������������������������������������������������������������������������������������������140 Coal of Africa Ltd����������������������������������������������������������������������������������������������������������������������������������������������������������������� 68 Cranbrook Ltd������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 28 De Hoop Construction West������������������������������������������������������������������������������������������������������������������������������������������ 20 Department of Co-operative Governance, Human Settlements and Traditional Affairs (CoGHSTA)���������������������������������������������������������������������130, 132 Frontier Market Network�������������������������������������������������������������������������������������������������������������������������������������������������� 45 Fusion Boutique Hotel������������������������������������������������������������������������������������������������������������������������������������������������������ 41 Garden Court Polokwane������������������������������������������������������������������������������������������������������������������������������������������������ 42 Global Africa Network���������������������������������������������������������������������������������������������������������������������������������������������������������� 9 Impala Platinum�������������������������������������������������������������������������������������������������������������������������������������������������������������� 3, 66 Industrial Development Corporation (IDC)���������������������������������������������������������������������������������������������������������OBC Kinross Energy���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 83 Lepelle Northern Water��������������������������������������������������������������������������������������������������������������������������������������������������� 81 Lephalale FET College�����������������������������������������������������������������������������������������������������������������������������������������������������115 Lephalale Local Municipality���������������������������������������������������������������������������������������������������������������������������������������139 Limpopo Gambling Board����������������������������������������������������������������������������������������������������������������������������������������������� 44 Limpopo LED Resource Centre�����������������������������������������������������������������������������������������������������������������������������������108 National Empowerment Fund (NEF)���������������������������������������������������������������������������������������������������������������������������100 National Department of Agriculture, Forestry and Fisheries������������������������������������������������������������������������ 54 National Youth Development Agency (NYDA)����������������������������������������������������������������������������������������������������110 Palabora Mining Company������������������������������������������������������������������������������������������������������������������������������ 60, 62, 64 Petroleum Agency South Africa����������������������������������������������������������������������������������������������������������������������������������� 85 RSA Retail Savings Bonds������������������������������������������������������������������������������������������������������������������������������������������������IFC South African Local Government Association (SALGA)����������������������������������������������������������������������������������142 Seda Limpopo Jewellery Incubator���������������������������������������������������������������������������������������������������������������������������� 34 Sekhukhune FET College�����������������������������������������������������������������������������������������������������������������������������������������������121 Small Enterprise Development Agency (Seda)����������������������������������������������������������������������������102, 104, 106 South African Broadcasting Corporation (SABC)������������������������������������������������������������������������������������������������� 87 SEW Eurodrive������������������������������������������������������������������������������������������������������������������������������������������������������������� 71, IBC Standard Bank��������������������������������������������������������������������������������������������������������������������������������������������������������������� 92, 94 Transnet Engineering (TE)��������������������������������������������������������������������������������������������������������������������������������������� 72, 74 University of Limpopo (UL)�������������������������������������������������������������������������������������������������������������������������������������������116 Verder Pumps������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 67 Limpopo business 2013 144 We drive the mining industry The IDC is the biggest supporter of tenders awarded in the Department of Energyâ€™s Renewable Energy Independent Power Producers (REIPP) programme. Over the next five years, the IDC will make available R25 billion to fund projects related to green industries. The IDC is identifying and providing funding for many projects In the first round of REIPP tenders, the IDC participated in twelve successful bids, and seven more in the second round. The green energy bids include wind power, concentrated solar power, photovoltaic and small hydro projects. that will contribute to building South Africaâ€™s industrial capacity and creating jobs. Visit www.idc.co.za to find out more. The power behind renewable energy Chillibush8603IDC Telephone: 086 069 3888 Email: firstname.lastname@example.org To apply online for funding of R1 million or more go to www.idc.co.za