North West Business 2013
The 2013 edition of North West Business is the fifth edition of this highly successful publication that since its launch in 2008 has established itself as the premier business and investment guide to North West Province.
2013 EDITION NORTH WEST BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN NORTH WEST PROVINCE www.northwestbusiness.co.za | www.frontiermarketnetwork.com Transnet Engineering New name builds on established track record Transnet Rail Engineering has changed its name to Transnet Engineering to better reflect the increased scope of its activities. Previously a division that focused on engineering and maintenance work relating to rail transport, the organisation is now equipped to also handle the assembly and maintenance of ports equipment following the expansion of the divisionâ€™s businesses. Transnet Engineering currently has nine businesses. The future of Transnet Engineering is built on its proud history of servicing the engineering needs of the transport industry both within and beyond the borders of South Africa. www.transnet.net Coach Business Locomotive Business Wheels Business Ports Business Rotating Machines Business Foundry Business Wagons Business Rolling Stock Business Auxiliary Business contents contents North West business 2013 edition Published by Global Africa Network (Pty) Ltd 9 10 16 18 42 50 Introduction Foreword9 North West Business is a unique guide to business, investment and tourism in North West Province. Special features Regional overview of North West Province 10 North West Province has rich mineral and agricultural resources. The most important economic sectors in the province are mining, agriculture, manufacturing and tourism. North West cities and towns 16 The towns of the North West play important roles in the regional economy. Smart logistics get freight moving faster 18 Getting the North Westâ€™s agricultural and mining products to other places is big business. Overview of the South African economy 30 Key facts and figures on South Africaâ€™s demographics, economy, trade and investment. Destination North West Tourism42 Hunting and golf tourism are growth sectors. Big events in big sky country A wide variety of festivals and sporting events is making the North West a hotspot of activity and excitement. north west business 2013 2 50 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 PRODUCING SOMETHING MORE PRECIOUS THAN PLATINUM: HOMES FIND OUT MORE AT GETTHEFULLSTORY.CO.ZA Real Mining. Real People. Real Difference. contents 54 59 75 78 80 82 92 Economic sectors Agriculture54 Big grain companies in the North West deal in huge volumes. Mining59 The platinum sector is facing several challenges. Mineral beneficiation 65 There is great potential for the use of platinum in the energy sector. Manufacturing70 The automotive-supply sector is growing in North West Province. Food and beverages 72 Big companies have large manufacturing plants in North West Province. Engineering75 Mining is the main concern of North Westâ€™s engineers. Transport78 North West Province hosts key national routes. Construction and property 80 Cement companies are prominent in the North West. Water82 Hartbeespoort Dam is the focus of a massive regeneration project. Energy 86 Biofuels and the energy potential of platinum are exciting researchers. Banking and financial services 88 Microlending is under the spotlight. Development finance and SMME support Support for North West entrepreneurs is available. north west business 2013 4 92 contents 104 116 118 15 Education104 Mathematics and science teaching is under the spotlight. Government South African National Government North West Provincial Government 116 A guide to the North Westâ€™s provincial government departments. North West Local Government 118 A guide to the district and local municipalities in the North West. Vaalwater Thabazimbi Limpopo reference Bela-Bela R49 ANA 110 An overview of South Africaâ€™s national government departments. Sun City/Lost City N4 Zeerust Swartruggens Groot-Marico Mmabatho Rustenburg Koster Mahikeng Lichtenburg R49 R30 Westonaria Ventersdorp N14 Sannieshof Coligny Potchefstroom Ottosdal Klerksdorp Wolmaransstad N12 Kroonstad Welkom Ventersburg Bultfontein N3 Sasolburg N1 R82 Maps R57 Heilbron North West locator map Free State Wesselsbron Christiana Carletonville Parys R59 R30 g Bloemhof N1 Vereeniging N12 Orkney R34 SchweizerReneke Sector contents 53 Index132 Gauteng JOHANNESBURG R52 Delareyville PRETORIA Brits Hartbeespoort Mooinooi Magaliesburg 12 North West regional map 15 North West municipalities 119 Motorway Reitz Main Road Railway north west business 2013 6 credits North west business 2013 www.northwestbusiness.co.za North West Business is published by Global Africa Network (Pty) Ltd ISSN 1996-1022 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 Advertising Sales director Mark Leven-Marcon North West regional sales manager Veronica Dean-Boschoff Key accounts manager Loudon Cito Advertising representatives Christoff Scholtz, Jeremy Petersen, Nathalie Horswell and Shiko Diala Sales support manager Nadia Dicks Administration Managing director Clive During Financial controller Brett Watson Administration and accounts Charlene Steynberg, Natalie Koopman Distribution Lizé Fourie Printing CTP Distribution North West Business is distributed internationally on outgoing and incoming trade missions, through Invest North West; 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: email@example.com • Website: www.gan.co.za Copyright Disclaimer Photo credits North West 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. While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in North West 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. Photographs: Imperial Logistics, NWU, OutDoorPhotographers, Pasdec Automotive Technologies, Wesvaal Chamber of Commerce, Dept. of Water Affairs, Activate High Performance Architecture, Anglo American, More Hotels and Lodges, Sun Images, Old Mutual, Mooirivier Mall, and Madikwe Safari Lodge. Cover photographs: (welder, lion, sunflower, wheat, molten metal) Dreamstime, (harvester) Veer, (Witkop mine) Philip Mostert. north west business 2013 8 foreword North West Business A unique guide to business, investment and tourism in North West Province. T NORTH WEST BUSINESS 2013 EDITION he 2013 edition of economic overview of the province (see p30) and detailed North West Business is overviews of the region’s major the sixth edition of this sectors (see sector index on highly successful publicaTHE GUIDE TO BUSINESS AND INVESTMENT IN NORTH WEST PROVINCE p53). Special features in this tion that since its launch in issue focus on the wide range 2008 has established itself of major events that are hosted as the premier business and in the province (p50) and the investment guide to the key role the province’s logisNorth West Province. North tics infrastructure plays in the West Business is unique as a regional and national economy business journal that focuses (p18). exclusively on the North West and that also carries full Global Africa Network (www. Audit Bureau of Circulations gan.co.za), the publisher of North West Business, specialises (ABC) certification, meaning its print run and circulation of in business-to-business print 15 000 copies is indepenand electronic publications, dently audited and verified. producing a series of officially endorsed, regionNorth West Business was launched as a specific, annual print journals. Every province print journal to meet the need for a compre- in South Africa is now covered by this unique hensive and well-researched business guide range of journals: Northern Cape Business, Free to the province. A number of complementary State Business, Western Cape Business, KwaZuluelectronic features have subsequently been Natal Business, Gauteng Companies, Eastern Cape introduced to give participants in and readers Business, Mpumalanga Business and Limpopo of the journal a wider range of communication Business. A national business guidebook, South options. These include the website, www.north- African Business, was added to the stable in 2011. westbusiness.co.za, which includes an online (See www.gan.co.za to order complimentary record of all of the content from the print copies of 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 in 2012 was the online platform writers, editors and designers who worked Frontier Market Network (www.frontiermar- so hard to produce this edition of North West ketnetwork.com), a business network for fast- Business. We thank Invest North West, the municgrowing ‘frontier’ markets, which builds on the ipalities, companies and other organisations that offering of our popular TradeInvest websites. provided us with information and supported this The community comprises companies, govern- undertaking. ment organisations and individuals involved in doing business, investing, promoting or sup- Chris Whales porting deal transactions in rapidly developing Publisher, Global Africa Network economies. Email: firstname.lastname@example.org The 2013 edition of North West Business www.northwestbusiness.co.za includes a well-researched and up-to-date www.gan.co.za www.northwestbusiness.co.za | www.frontiermarketnetwork.com 9 north west business 2013 a regional overview of north west province North West Province has rich mineral and services contributes 10.8%, and finance and agricultural resources. Educational excel- business services 12%. Trade accounts for lence is promoted by outstanding research 10% and manufacturing 5.8%. done by North-West University, which has The North West is a major producer of three campuses. The most important eco- maize and sunflower seeds and many other nomic sectors in the province are mining, agricultural products. About one-third of South agriculture, manufacturing and tourism. Africaâ€™s maize comes from the province, as does 15% of its wheat. by John Young The dry western part of the province is home to beef cattle, game ranching and nown as the Platinum Province for the hunting, with Vryburg being a major centre large concentration of platinum mines for cattle auctions. The well-watered eastern in the greater Rustenburg area, other and north-eastern regions can carry many productive mining sectors include gold, dia- kinds of crops, many of which find themselves monds, dimension stone, granite and cement. on the tables of the citizens of the nearby North West Province is bordered on the urban centres of Johannesburg and Pretoria. west by Botswana and the province of Gauteng Manufacturing capacity is concentrated in to the east. The Vaal River runs along the the larger towns in the north-east and eastern provinceâ€™s south-eastern border with the Free regions of the province. The economy of the State, and the province also shares borders town of Rustenburg is closely linked to the with the Northern Cape to the south and fortunes of platinum mining, with the sector Limpopo in the north. contributing 77% of the cityâ€™s gross geographic The contribution of the mining sector to product. The Rustenburg Local Municipality the gross regional domestic product (GRDP) of announced in 2010 that the city was the the province amounts to 30.4%, government fastest-growing city in Africa. K special feature The Rustenburg Rapid Transport (RRT) project will cost R3-billion and transform the city’s economy. About 200 000 passengers are expected to use the system. The Platinum Spatial Development Initiative aims to develop all areas on the N4 highway that links South Africa’s most densely populated areas with the town of Lobatse in Botswana. By developing nodes along the logistical corridor, the aim is to stimulate economic development. Rustenburg stands to benefit from increased traffic along this route, which is ultimately intended to link Namibia and Mozambique. The major manufactured products of the province are fabricated metals, food and beverages and non-metallic metals. Mining-related engineering works are prevalent near mining operations, while companies in the automotive and automotive-supply industry are active in Brits. The agricultural sector also generates largescale storage and logistics operations, particularly in Klerksdorp, Vryburg and Brits. Strong efforts are being made to attract investment into the manufacturing sector of the North West by a variety of groups, with provincial investment agency Invest North West in the forefront. The priority is to add value to the province’s raw materials. The mining industry lends itself to various forms of spinoffs and beneficiation projects, like catalytic converters for motor vehicles, but there is also tremendous scope for the development of agri-processing, as the province is so rich in agricultural produce. Leather for car seats is an obvious example. North West’s tourism offering is varied and comprehensive. The emphasis is on the bushveld experience, with major assets being the Pilanesberg National Park (a provincial facility) and the Madikwe Game Reserve, which contains many luxury private lodges. The North West Parks and Tourism Board runs a further 12 smaller parks and reserves. Two UNESCO World Heritage Sites are located at Vredefort Dome (where a meteorite hit the BOTSWANA Limpopo NAMIBIA Mpumalanga North West Gauteng Free State LESOTHO Northern Cape Eastern Cape Western Cape north west business 2013 12 SWAZILAND KwaZuluNatal MOZAMBIQUE ZIMBABWE special feature The North West has become popular with local and foreign visitors. earth about two million years ago) and Taung, where the discovery by an archaeologist of a skull in 1924 is regarded as one of the most significant of all time. The complex of hotels at Sun City in the Pilanesberg offers a range of accommodation, from the last word in luxury to family accommodation. There are two very good golf courses at Sun City. The annual Nedbank Golf Challenge, hosted at the Gary Player Country Club, helps to put North West Province in the international spotlight There are campuses of North-West University in Potchefstroom, Mahikeng and the Vaal Triangle. Geography The province falls in a summer rainfall area and the vegetation mostly comprises bushveld. The Magaliesberg is the only significant mountain range in the province. It runs for about 130km between Rustenburg and Pretoria in the northeast part of the province. Three of South Africa’s major watercatchment areas run through the North West Province: Limpopo, Orange and Vaal. The rivers and irrigation schemes (particularly centred on the Crocodile, Harts and Vaal rivers) support extensive commercial agricultural enterprises, small-scale farming and game ranching. North West Province’s landmass of 116 320km² comprises just less than 8.7% of South Africa’s, while a population of 3.5-million makes up 6.8% of the national population. About 2.2-million live in urban areas, with the main towns being Mahikeng (the provincial capital), Potchefstroom, Rustenburg, Brits and Klerksdorp. Klerksdorp, which has gold mining and manufacturing capacity, is the largest city in terms of population, with about 423 000 people living there. More than 60% of the North West’s population have Setswana as a home language, with isiXhosa, Sesotho and Afrikaans as the other languages used by significant numbers of people. English is widely used in business. Traditions A number of traditional communities in North West Province are active participants in the modern economy. The best known among these is the Royal Bafokeng Nation, with diverse holdings in 18 companies ranging from telecommunications to short-term insurance, and assets worth more than R30-billion, 13 north west business 2013 special feature The Royal Bafokeng Sports Palace hosted five matches during the 2010 Soccer World Cup. but there are several other Setswana-speaking communities that have shares in mining companies active in North West Province. Many of the complex share-ownership and blackempowerment deals have led to tension and court disputes between companies and communities – and indeed between groups within communities – but the great mineral wealth of the area presents a great opportunity for the upliftment of poor rural people. The Bafokeng number around 300 000, of whom about half live to the north-west of Rustenburg, with the capital city of Phokeng being the administrative centre. The source of the community’s wealth is the mineral-rich land they own. Remarkably in the South African context, this black tribe has held title to this land since the time of British rule. The great, great, great, great grandfather of the current kgosi (king) of the Bafokeng, Kgosi Mokgatle, encouraged young men to work for cash on the mines of Kimberley so that title deeds for the group’s traditional lands could be bought and registered. Now Kgosi Leruo Tshekedi Molotlegi presides over a community that is a significant player in the platinum sector and has a large and diverse investment portfolio. north west business 2013 14 Royal Bafokeng Holdings has a 13.4% stake in Implats, a company that produced 2.3-million ounces of platinum in the 2012 financial year. The Bakgatla-Ba-Kgafela Traditional Administration (BBKTA) is responsible for the governance of the 350 000-strong community of the same name in the Moruleng district. The Bakgatla are the single biggest shareholder (32.98%) of Platmin, a JSE-listed company. Kgosi Nyalala Pilane, the leader of Bakgatla, has ensured that the mine employs people from local communities, and has been instrumental in the establishment of the Pilanesberg Tannery and other investments in tourism projects. Construction of the mine created 2 500 jobs, with a further 3 000 permanent jobs on the mine itself. 15 Sishen N14 Reivilo Lykso north west business 2013 Postmasburg Ulco Northern Cape Kuruman Kathu R31 Hotazel Vorstershoop North West Province Warrenton Taung N18 Vryburg R 49 Stella R34 BOTSWANA Moloporivier N Christiana N12 R52 Bultfontein Wesselsbron Welkom R30 R82 N1 Ventersburg Motorway Main Road Railway N3 Reitz Heilbron R57 Sasolburg Vereeniging Free State Parys R59 Kroonstad Orkney N12 Carletonville JOHANNESBURG Magaliesburg N1 PRETORIA Gauteng Brits Bela-Bela Limpopo Hartbeespoort Mooinooi Westonaria Ventersdorp R30 Potchefstroom Klerksdorp Coligny N14 Lichtenburg Koster Rustenburg Swartruggens Sun City/Lost City Groot-Marico Zeerust Wolmaransstad Ottosdal Sannieshof Bloemhof SchweizerReneke Delareyville R49 Mahikeng Mmabatho N4 R49 Thabazimbi Vaalwater special feature special feature North West cities and towns The towns of the North West play important roles in the regional economy. MooiRivier Mall in Potchefstroom boasts more than 100 shops and a Road Lodge Hotel. Mahikeng lies on the banks of the Molopo River and is the capital city of North West Province. Situated in the north-west sector of the province near the Botswana border, the city has a strong services sector and a population of approximately 300 000. Since 2002, the cityâ€™s main growth sectors have been financial services, services, transport and trade. The Garona District houses the North West Potchefstroom (City of Tlokwe) parliament and government buildings. The administrative headquarters of the BaRolong tribe are The city of Potchefstroom is administered by located in the city. The arts are promoted by the Tlokwe Local Municipality. A large campus the Mmabana Cultural Centre, while the North of North-West University and its business West Institute of Hotel and Tourism Manage- school is located in the city, as is the Vuselela ment is one of three tertiary institutions in the FET College and the Potchefstroom College of city. North-West Universityâ€™s Graduate School of Agriculture. More than 120 000 people attend Business and Government Leadership is located the Aardklop Festival every year. north west business 2013 16 photo: MooiRivier Mall, Potchefstroom in Mahikeng, and Unisa has a presence. Other institutions are the Taletso FET College and the International School of South Africa. The town is well served by hotels such as the four-star Premier Protea Hotel Mahikeng, and gambling aficionados are catered for by the Tusk Mmabatho Casino Resort. Mahikeng Game Reserve has white rhino and giraffe among its fauna. www.mafikeng.gov.za Mahikeng special feature Soccer World Cup winner Spain chose the sports facilities of North-West University as its base for the 2010 World Cup event. Tlokwe is a hub for the strong commercial agriculture of the region and has several food and beverage manufacturers. Nestlé has recently invested. Some of the bigger enterprises include fertiliser companies such as Kynoch, munitions manufacturers, and food processors like King Korn. An army base contributes to the economy, and the airfield formerly used by the military is now run by the municipality. The N12 Treasure Route passes through the city and holds potential for further development of tourist highlights such as Boskop Dam and the Mooi River on which the town is located. www.potch.co.za past pupils include Sir Seretse Khama and Dr Ruth Mompati. The Leon Taljaardt Nature Reserve has white rhino, buffalo and zebra. www.vryburg.com Klerksdorp (City of Matlosana) This town’s first boom came as a result of gold, and mining still plays a big role in the local economy. Engineering enterprises service the mining industry. Senwes, the agricultural company through whose silos a large proportion of South Africa’s grain and oil seed move every year, has a giant silo in the town. Matlosana is situated on the N12 Treasure Route and is marketing itself as a potential logistics hub. An intermodal facility based in the town’s airport has been developed. The city council Bloemhof has set aside land for the development of indusBloemhof is a centre of maize growing and trial and commercial enterprises. Break-bulk cattle raising on the southern boundary of facilities, storage space and distribution centres the province, and DairyBelle has a large milk- are needed, offering concrete opportunities for production facility in the town. The Bloemhof investors in those fields. Dam is one of the three large dams on the Vaal www.matlosana.local.gov.za River that supply bulk water to surrounding areas. The Bloemhof Bonanza is the biggest Rustenburg and most lucrative inland-angling event in South Africa, with more than 2 000 anglers Rustenburg is close to platinum mines and trying to win R1.5-million in prize money. The Sun City, two of the economic jewels in the nearby SA Lombard Nature Reserve has a fine crown of North West Province. The town is also near beautiful parts of the bushveld, the herd of black wildebeest. Magaliesberg Mountains and the Pilanesberg www.lekwateemane.co.za National Park. Rustenburg has a varied manufacturing sector, Vryburg although most of it is mine-related. Large-scale Vryburg is the principal town of the Dr Ruth platinum smelters operate in Rustenburg. Segomotsi Mompati District Municipality. Cattle One of Orbit FET College’s campuses is in auctions held several times a year are among Rustenburg, Unisa has a regional office, and the biggest and best supported in the country. the Agricultural Research Institute’s industrial The Theiler Agricultural Museum and Cattle crops unit and the Seda Platinum Incubator are Centre is an important research centre for the located in the city. Health facilities are good in the city, with Netcare and Life Healthcare having livestock sector. Tigerkloof school, situated south of Vryburg, a presence, in addition to the provincial hospital. is a Dinaledi school, whereby extra interven- www.rustenburg.gov.za tions are made to improve mathematics and science teaching. It is also one of a handful of schools identified for upgrading by the national Historical Schools’ Restoration Project. Notable 17 north west business 2013 special feature Smart logistics get freight moving faster Getting the North West’s agricultural and mining products to other places is big business. R ail is responsible for only 14% of the containers that are delivered to destinations around South Africa, with the balance being carried on roads. This puts a lot of pressure on the road network and is also very expensive. An article in Business Day claimed that 37% of the consumer price of maize meal is derived from transport and logistics costs (December 2012). Many of the private agricultural companies that operate in the North West have logistics divisions. Most road-freight journeys to Botswana and Namibia pass through the North West. The Mahikeng campus of North-West University offers a BCom in Logistics Management and will have post-graduate courses from 2014. Several divisions of Transnet, the state transport company, are active in the province. The pipeline run by Transnet Pipelines from Durban delivers refined fuels to the industrial hub of Rustenburg. north west business 2013 18 Transnet is trying to get South Africa’s freight to shift from road to rail. At a grain symposium in 2012, Transnet’s agricultural-freight executive claimed that turnaround times had changed from 40 days in May 2010 to 20 days in November 2011. Where 8 000 tons of agricultural freight had been carried by rail in 1992, the 2010 figure was just 3 000 tons. Logistics planners are hoping that the former statistic can help change the latter. Albert Swart told the symposium that grain tonnages carried by Transnet Freight Rail will almost double in the years to 2019. A first step in this strategy was unveiled in December 2012, when the Orkney-Vierfontein rail line was reopened. This important branch line connects the North West to the Free State and thus to Durban’s port. The reopened line will mean that more than 150 000 tons of cargo per year (more than double the current amount) will be freighted from Klerksdorp to Durban. photo: imperial logistics The North West Province is home to major players in the South African logistics sector. special feature Transnet’s expansion plan is based on a Market Demand Strategy: the grain from the North West that markets are demanding is an example of how the process works. A branch-line concessioning process offers opportunities for private operators, such as large agricultural companies. In 2010, 115 bids were received for branch lines around the country, and in 2012 the bid process was concluded. The main line from Zimbabwe to Cape Town runs through the North West capital city of Mahikeng. About 30-million tons of cargo is transported annually by rail in the province. Approximately a quarter of rail traffic is cargo generated in the province (including cement, lime products, chrome and ferrochrome, maize and wheat), and transported out. development of industrial and commercial enterprises. Break-bulk facilities, storage space and distribution centres are needed, offering concrete opportunities for investors in those fields. Logistics companies such as Grainovation, a joint venture between Imperial Logistics and Senwes, operate out of Klerksdorp. Senwes is a major company in the grainlogistics sector. With an operating area that stretches over the whole central region of South Africa, Senwes has 69 silos that can store 4.5-million tons of grain. This is more than 25% of South Africa’s storage capacity, and the company handles about 30% of the nation’s grain and oil-seeds in an average year. Value Logistics and Barloworld Logistics have a presence in Klerksdorp. Barloworld has been working with Anglo American Platinum since 2010, and the company’s achievement in moving more Logistics than 80 000 tons of platinum per month earned a The City of Matlosana has developed an inter- gold award at the 2012 Logistics Achiever Awards. modal facility based on the town’s airport. Barloworld Logistics also has the contract to deliver The city council has set aside land for the bagged cement from PPC’s Batsweledi (Dwaalboom) factory in the North West to customers in Mpumalanga North West rail line Main commodity and Limpopo. The headquarters of agriFourteen Streams to Grain cultural company Suidwes are Botswana border in Leeudoringstad, which is on Fourteen Streams to Iron ore, grain the major railway line. Suidwes Welverdiend via Klerksdorp operates 16 grain silos and its and Potchefstroom grain marketing division also Krugersdrop to Mahikeng Cement oversees transport. Brits-based MGK (Magaliesburg Graan KooPlatinum, chrome, iron ore, coal Pretoria North (Gauteng) perasie) has the capacity to store via Rustenburg to 175 000 tons of grain. Lephalale (Limpopo) NWK, which is based in Madibeng to Atlanta Cement Lichtenburg, has a transport division among its subsidiaries. Coligny to Pudumong Grain, sunflower seeds, It is currently expanding its fleet dry beans from 36 trucks to 42. Among the Klerksdorp to Ottosdal Grain, cement things it transports is feedstock Vermaas to Makwassie Grain, cereals for its liquid fertiliser plant. GWK is a Northern Cape Welverdiend to Cement, lime. Cement company, but its logistics Lichtenburg companies also operate their division, Flotank, operates in own railways that connect to a wider area. The company the branch line. has offices in Christiana and Rail lines and commodities SOURCE: North West Provincial Land Transport Framework. Potchefstroom. 19 north west business 2013 interview A master plan unfolding Kgosi Nyalala Pilane explains the huge regeneration projects unfolding in the Bakgatla-Ba-Kgafela region, and what these will mean for the Bakgatla people in the various communities. Kgosi Nyalala Pilane Since his installation as Kgosi (traditional leader) of the BBK in 1996, Kgosi Pilane’s drive, determination and manifest business acumen has attracted several key development opportunities to the Moruleng region of the North West Province. He totally revamped the BBKTA along business principles, thereby revealing a clear mandate to promote socioeconomic development projects for the upliftment of the 350 000 citizens within the administration. north west business 2013 Please give us a brief background of the Bakgatla-Ba-Kgafela community, and explain your role as leader. Bakgatla-Ba-Kgafela is a community situated in the Pilanesberg area and it is spread over a vast land within that region of the North West Province. I became Kgosi – the traditional head of the community – officially in 1996. Upon assuming my position, I realised that that there was a challenge that faced us regarding the upliftment of the lives of Bakgatla people and this was the biggest challenge that needed serious attention. I developed an understanding that land could be used as a resource if properly used. The traditional leadership in itself was never explored as a resource nor as a catalyst for development, as well as for social cohesion. We also saw our people – our community as a resource. What was left for us was to see how these three institutions, the leadership, the land and the community, could be turned into integrated assets. Once properly used, these assets could create economic activity, eventually translating into wealth creation. These would then address our socioeconomic problems especially unemployment, poverty, lack of infrastructure and service delivery in our community. Fortunately, these plans enjoy the community support. We have so far managed to harness the potential of these three resources, explored all the available opportunities, and discovered that there is potential for four main economic pillars in our land: mining, tourism, manufacturing and agriculture. The first pillar is mining due to the presence of mineral deposits. The second is tourism because the region is already an established tourist destination. The third is agriculture, although our communities have not explored agriculture properly because they were only doing subsistence farming. There is a need that they be developed into commercial farmers in order to be competitive and productive without compromising quality. The fourth pillar is the possibility of manufacturing, because there are existing factories in our industrial areas. Unfortunately, the buildings have not been maintained, and have been vandalised. With our commitment of reducing unemployment in our area, we have managed to resuscitate about eight factories. 20 interview How are the developments underpinned by the four pillars? We spoke to our mining partners and came up with a sustainable plan that will reflect the four pillars. We eventually started with our mining, and brought in some investors from Canada in 2003 to assist with our exploration, which culminated in a bankable feasibility study. We then had an asset that we could use to leverage the other plans. We started with our mining, and used it as a catalyst. With that, we came up with our master plan with the decision that we were not going to allow the issues of greed and isolated mining power, because minerals get exploited, and eventually depleted. We identified areas within the community where we could begin development. We know that mining executives would prefer to stay in an area where there are bulk infrastructure services, and we thought that this would then assist to improve our community. We started with roads, bulk water provision, sewerage, electricity, built a soccer stadium and phase 1 of administration offices to culminate in what we call a post-apartheid city â€“ the first of its kind within the community. As a pilot project, we have tried to centre these in one area so that we could create a CBD; with the intention of replicating this model in other areas within the various communities. We have started building a huge shopping mall that will host about 76 retail outlets, with major anchor tenants like Pick n Pay, Shoprite and the Edgars Group. The mall will create around 1 500 permanent jobs as well as temporary jobs that will be created during the construction phase. With this concept, we have addressed a number of our problems, such as lack of infrastructure, provision of services, creation of jobs as well as business opportunities for small businesses. Our area is also attractive because of tourism. One of these housing developments will be in the Big Five area within the Pilanesberg Park and this is good for investors. The Pilanesberg Nature Reserve is the main attraction of tourism in the area. It has attracted the likes of Sun International Group, Legacy Hotels and Lodges, Ivory Tree, Golden Leopards Resorts, etc. All Construction on a large mall is underway. these tourist destinations bring hundreds of visitors who bring vibrancy to the economy of the region. This will translate into our people seeing the value in their land, which has not always been the case. The land must come to be seen as a resource that can change peopleâ€™s lives. As indicated earlier, by combining all the economic pillars, we came up with a concept of building a city. We started with the Moruleng CBD, which is made up of: two estates: a golf estate and eco-estate, a fivestar hotel, the management academy, a hotel school, upmarket residential area, administration offices, commercial office park, cultural museum precinct, library, shopping mall, medium density residential flats, private-public hospital, and multi-purpose sports complex. With the closure of George Stegman hospital and the subsequent relocation of the newly built Moses Kotane Hospital to about 40km away, there is a need to bring health services closer to the BBK communities. Therefore, there is a need for a public-private hospital, which we are awaiting the licence thereof. We also need some private schools so that we attract these upmarket business people, and retain them in our area. In order to kick-start with the above, we needed to have bulk infrastructure in place. We therefore had to do roads, water, electricity, sewerage, and telecommunications (ICT) in order to attract investors while providing to our people as well. We did all these in one area to understand the dynamics before spreading into all other villages. We are now ready to spread into the outlying villages. We shall also be embarking on improving our education 21 north west business 2013 interview system so that we would be able to capture the level of management in our entities. Are you actively looking for investors? Yes, part of delivering on our mandate of socioeconomic development involves partnering with investors. For instance, in the mining project, we have international governments such as the Dutch government and Singapore investing their pension funds in our projects. Our government followed and invested through the Industrial Development Corporation (IDC), which bought about 16% shareholding to the value of R3.24-billion to facilitate the expansion. This is unprecedented, especially in the platinum sector. Anglo American Platinum recently announced that it would lay off 14 000 workers, but based on our partnership, it is possible that our mining project which will create 8 000 to 9 000 jobs which will go a long way towards saving some of these jobs. to create a demand for more electricity and we therefore had to come up with a solution. The new substation is flexible in that capacity can be increased as and when our projects come on stream. We have not been able to spread this kind of development over all our areas as this was treated as a pilot. This will provide a good case study as we start to roll it out to other areas. Plans are at an advanced stage to complete a modernised 24-hour health facility that will have a trauma unit, an x-ray unit and an ambulance service. It will be like a mini hospital. Over and above this facility, we will still build the hospital mentioned earlier. This will service both the community and the operations because the Mineral Resources Act states that each mining operation must have its own health facility. There are many more projects that we are working on in the master plan. There will always be problems in terms of funding, but we will overcome these challenges. What is the population size of the Bakgatla Ba What is your long-term vision for the region? Kgafela community? The longer-term vision is to have our own instiWe estimate the number to be between tutions that can serve the needs of our people. 300 000 and 350 000. Our people have, in the We always want to do things that are sustainpast, migrated to the bigger cities in search of able within the area. Institutions must be susbetter job opportunities and that makes quanti- tained by our demand, our consumption and our fying our population size difficult. However, the ability to fund them. We have had discussions current trends suggest that since we embarked with further education and training (FET) instituon our development projects, our people are tions, resulting in the Mogwase Campus estabreturning home. If we underestimate our popu- lishing a presence in the area. We are now at lation size, we will be faced with problems such the stage where we can design programmes that as lack of infrastructure, so we would rather will make people more employable. We have overestimate. already produced about 80 mining-academy students there. We also offered jewellery design Please tell us about the completed projects? and manufacturing training to about 27 students. We have built roads, bulk-water pipes, sewerage, Some of these students are employed and some administration offices, a cultural museum, soccer went on to study further. stadium, a 15-megalitre water in partnership As said earlier, we have developed a master with Bojanala Platinum District Municipality), plan that provides a long term basis for the renovated a portion of factories for manu- development of our Bakgatla people. This facturing and we are currently busy with the master plan has outlined all the economic secconstruction of a regional mall as mentioned tors that BBK will focus on in our socioecoearlier. Eskom has constructed a substation for nomic development journey. Holding hands us to support t the master plan. The new substa- with our 32 villages, partners and investors will tion is flexible in that capacity can be increased ensure that the development agenda envisas and when our projects come on stream. We aged in the master plan will touch the lives of all knew that our vision, once completed, was going our communities. north west business 2013 22 PROFILE Bakgatla-Ba-Kgafela Traditional Authority The Bakgatla-Ba-Kgafela is a community of about 350 000 people, in the North West Province of South Africa. Background The Bakgatla-Ba-Kgafela Traditional Authority (BBKTA) represents the interests of the community and acts in support of the Chief, Kgosi Nyalala MJ Pilane. The primary objective of the BBKTA is to develop strategies and implement projects aimed at the economic and social development of the region and its people. Education, healthcare, infrastructure, job creation and poverty alleviation have been identified as among the major priorities for the region. Traditional customs are vitally important to the community. The BBK region is well known for its rich mining, agricultural and tourism resources. The BBKTA seeks to mobilise partnerships with the community and the private sector to develop these resources in the best interests of the community. The BBKTA has already formed joint ventures with major mining groups to participate in mining activities, especially in platinum group metals. These projects are expected to stimulate the revitalisation of the regionâ€™s economy. The BBKTA places a high premium on skills development and education. It has already instigated bold interventions to address the skills shortage in the area, including the granting of scholarships to deserving students who wish to further their studies. The BBKTA is committed to projects aimed at the empowerment of women, the youth and people living with disabilitie, as well as to social development projects in the region The Bakgatla-Ba-Kgafela Tribal Authorityâ€™s administration offices. which address issues related to poverty and unemployment. The Bakgatla-Ba-Kgafela is a reliable development partner with government in the national, provincial and local spheres and an enthusiastic supporter of projects that will lead to the accelerated economic and social development of the region. 23 north west business 2013 PROFILE The waste-water treatment facility is up and running. Moruleng Boulevard. Completed projects • Waste-water treatment works • Moruleng Boulevard • Moruleng Stadium • Bulk-water and sewerage system • Administration office - phase one • Extended Public Works Programme • 15-million-litre water reservoir Ongoing projects • Community health centre • Extension of museum • Moruleng Shopping Mall Moruleng Stadium is a multi-purpose facility that has hosted many key matches. Future projects An economic hub for each settlement cluster: • Mokgalwaneng • Sefikile • Moruleng • Mogwase • Motlhabe • Dwarsberg Function of the economic hubs: Togo national team during their training session at Moruleng Stadium during the recent AFCON 2013. • Administrative centres • Service hubs • Centre of economic growth Cluster 1 – Mokgalwaneng/ Matlametlong/Disake farming, especially through the revitalisation of BBKTA farms and the capacitation of local co-operatives. This cluster is located in the northern-most part of the Bakgatla region near the Limpopo border. The area is relatively isolated and characterised by large private cattle farms, of which several are owned by the BBKTA. There exists real potential in this cluster for enhanced • Cattle farming • Leather goods manufacturing • Sheep and goat farming • Heritage Park development north west business 2013 24 Economic opportunities: PROFILE Cluster 2 – Sefikile and Mononono The second cluster is located in the eastern part of the Bakgatla region, to the west of the R510. This cluster includes the villages of Sefikile and Mononono. The two villages are relatively close to both Moruleng and Northam; however, the poor quality of roads in this area significantly increases their level of isolation. The economy in these two towns is based on platinum mining, especially in Sefikile, and to a lesser degree cattle farming. The BBKTA has identified the potential for establishing a dairy industry in this cluster. This industry would benefit from existing farming infrastructure, access to key transport routes, relatively large regional markets, and reliable service delivery. The development of a dairy industry is also important in terms of food security and the creation of a self-sufficient Bakgatla economy. Economic opportunities: • • • • Dairy industry Cattle farming Poultry farming Farming inputs Cluster 3 – Moruleng/Lerome/ Sandfontein The administrative and financial centre of the Bakgatla region is located in the third settlement cluster, located north-east of the Pilanesberg National Park and consisting of Moruleng, Lerome, Sandfontein and other neighbouring settlements. These settlements are characterised by their close proximity to one another, where one village flows into the next, as well as their relatively low population densities. Economic activity in this area includes mining, tourism, public services and retail trade. Poultry farming is another potential growth area. the Bakgatla region. Thus far investment in the town includes the new BBKTA administrative buildings, Moruleng Soccer Stadium, water and sewage infrastructure, and Moruleng Boulevard. In addition, other planned and ongoing projects include expansion of the administration buildings and the development of a cultural district, shopping centre, residential flats, golf estate, eco-estate, hospital and schools. The BBKTA has also identified development opportunities in neighbouring villages, including construction of a 96-hectare residential area in Lesetlheng. The purpose of these investments is to revive the Bakgatla economy by increasing tourism and production, providing employment opportunities, and attracting and retaining business and skilled professionals. Economic opportunities: • Significant investment • Banking and finance • Eco-tourism • Construction • Administrative services • Retail and trade • Cultural tourism The third cluster is designated as the future • Health services urban hub of the Bakgatla community and has been coined as the ‘first post-apartheid city’. It is envisioned that Moruleng will serve as the CBD, with development to be replicated, albeit on a smaller scale, in other hubs throughout Cluster 4 – Mogwase/Mabelapodi The fourth settlement cluster in the Bakgatla region consists of Mogwase and the adjacent village of Mabelapodi. 25 north west business 2013 PROFILE The town of Mogwase is currently the largest urban centre in the Bakgatla region, with an economy based on tourism, public services and manufacturing. The town is divided into eight distinct units, which cater to a range of income groups. Although Mogwase is currently not under BBKTA jurisdiction, land claims have been filed for the township as well as the Bodirelo Industrial Park. Despite its remoteness, the village is located near Sun City and thus is an important node in terms of tourism potential. The village is also envisioned as a potential hub for basic administrative and retail services. This area is also in relatively close proximity to the town of Ledig, a portion of which is under land claim by the BBKTA. Economic opportunities: • Service centre The BBKTA has designated Mogwase as a • Tourism potential industrial hub and, as such, plans to • Cattle farming eventually purchase and revive the Bodirelo • Vegetable farming Industrial Area. The BBKTA is also investigating the re-establishment of a rail line that Cluster 6 – Motlhabe/Ngweding/ will connect Mogwase to the Rustenburg- Mopyane/Kraalhoek Northam railway. It is envisioned that this The sixth settlement cluster in the Bakgatlawill increase the area’s manufacturing capa- Ba-Kgafela region is located north-west of the bilities and enable the transport and storage of Pilanesberg and consists of two distinct areas, mining materials. each of which represents a mining hub. The further development of this cluster will require consideration of the impact Moruleng’s expansion will have on the economy in Mogwase. For instance, there is a real possibility that the Mogwase Shopping Centre, which serves the southern half of the Bakgatla area, will experience decreased traffic following completion of the Moruleng Shopping Complex. The southern area includes Motlhabe, Ngweding and Ntswanalemetsing and is fuelled by the Pilanesberg Platinum Mine with production expected to increase in light of the recent mining consolidation. The northern area includes Kraalhoek, Mopyane, Ramoshibitswana and Magong, and is also driven by Anglo Platinum’s Union Section Mine as well as limited agricultural activity. Economic opportunities The villages in the southern part of this cluster are relatively remote; however they will benefit from the development of Moruleng as a commercial and administrative hub. The villages further north are also remote, although Kraalhoek and Mopyane have access to commercial areas in Northam. • Accelerated manufacturing • Investment attraction • Mining supplies • Construction • Transport and storage Cluster 5 – Maologane/Dwarsberg The BBKTA jurisdiction includes two villages The further integration of these villages into that are relatively remote and located a signifi- the greater Bakgatla-Ba-Kgafela economy will cant distance from the rest of the community. have a significant impact in terms of generating The first village, Maologane, is located on the overall demand and improving the livelihoods western border of the Pilanesberg National of town residents. Park and is included in the fifth settlement cluster (Moses Kotane SDF, 2011). north west business 2013 26 interview A partnership of equals Pallinghurst Resources Limited CEO Arne Frandsen describes how the mining partnership with the Bakgatla-Ba-Kgafela community is a win-win for both parties. Arne Frandsen In addition to Arne Frandsen’s many qualifications (BA, LLB, Master in Law from University of Copenhagen, postgraduate research and studies in Japan and South Africa), he has over 10 years of investment banking experience with Goldman Sachs and JPMorgan Chase. From 2004, Arne acted as client executive for JPMorgan Chase in South Africa, followed by a year as chief executive officer of Incwala Resources (Proprietary) Limited. Arne joined Pallinghurst Advisors LLP in 2006 and is a partner of the limited-liability partnership and the investment manager. Please give a brief overview of the relationship between Pallinghurst Resources and the Bakgatla-Ba-Kgafela Tribal Administration. The partnership goes back almost seven years and is founded on the premise of equal partnership, where each partner is contributing valuable elements such as mining experience, capital, assets and skills. It is a true partnership of equals, and is based around the intention of creating a new major platinum mining company that is sustainable and has a long life, and will unlock a lot of wealth for all stakeholders. What do you believe the potential of the Bakgatla-Ba-Kgafela area to be, in terms of its platinum group metals? It has the potential to create a large and sustainable mining operation. We are currently employing about 700 people from the Bakgatla tribal community, which is more than 50% of the workforce. In our future operations, we are looking at employing around 4 000 members of the Bakgatla community in skilled, permanent jobs. In the region, one formal earner can support around 10 people. So, including the Bakgatla people already employed by us as well as the thousands we intend to employ, around 50 000 people will be supported indirectly by our operation. Have you projected PGM volumes and the life of the mine? We have a body of around 60-million ounces of platinum group metals (PGMs) that we hope to be able to mine over the next 40 years. The advantage of our operation is that we are on the surface of a shallow deposit. Our workers have the benefits of being what I call ‘sky miners’, which is when the miners can still see the sky! It is much safer, and has cross-advantages such as being a more sustainable operation. What effects will the mining operation have on the community? The partnership that we have with the Bakgatla community is a mutually beneficial one. We are currently working on a big water project, where we have fresh water coming in on a pipeline from the Magalies Water Board. This will greatly benefit the community, and will create jobs, not just directly, but for many subcontractors in the fields of catering, cleaning, etc. Our operation will support small businesses in the area, and will lead to improved infrastructure, such as roads. 27 north west business 2013 interview Showcasing the best and brightest Sibongile Shongwe, Seda Platinum Incubator centre manager, talks to us about the organisation’s exciting new show, and explains how the organisation is supporting platinum beneficiation. Sibongile Shongwe Tell us what kind of support and mentorship Seda Platinum Incubator (SPI) is able to offer aspirant jewellers. SPI offers business start-up and development support within the platinum-beneficiation sector. We offer the relevant skills that enhance our clients’ businesses, thereby establishing sustainable businesses. SPI also offers links and networks to the various funding options for the entrepreneurs or tenants. Our highly skilled and talented technical team ensures that quality and product improvement is constantly applied by our clients. This enables them to compete in a very demanding and dynamic environment. How does SPI assist its tenants in marketing their products? The active presence of the Platinum Trust of South Africa, Seda and Anglo American provides a platform for the relevant access to markets and a form of back-up, thereby assisting tenants to deliver against national and international trends and demands. SPI participates in events that showcase the incumbents’ talents and ensure that their unique products are seen by the world at international and national business exhibitions and lifestyle jewellery events. SPI also gives tenants access to online markets through the SPI website, Twitter and Facebook. Sibongile Purity Shongwe has a diploma in project management from the Durban University of Technology Business Studies Unit as well as diplomas in labour law and human resource management and a certificate in public relations. She is currently the centre manager for Seda Platinum Incubator. north west business 2013 Please give us a brief overview of the Seda Platinum Incubator Jewellers Fashion Show. Who is attending, and what is the aim of the show? This is the first time that we have done our own jewellery fashion show. South Africa has many fashion events, such as Fashion Week, but jewellery and fashion have never been combined like this before. We really want to highlight the craftsmanship. SPI aims to prioritise jewellery, and showcase garments that complement the pieces. People should know that jewellery is part of fashion, and can be part of something bigger than fashion. Jewellery can be used to symbolise marriage and a lifetime commitment, for instance ‘tying the knot’. We decided to host a jewellery fashion show with the hope of educating people about the meaning of 28 interview jewellery, and about the different types of metal that are used in jewellery and what they mean. Jewellery can be used to communicate long-term messages and statements. as 80% of the incubated SMMEs are selling pieces through that store. What are the challenges associated with this type of mineral beneficiation? Are you hoping to attract major clients and The jewellery sector is a cut-throat industry. investors to the SPI through this fashion show? The economic depression has a highly negaYes, we are hoping to attract investors. This tive impact on this sector as the markets view is the first time we have done a show like jewellery as a luxury and therefore there is a this, and we regard it as a pilot project. The less demand during a depression. Market penmajor goal of the pilot is to enhance market etration is also a challenge as the established, access for the different segments of our SMME reputable retailers make it hard for the newsector. We want to make the statement that comers to enter the market, apart from those the SMMEs that we incubate are able to ser- who provide opportunities for newcomers to vice different types of markets. The targeted ‘shadow’ unique designers market can then come to the Incubator and find what they are looking for. The aim is market access for the SMMEs and also allow Our pieces are distinctly and uniquely African. potential investors to come on board. We have a wide variety of talent within Tell us about some of the incubator’s success stories. Since inception, SPI has had seven successful businesses nationally. These are Jewel Odyssey, Forever Bright, Phase of Platinum, Tlhago Ya Africa, Amahlubi Art, Xciting Designs and Africo Craft. Readers are welcome to follow these companies on the Internet. This year, we are celebrating being able to create positive competition within the SMME sector. We have collaborated with the Seda Provincial Office, some local stakeholders like Invest North West, and a private entity, Anglo American. We have combined the efforts of all our SMMEs in establishing a commercial entity that is going to be a trade wing for our SMMEs, and also offering an exit strategy to incubation. What we celebrated in 2012 was the graduation of SMMEs who then went and stood alone as successful, performing businesses. This year, we are doing a collaborated effort, a stronger bargaining power and a stronger trading power for all SMMEs that have been incubated. We have an entity called Sediba that opened its shop at the Rosebank Craft Market in December 2012. This was the first base in the process of reaching out to tourist markets. This commercial entity is a major success story for the SPI, incubation, and service different market segments. – Sibongile Shongwe Where do you see the SPI over the next five to 10 years? Our aim is to be a global player in SMME development, specifically within mineral beneficiation. We will not just be fostering talent within the jewellery sector, but we hope to use the manipulation of metal in many other sectors. What makes the jewellery produced by the SMMEs within the SPI attractive to local and international buyers? Our pieces are distinctly and uniquely African. We have a wide variety of talent within incubation, and service different market segments. Therefore, the uniqueness of our dynamic will definitely cater for the global village, as well as local African markets. We have many pieces that celebrate the diverse cultures of Africa. 29 north west business 2013 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) 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. Year Q1 Q2 Q3 Q4 Annual 2004 6.2 5.7 6.7 4.3 4.6 2005 4.1 7.4 5.6 2.7 5.3 2006 6.2 6.7 4.8 6.4 5.6 2007 6.5 3.1 5.0 6.0 5.5 2008 2.9 4.5 1.8 -1.7 3.6 2009 -6.3 -2.8 1.8 3.5 -1.5 2010 4.0 2.8 3.1 4.5 2.9 2011 4.6 1.0 1.7 3.2 3.1 2012 2.7 3.2 Table 1: GDP growth per quarter, 2003–2012 Q1, constant prices, q/q seasonally adjusted annualised. Source: Statistics South Africa GDP (R-m) GDP per capita (R) 2001 1 020 007 22 899 2002 1 168 699 25 831 2003 1 260 693 27 631 2004 1 415 273 30 297 2005 1 571 082 33 176 Year 2006 1 767 422 36 844 2007 2 016 185 41 525 2008 2 262 502 46 072 2009 2 398 155 48 318 2010 2 661 434 53 088 2011 2 964 261 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 north west business 2013 30 special feature Sector Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Value in millions (R) % Real change from 2010 % of GDP 63 984 -.04 2.2 2 260 381 0.2 8.8 357 756 2.4 12.1 78 532 1.3 2.6 Construction (contractors) 120 420 0.8 4.1 Wholesale and retail trade, catering and accommodation 386 430 4.4 13.0 Transport, storage and communications 220 060 3.3 7.4 Finance and insurance, real estate and business services 565 224 3.5 19.1 Personal services 183 493 2.4 6.2 General government services Total value added at basic prices Taxes less subsidies on products GDP at market prices 434 224 3.9 14.6 2 670 504 3.0 90.1 293 757 4.4 9.9 2 964 261 3.1 100 Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Source: Statistics South Africa 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 Trade: imports and exports 31 north west business 2013 special feature Year Imports in R-m Exports in R-m 1999 147 356 165 555 2000 187 608 210 373 2001 216 033 251 330 2002 275 427 314 102 2003 258 839 275 581 2004 306 927 296 246 2005 351 665 331 405 2006 465 040 396 529 2007 561 194 491 253 2008 727 632 663 099 2009 541 173 513 864 2010 585 219 590 207 2011 722 637 707 511 Sector Value in R-m 1. Machinery, mechanical and electrical 15 903 2. Mineral products 12 991 3. Transport equipment 10 880 4. Chemical products 5 420 5. Base metals 3 190 6. Plastics, rubber 2 591 7. Textiles 1 726 8. Optical, medical, photographic 1 579 9. Foodstuffs, beverages 1 433 10. Vegetable products Total 1 045 62 028 Table 5: South Africa’s top 10 import sectors, April 2012. Table 4: Annual value of South African non-SACU imports and exports, 1998–2011. Source: Source: www.sars.gov.za 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). 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 north west business 2013 32 Sector Value in R-m 1. Mineral products 14 841 2. Precious metals and diamonds 10 239 3. Base metals 6 968 4. Transport equipment 4 613 5. Machinery, mechanical, electrical 4 460 6. Chemicals 3 350 7. Vegetable products 1 738 8. Foodstuffs, beverages 1 497 9. Plastics, rubber products 1 126 10. Pulp and paper 779 11. Animals, animal products 378 Total 52 154 Table 6: South Africa’s top export sectors, April 2012. Source: www.sars.gov.za 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 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. Value in R-m Year Q1 Q2 Q3 Q4 2003 15.70 16.00 15.90 16.00 2004 16.00 16.20 16.20 16.20 2005 16.50 16.00 17.00 17.10 2006 17.70 18.60 18.90 19.70 2007 19.70 21.20 20.40 20.20 2008 21.05 22.44 24.02 24.64 2009 23.20 22.40 21.20 20.30 2010 20.30 19.88 19.40 18.90 2011 18.80 19.00 18.90 18.90 Table 9: Ratio of gross fixed-capital formation to GDP. Source: www.reservebank.co.za Country 103 174 1. China Value in R-m 90 210 2. Germany 77 396 2. United States 61 044 3. USA 56 944 3. Japan 55 635 4. Japan 34 377 4. Germany 42 684 5. Saudi Arabia 32 294 5. UK 29 001 6. India 29 220 6. India 22 224 7. UK 28 965 7. Switzerland 22 902 8. Iran 27 121 8. Netherlands 22 902 9. Nigeria 22 655 9. Zimbabwe 17 776 10. Italy 19 574 10. Mozambique 17 680 Table 7: South Africa’s top 10 import source countries in 2011. Table 8: South Africa’s top 10 export markets, in 2011. Source: www.sars.gov.za Source: www.sars.gov.za 33 north west business 2013 PROFILE Invest North West Invest North West is the heartbeat of trade and investment in North West Province. Invest North West, the official trade and investment promotion agency for the North West Province, invites individuals and companies to invest in one of South Africa’s fastestgrowing provinces. Join major international and local corporations by choosing North West Province as the preferred destination for a new business venture or to invest in many of the rewarding investment opportunities available in various sectors of the economy. The passionate and dedicated staff at Invest North West provide vision and direction to key growth sectors within the North West by focusing on trade and investment facilitation, and the provision of proactive business retention and expansion services to established local and international businesses. land or factory space • Assisting existing firms to expand and reinvest • Assisting companies to find export markets for their products • Promoting products from North West Province to increase exports Services Invest North West is committed to providing the highest standard of service, and the following services are provided to new and existing investors in the province: • Identifying and packaging viable investment opportunities • Facilitating joint-venture and equity partnerships • Providing information on financing options and investment incentives • Providing advice on feasibility studies and business plans • Assisting investors to obtain work and business permits north west business 2013 • Providing assistance in obtaining suitable • Advocating investment conditions and 34 environment conducive to growth Location Location is one of North West Province’s greatest natural advantages. North West Province is bordered by Botswana to the west and nestled against Gauteng to the east, South Africa’s economic powerhouse and Africa’s largest commercial market. The North West accounts for 8.7% of South Africa’s landmass and has a population of 3.5-million people, 6.8% of South Africa’s entire population. (Census 2011). PROFILE District municipalities capital, Mahikeng, is situated in this district. Mahikeng’s municipal economy is dominated by the services sector. The aim is to change this, however, and transform Mahikeng into a regional trading hub. The province consists of four regions, each administered by a district municipality. These municipalities (with their largest towns) are: • Bojanala District Municipality, Rustenburg and Brits • Ngaka Modiri-Molema District Municipality, Mahikeng • Dr Ruth Segomotsi Mompati District Municipality, Vryburg • Dr Kenneth Kaunda District Municipality, Matlosana (formerly Klerksdorp) and Tlokwe (formerly Potchefstroom) Within these four district municipalities are 19 local authorities, the six largest of which administer the most developed business centres of the province. Dr Ruth Segomotsi Mompati District Municipality The western region of the province is the largest of the municipal districts, yet has the smallest population. The district houses six municipalities – Naledi, Molopo, Mamusa, Lekwa-Teemane, Kagisano and Greater Taung. Vryburg is the district capital and it forms the focus of the Naledi Municipality. Farming provides much of the employment. This region is known as the Texas of South Africa due to extensive cattle farming in the area. Dr Kenneth Kaunda (Southern) District Municipality Bojanala Platinum District Located in the north-east corner of the province, the Bojanala Platinum District is situated within a short drive of the Maputo Corridor as well as the industrial/financial centre of Gauteng. It comprises the five local municipalities of Rustenburg, Madibeng (Brits/ Hartbeespoort), Moretele, Kgetlengrivier and Moses Kotane. The smallest of the four districts, it comprises the local municipalities of Ventersdorp, Tlokwe (Potchefstroom), Matlosana (Klerksdorp), Maquassi Hills and Merafong City. The district head office is in Orkney, which is part of the Matlosana Municipality. Mining is the dominant economic activity in the district. Additional sectors of importance in terms of employment are social services, trade and farming. Potchefstroom is home to several tertiary institutions and training centres, while the economic base for Ventersdorp is agriculture. The majority of the district falls under the Platinum spatial development initiative, and mining, primarily platinum, is the mainstay of the economy. The Madibeng Local Municipality (Brits, Hartbeespoort and Skeerpoort) hosts a successful manufacturing sector with repre- North West economy sentation from many international companies, As the province is currently reliant on comespecially in the automotive sector. modity exports, it plans to move towards higher-value-added manufacturing and Ngaka Modiri-Molema (Central) District manufactured exports in order to broaden its Municipality economic base. To achieve this, it has identiThe second-largest of the four districts in both fied 16 products from minerals and fertilisers population and size, the Ngaka Modiri-Molema to machinery and horticulture, and the top(Central) District comprises the local municipal- five markets to which these products will be ities of Ratlou, Tswaing, Mahikeng, Ditsobotla exported. (Lichtenburg) and Ramotshere (Zeerust). It lies in the north-central part of the province and The current commodities boom, fuelled by shares a border with Botswana. The provincial demand from China in particular, should 35 north west business 2013 PROFILE give a steady boost to South African exports. The North West boasts a sophisticated manNineteen years of sound economic manage- ufacturing base that includes a number of ment of the South African economy has built international corporations. There are many investor confidence and is an incentive for investment opportunities in manufacturing increased fixed direct investment. available in the North West. Because of its strong mining and agricultural base and the potential for even further growth in the manufacturing sector, North West Province should benefit at least in proportion to the country as a whole as fixed direct investment flows increase. Another area with huge investment potential is agriculture. The region is one of South Africa’s major maize-farming areas, producing one third of the country’s total maize crop. This sector contributes 2% to the regional GDPR and accounts for over 7.9% of total employment. The North West’s average annual gross regional product (GRP) growth rate currently stands at 2.6%. It contributed 5.45% to the national GDP in 2011. The province also has a robust tourism industry, with key events like the Nedbank Golf Challenge at the Sun City Resort attracting many tourists. Known as the Platinum Province, mining is the mainstay of the North West’s economy and it is one of the largest producers of platinum and related metals worldwide. The province is actually the largest contributor to South Africa’s mining sector, with vast reserves of platinum group metals, granite, gold, fluorspar, cement, chromium, etc. Mining accounts for 39% of the province’s GRP, which translates to over 61 000 jobs. The economy, with the exception of the mines, is characterised by small, medium and micro enterprises (SMMEs). Given the sensitivity of the province’s economy to world mineral prices, the North West plans to reduce its dependence on the mining sector, with an increased diversification to tourism, mineral beneficiation and non-mining related manufacturing industries, evident in the recent year-onyear growth in this sector. Community services, including government, is the second-largest sector, contributing 20% to GDPR and accounting for 21.7% of employment. Finance and business services ranks third with 13% of GRP and nearly 5% of employment, followed by trade at 11% of GRP and 18.3% of employment. Another strong growth sector is manufacturing, which currently contributes 5% of the GDPR and employs 7% of the province’s workforce. Visit the Invest North West website to learn of available investment opportunities in North West Province and to subscribe to the quarterly e-newsletter. Municipal district Population Dr Ruth Mompati 463 100 Dr Kenneth Kaunda 696 500 Ngaka Modiri Molema Bojanala 834 900 1 515 453 North West population per district 2011 Source: Census 2011 north west business 2013 36 Contact details Key contact person Sam Mudramuthoo, Marketing Specialist Tel: +27 14 594 2570 Physical address: 171 Beyers Naudé Drive, Rustenburg 0300 Website: www.inw.org.za focus Opportunities abound Invest North West is promoting investment opportunities in mining and mineral beneficiation projects in the mineral-rich North West Province. I nvest North West is excited to announce that two investment projects have become available in the mining and mineral beneficiation sector in North West Province – also known as the Platinum Province due to its abundant mineral riches of platinum, chrome and the platinum group metals. North West Province is also home to a strong dimension-stone sector, due to the riches of its slate, marble and granite deposits. • Diversifying the local economic sector from mining in North West Province Mokwatla Mining Solutions Mokwatla Mining Solutions is a 100%-blackowned-and-managed industrial company specialising in the manufacture of high-quality conveyor-belt rollers for mining, manufacturing, power generation and other industries. An investment opportunity exists for the funding of R11 581 300 to equip and capitalise the business and to sustain it for six months to break even. Conveyor-belt rollers are cylindrical rollers with a steel shaft turning through the centre. The company will initially produce three types of rollers in different sizes to suit customer requirements: troughing rollers, return rollers and impact rollers. The company will, however, expand within its first year of operation to produce and provide additional products and services for both local and global markets. As outlined in the business plan and supported by Invest North West, the social and economic contributions anticipated are, among others: • The creation of 30 job opportunities in Tlhabane, Rustenburg • Employment of at least 15 women and youths, most of whom will be employed as skilled technical resources, such as welders and operators • Enhancing local beneficiation of the mining industry in North West Province • Stimulating further investment and enhancing black participation in the manufacturing sector in North West Province. • Participating in export programmes through developing markets for the company’s products and services A comprehensive business plan has been prepared, inclusive of a marketing strategy and forecasts, and can be obtained from Invest North West. Slate Beneficiation Project A 100%-black-owned-and-managed slate beneficiation project outside the town of Koster in North West Province is embarking upon an expansion project. R4.4-million is required to buy into and benefit from this investment opportunity. Rich slate deposits outside of Koster in the North West have resulted in this lucrative slatemining project. For more information about these opportunities, contact Sarah Manone, Investment Facilitation Manager: Mining and Mineral Beneficiation. Email: email@example.com Tel: +27 14 594 2570 Website: www.inw.org.za 37 north west business 2013 PROFILE North West Development Corporation The vision of the North West Development Corporation is to be an efficient and effective economic-development agency of the North West Provincial Government. The North West Development Corporation (NWDC) came into effect when the North West Development Corporation Limited Act (Act No 6 of 1995) was approved by the Provincial Legislature and published in the North West Provincial Gazette in 1995. The North West Provincial Government has recognised the need for the continuance of the organisation as a development corporation for North The newly commissioned Taung Light Industrial Park. West Province. The corporation was identified as being instrumental in the success of the reconstruc- Facing challenges such as the fight against povtion and development programme in North erty, unemployment and the continual quest to West Province. improve SMME development, has guided the NWDC in developing its vision and mission The NWDC has aligned its business fully statements. with the strategic objectives of the North West Provincial Government, as outlined Mission in the Provincial Growth and Development To stimulate economic growth and sustainable Strategy and informed by the terms of the development that will result in job creation shareholdersâ€™ contract and service-level and wealth. agreement. One of the main drives is to give impetus to the development initiatives of Projects the Department of Economic Development, The NWDC has signed various Memoranda Environment, Conservation and Tourism by of Understanding with, among others, providing project-management services for the Companies and Intellectual Property key projects. The NWDC also manages a social Commission (CIPC), the Automotive Industry responsibility programme, which disburses Development Centre (AIDC) and is also once-off donations to various communities, involved in a variety of projects such as: the including the physically challenged, senior Wild Silk Projects in Ganyesa, Madikwe sisal, citizensâ€™ homes, schools, sports and youth- Mokgalwaneng factories, Naledi youth car-wash development initiatives. project and its many light industrial parks. north west business 2013 38 PROFILE By joining forces with its stakeholders, the NWDC is able to boost its development drive for SMMEs in the North West. The CIPC project allows for easy business registration at NWDC branches across the province. Other CIPC services offered at the NWDC include amendments, registration of co-operatives as well as annual returns. An additional project, the North West Province Business Directory (NWPBD), is a web-based business directory. The directory allows businesses to showcase their products and services, encourages information sharing as well as providing the opportunity to attract local and foreign investment. This is made possible by profiling each business with all its necessary information and listing it accordingly. The core focus of the directory is to promote business activities across the North West Province. Furthermore, the NWDC adopts a ‘zero tolerance to fraud’ approach and consistently raises awareness among employees and stakeholders in an effort to stop and prevent most fraudulent activities within the corporation. One of the foremost anti-corruption defences is the company’s Fraud Hotline. Total anonymity is guaranteed when calls are placed reporting fraudulent activities. The corporation is also a member of the provincial anti-corruption forum. The NWDC has over the years proved a functional and dedicated organisation with a proven record of accomplishment for facilitating economic growth and job creation. The agency has recently won the provincial PMR Diamond Arrow Award and Productivity SA Gold Award within its sector. The newly commissioned Taung Light Industrial Moving forward, the NWDC intends to further Park has recently been completed. This ini- its development objectives and stop at nothing tiative was part of the NWDC’s drive to erect in attaining them. Economic empowerment of more industrial parks across the province, the North West Province is, and always will be, which would serve in aiding small businesses the organisation’s motivating force. by providing low-rental options within industrial areas. The project consisted of the develContact details opment of a piece of land within the Taung industrial area. Initial planning began in late Key contact person: 2011 and the vacant piece of land is now a Karen Landsberg, Marketing and fully functional light industrial park, comprising Communication Officer six workshops. Tel: +27 18 381 3663 The corporation also aims to expand its devel- Fax: +27 18 381 2041 opmental impact across parts of the province Email: firstname.lastname@example.org where it is yet to have a footprint, by erecting Website: www.nwdc.co.za more light industries. The entity has com- Fraud Hotline Number: 0861 32 3469 menced with its plans to build new light industrial parks in the Matlosana, Tlokwe, Naledi and Moses Kotane municipalities to provide reliable and viable infrastructure that will form the basis of future development and upliftment. These industrial parks provide SMMEs with lower rental options in business or industrial districts across the province. There are currently light industrial parks situated within the Ngaka Modiri Molema, Bojanala and Dr Ruth Segomotsi Mompati districts. 39 north west business 2013 focus A shining example Lomanyaneng Community Aids project is a beacon of success. Advocate Mpho Mogatusi, Mike Mthimunye, Nathaniel Moiloanyane and Peggy Qwelane (Secretary of the Board for Lomanyaneng). T he North West Department of Economic Development, Environment, Conservation and Tourism, through its development agency the NWDC, recently assisted the Lomanyaneng Community Aids project by donating R50 000 to the care-giving centre and its successful HIV and Aids initiatives. Handing over the cheque on behalf of the MEC, Ms Rosho, was Mr Moiloanyane who congratulated the centre and its staff and commended them for their noble efforts. The previous acting CEO of the NWDC, Mike Mthimunye, echoed Mr Moiloanyane’s sentiments by offering words of encouragement and acknowledgement to the centre’s staff and its directors for the excellent work they are doing for their community. ‘The NWDC is aware of the exceptional work you are doing and we will do our best to assist you, as we have now, and as we intend to in future,’ explained Mike. north west business 2013 40 The care-giving centre is based within Lomanyaneng Village in Mahikeng and was established on 21 March 2000 by the late Cecilia Nkosi, with assistance from her partners and volunteers from local villages. The centre offers a variety of services, including home-based care, counselling at community centres, patient units for 24-hour assistance and care services for immobile patients. The centre, through its volunteer caregivers, seeks to provide practical help to the community at large. The caregivers attend to patients’ wellbeing by providing them with medication, food and companionship. In addition, they train others to care for patients, provide care for orphans, counsel traumatised families and engage the youth on preventative measures in order to combat HIV and Aids by drastically lowering infection rates. www.nwdc.co.za A guide to business and leisure travel services, conferencing and accommoDation in the north west special feature Destination North west destination overview Tourism Hunting and golf tourism are growth sectors. Sector Highlights The first national Hunting Indaba was held at Sun City in 2012. • The Nedbank Golf Challenge employs about 400 local people. • The Vredefort Dome is a UNESCO World Heritage Site. • Royal Madikwe was the world’s best luxury game lodge in 2010 and 2011. N orth West Province’s tourism assets range from some of the biggest and wildest game reserves to manicured golf courses and luxury hotels. The hunting industry is an important contributor to the economy, but concerns about conservation ensure that there is always a debate about the role that hunting should play in the tourist offering. The first national Hunting Indaba was held at The Palace, Sun City, in October 2012. This brought together leading figures in national and provincial government, wildlife ranchers and representatives of the hunting sector. Heritage is one of the main components of the province’s tourism strategy, and a priority is the development of the Taung Skull Fossil Site. Mining company Anglo American Platinum has pledged to support the project to bring to life one of South Africa’s key archaeological heritage sites. The Cradle of Humankind World Heritage Site comprises the Sterkfontein caves, Swartkrans, Kromdraai and Environs. The Treasure Route runs along the N12 highway and includes wildlife, cultural, scenic, industrial and environmental tourist attractions. The ‘treasure’ relates to the gold mines scattered along the route. A highlight is the Vredefort Dome, an enormous 300km crater left when a meteorite struck the earth about two billion years ago. It is a UNESCO World Heritage Site. Other major attractions include some of the country’s most exclusive game lodges, and a range of lodges and camping destination north west 2013 42 major companies • Sun International • Tsogo Sun • Protea Hotels • Cradle Hotels and Resorts • Peermont Resorts sites catering to all pockets in any one of the North West’s 12 smaller game and nature reserves. Adventure sports is a growing section of the tourism sector. Hot-air ballooning over the Pilanesberg mountains is a popular pursuit, as is quadbiking among the foothills. Canopy tours in the Magaliesberg are on offer, with many opportunities for water sports of every kind on the province’s many water bodies. Hartbeespoort Dam is the biggest of these, but there are ample opportunities for water lovers at Bloemhof Dam, Boskop photo: more hotels and lodges The Palace of the Lost City is renowned for its opulence. destination overview Dam (north of Potchefstroom) and Vaalkop Dam (north of Brits). Each of these dams has great birdlife, with up to 250 species living at or visiting the dams. photo: sun images Hotels and casinos North West has casinos at Sun City and the Morula Casino and Hotel at Mabopane (both run by Sun International), and another two managed by Peermont Resorts, at Klerksdorp (Rio Hotel Casino and Convention Resort) and in Mahikeng (the Mmabatho Palms Hotel Casino Convention Resort). The provincial government is keen to have a fifth licence granted in the province. The North West is conveniently located within easy driving distance of the great urban conurbations of Gauteng Province. Cradle Hotels and Resorts operates the five-star hotel in the Bafokeng Sports Complex near Rustenburg, the Royal Marang Hotel, and two lodges in the Madikwe Game Reserve, the Shepherd’s Tree Game Lodge and the Ivory Tree Game Lodge. Another Rustenburg option is the StayEasy, a Tsogo Sun hotel. Protea Hotels has three North West properties: in Klerksdorp (three-star, 92 rooms) Christiana (three-star, 50 rooms), and Mahikeng (four-star, 99 rooms). The 2010 Soccer World Cup revealed that the province has the following bed numbers: Madikwe Safari Lodge is the epitome of African hospitality. • Bojanala District (including Sun City): 15 300 beds • Kenneth Kaunda District: 7 700 beds • Ngaka Modiri Molema District: 4 700 beds Sun City, the casino and resort on the edge of the Pilanesberg National Park, has become a national asset with an international reputation. Established in 1979, it now offers a choice of four hotels, two golf courses and recreational features such as the water park at Lost City and the Valley of Waves. The resort also offers a range of conference, meeting and banqueting facilities that see several of South Africa’s top awards ceremonies being held there. Golf North West Province has excellent facilities for golf, and this part of the tourism market is set for growth. Soon after South Africa won an international award as a golf destination in 2011, the South African Golf Tourism Association (SAGTA) was founded. South Africa was named as Golf Destination of the Year (Africa, Indian Ocean and Gulf States) by the International Association of Golf Tour Operators. Spurred by this recognition, a number of golf operators got together to formally represent the golf-tourism sector in South Africa, the worth of which has been estimated at R60-billion per year. The Africa Golfing Indaba to be held in Cape Town in 2013 will include a segment on golf tourism. Apart from the iconic Gary Player Country Club which hosts the annual international tournament, the Nedbank Golf Challenge, Sun City is also home to the Lost City golf course. This is an easier course than the championship venue, but its bushveld setting ensures that it still presents some stiff golfing challenges. 43 destination north west 2013 destination overview Smaller parks Terrain and activities Boskop Dam Nature Reserve Water sports, angling, game and bird viewing. Botsalano Game Reserve Near Mafikeng, tented camps, rhino viewing. Borakalalo National Park Near Brits, diverse terrain, more than 350 bird species. Bloemhof Dam Nature Reserve Dam covers 25 000 hectares. Bloemhof Bonanza is SA's biggest inland-angling tournament. Game viewing. Barberspan Bird Sanctuary RAMSAR wetland. Waterfowl sanctuary. Kgaswane Mountain Reserve Hiking trails in Magaliesberg mountains. held directly after the Nedbank Golf Challenge. The golf day regularly raises R1-million for the trust. Other well-known golf courses in the North West are Pecanwood Golf and Country Club at Hartbeespoort Dam and Leopard Park Golf Club in Mahikeng. Pecanwood was designed by Jack Nicklaus and regularly receives good rankings in national surveys. Hunting Speaking at the Hunting Indaba, National Minister of Mafikeng Game Game viewing along Molopo River. Water and Environmental Reserve Affairs Edna Molewa said that Molopo Game Reserve Kalahari grassland and thornveld the hunting and game-farming vegetation. Raptors: bateleurs, sectors were important parteagles and vultures. Fossiled ners in ‘conservation, tourism Phepane river bed. and economic development’. The Professional Hunters’ Vaalkop Dam Nature Bushveld terrain. Angling and Association of South Africa Reserve birding. has put the overall value SA Lombard Nature Research and breeding centre, near of the wildlife industry to Reserve Bloemhof. the national economy at Molemane Eye Spring and mining museum. Angling, R7.7-billion. The industry tented camp, caravan park. is said to employ 140 000 people. The Confederation of Wolvespruit Dam Riverine angling and small game Hunting Associations of South Nature Reserve viewing. Africa says that the sector is Tourist offerings in the North West’s smaller nature parks. now bigger than the sugar and Source dairy sectors. Minister Molewa The hosting of the Nedbank Golf Challenge boosts the mentioned a confirmed figure regional economy significantly. During the tournament, about for the 2010 season of 400 local people are brought in by the company responsible R1.1-billion, but pointed out for providing staff to the tournament, InnStaff. They receive that this referred only to in-house training and help to provide for the needs of the accommodation and hunting approximately 20 000 guests who visit Sun City during the tour- fees: much more money was nament. The resort itself says that about 90% of its total staff generated down the value chain. The North West Department complement is drawn from local communities. Sun City allocates 4% of post-tax profit to social devel- of Economic Development, opment. Over the years, the resort has spent more than Environment, Conservation R32-million on community projects. and Tourism has declared Nedbank and Sun International are founding trustees of The the Dr Ruth Segomotsi Sports Trust, and the main fundraiser for this organisation is Mompati region a hunting destination north west 2013 44 destination profile Protea Hotel Mafikeng Protea Hotel Mafikeng in North West Province is ideally located in an area rich in culture, history and wildlife. It is close to a nature reserve, bird sanctuary and the Mmabatho Stadium. Facilities • The surrounding area boasts superb golf The hotel offers 99 luxuriously comfortable ensuite bedrooms. The rooms are air-conditioned and this can be individually controlled to ensure optimum convenience for the guest. Room facilities include a satellite TV, electronic safe, teaand coffee-making facilities, telephone and an executive desk for business travellers. Wireless Internet hotspots are available in all public areas. courses, soccer and rugby fields, and an off-road motor club. • Paintball and go-karting are available. • Credo Mutwa Cultural Village at Lotlamoreng is a living museum showcasing traditional African villages and cultures. • The Mafikeng Game Reserve is considered the home of white rhino and buffalo. • Disaneng Dam is popular for fishing and watersports. • Wondergat is an inland diving venue, situated approximately 40km from Mahikeng. The Protea Hotel Mafikeng has an in-house restaurant seating 70 people and offers a buffet breakfast and à la carte lunch and dinner, to the discerning diners’ delight. CONTACT DETAILS Key contact people: Keletso Nxumalo, General Manager Neo Moremi, Reservations Manager The conference facilities offered by Protea Hotel Mafikeng accommodate 100 delegates in seminar style and give access to state-of-the-art conferencing equipment. Tel: +27 18 381 0400 Fax: +27 18 381 4206 Email: email@example.com Physical address: 80 Nelson Mandela Drive, Mahikeng 2745 Postal address: PO Box 891, Mahikeng 2745 Website: www.proteahotels.com/mafikeng Activities in the area • The Mafikeng Museum has a comprehen- sive collection of Anglo-Boer War exhibits. • Casino Resort is located 3km from the hotel. 45 destination north west 2013 destination overview destination. This is the dry south-western region of the province. Training in guiding for the hunting industry is to be offered at the province’s hotel schools. Coenraad Vermaak Safaris recently announced the opening of nearly a quarterof-a-million acres of land – claimed to be the largest privately owned conservation area in South Africa – along the Botswana border. The Khamab Kalahari Reserve has more than 16 000 head of game, including lion, leopard, white rhino, buffalo and black wildebeest. Poaching of rhino has become a huge problem in South Africa and the 40-year sentence handed out to an illegal rhino-horn trader in 2012 was welcomed by conservationists. Almost 700 rhino were poached in South Africa in 2012. Nature and game reserves The strategy of the North West Parks and Tourism Board (NWPTB) includes ramping up investment in the province’s 12 smaller parks with a view to creating jobs in the second economy. This presents an opportunity for private investors to become involved. Another major project is in the form of an ambitious plan to create a mega-park in the north-western sector of the North West, the Heritage Park. The idea is to link the existing parks of Madikwe (on the Botswana border) and the destination north west 2013 Pilanesberg National Park (a provincial park). Nearly 20 000 hectares of land is being prepared for incorporation, which is intended in a later phase to become a transnational park. With much of the targeted land being currently used for marginal cattle farming, it is expected that the transference of this to the potentially more lucrative game-reserve option will bring considerable benefits. Pilanesberg National Park nestles in a giant extinct volcano complex, said to be the most perfect example of an alkaline ring complex. There are several Stone and Iron Age sites in the park. Because the park is situated in a transition zone between the semi-desert Kalahari and wetter Lowveld (or Bushveld) vegetation regions, many types of flora and fauna occur. As the fourth-largest park in South Africa, Pilansberg covers an area of 55 000 hectares. Madikwe Game Reserve is even bigger, covering 75 000 hectares in the area north of Zeerust. In the Marico River Valley and near the Botswana border, the reserve is home to the Big Five. Experienced tour guides say that Madikwe is an excellent place to see white rhinos. There are 18 luxury game lodges in Madikwe. Royal Madikwe Luxury Safari Residence has won the World Luxury Hotel Awards category for Luxury Game Lodge two years in a row – 2010 and 2011. Online resources Aardklop Festival: www.aardklop.co.za Bosman Weekend: www.marico.co.za Business Tourism Guide: www.tourismnorthwest.co.za Confederation of Hunting Associations of SA: www.chasa.co.za Institute for Tourism and Leisure Studies, North-West University: www.tourisminstitute.co.za Madikwe Game Reserve: http://madikwegamereserve.net North West Parks and Tourism Board: www.tourismnorthwest.co.za Pilanesberg Game Reserve: http://pilanesberggamereserve.com Potchefstroom Tourism: www.potchefstroom.co.za Professional Hunters’ Association of South Africa: www.phasa.co.za South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net South Africa Tourism Services Association: www.satsa.com Tourism Business Council of South Africa: www.tbcsa.travel Tourism Grading Council: www.tourismgrading.co.za Wildlife Ranching South Africa: www.wrsa.co.za 46 radio Motsweding FM Motsweding FM reaches 3 319 000 listeners every week, and is the biggest Setswana radio station in South Africa. Motsweding FM’s language of broadcast is music and IKB. It regularly conducts outside Setswana, as listeners are Setswana speaking broadcasts that allow the station to be taken and understanding. The station has a spring to the communities that it serves, while also in its step, and acts locally but thinks globally. showcasing its icons who are the power behind Loyalty to brand Motsweding FM is demon- the on-air delivery of brand Motsweding FM. strated through the number of weekly exclusive listenerships. Motsweding FM hosts events such as Mosadi wa Letlapa (Women’s Day in August), Ikitse Broadcasting out of Mmabatho, most of Motswana (Heritage Day in September) and Motsweding FM’s listeners are based within popular birthday celebrations (in June) that the North West Province, where it has the clients can sponsor or partner with for brand highest listenership at 1 654 000 (53%) association and growing the reach or sales on a weekly basis, followed by Gauteng at of their products and brands. It also has CSI 817 000 (26%). A sprinkling of listeners are projects such as Back-2-School, raising funds found in the other provinces. There is a high for hospices, orphanages and old-age homes number of spillover listenership in Botswana, within brand Motsweding FM’s footprint. where the Batswana people originate. The station’s strength lies in its highly talented Motsweding FM is one of the most contem- presenters and DJs. They are the pulse of brand porary brands. The listeners have one foot Motsweding FM. Not only do they provide entrenched in modernity while embracing content, they also provide well-seasoned Eurocentric culture at the same time. It is avail- entertainment to the listeners. able in all nine provinces of South Africa. Why advertise with Motsweding FM? Motsweding FM can be listened to on air, liked on Facebook and followed on Twitter. The target market is predominantly aged 25-49. There is a vast array of people that are reached, from the very young to the elderly, poor to the middle class, rural communities plus those who reside in urban areas. The programming is mandate driven – Educate, Empower and Entertain. The programmes ignite and engender nation building. It delivers cutting-edge content that is distinctive, compelling, creates excitement and connects emotionally. It celebrates, embraces and unites South Africans. The station provides its listeners with news and current affairs, sports, education, drama, religion, kids programmes, Clients will be associated with a strong brand that has been in existence for 50 years. Messages are delivered in Setswana, the language easily understood by the listeners. Clients will also deliver their messages to a highly loyal audience and listeners will be able to respond to the client’s messages quickly. Contact details Key contact people Agnes Litheko, Government Sales Tel: +27 18 389 7444 Thabo Mathebula, Business Development Tel: +27 11 412 5479 Website: www.groupsalesandmarketing.co.za Website: www.motswedingfm.co.za. 47 destination north west 2013 destination profile North West Gambling Board The North West Gambling Board aims to be a leading and socially conscious authority in the regulation of gambling in the world. The North West Gambling Board (NWGB) is a • Eradication of any form of illegal gambling statutory body established in terms of section operation and promotion of responsible 3 of the North West Gambling Act, 2001 (Act gambling. No. 2 of 2001), as amended and classified as a • Monitoring and enforcing compliance with Schedule 3C Public Entity in terms of the Public the BBBEE Act and Codes of Good Practice. Finance Management Act (PFMA) to regulate • Collecting and administering gambling levies the gambling industry in North West Province. and revenue under the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended. The NWGB has five programmes with 43 staff members, and an operational budget of over Combating illegal gambling and promoting responsible gambling R29-million. The strategy and public awareness programmes Mission to combat illegal gambling are yielding results To provide effective and efficient regulatory in that 67 illegal gambling operators were services and maintain a gambling industry investigated in collaboration with SAPS and that contributes to socioeconomic growth SARS. 1 257 machines were confiscated and and development. 1 336 were destroyed. Currently 12 illegal gambling operators are being prosecuted. To Main services and activities report illegal gambling, contact the hotline Gambling is undertaken in the province with number on 0860 545 545. a view to enhancing economic growth and development, and to satisfy the entertainment People with problem gambling are excluded needs of the people of the province. The main from gambling sites and those suffering from services include: gambling addiction are referred to the National Responsible Gambling Programme. The toll • Registration and licensing of all establish- free helpline number is 0800 006 008. ments where gambling games are conducted or operated, so as to better the Contact details public engagement in gambling, promote safe entertainment, good morals and order. Key contact people: • Registration and licensing of all employees Fortune Sekgaphane, Chief Executive Officer and third parties participating in the Ndiambani Beauty Mutheiwana, Chief gambling industry. Financial Officer • Monitoring and enforcing compliance with Mothunye Mothiba, Chief Operations Officer legislation and licensing conditions, thereby Tel: +27 18 384 3215 Fax: +27 18 384 2290 ensuring that gambling is conducted in a fair Email: firstname.lastname@example.org and honest manner. Website: www.nwgb.co.za destination north west 2013 48 interview Gambling pays off Chief executive officer of the North West Gambling Board Fortune Sekgaphane explains how gambling contributes to socioeconomic growth and development in the province. Please provide an overview of the main functions of the North West Gambling Board. The Board carries the responsibility of ensuring that the gambling industry in the province is regulated in a manner conducive for optimal operation of our licensed gambling enterprises. Also, we ensure that the province receives maximum revenue and other benefits such as investment, job opportunities and opportunities for SMMEs and the advancement of previously disadvantaged individuals (PDIs) and groups in the gambling industry. Gambling bears great potential for socioeconomic growth and development in the province. How does the Board contribute to these objectives? Fortune Sekgaphane The North West is home to four casinos with 1 774 gambling Mr Sekgaphane was machines and 71 tables, and employing 844 people directly and appointed CEO of the NWGB, 77 people indirectly through security companies. The casinos raised effective from January a total gross gambling revenue of R3.7-billion and have contributed 2008. Fortune studied R269-million in levies to the Provincial Revenue Fund since 2009. The horse-racing and betting sector has three bookmakers and law at the University of Bophuthatswana. He began one totalisator operating 11 branches, four agencies and one Telebet, working at the Mpumalanga employing over 65 people with a total gross gambling revenue Gambling Board in 1997, of R262-million. It has contributed R16.9-million in levies to the where he served at various Provincial Revenue Fund since 2009. levels over a period of 10 Three bingo operators and three route operators were granted years. He was appointed licences, whereby 60% of the ownership is vested in local previacting CEO in 2003, and ously disadvantaged individuals in the province, one of each of the was given the position per- bingo and route operators is 100% black owned. The route operators partnered 42 licensed site operators and manently in 2004. He was appointed the Chairperson rolled out 187 limited payout machines (LPMs) against a target of of the Illegal Gambling and 1 500 LPMs, and employing 96 people; 40% of the site operators Technology Committee of are local previously disadvantaged individuals. the Gaming Regulators of The LPM sector raised R26.2-million in gross gambling revenue Africa Forum in 2007 and and contributed R1.6-million in levies to the Provincial Revenue 2008. He has presented Fund to date. papers and participated Our licensees contributed R26.6-million to social or community in panel discussions at development projects from 2009 to date. various international www.nwgb.co.za conferences. National Responsible Gambling Helpline: 0800 006 008 49 destination north west 2013 special feature Big events in big sky country A wide variety of festivals and sporting events is making the North West a hotspot of activity and excitement. T hirty-two years ago, the Nedbank Million Dollar golf tournament at Sun City attracted global headlines when US golfer Johnny Miller pocketed a first prize of $500 000. The renamed Nedbank Golf Challenge paid out total prize money of 10 times that in 2012 â€“ and $1.25-million to winner Martin Kaymer â€“ but there is another Sun City competition that has the magic number in its title, the Sun City Million Dollar Pigeon Challenge. In 2012, more than 3 000 racing pigeons were driven to the Northern Cape before being released in the hope that they would fly back to the Pilanesberg. Sports Illustrated estimated the total value of the feathery field to be about R40-million. The first pigeon back in its pen won its owner $200 000. From golf to pigeon-racing, the North West is increasingly being seen as the home of big events, especially in the sporting field. destination north west 2013 50 The Nedbank Golf Challenge is still the biggest and most widely publicised. It regularly attracts some of the best golfers in the world, with famous names such as Lee Westwood, Sergio Garcia, Bernhard Langer and Ernie Els on the winnersâ€™ list. It is one of the longest golf courses in the world and is a tough challenge, especially if the bushveld rough receives rain before the competition. The 2010 Soccer World Cup showed the potential of sports tourism in the province. The Royal Bafokeng Sports Palace hosted several World Cup matches, and the England football team were impressed with their accommodation in the Royal Bafokeng Sports Campus. Cup-winners Spain stayed in the upgraded facilities of the North-West University in Potchefstroom. With Australia having stayed in the town in 2003 on their way to winning the Cricket World Cup, Potchefstroom clearly has the winning formula. photo: sun images The prestigious Nedbank Golf Challenge attracts the stars of the golfing world. special feature More than 20 000 visitors descend on this small Free State town, including thousands of North Westers, to experience the Nampo Harvest Festival held every year in May. Klerksdorp is nearby to Bothaville, also known as the mielie (maize) capital of South Africa. The Vryburg agricultural show is said to be the third-biggest show of its kind in South Africa. Large numbers of cattle get auctioned off at the show (and throughout the year in other auctions). Leeudoringstad, unsurprisingly, hosts a Lion Festival in May. Stilfontein, just north of Klerksdorp along the N12, hosts a Rose Festival in September every year, and Rustenburg is the venue of the South African Orchid Show. Arts and culture photo: old mutual The Om Die Dam ultra-marathon is run around the Hartbeespoort Dam. The North West Institute of Sport in Potchefstroom has a sports-science laboratory, a lecture theatre, a gymnasium, a rehabilitation centre and ice baths. The Bafokeng facility is similarly equipped with every modern device. There is also an Institute of Tourism and Leisure Studies at the university. In the angling world, there is no bigger event than the Spar Bloemhof Bonanza. Held at the Bloemhof Dam every year, the overall value of prizes in 2012 exceeded R1.7-million. The threeday festival is organised by the Eco-Care Trust. Running around the Hartbeespoort Dam is the objective in the popular ultra-marathon, Om Die Dam. Various other running and cycling events (such as the Cradle Quest) are held in the Hartbeespoort vicinity, some of which take participants up to 1 450m above sea-level. The 24-hour mountain-bike event is a tough race. The Marico District also holds popular mountain-bike races. The second biggest agricultural show of its type in the world is held every year in Bothaville. The best-known of the North Westâ€™s festivals is the annual Aardklop Festival, which is held in Potchefstroom. The 2010 arts, music and visual-arts festival sold 182 000 tickets over five days and created an economic impact in the province of about R82-million. The festivalâ€™s website reported 2012 total ticket sales of 132 247. Dairy-goods manufacturer Clover announced in 2011 a sponsorship that will amount to about R30-million over five years. The Oppikoppi Bushveld Festival in nearby Northam (Limpopo) is another festival that has gained a formidable reputation, although anyone who has been to Aardklop, and experienced the charming, oak-lined avenues of Potchefstroom must realise that this has a reputation for something quite different! The drinking of mampoer (a hard-hitting local spirit) is regarded as a cultural pursuit by some. The settlement of Schoemansdrift outside Potchefstroom combines Anglo-Boer War history and mampoer tasting, as does Syfergat near Klerksdorp. Marico Valley Mampoer was made famous by Herman Charles Bosman in his short stories about the people and myths of the valley; it can still be tasted on the RustenburgMmabatho Road. There is a Mampoer Festival in June and a Bosman Weekend in October: both are celebrated in the Marico District, up in the far north-west of the province near Zeerust. 51 destination north west 2013 42 54 59 65 75 80 82 key sectors Overview of the main economic sectors of North West Province Tourism����������������������������������������������������������������������������42 Agriculture����������������������������������������������������������������������54 Mining�������������������������������������������������������������������������������59 Mineral beneficiation�����������������������������������������������65 Manufacturing��������������������������������������������������������������70 Food and beverages�������������������������������������������������72 Engineering�������������������������������������������������������������������75 Transport�������������������������������������������������������������������������78 Construction and property������������������������������������80 Water��������������������������������������������������������������������������������82 Energy�������������������������������������������������������������������������������86 Banking and financial services����������������������������88 Development finance and SMME support�����92 Education���������������������������������������������������������������������104 Business organisations�����������������������������������������107 South African National Government�������������110 North West Provincial Government���������������116 North West Local Government�������������������������118 north west business 2013 OVERVIEW Agriculture Big grain companies in the North West deal in huge volumes. Sector Highlights An aquaculture programme is underway at Disaneng Dam. • Senwes’ first-half profits in 2012 were up 65%. • NWK can make 10 tons of fertiliser per month. • Kgora Farmers Training Centre was launched in 2012. • State vets are trained in Mahikeng. • The Kalahari is a good place for seed potatoes. T north west business 2013 54 photo:flickr/edmund garman major companies he North West Province has a strong agricultural sector with • Senwes several very large companies involved in grain. Cattle and crops such as sunflower seeds are among the other subsec- • Suidwes • MGK tors that generate significant income and feed large numbers • NWK of South Africans. The North West produces about one third of • National Department the country’s maize. of Agriculture, Forestry Despite this, food security is still a concern for many of the and Fisheries province’s citizens. North West Premier Thandi Modise says that ‘the problem of access to food affects about 32.9% of the population’. She went on to tell the audience at the launch of a new Fish farming is a DAFF proagricultural college outside Mahikeng that ‘only 23.6% of the posal that has been enthusiashouseholds in the province are involved in agricultural activities’. tically embraced by the North The premier’s comments are in line with food-security initia- West Department of Economic tives of the National Department of Agriculture, Forestry and Development, Environment, Fisheries (DAFF). Conservation and Tourism Rural development strategies are bringing the entire value (DEDECT). Fish will be cultichain of agriculture under scrutiny. Small-scale farmers will vated at six dam sites. Rhodes be helped by improving infrastructure, creating new mar- University’s Rural Fisheries kets and assisting them to gain access to the big buyers such Unit is the programme’s technology partner. as supermarkets. DAFF aims to increase the number of smallholder producers The Moses Kotane Local in the country by 50 000, to bring the total to 250 000 by the Municipality wants its agriyear 2020. As the DAFF strategic plan says, ‘There is a need to cultural master plan to lead coordinate and integrate all the support provided to smallholder to greater self-sufficiency for and subsistence producers.’ its mostly rural citizens. The OVERVIEW municipality has more than 50 000 hectares suitable for sunflower, grain and sorghum cultivation, and large areas that can carry cattle and goats. The plan envisages subsistence farmers moving into the commercial sector and the establishment of agri-processing plants. The location of the municipality near large game and nature reserves (Madikwe and Pilanesberg) means that creative ways of sustaining agriculture in harmony with conservation efforts will have to be found. North West’s distinct climatic regions are home to three very different types of agriculture. The dry western region is home to large beefcattle herds, and this is where the growing game-ranching and hunting industry has its base. An Absa Agribusiness study shows that a R5-million investment in cattle over six years makes a 4.8% return, against 27.7% for buffalo and 45.2% for sable. The eastern and northeastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops. The central and southern sections of the province are dominated by maize and wheat farming. Companies One of South Africa’s biggest agricultural companies is Senwes. The company specialises in the storage and handling of grains and oilseeds. Its extensive silo infrastructure extends across the interior. In the first six months of 2012, Senwes reported turnover of R7.3-billion, which was almost unchanged from the previous year. Profits, however, saw a massive rise because of big increases in grain prices. After-tax profit rose 65.5% to R187-million over the same six-month period in 2011. Senwes’ headquarters are in Klerksdorp. In 2012, the loan book of the partnership between Absa Vehicle and Commercial Asset Finance and John Deere SA topped R1-billion (Business Day). John Deere has 45% of the national market in agricultural equipment. Senwes sells John Deere tractors. Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animal-feed depot), mechanisation, finance and research and agricultural economics (Terratek). The company’s revenue in 2011 was R3.2-billion, with an after-tax profit of R65-million. Brits is the location of the headquarters of the MGK Group, formerly Magaliesberg Graan Kooperasie. Revenue in 2012 reached R2.4-billion across the company’s five divisions. MGK also runs a plant that makes fullfat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburg-based enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. NWK also deals in grain, runs several retail outlets and has a financial arm, Univision Financial Services. The company has 37 silos with a capacity of 2.5-million tons. NWK’s revenue in 2011/12 was R2.8-billion. There are several milling operations in North West Province. Masilo Mills is located in Hanneman (where Papa Super Maize is ground) and Tau Roller Mills is in Wolmeransstad. Crops Nearly two million hectares is planted with summer cereals, with about 50 000 hectares given over to winter cereals. The North West produces one third of South Africa’s maize and about 15% of its wheat. Over-production of grain crops is a big concern for commercial farmers. The other major crop is sunflower seeds, with the province providing about 40% of the nation’s crop. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari, where farmer Frans Engelbrecht has a very successful operation, are ideally suited to the cultivation of seed potatoes. The North West produces about 11% of South Africa’s cotton harvest, which has been getting smaller for many years. There 55 north west business 2013 OVERVIEW are plans to grow the sector again, particularly in small-scale farming sector. There are cotton operations near Sun City in the north of the province and in the Taung district in the far south. The Taung Irrigation Scheme covers about 36 000 hectares, and companies like McCain (potatoes), South African Breweries (barley) and Cotton South Africa (cotton) have standing orders with small-scale farmers. This water supply will also allow for the cultivation of high-yield crops such as pecan nuts, paprika and olives. Livestock The western reaches of the province are sometimes called ‘South Africa’s Texas’ with extensive cattle herds roaming on big farms. The North West has approximately 1.7-million beef cattle, representing 13% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Proveld Bonsmara held two auctions in 2012 and sold 66 bulls: the average price at one auction was R27 952, and R37 000 at the other. A national initiative is promoting Nguni cattle. Vryburg is the centre of the beef-cattle breeding industry. Kalahari Red and Boerbok goats are found in large numbers in the dry west. Training and research The Kgora Farmers Training Centre at Ramatlabama, near Mahikeng, was launched in 2012. The focus of training will be on food security, primary production and agri-processing. Taung Agricultural College has added an irrigation course to its syllabus. The college offers three-year diplomas in agriculture. Online resources Agricultural Research Council: www.arc.agric.za Bonsmara SA: www.bonsmara.co.za Cotton South Africa: www.cottonsa.org.za Grain SA: www.grainsa.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Nguni Cattle Breeders’ Society: www.nguni.info North West Department of Agriculture, Conservation, Environment and Rural Development: www.nwpg.gov.za/agriculture Potatoes SA: www.potatoes.co.za SA Grain Information Service: www.sagis.org.za Simbra Cattle Breeders Society of Southern Africa: www.simbra.org South African Meat Industry Company: www.samic.co.za north west business 2013 56 The Potchefstroom College of Agriculture is a wellregarded institution that offers a two-year, full-time higher certificate in agriculture, a one-year diploma and a B Tech in Agricultural Management (which is offered in collaboration with Tshwane University of Technology). The Potchefstroom Veterinary Diagnostic Laboratory is a fully accredited facility, competent to perform tests for controlled animal diseases. A specialised epidemiology unit has been created at the laboratory to stand guard against potentially damaging diseases. The ARC Institute for Industrial Crops is a research body of the Agricultural Research Council in South Africa. Located in Rustenburg, the institute runs all research on cotton, tobacco, hemp, flax, sisal, kenaf and other indigenous fibre crops. The coordinator of the National Small-Scale Cotton Farmer Initiative is based at the ARC Institute. The ARC’s Grain Crops Institute is situated in Potchefstroom. Research is done in plant nutrition, water use, entomology and crop quality. Vryburg is the location of the Theiler Agricultural Museum and Cattle Research Centre. The School of Agricultural Economics is based at the Mahikeng campus of NorthWest University. State vets are trained there. Taletso Further Education and Training College offers a Primary Agriculture programme. 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 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. 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. 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, 57 north west business 2013 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. • The refurbishment and 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 north west business 2013 58 OVERVIEW Mining The platinum sector is facing several challenges. Sector Highlights The Seda Platinum Incubator supports entrepreneurs. • Violent conflict arose during strikes in 2012. • Mining accounts for 30.4% of provincial GDP. • More than four million shares in gold producer Harmony are to go to employees. major companies • AngloGold Ashanti • Xstrata Alloys • Samancor • Rockwell Diamonds • Gold Fields • Harmony • DRD Gold • Village Main Reef • Anglo American Platinum • Impala Platinum • Lonmin PHOTO: ANGLO AMERICAN T he Western Limb of the Bushveld Igneous Complex is a geological phenomenon that is astonishingly rich in minerals. The North West lies directly over most of this formation. Chromite is the other major mineral mined throughout the province, and there are several ferrochrome smelters and other processing plants. Gold and uranium is found along the border of the province with Gauteng and the Free State (in Klerksdorp and Orkney). Diamonds are mined at Christiana, Bloemhof and Lichtenburg. that was formed about two bilLichtenburg is also the centre of the cement industry. lion years ago. Different ore Other minerals found in the North West include fluorspar, bodies are contained in the vanadium, rhodium, uranium, copper, limestone, slate, phosphate, Merensky Reef and Plat Reef manganese, coal and nickel. (platinum group metals) and The province produces 64% of South Africa’s platinum, 46% the Upper Group 2 or UG2, of its dimension stone and granite, 32% of its chromite and 25% which contains chromite. of its gold. The biggest producers Mining accounts for 30.4% of gross domestic product (GDP) are Anglo American Platof North West Province, employs more than 60 000 people and inum, Impala Platinum and makes up 15.5% of South Africa’s mining gross domestic product. Lonmin. Medium-sized producers include Aquarius Platinum, Platmin, Northam Platinum and Royal Bafokeng Platinum. The Bushveld Igneous Complex is a massive geological intrusion Among the junior miners 59 north west business 2013 OVERVIEW north west business 2013 A worker cooling a 99.99% pure platinum ingot at Anglo Platinum’s Thembelani Mine. • Demand from the jewellery sector that is expected to grow. • A growing awareness that a new dispensation is needed in labour relations, and that a new compact has to be reached between mining companies, the state (which provides services to communities) and miners and workers. In short, the world needs platinum and South Africa must find a way to mine it safely and in a way that benefits workers and surrounding communities. The traumatic year of 2012 also saw some positive signs in the platinum sector: • The launch of a new platinum company, Sable, on the JSE. It shares resources near Brits with Canadian company Platinum Group Metals and owns the Syferfontein mine, among other properties with iron and vanadium deposits. • Increased production volumes from Aquarius Platinum, which has also decided to mine its own mine at Kroondal (a joint venture with Anglo Platinum) instead of using a contractor. • The stellar performance of Styldrift 1, a Royal Bafokeng Platinum project. Engineering News editor Martin Creamer reported in October 2012 on the ‘technical excellence of upcoming black South Africans’ in rolling out this R11.8-billion project. A community-training project is ensuring that skills transference takes place. 60 PHOTO: ANGLO AMERICAN are Nkwe, Wesizwe, Pan African Resources and Eastern Platinum. The tragic events that took place at a platinum mine at Marikana in August of 2012 brought a sharp focus on the mining sector. After several days of violent strikes, police opened fire on a crowd and more than 30 people died at the mine located between Rustenburg and Brits. Mining company Lonmin subsequently agreed to pay increases that added 14% to the company’s wage bill. Earlier in the year, Aquarius Platinum suspended its Marikana operation. There was a six-week strike at the mines of Implats at Rustenburg in February, which set back platinum production by 150 000 ounces. Increasing input costs such as diesel and steel are also causing platinum producers big headaches. Despite headlines such as ‘On the Brink’ (Engineering News, describing platinum companies’ problems) and ‘Still no end to platinum sector’s pain’ (Business Times, commenting on the unsustainability of pay rises), there were also some positive signs for the long-term future of the mineral that is the most important in North West Province’s mining basket. These include: • A decline in global production of 10% that will push up prices. • The growth of the motorvehicle market in China, which will spur demand for catalytic converters. Pumps Valves Systems One stop shopping – for every level of mining An essential part of any mining infrastructure, KSB pumps help ensure costeffective, continuous operations. Our solutions always focus on the customer, so KSB strives to make pump and valve planning easy by providing products for every step of the mining process – solutions that have proven themselves over time. From the heart of the mine right to the end product, KSB powers the future of high quality, safe mining. • • • • • Solids handling (slurry) Water (dewatering/transport) Waste Water Treatment Mineral processing Power Generation KSB Pumps and Valves (Pty) Ltd www.ksbpumps.co.za Rustenburg : Tel - +27-14-592-5776 LSA MDX LCC HVF OVERVIEW on care and maintenance, but strikes and declines in profitThe SPI is an initiative of the Platinum Trust of South Africa ability saw management close and is funded by the Small Enterprise Development Agency the mine in December. (Seda) through its Seda Technology Programme (Stp) with Namakwa Diamonds’ operathe support of the North West Provincial Government and tions in Souh Africa produced private companies. 23 830 carats in the year to Located in Rustenburg, the SPI trains people through the August 2012, down from making of jewellery, chiefly the design and manufacture of 38 092 the year before. The platinum group metal (PGM) jewellery. Small PGM jewellery- capacity of Namakwa’s separamanufacturing enterprises and individuals are located at the tion plant has been more than centre or supported virtually. doubled in recent times. A three-year period of incubation is offered to small businesses. Gold Seda Platinum Incubator (SPI) Four major companies are active in the Carletonville There are 20 chromite mines in North West Province. The mines goldfields area, which is on are located along a reef running from Brits to Rustenburg and the provincial border with they are serviced by several ferrochrome smelters. South Africa Gauteng: Anglogold Ashanti, produces about 70% of the world’s chrome, with most of that Gold Fields, Harmony and DRD. Gold Fields announced in originating in North West Province. Most chromite is processed into ferrochrome, a vital compo- 2012 that it would be unbunnent in the making of steel. South Africa produces 40% of the dling its assets. It will keep world’s ferrochrome. control of South Deep while Sibanye Gold will take control of Kloof Driefontein (CarletonDiamonds ville) and Beatrix in the Free Diamonds are found in several parts of the North West: Lichten- State Province. burg, Koster and Ventersdorp near the centre, and Christiana AngloGold Ashanti has and Bloemhof further south. Rockwell Diamonds invested about committed to expenditure R220-million in its Tirisano mine near Ventersdorp over a two- of more than R1-billion on year period. In July 2012, it put the Tirisano processing plant extending the lives of its Mponeng and Moab mines. Mponeng, the world’s deepest Sector news mine, is close to Carleton• Rockwell Diamonds closed its Tirisano mine in ville. Tau Tona is the other December 2012. The mine contributed 2.5-million carats operation in the company’s to company production in the first quarter of 2012. West Wits operational sector • Impala Platinum will spend R11-billion on its No 17 Shaft that falls within North West at Rustenburg. Full capacity of 225 000 tons of platinumProvince. Tau Lekoa mine was bearing rock per annum will be reached in 2017. purchased by Simmer & Jack • Sable, a new platinum company, has listed on the JSE. in 2010. • R6.8-billion is the value of Impala Platinum’s No 20 Bernard Swanepoel’s new Shaft project. resources company Village • Gold Fields has unbundled is assets. Sibanye Gold will Main Reef issued shares mine the Kloof Driefontein mine near Carletonville on valued at R1.3-billion when the Gauteng border. it took over Simmer & Jack’s • Harmony has announced a share-ownership plan. gold and uranium assets, thus Chrome north west business 2013 62 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 Sunrise View Primary School officially encourages employees to become home owners. opened in January 2013. 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 63 north west business 2013 OVERVIEW taking control of the Buffelsfontein and Tau Lekoa gold mines in the eastern regions of North West Province. Both mines are regarded as good prospects. Harmony Gold has two mines in the province: Kal Gold and Kusasalethu (formerly Elandsrand). The company has announced an employee share-option plan (ESOP) where about 33 000 employees across Harmony operations will take up ownership of just less than 3% of the company. South Africa’s third-biggest gold miner calculates that a qualifying employee might be paid out R10 000 for 100 ordinary shares after five years. Uranium existing operations on the border of the North West and Free State provinces. AngloGold Ashanti is Africa’s biggest gold and uranium producer. AngloGold is planning a R2-billion uranium plant to be added to its facilities at its Kaponong mine. This would take the company’s uranium production above 907 000kg per year. Limestone and cement Limestone quarries run by G&W Base and Industrial Minerals in the Marico District are located next to a PPC cement factory. One of the last economically viable limestone deposits in South Africa is to be mined and processed by Sephaku Cement. AfriSam, PPC and Lafarge already have a significant presence in the Mahikeng/Lichtenburg area, but Sephaku is confident that its clinker and cement-production facilities will be supported by raw materials for at least 30 years. Granite and slate are found in good quantities in the province, as is dimension stone. There are more than 20 quarry operations in the province, with Rustenburg being the centre of granite mining. New life for old mines Fluorspar A new company has been The new owners of Witkop fluorspar mine, Maghreb Minerals, formed to mine the Dominion intend to produce 125 000 tons of acid-grade fluorspar per uranium project near Klerks- year. The mine, which has an 80 000-ton broken-ore stockpile, dorp. Arising from the sale of will also produce metallurgical-grade fluorspar. Uranium One Africa Limited to Oakbay Resources and Energy Pig iron for $37.3-million, the new com- Disused mine dumps will provide the feedstock for a pany is called Shiva Uranium. R2.5-billion processing plant that is expected to come on Shiva Uranium includes a stream in 2013 for an SA Metals Equity project. The National 26%-black-empowerment Empowerment Fund (NEF) is a stakeholder in SA Metals Equity, holding for a group called which aims to produce pig iron from about a million tons of Mabengela Investments,which mine-dump waste. is headed by Duduzane Zuma. Shiva’s board of directors is to be led by Atul Gupta. AngloGold Ashanti bought Online resources a 19.7% share in First UraChamber of Mines of South Africa: www.bullion.org.za nium in 2011, from Village Main Reef. First Uranium is a Geological Society of South Africa: www.gssa.org.za gold and uranium producer Mining Qualifications Authority (MQA): www.mqa.org.za with assets near Westonaria National Department of Energy: www.energy.gov.za National Department of Mineral Resources: www.dmr.gov.za (Ezulwini Mine) and a mine waste-tailings recovery operaSouth African Institute of Mining and Metallurgy: www.saimm.co.za tion near AngloGold Ashanti’s north west business 2013 64 OVERVIEW Mineral beneficiation There is great potential for the use of platinum in the energy sector. N orth West has several ferrochrome smelting and processing plants, cement-manufacturing factories and gold and uranium plants. South Africa produces about 70% of the world’s chrome, with most of that originating in North West Province. Some analysts say South Africa should ban exports of chrome so that the final product doesn’t have to be imported, even though high electricity prices make processing chrome expensive. David Gleason of Business Day says that the ferrochrome industry provides more than 200 000 jobs and is worth R42-billion to national GDP, and it should be protected. Platinum mines also produce chromite as a by-product. Most chromite is processed into ferrochrome, and South Africa produces 40% of the world’s supply. There are major ferrochrome operations at Kroondal (Xstrata Alloys), Rustenburg (Samancor Chrome Mines) and Brits (where Hernic Ferrochrome runs a facility that produces 420 000 tons per annum). Mitsubishi and the Industrial Development Corporation are major shareholders in Hernic, which runs two pelletising plants and four furnaces. Xstrata has ferrochrome smelters at Rustenburg and Boshoek. The Xstrata and Merafe Resources joint venture is building a new pelletising and sintering plant in Rustenburg, named Tswelopele, at a cost of R1-billion. International Ferro Metals runs an integrated chrome mine and processing operation at Buffelsfontein with annual capacity of 265 000 tons. Chrome chemicals supplier Lanxess has mining operations in the Rustenburg area. Processing takes place in KwaZulu-Natal. Anglo American Platinum has two smelters (Waterval and Mortimer) and concentrators at its mines. Impala Platinum’s mine at Rustenburg is the site of concentrator and smelting operations. Online resources Minerals Processing & Beneficiation Industries Association of Southern Africa: www.mpbiasa.com Mintek (minerals research): www.mintek.co.za National Department of Trade and Industry: www.thedti.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za South African Iron and Steel Institute: www.saisi.co.za 65 Sector Highlights Most of the world’s chrome comes from the North West. • Xstrata and Merafe are building a R1-billion sintering plant. major companies • Anglo Gold Ashanti • Anglo American Platinum • Impala Platinum • Hernic Ferrochrome • Lafarge With the North West’s vast reserves of platinum, great opportunities are opening up in the renewable-energy sector. Mintek, private companies and the National Department of Science and Technology are investigating nanotechnological applications of platinum (Engineering News). Four large cement works are located in the Lichtenburg area, with Lafarge’s plant being the biggest in the country. PPC, Afrisam and Sephaku Cement are also active in the region. In the Klerksdorp/Orkney area, Anglogold Ashanti runs four gold plants, a uranium plant and a sulphuric-acid plant. These facilities can treat up to 420 000 tons every month in support of the company’s four mines. north west business 2013 PROFILE A South African centre of excellence in platinum beneficiation. Mandate Seda Platinum Incubator (SPI) is a non-profit (Section 21) organisation that seeks to nurture and promote the development and involvement of small and medium businesses within the mineral beneficiation sector, particularly platinum group metals (PGMs). Vision The SPI seeks to create an internationally recognised centre of platinum-beneficiation excellence, working together with stakeholders in both the private and public sectors. Mission The SPI is dedicated to the advancement of skills in the beneficiation of platinum group metals (PGMs), and in doing so, the building of an internationally competitive small and medium PGM cluster. Background Seda Platinum Incubator is funded by the Platinum Trust of South Africa through the North West Provincial Government and the Seda Technology Programme through the Department of Trade and Industry. The SPI was launched in 2006 by the Premier of the North West Province and is based in Rustenburg, the platinum city. Description of activities SPI specialises in assisting aspiring jewellers north west business 2013 66 One of the jewellery pieces that was modelled at the first-ever jewellery fashion show in the North West Province. to acquire skills and build careers in designing and manufacturing platinum group metal jewellery. These small jewellery enterprises are housed at the centre either physically or virtually. Incubation is expected to take three years, after which a business must be able to operate independently with all the business systems in place. The prime focus of the incubator PROFILE is the manufacturing of high-quality white metal jewellery (platinum, palladium or silver jewellery) by these small enterprises. Services The main service of SPI is to assist small and medium enterprises in developing all aspects of their business. SPI offers: • Access to machinery • Metal loans • Organised interactions/access to markets • Marketing of the tenants’ pieces • Assistance with the appropriate business model • Changing and building of strategies • Planning of products, services and operation • Access to finance • Customer-service training Special project • Bophadiphadi Jewellery Project • Khomotso Jewellery Creations • Qhayiya Jewellery Designs • Thuto Jewellery Workshop • Haupt Juwelen • Beaudell Designs • Bafana Ba Style Designs • Comporo Design Studio • Dis Jewellery Designs • Umtha We Langa Jewellers • Gold & Gifts Jewellers • Afro Treasure Jewellers • The Vows • Amile Studio • Potso Creations • Lamine Diamond Enterprise • CMS Magnificent Inventions • MLK Jewellers • Kambase Jewellery & Projects Contact the SPI office to obtain contact details for the jewellers. Celebration of Madiba’s 92nd birthday with David Tlale Through the proposal submitted to Anglo Contact details Platinum, the Seda Platinum Incubator got funding for assisting the business develop- Key personnel: ment of the incubator tenants. Verbal Images, a Sibongile Shongwe, Centre Manager marketing and brand communications agency, Tumisang Sepeng, Business conducts workshops and business seminars for Development Officer the tenants. Zandisile Botman, Marketing Officer The significance of these seminars was high- Tel: +27 14 597 0736 lighted when the tenants designed and manu- Fax: 086 678 0033 (SA only) factured monumental silver jewellery that was Email: email@example.com or worn to complement David Tlale’s garments firstname.lastname@example.org Like us on: Seda Platinum Incubator at the Johannesburg Fashion Week event on Nelson Mandela Bridge. This opportunity was an Follow us: twitter @SpiOrgza initiative of Verbal Images and great exposure Physical address: Orbit FET College for the SPI tenants. Rustenburg Campus, Seda Platinum Unique jewellery on offer Incubator Jewellery Training Centre, The following SPI tenants are able to design Fatima Bhayat Street, Rustenburg one-of-a-kind jewellery pieces: Postal address: Postnet Suite 4975, • Natureal Jewellery Design Private Bag X82323, Rustenburg 0300 • Ike’s Jewellery Repairs & Manufactures Website: www.spi.org.za 67 north west business 2013 PROFILE Verder Pumps Verder Pumps South Africa has a reputation for providing reliable, cost-effective, efficient and long-lasting pumping solutions. Verder Pumps specialises in the supply of positive-displacement pumps to a variety of industries, including: mining, water and wastewater treatment, chemical processing, food processing, agriculture and many more. Pumps Peristaltic pumps Verderflex peristaltic pumps offer unrivalled performance in a tough and uncompromising environment. Verderflex pump Key features • No rotor breakage • Unique hose design • No bearings – no replacement of expensive parts • Only three wearing parts, compared to seven wearing parts of competitors Verderflex – tough pump Ideal for handling abrasive liquids and slurries with a high solid content. Verderflex Dura – a reliable pump Verderflex Dura pump Combines the compactness of a close-coupled pump with all the benefits of the traditional long-coupled pump. Air operated double diaphragm pumps Verderair – a versatile pump The Verderair double diaphragm pumps’ flow range from 0.1 up to 1050 l/min and pressures up to 8.4 bar. The air valve design guarantees a non-stalling operation, even at low pressure and does not need any lubrication. The pump can handle very abrasive and / or viscous products and it can run dry indefinitely without damage. Benefits • Reduced maintenance costs north west business 2013 Verderair pump • Low downtime for maintenance • Minimal operational downtime 68 PROFILE Mag Drive Centrifugal Pumps Through the rotation of this screw, the fluid is literally pushed away, while the cone-shaped The Verdermag pumps offer a flow range from casing of the pump ensures a blockage-free 0,3–300m3/h between – 29˚ to 120˚C, and operation. The efficiency of the pump increases maximum operating pressure of 21 bar – ideal when the viscosity of the fluid increases, ultifor pumping heavy-duty-chemical applications mately ensuring maximum efficiency when and capable of handling solids and volatile liq- pumping thicker fluids. uids. The seal-less design warrants a leak-fee operation. The HUS range of screw channel pumps is available in six different sizes, ranging from Product features 50 - 200 mm. • Zero leakage • Less energy, less friction, less wear and tear Product features • Handles solids and volatile liquids • Low maintenance cost • Not sensitive to viscosity changes Screw Channel Pumps • Dry or submersible pumping Verdermag – a leak-free pump HUS – no clogging guaranteed The VerderHus range of pumps can transport numerous types of slurry with minimal wear, thanks to a custom-made impeller that has the working principle of a corkscrew. Key facts and figures Verder Pumps SA was established in 2002 and has since grown to become a leading pump supplier throughout South Africa and subSaharan Africa. Part of the international Verder Group, represented by 29 operations across 15 countries, the company’s size gives customers the confidence that they are working with a powerful international player in the pumping world. Contact details Key contact people: Gerhard Snyman, Consultant Laetitia Moller, Marketing Manager Keith Gass, Managing Director Verdermag pump Tel: +27 11 704 7500 Fax: +27 11 704 7515 Physical address: 197 Flaming Rock Avenue, Northlands Business Park, Newmarket Road Northriding 2162 Postal address: Suite 7, Private Bag x7, Northriding 2162 Email: email@example.com Website: www.verder.co.za Verderhus pump 69 north west business 2013 OVERVIEW Manufacturing The automotive-supply sector is growing in North West Province. Sector Highlights The Centre for Advanced Manufacturing at NorthWest University celebrated its 15th birthday in 2012. • Seda’s platinum incubator in Rustenburg supports jewellery design and manufacture. • R10-million to be spent at Pasdec’s Brits plant. major companies • Seda • Bosch • Dubigeon Body and north west business 2013 70 Coach • Bridgestone • Giflo Engineering • Pasdec Automotive Technologies • A mining supply-chain hub in Rustenburg and Moses Kotane • A science park (either Mahikeng or Tlokwe) • A food-processing plant in Dr Ruth Segomotsi Mompati District (Seda is conducting a feasibility study) DEDECT, Invest North West and the Automotive Industry Development Centre (AIDC) are working together to provide support services to the automotive and automotivesupply industries, to improve productivity and competitiveness. In terms of the agreement, manufacturers can fill photo: pasdec Automotive technologies F rom huge smelters that refine ore bodies into platinum, to artisan cheese-making farms, the North West has a wide variety of manufacturing enterprises. However, the North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT) points out that the share of manufacturing to the Growth Value Add (GVA) of the province is only 5% – a figure that must grow if employment is to grow along with the expanding economy. Brits, Rustenburg, Tlokwe (Potchefstroom), Matlosana (Klerksdorp) and Mahikeng account for more than half of the total manufacturing capacity in North West Province. The focus in Brits is construction and manufacturing, with major companies such as Bosch and Bridgestone anchoring the automotive-supply sector. The provincial government has compiled a Provincial Industrial Implementation Strategy informed by research done by the North-West University’s School of Economics and the Council for Scientific and Industrial Research (CSIR). This sector input/ output analysis showed which sectors most benefitted the province, and which tended to leak value. DEDECT plans to boost manufacturing by establishing: • A platinum hub in Mahikeng (fuel cell and hydrogen technology) • An automotive hub in Brits OVERVIEW gaps in local supply chains and have access to engineering, design and testing facilities. The opening in October 2012 of a new assembly line by wire-harness manufacturer Pasdec Automotive Technologies was proof that the strategy is paying off. Pasdec will spend R10-million on the first phase of the project at its Brits plant. The sophisticated Bosch plant in Brits makes starters, alternators, braking systems and electronic-control units. Dubigeon Body and Coach assembles buses, coaches and special vehicles for a wide range of clients, including Iveco, MAN, Fiat, MercedesBenz and Volvo. The company’s factory has been upgraded so that it can now produce up to 60 buses per month. The huge Bridgestone factory has recently undergone a R700-million upgrade. New staff have been employed and the plant has become one of only four in the world that is producing ‘runflat’ tyres. Giflo Engineering is a major supplier of tubulartype components to major companies such as Ford, Fiat, Nissan, Volkswagen and Daimler-Chrysler. Based at GaRankuwa Industrial site, the company’s production facility covers 62 500 square metres. Inergy Automotive Systems, a maker of plastic systems that store, deliver and handle energy and fluids, has its headquarters in Brits, and plants in Durban and Uitenhage. Klerksdorp is geared towards the mining industry, with a concentration of steel manufacturers, cable suppliers and engineering works. Potchefstroom has food and beverages, furniture manufacture and an ammunition plant. Potchefstroom’s role in the chemicals industry has been reduced in recent years. Kynoch has closed its fertiliser factory and Sasol Nitro’s plant is for sale in terms of the agreement reached with the Competition Commission. Aquasol is a niche manufacturer of water-soluble products. Rustenburg has a mixture of enterprises, the biggest of which are the mining-related smelters. The mining industry dominates the Rustenburg economy, with several supply and support manufacturing concerns also based in the city. Production of nonmetallic mineral products can be found concentrated around Lichtenburg and Mahikeng (cement), and Rustenburg (stone). As the province is one of the country’s biggest producers of livestock, it makes sense that the automotive industry should be looking to North West for hides for the seats of its cars. It is this sort of value-added tie-up that agencies such as Invest North West are exploring, as they aim to get more value out of the agricultural sector. Lichtenburg is home to the Tough Metals Toys factory. In 2012, North-West University’s Centre for Advanced Manufacturing (CFAM) celebrated its 15th anniversary. The centre specialises in extruder technology, an important component in the food-manufacturing process. CFAM works with Gaborona Consulting, the Vaal University of Technology, Thripp (a dti technology programme) and ChemCity, a Sasol initiative. Online resources Automotive Industry Development Centre (AIDC): www.aidc.co.za Centre for Advanced Manufacturing: www.cfam.co.za Consumer Goods Council of South Africa: www.cgcsa.co.za Invest North West: www.inw.org.za National Department of Trade and Industry: www.thedti.gov.za North West Development Corporation: www.nwdc.co.za 71 north west business 2013 OVERVIEW Food and beverages Big companies have large manufacturing plants in North West Province. The TX80, CFAM’s latest double-screw extruder that was manufactured on the North-West University’s Potchefstroom Campus. The CFAM focuses on extrusion applications for the food, feed, filled polymer and compounding industries. north west business 2013 72 Sector Highlights A unit at North-West University is a leader in extrusion technology. • Nestlé’s new Cremora factory was launched in Potchefstroom in 2012. major companies • Nestlé • Rainbow Chickens • Tydstroom • Clover proximity to the large population of neighbouring Gauteng Province. photo: north-west university’s potchefstroom campus S ome of South Africa’s biggest food and beverage brands have manufacturing facilities in North West Province, but the sector is also seen as ideal for the promotion of smallscale manufacturing and start-up businesses. The Centre of Excellence in Advanced Manufacturing (CFAM) at North-West University (NWU) strongly believes that extrusion technology (in which it is expert) holds the answer to the establishment of small to medium-sized processing plants on farms or in rural areas. The centre’s hosting of a workshop and seminar, ExtruAfrica, put the spotlight on the potential that this sector holds: one quarter of the 37% of national GDP that is generated by agri-industries is derived from agri-processing. The Small Enterprise Development Agency (Seda) is conducting a feasibility study into building a food-processing plant in the Dr Ruth Segomotsi Mompati District. If the result is positive, then the CFAM’s recommendations can be put into effect to benefit the most rural of the province’s districts. A number of food and beverage companies located in North West Province take advantage of the province’s photo: outdoor photograhpers/bleskop OVERVIEW Rainbow Chickens has a large processing plant at Rustenburg. Dairybelle (Bloemhof) and Clover (Lichtenburg) have cheese factories in the province. Clover’s large facility also processes fresh pasteurised milk, fresh cream and longlife milk. The factory has a cheese-packaging facility and a whey-evaporation plant. The company also has a large depot in Potchefstroom. At the other end of the scale, farm cheese can be purchased from Van Gaalen Kaasmkerij at Skeerpoort near the Hartbeespoort Dam, and Philandri Kaas in Coligny. Water from the Schoonspruit Eye near Ventersdorp supplied South Africa’s first bottled water. Nestlé bought the rights to this water source in 2000. Ventersdorp is also home to the liquor, spirits and sherry plant of the Totpak company. Nestlé acquired a soycreamer processing plant when it bought Specialised Protein Products in 2010. The plant is located in Potchefstroom and underpins Nestlé’s drive to increase soybased products for the local market. The company spent R106-million on buying and upgrading the factory, which becomes the 10th manufacturing plant run by Nestlé in South Africa. One of Pioneer Food’s Tydstroom chicken breeding and processing operations is located in the Hartbeespoort Dam area, with a breeding farm near Schoonspruit Eye is the source of Nestlé’s bottled water. Rustenburg. Tiger Foods has a sorghum-processing unit in Potchefstroom, a town where a number of agri-processing businesses such as Senwes and Suidwes Landbou are active. About 30% of the country’s grain and oil-seed crop pass through Senwes silos every year. The provincial government’s Western Frontier Beef Beneficiation Scheme aims to develop the entire value chain, with value-added operations such as a feed mill, a meat-cutting plant, a milk plant, a rendering plant, a processing plant and a coldstorage facility that has already been established. The SAB Rosslyn Brewery supplies the North West with most of its beer through depots at Mahikeng and Potchefstroom. Amalgamated Beverage Industries (ABI) supplies Coca-Cola products to everywhere west of Rustenburg, and has depots at Mahikeng, Klerksdorp and Northam. Sasko operates a white-maize mill in Klerksdorp. Online resources Centre of Excellence in Advanced Manufacturing, NWU: www.cfam.co.za Consumer Goods Council of South Africa: www.cgcsa.co.za Food Advisory Consumer Services: www.foodfacts.org.za Food & Beverage Reporter: www.fbreporter.com FoodBev SETA: www.foodbev.co.za National Agricultural Marketing Council: www.namc.co.za National Chamber of Milling: www.grainmilling.org.za South African Meat Industry Company: www.samic.co.za Seda: www.seda.org.za 73 north west business 2013 FREE MEMBERSHIP OF THE Business Banking Enterprise Development FRONTIER MARKET NETWORK Frontier Market Network is the largest online business community focused on investment and business generation in fast-growing markets. 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GET CONNECTED. JOIN TODAY. www.frontiermarketnetwork.com Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7 OVERVIEW Engineering Mining is the main concern of North West’s engineers. M ining is at the heart of the North West economy, and this is the prime focus of the province’s engineers. Murray & Roberts has a long-term contract to mine the Kroondal and Marikana mines for Aquarius Platinum. TWP Projects is engaged in Anglo Platinum’s expansion of its Twickenham platinum mine. Group Five Civils built the portals and decline shafts for Anglo Platinum at its Hackney and Twickenham mines. Group Five Housing was particularly active in the Rustenburg area in the five-year period to 2008, when the population of that town doubled. The consulting engineer for the joint venture at Styldrift between Anglo Platinum and Royal Bafokeng Resources is TWP. The contract to excavate 315 000 cubic metres, backfill a further 225 000 cubic metres and build a pollution-control dam and roads to service the site was awarded to Stefanutti Stocks Roads and Earthworks. Stefanutti Stocks was also responsible for raising the wall of the Bospoort Dam near Rustenburg. The Strategic and Sustainability Services Unit of engineering and environmental consultants Royal HaskoningDHV helped Tlokwe City put together an Environmental Management Framework and an Environmental Management Plan. These proved very successful, with Tlokwe being ranked as the nation’s top city in 2011 in waste-water works. Shifting the minerals mined in the province is mostly done by rail, and so the depots of Transnet Engineering are called upon to do maintenance and repairs to rolling stock. Road and transport specialists like BH Bagale, which has done several projects for the Mogale City Local Municipality, Online resources Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za Faculty of Engineering, NWU: www.nwu.ac.za/FE South African Institute of Civil Engineering: www.civils.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za Steel and Engineering Industries Federation of South Africa: www.seifsa.co.za 75 Sector Highlights North-West University’s engineering students won the Sasol Solar Challenge in 2012. • Royal HaskoningDHV helped Tlokwe achieve a top ranking in waste water. major companies • Royal HaskoningDHV • Murray & Roberts • Stefanutti Stocks • TWP Projects • Transnet Engineering are active in the province and have an office in Mahikeng. The respected Engineering Faculty at the Potchefstroom campus of the North-West University (NWU) offers a wide range of engineering courses: chemical, minerals, electronic, electrical, computer, mechanical and nuclear. The Mahikeng campus is considering offering engineering courses, with a focus on agriculture, transport and computer engineering. Eight students from the faculty tied for first place, in a competition with 12 other teams from around the world, when they won the annual Sasol Solar Challenge in 2012. This is a 5 200km race around South Africa in a car powered solely by the sun. north west 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. 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 north west business 2013 76 PHOTO: RAILWAYS AFRICA An African focus PROFILE kitchen cars, sleeper and sitter coaches and power units. Ports 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 TE. 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 PHOTO: transnet engineering 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. 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: email@example.com main cargo routes. Website: www.transnet.net 77 north west business 2013 OVERVIEW Transport North West Province hosts key national routes. Sector Highlights The national roads agency has taken over several important roads in the North West. • North-West University offers Transport Economics. • Potchefstroom has an important railmarshalling yard. major companies • Transnet Freight Rail • South African National Roads Agency M ajor national and regional railways and highways pass through North West Province and there is more than one airport in the province. This is a positive factor for the province, but increasing volumes have put great pressure on the provincial government’s resources. In October 2012, the South African National Roads Agency Limited (Sanral) took over 25 roads from the province. Partnerships with resource companies are also seeing to road maintenance in some parts of the province. The province’s major road and rail links form the basis of planning for future nodal development: from the southern part of the province on the N18 highway through the western part to Mahikeng (Western Corridor), from Mahikeng eastwards to Gauteng along the N4 highway (Platinum Corridor), and from Carletonville in the north-east along the line of relatively well-populated towns along the province’s border with the Free State (Treasure Corridor). Transnet Freight Rail moves large quantities of minerals and agricultural produce from stations in the North West to north west business 2013 78 other parts of South Africa and to the Port of Durban. The Mahikeng campus of North-West University offers BCom degrees in Transport Economics and Logistics Management. Roads Maintaining and building new roads has been one of the North West’s most difficult challenges. An integrated transport strategy is intended to improve the province’s performance. There are 21 158km of roads in the province, approximately 70% of which are unpaved. The successful completion of a road connecting Maatlametlo and Mokgalwaneng in photo: Bakwena Platinum Corridor Concessionaire (Pty) Ltd The Bakwena Platinum Highway will form part of a transcontinental highway linking Namibia to Mozambique. OVERVIEW the far north of the province marked the successful cooperation of the National Department of Rural Development and Land Reform and cement manufacturer PPC. The provincial government of North West Province has signed agreements with PPC and the neighbouring province of Limpopo for the completion of roads linking Dwaalboom, where PPC has a large clinker-production facility, to the southern areas of Limpopo. The Bakwena Platinum Highway (Pretoria to Zeerust) is intended to be part of a transcontinental highway that links Namibia to Mozambique. Several important highways run through the province: the N4 (Johannesburg to Botswana), N12 (Johannesburg to Kimberley) and N14 (Johannesburg to Springbok). There are 325 019 heavyload vehicles that regularly take to South Africa’s roads, 17 159 of which are registered in the North West. Of the country’s 150 496 heavy-load trailers, 9 828 are from the North West. National government is spending R22-billion in three years between 2011 and 2014 on fixing the country’s potholes. Klerksdorp is well located to act as a logistics hub (see the special feature in this publication). The Kenneth Kaunda District Municipality, in which the City of Matlosana falls, is located along the busy N12 highway, and roads run westwards through the district towards Namibia and Botswana. The district has two good airfields and the town is part of the railway network. Roads in the Bojanala District carry seven times more traffic than any other district: this is because of the industry and mining activity that occurs around Rustenburg and Brits in particular. Air Mahikeng International Airport can accommodate almost every type of aircraft, equipped as it is with a 4.6km runway. The subsidies that were paid by the provincial government to a carrier to run a service from Johannesburg to Mahikeng were terminated in 2010 and the money reallocated to scholar transport. National government transferred international status to Mahikeng from Pilanesberg, a move which has increased the status of the provincial capital’s airport. In 2011, Airports Company South Africa (ACSA) announced that it was terminating its contract to manage Pilanesberg Airport. This became the subject of a dispute between the company and the provincial government. There are airstrips for lighter aircraft at Potchefstroom, Krugersdorp, Ventersdorp, Rustenburg, Lichtenburg and Vryburg. Rail The busiest railway line through the province is the Cape main line between Gauteng and the Western Cape, which runs through the provincial capital, Mahikeng. There are important marshalling yards at Potchefstroom and Mahikeng, such as the junction of the Cape line to points further north and a staging point for diesel locomotives. Rail’s role in the logistics sector of the province is covered in detail in the special feature on logistics published elsewhere in this publication. Online resources Civil Aviation Authority: www.caa.co.za North West Department of Public Works, Roads and Transport: www.nwpg.gov.za Railroad Association of South Africa: www.rra.co.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net 79 north west business 2013 OVERVIEW Construction and property Cement companies are prominent in the North West. Pecanwood Estate is an example of the North West’s thriving property market. north west business 2013 80 Sector Highlights Two of the province’s cities are among the country’s fastest growing. • A major new mall opened in Rustenburg in 2012. • Platinum companies have invested billions in worker housing. major companies • AfriSam • Sephaku Cement • Lafarge Cement • PPC • Anglo American Platinum • Impala Platinum photo: pecanwood estate R ustenburg and Tlokwe (Potchefstroom) are among the fastest-growing towns in South Africa. Investment into the mining sector – and platinum in particular – has been the main element in driving growth in the construction and property sector in North West Province. There have been two platinum booms since 2008. This has led to Rustenburg reporting a growth rate of 3.9% in 2010 against a national average of 2.8% (IHS Global Insight) and Tlokwe being listed by South African Cities Network as the second-fastest-growing town in South Africa between 2005 and 2010 (after Polokwane in Limpopo, another platinumproducing province). Rustenburg ranked second in a national survey that placed South Africa’s biggest towns (excluding metros) in terms of friendliness to business and potential for growth (Finweek). Despite 2012 being a turbulent year for the platinum sector, most analysts believe that global demand for the metal will ensure that it will recover in 2013 and beyond. The provincial capital saw a number of retail properties constructed in 2012: Platinum Square, a 30 000-square-metre OVERVIEW mall developed by Retail Blue, Blue Cloud Investments and Standard Bank Properties, and two new Holdsport stores among them. Approval was also granted for a R58-million shopping centre for nearby Bapong (Nedbank Corporate Property Finance and Moratiwa Property Development Ltd). The health of the construction industry is important to the North West, not least because of the concentration of cement companies operating in the area between Mahikeng and Lichtenburg. Lafarge Cement in Lichtenburg has the country’s biggest cement works, and with the construction of a new kiln now complete, it can produce three million tons per annum. AfriSam also has a cement plant in Lichtenburg, and PPC has three facilities in the province. Sephaku Cement listed on the main board of the JSE in 2009 and is building a clinker and cement-production plant at Aganang that will use a limestone deposit about 25km west of Lichtenburg. A capacity of 5 500 tons per day will see production levels of 2.3 million tons per annum. The company notes that the biggest demand for cement comes from housing and infrastructure, things that South Africa will need to build for many years. Housing Two of the biggest mining companies active in the province have pledged their support for national government’s Each One Settle One campaign. Impala Platinum (Implats) is putting R2-billion into the Sunrise View housing estate in Rustenburg. The National Housing Finance Corporation (NHFC) gives workers a mortgage of up to R190 000, and Implats provides an interest-free loan of up to R75 000. Instead of paying more than R4 000 per month, workers will be paying about R1 820 to become home owners. More than 1 300 workers have been settled in this way since 2008. Anglo American Platinum has plans for 12 000 housing units in the North West. About 200 families have already moved in to houses in Seraleng, Rustenburg, in the first phase of what will be a R1.4-billion project. Another major housing scheme is planned for Marikana, 25km east of Rustenburg on a site close to the N4 highway that connects the city to Pretoria. Alsa Develops Marikana (Pty) Ltd has purchased 260 hectares of land to create a 20 000-house mixedincome project. Strategic investment partners of various sorts are being sought, with Invest North West playing a facilitating role. Miners’ living conditions in shanty towns around the Marikana mine were among the grievances of strikers in 2012: mining companies typically pay ‘living out’ allowances if workers don’t want to live on site, but miners often have a primary residence outside the province. The housing issue is one that mining houses, miners and all levels of government are going to have to tackle in a comprehensive way. At the top end of the market, Pam Golding Properties has properties for sale in Rustenburg for more than R4-million in suburbs such as Cashan, Waterkloof and Protea Park. The Brigadoon Golf and Country Estate just outside the city offers houses for between R2.2-million and R3.7-million, and plots from R700 000. Elsewhere, Hartbeespoort has a thriving property market, with golf estates being popular. Pecanwood Estate attracts up to R25-million for riverfront properties, but there are a number of other popular estates: Eagles Landing, Westlake, The Islands and Xanadu Estate among them. Online resources Cement and Concrete Institute: www.cnci.org.za Construction Industry Development Board: www.cidb.org.za Invest North West: www.inw.org.za National Housing Finance Corporation: www.nhfc.co.za South African Institute of Valuers: www.saiv.org.za South African Property Owners Association: www.sapoa.org.za 81 north west business 2013 OVERVIEW Water Hartbeespoort Dam is the focus of a massive regeneration project. Sector Highlights R580-million is to be spent on delivering bulk water in dry rural areas. • Tlokwe Local Municipality was the province’s top performer in the 2012 Blue Drop awards. • About 900 tons of carp and barbel must be harvested from the Hartbeespoort Dam. major companies • Rustenburg Water Services Trust • Botshelo Water • Magalies Water • Sedibeng Water • Rand Water were national runners-up in the most improved teamperformance category. A new pipeline to be conouth Africa is a water-scarce country and water management structed from the Taung Dam is critical to economic planning. The western part of North will make a difference in the West Province is particularly dry. lives of rural residents in the Three of South Africa’s six major catchment areas are located Dr Ruth Segomotsi Mompati in the province: the Limpopo, the Orange and the Vaal. Within District Municipality. The these catchment areas, only the Vaal River has a strong-enough R580-million bulk-waterflow to allow for significant amounts of water to be taken from supply project was launched it directly to support irrigation or industry. There are four water- in April 2012 and will bring management areas in the province, three of which are linked tap water to many villages to the Vaal River. Water is imported into the provincial system that have relied on boreholes through transfers between water basins. for decades. Three local municipalities earned Blue Drop certificates in 2012: Matlosana (with Midvaal Water Company), Rusten- Hartbeespoort Dam burg (with Rand Water and Magalies Water) and Tlokwe, the province’s top performer. Matjhabeng and Sedibeng Water The National Department The Hartbeespoort Dam is currently undergoing a massive clean-up and regeneration project. north west business 2013 82 photo: department of water affairs S OVERVIEW of Water Affairs is leading a major project to reduce the phosphate load in the Hartbeespoort Dam. The dam has been receiving large discharges of waste water from its rapidly urbanising catchment area, the storm water that flows into the dam includes fertiliser and animal waste. Degraded river banks and wetlands in the catchment areas have contributed to the problem. The Hartbeespoort Dam Integrated Biological Remediation Programme (HDRP), a joint project with Rand Water and also known as Harties, metsi a me (Harties, my water), is removing algae and hyacinths that are choking the dam. The HDRP is part of the National Water Resource Strategy. By removing thousands of tons of algae and hyacinths (more than 64 000 tons so far), the nutrients that have made the dam hypertrophic will be reduced. The clean-up process is spurred by incentives for workers and locals, who are benefiting from the sale of tons of carp and barbel that have been caught and sold. Peter Delmar of The Times explained in his column in August 2012 that bottomfeeding fish raise the level of nutrients by stirring up the water. With more than 190 tons of carp and barbel disposed of, there is a better chance that tilapia and yellowfish (whose habits don’t encourage nutrient growth) will prosper. In the meantime, there are about 900 more tons of carp and barbel to be caught and sold by the 12 fish rangers employed as part of a DWA team of 140 devoted to cleaning up the dam. Supply and treatment The province has 83 sewage-treatment plants, and the national Blue Drop award system has found most of them need a lot of improvement. Tlokwe (which controls the city of Potchefstroom) won the provincial competition and ranked fifth in the country in 2012. Tlokwe is one of only three municipalities in the country that acts as a water-service authority and as a service provider. The biggest service providers active in the North West are: • Rand Water • Botshelo Water • Magalies Water • Sedibeng Water Midvaal Water Company supplies water to Matlosana (Klerksdorp). When the fast-growing town of Rustenburg faced a water crisis in 2003, an innovative public-private partnership was formed to create a funding model that not only brought water to the town and gave local platinum mines access to cheaper water than they had ever had before, but the Rustenburg Water Services Trust (RWST) even turned a profit. RWST is the special-purposes vehicle that runs the new water system. It was formed with Magalies Water acting as the public partner and operator, with Rustenburg Consulting Consortium (led by Bigen Africa) providing expertise and Absa Bank financing several upgrading projects. The area’s mining companies have agreed to use lower grades of water for their operations. This allows Rand Water, which was under pressure to supply sufficient water to the town and mines, to spend on maintenance and new pipelines. In 2011, RWST had cash reserves of R96-million and was planning to spend more than R400-million on water and sanitation expansion projects in and around Rustenburg. Online resources Blue Drop Awards: www.ewisa.co.za National Department of Water Affairs: www.dwa.gov.za North West Provincial Government: www.nwpg.gov.za South African Association of Water Utilities: www.saawu.co.za Water Institute of Southern Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za 83 north west business 2013 focus A clean bill of health The Hartbeespoort Dam Integrated Biological Remediation Programme is a huge success and received international recognition as a case study on how applied ecological methods can turn ailing dams around. T he Hartbeespoort Dam, which suffered for more than two decades with severe pollution, has made a dramatic turnaround thanks to an eco-friendly remediation project that has received international recognition for its success. This is according to Petrus Venter of the Department of Water Affairs and project manager of the Hartbeespoort Dam Integrated Biological Remediation Programme that was introduced in 2008 to clean up the dam. This project, known as Harties, metsi a me (My water), is a joint venture between the The dam has made a dramatic recovery. Department of Water Affairs and Rand Water to use ecologically friendly methods to clean up the dam. Where fungicide was sprayed in the past on the floating hyacinth, this and other invading plants are now harvested by hand. Not only is this process more effective, but since 2008, it has consistently provided work for between 80 and 140 workers. They have successfully removed most of the hyacinth that once covered a large part of the damâ€™s surface, as well as 2 400 tons of litter and debris, and 31-million litres of algae soup thus far. In addition, to assist with the restructuring of the food web, 190 tons of unwanted fish species were 2 400 tons of pollution have been removed. caught and sold cheaply in the community. Most of the eroded shorelines were rehabilitated, and floating wetlands that act as effective filters to when applied to the soil. The extensive use of clean the water of pollution were established. vermiculture by the programme also gave local To effectively deal with the harvested plant entrepreneurs in the damâ€™s vicinity an opportunity matter and collected litter and debris, the pro- to start earthworm farms and in turn, provide gramme has put waste recycling and reuse the programme with the needed earthworms methods into place, whereby organic matter for its own composting activities. is composted through the practice known as According to Petrus, the long-term aim of the vermiculture (using earthworms). Earthworms programme is not only to apply the methods have the ability to convert organic waste into learnt to other affected dams and catchment nutrient-rich organic material. This material areas throughout South Africa, but to share the increases soil moisture and water retention knowledge gained with the rest of the world. north west business 2013 84 focus Many countries struggle with polluted or shrinking dams and lakes. Lake Chad for instance was once one of the African continent’s largest bodies of fresh water, but because of surrounding desertification due to human intervention, it is now one-twelfth of the size is was 50 years ago. It is thus encouraging that the success of using ecologically friendly ways to heal Hartbeespoort Dam has not gone unnoticed. Countries like Sweden, Finland and Serbia have already invited Petrus as a guest speaker to explain how South Africa cleaned its ‘seriously ailing’ Hartebeespoort Dam. The status of Hartbeespoort Dam Because of its proximity to three metropolitan areas, Hartbeespoort Dam is one of the most important recreational and water-supply dams in South Africa. Its water also supplys industrial and agriculture sites in North West Province. South Africa is a water-scarce country and water management is critical to economic planning. The western part of North West Province is particularly dry. Safe and clean water is of paramount importance to the stakeholders of Hartbeespoort Dam and that is why the Department of Water Affairs is leading a major project to reduce the pollution, especially the phosphate load, in the dam. The dam has been receiving large discharges of waste water from its rapidly urbanising catchment area, as storm water loaded with fertiliser and animal waste flows into the dam. Degraded river banks and wetlands in the catchment areas have also contributed to the problem. The HDRP is part of South Africa’s National Water Resource Strategy. By removing thousands of tons of algae and hyacinth (more than 64 000 tons so far), the nutrients that have made the dam hypertrophic are being drastically reduced. The clean-up process is spurred by incentives for workers and locals are benefiting from the sale of tons of unwanted carp and barbel that have been caught. Supply and treatment The dam was infested with algae and pollutants such as fertiliser. found most of them need a lot of improvement. Tlokwe (which controls the city of Potchefstroom) won the provincial competition and ranked fifth in the country in 2012. Tlokwe is one of only three municipalities in the country that acts as a water service authority and as a service provider. The biggest service providers active in the North West are: • Rand Water • Botshelo Water • Magalies Water • Sedibeng Water Midvaal Water Company supplies water to Matlosana (Klerksdorp). When the fast-growing town of Rustenburg faced a water crisis in 2003, an innovative public-private partnership was formed to create a funding model that not only brought water to the town and gave local platinum mines access to cheaper water than they had ever had before, but the Rustenburg Water Services Trust (RWST) even turned a profit. RWST is the special purpose vehicle that runs the new water system. It was formed with Magalies Water acting as the public partner and operator with Rustenburg Consulting Consortium (led by Bigen Africa) providing expertise and Absa Bank financing several upgrading projects. In 2011, RWST had cash reserves of R96-million and was planning to spend more than R400-million on water and sanitation expansion projects in and around Rustenburg The province has 83 sewage-treatment plants and the national Blue Drop award system has www.dwa.org.za/harties 85 north west business 2013 OVERVIEW Energy Biofuels and the energy potential of platinum are exciting researchers. Sector Highlights Anglo Platinum has demonstrated an underground mining locomotive powered by fuel cells. • North-West University has a national chair in Nuclear Engineering. • Sunflower seeds may be used as feedstock for biofuel. major companies M ost of South Africa’s energy requirements are met by Eskom’s coal-fired power stations, and coal is likely to be the most important feedstock in the short and medium term. But the drive to start producing renewable energy in large quantities is growing, and researchers and companies in the North West are looking into a wide range of options, from solar energy to hydrogen fuel-cells. Eskom, the national electricity utility, is currently adding to the capacity of the national grid. New power stations and upgrades to existing plants will see the utility double its national capacity to 80 000 megawatts by 2026. In 2011, Eskom made 10 162 new electricity connections in the North West and will spend R10.8-billion on infrastructure in the province in the years to 2016. Refined fuel is delivered to Rustenburg, the hub of the province’s mining industry, by Transnet Pipelines. North West Province has large reserves of platinum and there are exciting possibilities in potential energy applications for the mineral. In May 2012, Anglo Platinum, one of the province’s biggest companies, launched its first underground mining locomotive to be powered by a fuel cell. Platinum coating greatly enhances the hydrogen absorption capacity of fuel cells. The locomotive was developed together with Vehicle Projects, north west business 2013 86 • Sasol Technology • Silversands Ethanol • Faculty of Engineering, North-West University Trident South Africa and Battery Electric (Reuters). South Africa’s nuclearresearch centre is located at Pelindaba near Hartbeespoort Dam, and is run by the South African Nuclear Energy Corporation. The Nuclear Engineering Department at North-West University (NWU) is the only one of its kind in the country, and the National Department of Science and Technology granted a chair in Nuclear Engineering to NWU. The five-year grant is for R1.25-million, and the researchers will work with South Korean, US and Italian scientists on subjects such as gas centrifuge uraniumenrichment cascade models. PHOTO: POTCHEFSTROOM CAMPUS/NWU Renewable-energy technologies are being pioneered at research centres in the province. OVERVIEW Bioethanol, biodiesel and methane gas from waste and renewable resources are among the types of biofuels being investigated. As a major grain-producing area, North West Province is obviously well suited to supplying feed stock for biofuel projects, but a new set of national government guidelines has seen the emphasis in this nascent industry shift towards finding fuel stock from crops that are less likely to affect food security. These crops include sugar cane, sugar beet, canola and sunflower seeds. A serious debate is taking place about the possibility of amending national policy to allow surplus grain to be used for energy production. Sunflower seeds are very suitable for converting into biofuel, and the North West has an abundance of this crop. Sweet sorghum is a possible feedstock for processing into bioethanol. The South African Energy Resource Institute (Saneri) Chair in biofuel research is held by a professor on the Potchefstroom campus. A specialised unit at NWU is investigating wood-plastic composites in a drive to support and expand the green economy. The centre is supported by the National Department of Trade and Industry (dti) and Sasol Technology, the university’s long-term research partner. Entrepreneurs in the sustainable and alternative energy field have their products made and tested at the centre, which is in the School of Chemical and Minerals Engineering in the Faculty of Engineering. NWU offers post-graduate programmes through Renewable and Sustainable Energy Studies, the national progamme that is headquartered at Stellenbosch University. Subjects studied in recent years include: • Evaluation of the hyacinth in the production of biofuels • Ethanol production from sweetstem sorghum juice • Evaluation of macro algae for the production of biofuels Silversands Energy is a North West company that produces ethanol fuel for an ethanol-powered bus made by Scania South Africa for the City of Johannesburg. The North West generally has about 300 days of sunshine per year, so solar power has great potential, and a programme initiated by Invest North West aims to turn bush that is encroaching onto arable land into biomass in the form of biocoal (TOR) or briquettes. Invest North West is looking for investors who can commercialise this project in the Moses Kotane Local Municipality area. In 2012, engineering students from the Potchefstroom campus of NWU won an international competition with a solar-powered car of their own design. With sponsorship support from the Technology Innovation Agency (to the tune of R330 000), the students were able to build a car for R750 000 that broke a world record for the longest distance travelled using only solar power. Online resources African Biofuels: www.africanbiofuels.co.za CDM Africa Climate Solutions: www.cdmafrica.com Eskom: www.eskom.co.za Invest North West: www.inw.org.za National Department of Energy: www.energy.gov.za South African Energy Resource Institute: www.saneri.org.za Southern African Bioenergy Association: www.saba.za.org Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Society of Southern Africa: www.sessa.org.za 87 north west business 2013 OVERVIEW Banking and financial services Microlending is under the spotlight. A ll of the country’s major banks have a presence in the North West, and several of the smaller banks are present in mining areas. Ubank is owned by a trust that is managed by the Chamber of Mines and the National Union of Mineworkers (NUM). It has several branches in the North West. 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 providing credit for Ellerines Holdings Retail Stores, including Fairdeal, Town Talk Furnishers, Ellerines, Lubners, Furniture City and FurnCity. There are six branches in Mahikeng/Mmabatho and 10 in Rustenburg. Many low-income earners pay for goods and furniture on terms. Retail bank Capitec Bank has made remarkably quick progress in gaining market share – and not only among the previously unbanked. A client base 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 a presence in 18 towns in North West Province, with Rustenburg alone having 11 branches. Nationally, the bank has 534 branches. north west business 2013 88 Sector Highlights Technology is making banking easier for people in rural areas. • Capitec Bank topped four million clients in 2012. • Absa has launched Payment Pebble, a cardbased mobile-payment device. major companies • Standard Bank • Nedbank • Absa • First National Bank • Capitec Bank • Senwes Credit OVERVIEW The country’s biggest retail banks, Absa and Standard Bank, have about 800 and 680 branches 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. The North West agricultural credit sector is well catered for. In addition to the agricultural divisions of all the major banks and specialists, such as the Land and Agricultural Development Bank of South Africa (Land Bank), the large agricultural companies all have finance divisions. These include Senwes Credit and Suidwes Finance. Temo Agri (a division of Brits-based Magalies Graan Korporasie) and Noordwes Korporasie (Lichtenburg) have received the backing of the Industrial Development Corporation (IDC) to enable them to roll out agricultural credits to emerging farmers. The Royal Bafokeng Nation, a community of about 300 000 people living on platinum-rich land north-west of Rustenburg, is a shareholder in a large banking group and several of South Africa’s insurance companies through its investment company, Royal Bafokeng Holdings (RBH). In 2011, RBH increased its stake in RMB Holdings and RMI Holdings from 5% to 15%. RMB Holdings is a major shareholder in FirstRand, South Africa’s second-largest banking group, and RMI Holdings has large holdings in several insurance companies. A high percentage of the population of North West Province live in rural areas and are members of burial societies or saving groups (stokvels), but products such as the Mzansi account for low-income earners are attracting them to formal banking. The Finscope 2010 survey shows that 38% of South African adults use the informal sector, although the percentage of banked individuals is markedly up since the survey began in 2003: just over 50% of the population used formal banking products then, against 63% in 2010. New technology • 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. In 2012, the bank launched Payment Pebble, a card-based mobile-payment device. • FNB offers EasyPlan for first-time banking customers. The bank’s eWallet product, whereby money can be sent to cellphones, is proving popular. • A Pay2cell system allows for the transfer of money from one FNB account to another using a cellphone. • A Standard Bank community-banking initiative offers a lowcost cellphone-banking service. Retailers can act as agents for the bank, even in remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. • The Nedbank Business Banking division is part of a decentralised system that aims to gain insight into local conditions. The bank’s reach into rural areas has been enhanced by its branch-in-a-box concept. Online resources Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Public Investment Corporation: www.pic.gov.za South African Reserve Bank: www.resbank.co.za 89 north west business 2013 interview Linking SMEs to the market Sisa Ntshona, head of Enterprise Development at Absa Group, highlights the potential of SMEs and entrepreneurship. Sisa Ntshona Please explain the importance of small businesses for the economic growth of North West Province. As a country, we are sitting at about a 25% unemployment rate, but in the North West specifically, the unemployment rate is closer to 35-40%. If we want to find a solution and create jobs in that economy, we should focus on SMEs and entrepreneurship, as this sector consistently creates opportunities. What assistance/services does Absa Enterprise Development offer to small business owners? ‘Going beyond banking’ is a philosophy that drives our focus and what we do at Absa Enterprise Development. From this standpoint, we base our approach on three different but interconnected perspectives. The first premise is around ‘how do we assist budding entrepreneurs to get access to markets?’ We actively link up big corporate buyers with emerging SME suppliers. Secondly, the funding becomes a focus. We believe that money alone cannot solve the problem. So when you do find the market to land that big contract, we are able to forward funding to you. Sisa Ntshona is the head The third and last tool is what we call ‘access to business supof Enterprise Development port’. We tend to see a very high failure rate for start-ups, around at Absa, focusing on the 60% in the first two years, thereafter around 20-30%. This is development and fos- due to poor business skills, so we start to inculcate and impart tering of SMEs through skills around understanding financial management, etc. We do innovation and product this through our Enterprise Development Centres. There will be development. Sisa is a someone there to assist and coach the SME owner to run a profitable, seasoned executive who sustainable business. has worked extensively in the rest of Africa and the Please tell us about the procurement portal. Middle East fulfilling busi- In terms of creating access to markets, the procurement portal ness and operational roles. is our flagship solution. It is an electronic marketplace that links An accountant by training, corporate South Africa to SMEs. The portal provides SMEs the Sisa also holds an MBA chance to register their businesses. This allows corporates to from GIBS and has com- search for SMEs by geographic location, industry, profile, BEE pleted the International certificate, etc. Executive Programme from INSEAD in France For more information, visit www.absa.co.za, email firstname.lastname@example.org and Singapore. or contact the call centre on 0860 040 302. north west business 2013 90 Business Banking Enterprise Development Making your business idea a reality Bring your business ambitions to life with Enterprise Development. Think of us as your entrepreneurial partner – transforming business ideas into reality. Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7 • Guarantee schemes – unique and relevant funding solutions. • Procurement portal – a marketplace for both SMEs and Corporates. • Enterprise Development Centres – to support SMEs with advice and resources. Partner with us as we share your belief that every idea is possible. For more information, contact Enterprise Development at email@example.com OVERVIEW Development finance and SMME support Support for North West entrepreneurs is available. Sector Highlights The Small Enterprise Finance Agency is a new national body. • Seda is looking into a food-processing plant for small businesses. • Zimele has several hubs in the province. major organisations • Industrial Development Corporation • Invest North West • National Empowerment north west business 2013 92 Fund • Small Enterprise Development Agency • Small Enterprise Finance Agency • North West Development Corporation • Anglo American Zimele nationally, with more than 1 500 jobs being created. Seda has initiated a programme designed to make cooperatives and jointly owned enterprises stronger. The four key sectors are: agri-processing, community tourism and protected areas, mining and mineral beneficiation, and trading. The agency supports businesses across a range of sectors, from transport photo: LEE-ANNE MURPHY/WESVAAL CHAMBER OF COMMERCE N ational government has created a new agency to spur the development of small, medium and micro enterprises (SMMEs), the Small Enterprise Finance Agency (sefa). According to research done by Absa, SMMEs were supporting 60% of the country’s employable population in 2011, against a figure of just 18% in 1998. The new agency falls under the Industrial Development Corporation (IDC). In 2010, the IDC spent R2.1-billion across South Africa in supporting 142 SMMEs, and a total of R9.4-billion on new capacity or expansion projects. The Gro-E Scheme will fund small businesses to the tune of R10-billion in the years to 2017. In 2011, the IDC approved funding to the North West to the tune of R1.8-billion, which has the potential to create more than 10 000 jobs. Among provincial projects supported are the Nguni cattle project, the Dinaledi Schools project and the provision of agricultural credit for emerging farmers. 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. In 2011/12, 295 potential businesses were turned into trading entities by the Seda Technology Programme (Stp) OVERVIEW to jewellery design and manufacture. Seda is doing a feasibility study on the establishment of a food-processing plant in the Dr Ruth Segomotsi Mompati District. Like Seda, the National Empowerment Fund (NEF) is an agency of the dti. The launch in 2011 of the Enterprise Development Fund (EDF) by the NEF was a positive step in providing more funding for start-up businesses. The EDF has an initial funding of R75-million, with plans to boost this by another R50-million supplied by private partners who want to see black-run and women-run businesses succeed. In the 2010/11 financial year, the NEF rolled out funding worth R2.3-billion for black entrepreneurs in a range of sectors. The Pre-Investment Unit of the NEF screened 1 718 applications in 2011/12, a 69% increase on the previous year. The North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT) supported 26 small-business projects in 2011 as part of the provincial government’s strategy to support rural youth and women. Enterprise-development centres were established in Bedwang and Logagane, and 440 SMMEs were exposed to training in financial management and marketing. DEDECT has identified the following subsectors in which to develop the SMME sector: • Metal fabrication • Transport equipment • Agri-processing • Plastics, pharmaceuticals and chemicals • Clothing, textiles, footwear and leather The North West Development Corporation (NWDC) is the economic-development agency of the province, aligned to the DEDECT’s objectives. Among the NWDC’s services is helping SMMEs gain access to funding and providing the infrastructure (offices or factory space) to help them succeed. NWDC also helps start-up businesses identify markets and opportunities. Invest North West is a section 21 company of the DEDECT that works to attract investment into the province. It also promotes exports from the North West. INW’s partnership with the Automotive Industry Development Centre (AIDC) has been particularly successful (see Manufacturing overview). 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), and transport infrastructure (between R30-billion and R50-billion). Private initiatives A private initiative that is creating employment is Anglo American’s Zimele: it has launched more than 900 businesses across the country with a combined annual turnover approaching R2-billion. There are small business hubs at Rustenburg, Mogwase and Thabazimbi. Royal Bafokeng Platinum is supporting a project to boost the business skills of entrepreneurs. The Micro Enterprise Development Organisation (Medo) is sending a mobile office to 29 villages within the Royal Bafokeng Nation. A new SMME Business Park was opened in Rustenburg in 2011. One of the area’s biggest businesses, Xstrata Alloys, put R2.4-million into the Zinniaville facility. Online resources Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Invest North West: www.investnorthwest.co.za National Department of Trade and Industry: www.thedti.gov.za National Empowerment Fund: www.nefcorp.co.za North West Development Corporation: www.nwdc.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za 93 north west business 2013 interview Collective approach to enterprise development Provincial manager for Seda North West Neville Maimane explains how the organisation is cooperating with other role-players in the province in order to promote economic development in the region. Neville Maimane How have small businesses in North West Province weathered the economic downturn? Larger corporates were, in many cases, more adversely affected by the economic downturn than small enterprises due to the knock-on effect it had on the business value-chain at different levels. Small enterprises found it comparatively easier to adapt and change their operational strategies in order to cope with the effects of this economic phenomenon. On the upside, the economic downturn encouraged SMMEs to recognise the benefit of collective bargaining and buying – a strategy that is assisting a number of SMMEs to mitigate potential economic risk. What is Seda doing to prevent the high failure rate of start-ups? An analysis made of the SMME mortality rate highlights the following as key causes of failure: • Business research failures by people intending to start businesses • Lack of training • Pressure on people to become actively employed • Undercapitalised businesses Neville Maimane is the provincial manager for Does Seda have a structured mentoring programme in place? If so, Seda North West and is please tell us more. accountable for the stra- Mentoring in the context of Seda business is aptly captured in what tegic direction and man- is referred to as the ‘client journey’. agement of operations of This client journey involves mentorship at different levels the organisation in the focusing on: province. During his varied • Start-ups career he has led and man- • Potential business start-ups at our branches that participate in a aged organisations such ‘handholding’ arrangement, which tends to incorporate the following: as Bokamoso Home Loans, °° Through a filtering process the qualifying client would have had MSI Financial Consulting his/her business idea researched and translated into a business and Training, Bardusch, plan – a document that would serve as a road map to guide him/her through all business processes from securing business the Black Management Forum and the North West funding to establishing a business and then maintaining and Development Corporation. managing that business. north west business 2013 94 interview °° Clients like this would be allocated dedicated business advisors. °° Representatives from the branch would undertake periodical aftercare visits that would culminate in an aftercare report. The report is then used in the measurement and evaluation of business performances. Explain the role of the CEO’s Forum and how Seda plans to participate in the forum. Guided and instructed by the need to operate as a collective to ensure a fully integrated approach in fostering the ideals of the provincial business and economic agenda, all entities (14 in total) playing in the space of ‘enterprise development’ have come together to form a forum. This forum will be used as a conduit for the Department of Economic Development and Tourism to leverage the individual capacities, mandates and resources of the participating entities. Seda North West has installed six All activities and engagements of the forum information kiosks at the premises of will be project-driven, continuously ensuring various partners in the province. that they are aligned to the provincial/national business priorities. The purpose of the forum economic messages to the provincial government, which have informed the provincial in the province is to: • Foster the spirit of cooperative governance business/economic agenda. • Ensure integrated planning and development • We are currently used as a sounding-board by • Identify common areas for participants to the Department of Economic Development coordinate efforts (and share resources) and Tourism, the Department of Social • Identify projects that encourage integrated Development, business chambers as well as municipalities (local and district), which performance • Share platforms on business intelligence share views and ideas with us regarding • Provide support and advisory services for ecoissues pertaining to enterprise development nomic development in provincial institutions in the province. • Execute the effective and efficient implementation of pre-determined business- How can small business owners access Seda’s services in the province? development programmes • Monitor and evaluate member performances • Through the Seda website (www.seda.org.za) • Foster lobbying and advocacy • Through our provincial network points in all four districts (readers can refer to the list Is your Enterprise Development Forum of physical addresses of our branches and proving successful? Please explain why. service points elsewhere in the publication) • Through integrated planning we are able • Through contact with our mobile units, which to anticipate and budget for identified, priare periodically sent to different districts oritised projects that are likely to have high • By browsing through information loaded on the information kiosks that have been distribvalue and high impact in the province. • As a collective we have had successes in uted in strategic municipal offices (these are communicating common business and also listed elsewhere in the publication) 95 north west business 2013 focus Seda North West Provincial Network North West Provincial Office: Provincial Manager: Mr Neville Maimane 187 Joubert Street, Rustenburg 0299 Tel: 014 592 9461 Fax: 014 592 9734 Dr Ruth S Mompati Branch Branch Manager: Mr Paul Manoto 83 Vry Street, Vryburg 8600 Tel: 053 927 0591 Fax: 053 927 0591 Our Vision To be the centre of excellence for small enterprise development in South Africa Ngaka Modiri Molema Branch Branch Manager: Ms Morongwa Moseki Office Suite 018, Commissioner Place, Cnr Carrington and Victoria Streets, Mafikeng 2745 Tel: 018 381 3915 Fax: 018 381 3914 Our Mission To develop, support and promote small enterprises to ensure their growth and sustainability in coordination and partnership with other role players Bojanala East Branch Branch Manager: Mr Mike Nyenes 1 Kerk Street, Brits 0250 Tel: 012 252 0580 Fax: 012 252 0579 Our Values N - Nurture I - Innovation C - Customer Orientation E - Ethical Behaviour R - Resilience Bojanala West Branch Branch Manager: Ms Kenielwe Danke 25 Heystek Street, Rustenburg 0299 Tel: 014 592 3696 Dr Kenneth Kaunda Branch Branch Manager: Mr Afrika Mpeqeka Office Suite 20206, 2nd Floor, West End Building, Klerksdorp 2570 Tel: 018 462 1376/0704 Fax: 018 462 1385 www.seda.org.za north west business 2013 96 focus A Diagram of Seda’s Integrated Products and Services Business Cycle MEDIUM SMALL START-UP PRE START-UP Programme Packages Diagnostic Assessment Assistance Provided • Small Business Assessment • Assessing Company Operations • Critical Planning Exercise • Company Comparative Analysis • Business Systems Development • Mentorship • Co-operative Support • Tender Advice/ Procurement • Growth Strategies Seda Business Build • Assessing Company Operations • Critical Planning Exercise • Company Comparative Analysis • Export Readiness Assessment • Capacity Building Systems • Mentorship • Tender Advice/ Procurement • Export Readiness • Franchising Seda Business Start • Small Business Assessment • Critical Planning Exercise • Costing Tool • Business Planning Tool • Business Planning • Business Counselling • Access to Finance • Business Support Seda Business Talk • Pre Start-up Assessment Tool • Business Idea Assessment Tool • Entrepreneur Diagnostic Assessment • Business Advice and Information • Small Enterprise Training • Business Registration Seda Business Grow 97 north west business 2013 focus Seda extends its reach Seda is making use of information kiosks to enhance its reach in North West Province and provide quality information in areas where Seda has only a periodic physical presence. S eda North West has installed six information kiosks (Freedom Toasters) at the premises of various Seda partners in North West Province. These information kiosks are self-contained electronic information units that display 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 and all the units are Seda branded. Location of kiosks Seda North West selected the following locations: • Mogwase Civic Centre in the Moses Kotane Municipality • Research publications • Information on broad-based black economic empowerment • Intellectual property • Targeted procurement • Seda Technology Programme 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 • Cooperatives and CPPP programme • Franchising • Local programmes • LED offices in the Moretele Local Municipality • LED office (information centre) in the Tlokwe Downloads The following basic templates can be downloaded from the information kiosks: • Fax cover • Memo • Purchase order (MS Word) • Price increase Content • Request credit from a supplier Local small-business owners and prospective • Job offer to a new employee entrepreneurs are able to view and download a • Invoice template variety of informative content from the kiosks. • Purchase order (MS Excel) Examples of the information available at the • Marketing budget plan kiosks include: • Product catalogue • Introduction to Seda • Employee time card • How to compile a business plan • SWOT analysis template • Diagnostic assessments • Various accounting documents • SMME information websites • Business idea checklist Updating information • Financing your business • Client success stories Updates of information will be done through • Seda news Seda. The system allows for remote updates. Municipality • Ratlou Municipality building in Setlagole • Victor Tong Service Centre in Morokweng • Local municipality in Schweizer Reneke north west business 2013 98 focus Cooperatives and Community Public Private Partnership Unit At the end of 2008, Seda launched a programme to support non-traditional organisational forms of business. The programme combines the previous Sector Development and Cooperatives Programme with new offerings. Strategic intent Qualifying criteria The Cooperatives and Community Public Private Partnership Unit (Coops & CPPP unit) was established to: • Assist in the establishment of viable collectively owned enterprises • Promoting economy of scales in terms of: °° Increased buying power and collective bargaining °° Viable and inclusive funding models • Capacity building °° Mentorship/skills transfer °° Incubation °° Training • Facilitate value addition °° Product beneficiation °° Product diversification • To leverage partner resources for co-operatives development • Must be registered with CIPC as per the Cooperatives Act, Act 14 of 2005 • Preferably actively engaged in production for a minimum of six months • Cooperative must have been established in response to market needs • Must be broad-based in formation and outlook (with potential for job creation) Programme’s key sectors • Agribusiness • Cultural tourism • Mining and mineral beneficiation • Trading and auxiliary services To access the Seda Coops & CPPP offerings please visit your nearest Seda branch or visit the website at www.seda.org.za Coops & CPPP offerings • Development of viable/bankable 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 99 north west business 2013 focus Invitation to potential partners ‘Together advancing small enterprise development’ S eda, mandated by the Small Business Amendment Act, Act No 29 of 2004, continues to ensure that partnerships between like-minded organisations operate and perform in a manner that is more complementary to ensure the attainment of the provincial government priorities. Services required We specifically require partners who deliver delivery of services in the following areas: • Support for and development of co-operatives • Mentorship programmes for enterprises • Established Sector Education and Training Authority (SETA) forums • Local economic development units of district Valuable partnerships and local municipalities Central to the establishment of strategic • Private corporate social investment units alliances is to ensure that the strategic thrust of (CSI units) such partnerships derives optimum value and • Development foundations benefit from collective approaches to enter- • Commercial banks prise development. It is the objective of Seda • Export and trade councils North West, which co-founded and facilitated • Government departments that have the establishment of the North West Economic enterprise development programmes Development Forum, to leverage resources • Business and sector chambers and expertise from participating members in the interest of business enterprises in the Seda North West can be contacted at: North West. Seda North West Provincial Office The membership of the forum comprises 14 Mlungisi Makhubalo, NW Marketing and state-owned entities (SOEs) operative in North Stakeholder Relations West Province, predominantly those operating Tel: +27 14 592 9461 in the space of enterprise development. www.seda.org.za The primary focus of the forum remains guided by the national and provincial government priority of job creation. Invitation to associates In light of the above, Seda and its partners humbly extend an invitation to all other structures such as industry associations, cooperative associations, business-development institutions and national, district and local government departments to partner the forum in the realisation of its objectives. north west business 2013 100 The IDC is the biggest supporter of tenders awarded in the Over the next five years, the IDCBusiness will makeBanking available R25 billion Department of Energy’s Renewable Energy Independent to fund projects related to green industries. Enterprise Development Power Producers (REIPP) programme. The IDC is identifying and providing funding for many projects In the first round of REIPP tenders, the IDC participated in that will contribute to building South Africa’s industrial capacity twelve successful bids, and seven more in the second round. and creating jobs. Visit www.idc.co.za to find out more. The green energy bids include wind power, concentrated solar power, photovoltaic and small hydro projects. The power behind renewable energy Making your business idea a reality Chillibush8603IDC Bring your business ambitions to life with Enterprise Development. Think of us as your entrepreneurial partner – transforming business ideas into reality. • Guarantee schemes – unique and relevant funding solutions. • Procurement portal – a marketplace for both SMEs and Corporates. • Enterprise Development Centres – to support SMEs with advice and resources. Telephone: 086 069 3888 Email: firstname.lastname@example.org Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7 To apply online for funding of R1 million or more go to www.idc.co.za Partner with us as we share your belief that every idea is possible. For more information, contact Enterprise Development at email@example.com focus Funding products and services The National Empowerment Fund (NEF) has approved over R4.5-billion (December 2012), a milestone which has supported more than 36 000 jobs countrywide. Mandate • compliance with all the relevant laws and 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 north west business 2013 102 focus Mpumalanga Province Physical address: Trust Building, 16 Brander Street, Nelspruit 1200 Tel: 0861 NEF MPU (0861 633 678) Email: firstname.lastname@example.org 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: email@example.com North West Province Physical address: 32B Heystek Street, Sunetco Office Park, Ground floor, Rustenburg 0299 Tel: 0861 633 697 Email: firstname.lastname@example.org Product/Fund Description Entrepreneurship Finance For starting a new business R250 000 – R10-million Procurement Finance For tenders and contracts R250 000 – R10-million Franchise Finance For pre-approved franchise licenses R250 000 – R10-million Acquisition Finance For black investors to acquire a stake in medium to large companies R2-million – R75-million Expansion Capital For growing an existing business New ventures Participation in greenfield projects R5-million – R75-million Capital Markets Listing on the JSE or its junior Altx markets R2-million – R75-million 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 R2-million – R75-million For agri-processing, tourism, mining and beneficiation, manufacturing, etc R1-million – R50-million 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 R1-million – R75-million *Rural and Community Development Fund *Strategic Projects Fund Funding amounts R250 000 – 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. 103 north west business 2013 OVERVIEW Education Mathematics and science teaching is under the spotlight. Sector Highlights North-West University is set to spend R380-million on building projects. • Lebone II College has won a design award. • Extraordinary research results have led to the opening of a hypertension clinic. major companies mathematics and science results in schools are being made. It is the mining industry, North West’s most important economic sector, that is most in need of engineers and qualified artisans. A number of partnerships deliver training courses. The Bakgatla-BaKgagela Mining Academy on the Mankwe campus of the Orbit FET College is the result of a partnership between the Lebone II College has 800 learners from Grades R-12. Bakgatla-Ba-Kgagela people n the North West, as in the nation as a whole, the challenges and Platmin, Pallinghurst, IBMR/ created by South Africa’s past are very clear in the field of Sedibelo and Anglo American education. The North-West University has an enviable reputa- Platinum’s Union Section. The tion as a research institution, and the province is also home to first graduates received their qualifications in 2011. small rural schools with few amenities. The provincial government of North West Province is Anglo American Platinum spending huge amounts of money on schooling in an attempt (Amplats) has a large skillsto redress the imbalances of the past. Several efforts to improve training centre in Rustenburg, I north west business 2013 104 photo: activate high performance architecture • North-West University • Orbit FET College • Taletso FET College • Vuselela FET College OVERVIEW photo: anglo american the Development and Operational Skills Centre, which is ISO 9001-accredited. A college for artisans was opened in Marikana in April 2012 by mining company Lonmin. The electrical trade will be the first area of focus of the college, which will train employees and local people. The African Union Aviation Academy in Mahikeng aims to become the continent’s first aviation university. There are 801 students registered at the Emergency MedThe North West Department of Education has built 64 new ical Rescue Services (EMRS) schools in the province in the last nine years. College in Orkney. Training as emergency-care technicians and Related SETA (merSETA), Lelethu Training and Ford prepares students to study South Africa. Vuselela FET College’s Klerksdorp site hosts an accredited to become advanced lifesupport paramedics. trade-test centre, and the college has entered into partnerships with several public and private entities including Telkom, SANDF, Anglo Gold Ashanti and Simmer & Jack. FET colleges North West has three large FET colleges. Six campuses covering all the larger towns on the eastern edge of the province (including Potchefstroom and Klerksdorp) are covered by the Vuselela FET College. Orbit FET College has three sites, Rustenburg, Mankwe and Brits, and Taletso FET College caters to Mahikeng, Lichtenburg and the rural areas in between. Taletso’s Modimola Agricultural Project has been hailed as a great success. The Rustenburg campus of Orbit FET College’s Microsoft IT Academy has an enrolment of 290, while the Mankwe campus offers automotive training, the result of a partnership between the Manufacturing, Engineering Schools A school in a remote part of the North West Province was joint winner in 2012 of a major national architectural award. The Lebone II College was designed by Activate Architects with Afritects, and was joint winner of the South Africa Institute of Architects Award for Sustainable Architecture. The startling design replicates an African village, and elements of the building are given over to harvesting rain water and collecting the rays of the sun on the Tsufi Ridge overlooking the town of Phokeng. The Royal Bafokeng Administration paid for the school, which has 800 pupils from Grades R-12. The Batswana Commercial Secondary School in Mahikeng was another school with reason to celebrate in 2012 – the school celebrated its 50th birthday. The school has a reputation for good results and counts among its old boys Transnet chief executive Brian Molefe (The New Age). Mathematics and science are the areas of most concern in many schools in South Africa, and the North West is no exception. First National Bank has donated R1-million for the establishment of a career-development fund for university students who want to study finance, maths or science. North-West University’s Faculty of Engineering has come up with the idea of starting a science, engineering, technology and 105 north west business 2013 OVERVIEW health (SETH) academy at an existing school in Potchefstroom, Ferdinand Postma High School. The aim is to improve the number and quality of candidates in that field who apply to university. Since 2004, the North West Department of Education has built 64 new schools in the province and had 151 renovated. Spending on new infrastructure and renovations is set to continue for years, offering many opportunities to contractors. Alternative energy is one of the many fields where NWU students are excelling, and this aspect of the university’s work is covered in more detail in the Energy overview of this publication. Sasol Technology is a research partner of NWU. Chemical, Tertiary electrical and mechanical North-West University (NWU) has about 45 000 students, with engineering are also offered. approximately 20 000 of them studying by correspondence. The The research strategy of the university’s campuses are in Potchefstroom, Mahikeng and Van- university has three key focus derbijlpark. More than 5 500 students are enrolled in courses areas: • C h e m i c a l r e s o u r c e in the education faculty. An amount of R380-million will be spent on an NWU building beneficiation programme in the years to 2015. Most of the money, of which • Social transformation R211-million is being sourced from the National Department of • Teaching-learning Higher Education and Training, will be spent at Mahikeng, where organisations two new residences will be built. A new pharmacy building will The University of South Africa be constructed at Potchefstroom. (Unisa) has three branches in Remarkable research by NWU’s Hypertension in Africa the North West, at Rustenburg, Research Team (HART) shows that blood-pressure-related dis- Potchefstroom and Mmabatho. eases are more prevalent among black people than among One of many organisations white people, with 70% of black male teachers suffering from that provides bursaries for tertiary education is the JB Marks high blood pressure. This research has led to the creation of a Hypertension Bursary Trust, an organisation Clinic at the Potchefstroom campus of NWU, which will receive funded by the Mineworkers’ R7.5-million in National Research Foundation funding over Investment Trust. With the five years. North West economy leaning The Centre of Excellence for Nutrition in the Faculty of Health so heavily on mining, many Sciences is the only one of its kind in Africa. of the bursaries are in engiThe roots of the Potchefstroom campus are in theology, but neering, but recipients of the courses now offered include a post-graduate degree in nuclear Marks bursary have excelled science and engineering. in many fields. Online resources Council of Higher Education: www.che.ac.za Graduate School of Business and Government Leadership, NWU: www.nwu.ac.za Mineworkers’ Investment Trust: www.mit.org.za Mining Qualifications Authority: www.mqa.org.za National Department of Basic Education: www.education.gov.za National Department of Higher Education and Training: www.dhet.gov.za North West Department of Education: www.nwpg.gov.za/education North-West University: www.nwu.ac.za north west business 2013 106 listings Business organisations These business associations are a helpful first port of call for anyone wishing to do business in the North West. Lichtenburg Business Chamber Vryburg Business Forum Postal address: PO Box 107, Lichtenburg 2740 Tel: +27 18 633 1069 Email: email@example.com Postal address: PO Box 1947, Vryburg 8600 Tel: +27 83 313 9025 Fax: 086 693 6365 (SA only) Email: firstname.lastname@example.org Rustenburg Association of Business Wesvaal Chamber of Business Physical and postal address: 13 Moumo Street, Trhabane Industrial Park, Rustenburg 0299 Tel: +27 83 552 2370 or +27 71 330 4829 Fax: 086 601 5160 (SA only) Physical address: 48 Buffelsdoorn Road, Klerksdorp 2571 Postal address: PO Box 7167, Flamwood 2572 Tel: +27 18 468 3750 Fax: 086 693 6365 (SA only) Cell: +2776 281 8019 Email: email@example.com Website: www.wesvaalchamber.co.za 107 north west business 2013 message A focus on solutions will drive recovery Peter Ramadikela, chairman of the Rustenburg Association of Business, believes that the reconstruction process of the economy demands broader stakeholder engagement. fledged Rustenburg Chamber of Commerce and Industry (RCCI). In order for the nuclear business community to gain the critical upperhand in relation to ‘change’ discourse, the mechanisms of free-flow engagement need to be in place and accessible. Hence the RCCI is poised to intercede effectively for the Rustenburg business community, compelling the upper echelons of decisionmaking in business to factor our inputs and viewpoints into the new plans and programmes. Meaningful engagement RAB invites all businesses, both private and public, to continue to seek out one another, and to take meaningful part in the reconstruction of the region’s socioeconomic pathway – post Marikana. The RCCI calls upon all interested parties to contact Peter Ramadikela, Chairman us, and become one with us. In 2013, like never before, the Greater Rustenburg business family stands to be rewarded for adopting a single view to recovery and triumph – with sustainable triple bottom lines. In the final analysis, the RCCI will be working tirelessly to provide each business with a solid platform, in order for them to articulate their needs and interests, and for every business he path to economic entity to be regarded as an indispensable building block towards recovery has never been the ever-bright future of Rustenburg and its surrounding areas. an easy one and in order for To that extent, the general consensus has been reached: curgreater levels of harmony to pre- rent unemployment, poverty and inequality levels can no longer vail, the stakeholders must show be tolerated. concerted efforts in seeking one Unfortunately, not all strategic role-players have always pulled another out. their weight. Henceforth, collective efforts will continue to discourage the use of the ‘stick’ for non-participation and non-compliance, and instead to encourage the change of attitude totally. The way forward We are mindful of the fact that quick-fixes will not work; but In appreciation of the need in the same vein, we are of the view that there are ‘low-hanging for new solid socioeconomic fruits’ that can help in the mitigation of ensuing hard times. For developmental lessons, the instance, the state of willingness by many to engage in solutionRustenburg Association of centric discussions, is consolative enough. The RCCI trusts that the Business (RAB) will be trans- recovery will occur sooner rather than later. forming in earnest into a fully T north west business 2013 108 message Members are the key focus Chamber president Ben Mosala highlights some of the key developments that have revitalised the Wesvaal Chamber. and has been a way to communicate with both members and non-members regarding activities and important information. We were also able to generate all the printed media that we planned for 2012. We delivered a very successful business guide and we look forward to the 2013 edition, to be launched on 15 March 2013. Events and functions We hosted numerous successful events in various formats in 2012. The chamber, with the help and support of our members, managed to train more than 300 members and non-members. We also hosted a well-attended banquet and award ceremony, thanks to the generosity of our main sponsor The Workforce Group, as well as the other award sponsors. This event has become a Ben Mosala highlight on the chamber calendar. Our core focus for 2012 was our members – and I believe that we have gone the extra mile for each and every one of them. Our goal was for our members to start seeing us as a source of information and a place to received advice or possible solutions – without paying extra. The chamber is currently in the process of finalising a memorandum of understanding with Seda for 50 efore we can determine new memberships that they will fund. a strategy for 2013, we need to take stock of our Plans for 2013 success and failures in 2012. One of the aims of the mar- The executive committee has retained the strategy from 2012 keting strategy was to establish – but will use 2013 to refine it more and improve on the areas partnership with community that need attention. newspapers. A partnership with We are looking forward to the following: Klerksdorp Record has proven • We have a packed year planner and have had companies book most effective and we have dates for training for the first six months of the year. maintained the weekly articles • We were approached by Dr Ruth Segomotsi Mompati District as required. Our website was Municipality to open a satellite chamber office in the greater launched with the new logo in Taung municipality. The long-term objective is to open other May 2012, and is doing very similar satellites throughout the district over a five-year period. well. The year planner was sent • The chamber is also developing a new service that will make to magazines and businesses us the only supplier of certificates of origin in North West highlighting our planned activiProvince and make it far more convenient for our members ties for 2012. to access these documents The Wesvaal Chamber Face- We look forward to serving our community and our members book page has been effective in 2013! B 109 north west 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. The Presidency 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 President: Jacob Gedleyihlekisa Zuma Deputy President: Kgalema Motlanthe National Government Departments 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 north west business 2013 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 110 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 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: firstname.lastname@example.org Website: www.dcs.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: email@example.com Website: www.education.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 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 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 111 north west business 2013 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 north west 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 112 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 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: firstname.lastname@example.org Website: www.publicworks.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: email@example.com Website: www.saps.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 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 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 113 north west 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 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 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 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 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 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: email@example.com Website: thepresidency.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: firstname.lastname@example.org Website: www.thedti.gov.za north west business 2013 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 114 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 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: firstname.lastname@example.org or email@example.com 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 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 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. 115 north west business 2013 listings North West Provincial Government A guide to North West Provinceâ€™s government departments. www.nwpg.gov.za Office of the Premier Education and Training Premier: Thandi Modise Physical address: 3rd Floor, Garona Building, Dr James Moroka Drive, Mmabatho 2735 Postal address: Private Bag X129, Mmabatho 2735 Tel: +27 18 388 2456 Fax: +27 18 388 3008 Email: firstname.lastname@example.org Website: www.nwpg.gov.za MEC: Moruakgomo Louisa Mabe Physical address: 2nd Floor, Garon Executive Building, Mmabatho 2735 Postal address: Private Bag X2044, Mmabatho 2735 Tel: +27 18 388 2563 Fax: 086 620 1117 (SA only) Email: email@example.com Website: www.nwpg.gov.za/education Agriculture and Rural Development Health MEC: Desbo Mohono Physical address: Ground Floor, Agricentre Building, Cnr Dr James Moroka Drive and Stadium Road, Mmabatho 2735 Postal address: Private Bag X2039, Mmabatho 2735 Tel: +27 18 389 5056 Fax: +27 18 384 2679 Email: firstname.lastname@example.org Website: www.nwpg.gov.za/agriculture MEC: Dr Magome Masike Physical address: 2nd Floor, Tirelo Building, 2054 Dr Albert Luthuli Drive, Mahikeng 2745 Postal address: Private Bag X2068, Mmabatho 2735 Tel: +27 18 388 3784 Fax: 086 692 9553 (SA only) Email: email@example.com Website: www.nwhealth.gov.za/dohsoc Human Settlements, Public Safety and Liaison Economic Development, Environment, Conservation and Tourism MEC: Motlalepula Rosho Physical address: Development House, NWDC Building, Cnr Provident Street and University Drive, Mmabatho 2735 Postal address: Private Bag 15, Mmabatho 2735 Tel: +27 18 387 7700 Fax: +27 18 392 5660 Email: firstname.lastname@example.org Website: www.nwpg.gov.za north west business 2013 MEC: Nono Maloyi Physical address: 3366 Bessemer Street, Telkom Building, Industrial Site, Mahikeng 2745 Postal address: Private Bag X3145, Mmabatho 2735 Tel: +27 18 387 6002 Fax: +27 18 381 0328 Email: email@example.com Website: www.nwpg.gov.za 116 listings Local Government and Traditional Affairs Social Development, Women, Children & People with Disabilities MEC: Amina Doduvu Physical address: Garona Building, Cnr President and University Drive, Mmabatho 2735 Postal address: Private Bag X2099, Mmabatho 2735 Tel: +27 18 388 1672 Fax: 086 586 9597 (SA only) Email: firstname.lastname@example.org Website: www.nwpg.gov.za/ddlg&ta MEC: Mosetsanagape Mokomele-Mothibi Physical address: Provident House Building, University Drive, Mmabatho 2735 Postal address: Private Bag X06, Mmabatho 2735 Tel: +27 18 388 2041 Fax: +27 18 384 5521 Email: email@example.com Website: www.nwpg.gov.za/socdev Sport, Arts and Culture Provincial Treasury MEC: Tebogo Modise Physical address: 2nd Floor, Gabomotho Building, James Maroka Drive, Mmabatho 2735 Postal address: Private Bag X90, Mmabatho 2735 Tel: +27 18 388 2804 Fax: +27 18 388 1913 Email: firstname.lastname@example.org Website: www.nwpg.gov.za/dsac MEC: Paul Sebegoe Physical address: 2nd Floor, Garona Building, University Drive, Mmabatho 2735 Postal address: Private Bag X2060, Mmabatho 2735 Tel: +27 18 388 3446 Fax: +27 18 388 1873 Email: email@example.com Website: www.nwpg.gov.za Public Works, Roads and Transport MEC: Raymond Ehisha Physical address: Ngaka Modiri Molema Road, Old Parliament Complex, Provincial Head Office, Mmabatho 2735 Postal address: Private Bag X2080, Mmabatho 2735 Tel: +27 18 388 1454 Fax: +27 18 388 1819 Email: firstname.lastname@example.org Website: www.nwpg.gov.za/publicworks North West Province Coat of Arms The provincial coat of arms for the North West Province was registered with the Bureau of Heraldry on 7 May 1999. The colours of the arms are based on the colours of the national flag. The jug in the middle of the shield symbolises the historical Tswana culture. The ‘crown’ is made from buffalo horns – the buffalo is a symbol of strength and a typical animal in the area. The sunflower symbolises joy and fertility. The two supporters are Sable antelopes. The motto Kagiso le Tswelelopele translates as ‘peace and prosperity.’ 117 north west business 2013 listings North West Local Government A guide to local and district municipalities in North West Province. Local municipalities encompassed Greater Taung Local Municipality Tel: +27 53 994 9400 Fax: +27 53 994 3917 Bojanala Platinum District Municipality Physical address: cnr Beyers Naude and Fatima Bhayat Drive, Rustenburg 0300 Postal address: PO Box 1993, Rustenburg 0300 Tel: +27 14 590 4500 Fax: +27 14 597 3170 Email: email@example.com Website: www.bojanala.gov.za Lekwa-Teemane Local Municipality Tel: +27 53 441 2206 Fax: +27 53 441 3735 Website: www.lekwateemane.co.za Local municipalities encompassed Kgetleng Rivier Local Municipality Tel: +27 14 543 2004 Fax: +27 14 543 2480 Mamusa Local Municipality Tel: +27 53 963 1331 Fax: +27 53 963 2474 Website: www.mamusalm.gov.za Molopo Local Municipality Tel: +27 53 933 0029 Fax: +27 53 933 0035 Madibeng Local Municipality Tel: +27 12 318 9100 Fax: +27 12 318 9203 Naledi Local Municipality Tel: +27 53 928 2200 Fax: +27 53 927 3482 Moretele Local Municipality Tel: +27 12 716 1000 Fax: +27 12 716 9999 Ngaka Modiri Molema District Municipality Moses Kotane Local Municipality Tel: +27 14 555 1300 Fax: +27 14 555 6368 Website: www.moseskotane.gov.za Physical address: cnr Carroton Street and First Avenue, Industrial Site, Mahikeng 2745 Postal address: Private Bag X2167, Mahikeng 2745 Tel: +27 18 381 9400 Fax: +27 18 381 0561 Email: firstname.lastname@example.org Website: www.nmmdm.gov.za Rustenburg Local Municipality Tel: +27 14 590 3090 Fax: +27 14 590 3399 Website: www.rustenburg.gov.za Dr Ruth Segomotsi Mompati District Municipality Physical address: 60 Market Street, Vryburg 8600 Postal address: PO Box 21, Vryburg 8600 Tel: +27 53 927 2222 Fax: +27 53 927 2401 Email: email@example.com Website: www.bophirima.co.za north west business 2013 Local municipalities encompassed Ditsobotla Local Municipality Tel: +27 18 632 5051 Fax: +27 18 632 5247 Mafikeng Local Municipality Tel: +27 18 389 0111 Fax: +27 18 384 9593 Website: www.mafikeng.gov.za Ramotshere Moiloa Local Municipality Tel: +27 18 642 1081 Fax: +27 18 642 3586 118 listings Ratlou Local Municipality Tel: +27 18 330 7000 Fax: +27 18 330 7019 Tswaing Local Municipality Tel: +27 53 948 0900 Fax: +27 53 948 1500 Dr Kenneth Kaunda District Municipality Physical address: Municipality Buildings, Civic Centre, Patmore Road, Orkney, 2620 Postal address: Private Bag X5017, Klerksdorp 2570 Tel: +27 18 473 8000 Fax: +27 18 473 2561 Email: firstname.lastname@example.org Website: www.kaundadistrict.gov.za Local municipalities encompassed City of Matlosana Local Municipality Tel: +27 18 487 8000 Fax: +27 18 464 1780 Kagisano Local Municipality Tel: +27 53 998 3346 Fax: +27 53 998 3369 Maquassi Hills Local Municipality Tel: +27 18 596 1067 Fax: +27 18 596 1555 Merafong Local Municipality Tel: +27 18 788 9500 Fax: +27 18 788 9529 Website: www.merafong.gov.za Potchefstroom Local Municipality Tel: +27 18 299 5111 Fax: +27 18 299 5973 Website: www.potch.co.za Ventersdorp Local Municipality Tel: +27 18 264 8500 Fax: +27 18 264 8567 MUNICIPALITIES IN NORTH WEST PROVINCE Limpopo BOTSWANA Moses Kotane Ramotshere Moiloa Bojanala Madibeng Moretele Rustenburg Molopo Kgetlengrivier MaďŹ keng Ratlou Ngaka Modiri Molema Ditsobotla Kagisano Dr Ruth Segomotsi Mompati Ventersdorp Gauteng Merafong City Dr Kenneth Kaunda Tswaing Tlokwe Matlosana Naledi Maquassi Hills Mamusa Greater Taung Northern Cape Lekwa-Teemane Free State Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality 119 Bojanala Naledi north west business 2013 PROFILE Ngaka Modiri Molema District Municipality The Ngaka Modiri Molema District Municipality’s main offices are located in the capital of the North West – Mahikeng. ‘The municipality on a course...’ Vision Leaders in integrated municipal governance. Mission To provide a developmental municipal governance system for a better life for all. Ngaka Modiri Molema District Municipality in Context • The Ngaka Modiri Molema District Municipality (NMMDM) is one of the four district municipalities of the North West Province of South Africa. The other three are: Bojanala-Platinum, Dr Ruth Segomotsi Mompati and Dr Kenneth Kaunda districts. The NMMDM covers an area of 31 039 square kilometres and shares an international border with the Republic of Botswana. It comprises five local municipalities namely: Mafikeng, Ratlou, Ramotshere Moiloa, Ditsobotla and Tswaing • Section 84 of the Municipal Structures Act (1998) regulates the functions and powers of district and local municipalities. The five local municipalities are subdivided into wards as follows: Mafikeng Local Municipality – 28 wards, Ditsobotla LM – 19 wards, Ramotshere Moiloa – 17 wards, Tswaing L.M – 13 wards, Ratlou LM – 12 wards. Priorities • Provision of water and sanitation • Improve road infrastructure • Provide municipal health and services north west business 2013 Cllr Phaladi Saku, Executive Mayor Mokgele Mojaki, Municipal Manager Business values • Integrity • Consultative • Accountable Target perspective • To ensure sound district development planning • To promote district growth and economic development The administrative heartbeat of the Ngaka Modiri Molema District Municipality is situated in the capital city of the North West, Mahikeng. To date, the municipality employs 479 employees – both on contract and full-time basis. The core services that the district municipality offers to the various diverse communities in the area include bulk water infrastructure, sanitation, economic development and municipal health services and safety. The latter include fire and rescue services, disaster management and compliance with regard to municipal 120 PROFILE health services. As a district municipality, Ngaka Modiri Molema extends its responsibility and intervenes where the local municipalities fall short. The Council and administrative team of the Ngaka Modiri Molema District Municipality remain focused in providing much-needed leadership and support to all the local municipalities in the area of its jurisdiction. The area of the Ngaka Modiri Molema District Municipality is primarily water distressed. This further highlights and places emphasis on the municipality’s function of providing drinking water to communities that reside within the district. Though there is a lack of bulk infrastructure in the tribal authorities – the municipality is fostering needed relations with the local chiefs in ensuring that further development and provision of basic services is undertaken in the affected communities. After all, due to the nature of its cosmetic character, Ngaka Modiri Molema District Municipality is predominantly rural. Many infrastructure projects are being developed in the District Municipality. There are numerous shortcomings that are facing this municipality, and water shortage has been at the core. Intensifying the situation has been the shortage of underground water in various local villages. Regular and proper maintenance of the current bulk water and other infrastructure is also one of the critical service-delivery objectives that the Ngaka Modiri Molema District Municipality aims to uphold. Although these have Massive service-delivery projects are being undertaken. their own complicated logistical and other challenges – the municipality strives to serve the community municipality. consistently and without fail. The municipality further ensured that contract workers were employed permanently, Ngaka Modiri Molema District Municipality has outstanding labour issues were resolved and been ranked in the lower-performing municipali- outstanding service delivery projects were ties in the province, but since the appointment completed. of the new Municipal Manager in 2011, it has been rated as ‘improved’ as it increased its pace It is at this time that the municipality kindly in addressing numerous issues that faced the urges local communities in the district to join 121 north west business 2013 PROFILE hands with the district municipality and ensure that we all reach our mandate of providing bulk infrastructure programmes. Furthermore, this municipality has committed itself in improving its supply-chain processes, adherence to the Municipal Finance Management Act No. 56 of 2003, Municipal Systems Act No. 32 of 2000, Municipal Structures Act No. 117 of 1998, the Constitution of the Republic and other related prescripts as dictated by legislation. The government’s commitment for total clean audit results in 2014 further encourages proper adherence and accountable delivery of services to the NMMDM’s local communities. In further addressing the above – the Ngaka Modiri Molema District Municipality is currently involved in numerous programmes in providing rare and other skills to its workforce to increase its capacity and speed in service delivery. Ngaka Modiri Molema IDP Programme 2012/13 • Water scarcity has been identified as a general need within the district, therefore the district is planning a new strategy of overcoming this challenge by building water tanks that will be placed for community access • Local economic development projects to provide community employment • Access to water and sanitation • Upgrading of reservoirs for bulk water services. Places for leisure and tourism Ngaka Modiri Molema District Municipality has ample places of interests in its tourism sector. The following are just a handful of examples: north west business 2013 • Wondergat in Molopo-Oog: The world’s deepest pit where legendary divers have disappeared. The pit has been measured at 175m deep but the deepest point has not been established. • Bird sanctuary in Tswaing: It has over 350 species of birds that are found at the sanctuary, especially in summer. • Kanon Kopjie-Mafikeng: It is the highest point of Mafikeng where Baden Powell soldiers used to observe oncoming enemies and it has 6km underground tunnels that they used to hide in. The Ngaka Modiri Molema District Municipality has funded the cleaning and revitalisation project of the tunnel. • Lotlamoreng Dam: A Heroes Acre where soldiers of the Anglo Boer War were buried. • Sol Plaatjie Monument, where the first secretary-general of the ANC worked on the newspaper ‘Koranta ea Bechuana’ after eliciting funding from Ngaka Modiri Silas Molema. • Mahikeng Game Reserve: home to some of the Big Five, is a great place to enjoy a bushbraai. Contact details Key personnel: Cllr Phaladi Audrey Saku, Executive Mayor Mokgele Mojaki, Municipal Manager Key contact person: Mokgele Mojaki, Municipal Manager Tel: +27 18 381 9400 Fax: +27 18 381 4300 Email: email@example.com Physical address: Cnr Carrington Street and 1st Avenue, Mahikeng Industrial, Mahikeng 2745 Postal address: Private Bag x2167, Mahikeng 2745 Website: www.nmmdm.gov.za 122 focus Local municipalities ready for development The five local municipalities situated within Ngaka Modiri Molema District Municipality present an abundance of investment opportunities, and are ideally positioned to do business with neighbouring countries. N gaka Modiri Molema District Municipality comprises five local municipalities: Ditsobotla Local Municipality, Mafikeng Local Municipality, Ramotshere Moiloa Local Municipality, Ratlou Local Municipality and Tshwaing Local Municipality. For more information contact +27 18 632 501 or email firstname.lastname@example.org Mafikeng Local Municipality A demographic analysis of the population of Mafikeng shows that many households are headed by females and that a large portion Ditsobotla Local Municipality of the population are younger than 19. The Ditsobotla Local Municipality covers 6 465 implications for municipal planning are a high square kilometres that hold extensive com- demand for education and training, health mercial farms. Farming is focused on livestock services, job opportunities, and sport and (cattle, sheep and pigs) and crop production recreational facilities. (cotton, peanuts, maize, soya and wheat). The agricultural sector is the largest provider of Places of interest employment, both skilled and unskilled, in World Centre for Science and Environment the region. of the Scout Movement; Mmabana cultural Approximately 55% of households are reg- centre; Mafikeng Game Reserve; Botsalana Game Reserve; Modimole and Disaneng Dam; istered as indigent. There are a significant number of young Molopo Eye (origin of Molopo River); the people in the municipality who will be entering Mmabatho Tusk Hotel; the Molopo Sun Hotel; the economically active age category over the Kalahari Goldridge Gold Mine; and many next few years and will be seeking employment relics of the South African War and the Siege opportunities. of Mafikeng. Places of interest Game breeding centre of the National Zoological Gardens of South Africa where various indigenous and exotic wild animals are bred and housed; Dauth-Roode and Centenary dams for water-sports enthusiasts; Wondergat (one of the deepest sinkholes) for inland scuba diving; General De la Rey statue in front of the Lichtenburg Town Hall; and the Burgher Monument commemorating 87 local burghers who died during the South African War. For more information contact +27 18 389 0111 or email email@example.com Ramotshere Moiloa Local Municipality The municipality is bordered in the west by Botswana, and is dissected north to south by the Zeerust-Botswana road. A certain amount of temporary commercial dry-land farming takes place in traditional authority areas, while 123 north west business 2013 focus municipal land is used for temporary, commercial, irrigated and subsistence dry-land farming and for livestock grazing. Among many opportunities in the municipality are sunflower and groundnut production, abattoir deboning facilities, small-scale dairy farming, slate production and beneficiation of minerals, and Kaditshwene Ruins tourism. The area is reasonably well endowed with natural resources, which include perennial and underground water resources, grasslands and wood for fuel. However, poor environmental management and irregular rainfall have led to the depletion of grazing and fuel. Almost half of the population is 19 years of age or less, and the unemployment rate is about 18%. For more information contact +27 18 642 3586 or email firstname.lastname@example.org Ratlou Local Municipality Tswaing Local Municipality Tswaing Local Municipality, a predominantly rural region, is situated in the north-west of the â€˜maize triangleâ€™. The main towns, Delareyville/ Ametelang, Sannieshof/Agisanang and Ottosdal/Letsopa are the centres of farming communities and have fairly well-developed infrastructure. Farming consists mainly of maize, sunflower, sorghum and groundnut production, cattle and sheep breeding. Diamonds are mined near Ametelang and Agisanang, and productive salt deposits are found throughout the area. Pyrophyllite (Wonderstone) is mined at Letsopa, the only place in South Africa where it is found. The area is not a dedicated tourist destination, although the busy N14 between Gauteng and Upington to southern Namibia runs through Ametelang and Agisanang. Close to Atemelang is Barberspan Nature Conservation Area, a major attraction for bird watchers, one of the largest inland water bird sanctuaries in South Africa and accredited as a RAMSAR wetland of international importance. Ratlou Local Municipality is almost entirely rural and comprises 28 villages. Females make up the majority of the population, and a large number of the population is made up of Places of interest children and the elderly, with a sharp decline Barberspan Nature Conservation Area; Henk in young adults. This reflects the tendency to Joubert Game Reserve (home to various antelope species and salt pans that attract flaminmigrate in search of work opportunities. The area is mostly underdeveloped. Few con- goes); and San rock engravings and Stone Age structed internal roads exist, and those that link implements in Letsopa. the villages of the region are gravelled, which makes them vulnerable to storm-water damage. For more information contact +27 53 948 0900 There are few tarred roads in the municipal area. or email email@example.com Education and skills levels are low. More than a third of the population has no formal schooling and only a small percentage have advanced to Grade 12 level. The most pressing areas of need in Ratlou have been identified as water and electricity provision, improved health and security services, and more libraries, pension pay points, community halls, sports facilities and tribal offices. For more information contact +27 18 330 7019 or email firstname.lastname@example.org north west business 2013 124 Business Banking Enterprise Development Global Africa Network Making your business idea a reality Promoting business, trade and investment in South Africa’s nine provinces www.gan.co.za Bring your business ambitions • Guarantee schemes – Partner with us as we share unique and relevant funding your belief that every idea is solutions. possible. • Procurement portal – a marketplace for both SMEs Think of us as your and Corporates. For more contact Global Africa Network publishes a unique range of officially endorsed business guides andinformation, complementary entrepreneurial partner – • Enterprise Development Enterprise Development at websites to South Africa’s nine provinces. transforming business ideas Centres – to support SMEs email@example.com into reality. with advice and resources. to life with Enterprise Development. To profile your organisation in any of our publications, call us on +27 21 657 6200 or email firstname.lastname@example.org Absa Bank Limited Reg No 1986/004794/06. Authorised Financial Services Provider. Registered Credit Provider. Reg No NCRCP7 PROFILE Madibeng Local Municipality Madibeng Local Municipality has a strong and diverse economy, with an abundance of tourist destinations. The Madibeng Local Municipality is located within North West Province and extends over an area of approximately 3 814km². The Madibeng Local Municipality consists of Brits Town, Hartbeespoort Town, Skeerpoort area, 9000 farm portions and 43 villages. The municipality is demarcated into 36 wards. The population of Madibeng is estimated by the 2011 population census to be 445 632. Madibeng is situated approximately 40km from Pretoria, 55km from Johannesburg and 50km from Rustenburg. Cllr MP Magongwa, Executive Mayor M Juta, Municipal Manager Main industries Water and sanitation The Madibeng municipal area is characterised • Extension of bulk services and reticulation by a diverse economy, including strong agrito above RDP standard culture, mining, manufacturing and tourism • Extension of bulk sanitation infrastructure sectors. Although these sectors already contribute a large percentage to the aggregate Roads and storm water gross geographic product (GGP), they still have • Construction of tar roads, maintaining the ability and potential to induce and accomexisting tar roads, general maintenance of both tar and gravel roads modate economic growth and development. Main resources Electricity The area is the world’s third-largest chrome pro- • Demand management and extension of ducer and includes the richest platinum group household connections metals reserve (situated on the Merensky Reef). Manufacturing is the dominant sector, with Land and housing motor-industry-related activities predominant. • To promote integrated human settlement and land use management in line with set Key development objectives and targets, norms and standards strategies The municipality is guided by the strategic Social services development plan (2011-16) that was adopted • To enhance the quality of life of communiby the council. The plan outlines the following ties through social development initiatives priority areas and strategies: in line with set targets, norms and standards north west business 2013 126 PROFILE Local economic development To promote and support LED initiatives by: • Promoting of the economy of Madibeng through partnerships with the local community, business and other stakeholders, through the creation of public and private partnerships as well as through the development and support of small and medium enterprises The Hartbeespoort Dam area is among the leading tourism hubs in the entire North West Province. Financial viability The municipality is enhancing and maintaining sound and sustainable financial management in line with set targets, norms and standards, in order to curb overexpenditure on operating budgets, to decrease outstanding debts and to improve revenue base in the municipality. Tourism Numerous tourism development zones have been identified within the Madibeng region: South-North Mixed Tourism Corridor Outdoor and bushveld zone This zone is located in the northern region, where most of the game farming, adventure, ecotourism and lodging is concentrated. It has the highest concentration of game farming and ‘bushveld’ type lodging facilities in the Bojanala region. This northern region is not yet tourism integrated and presents great potential to be the municipality’s adventure and ecotourism haven and tourism drawcard after the Hartbeespoort Dam. The wider region also boasts a wide array of attractions such as Sun City, Pilanesberg, the Cradle of Humankind World Heritage Site, etc. Contact details Key personnel This route entails linking up with the existing Cllr Poppy Magongwa, Executive Mayor Magalies Meander route as well as the Cradle Mr Monde Juta, Municipal Manager of Humankind in the south and luring tourists to the northern region where there is a great Key contact people potential for cultural, nature-based and town- Andrew Modise, COO ship tourism developments. Lebogang Tsogang, Manager: Communications and Marketing Water based leisure and entertainment zone This zone is located in the southern region and includes the Magaliesberg, Witwaterberg Mountains, Hartbeespoort and Mooinooi areas. This zone receives a larger number of visitors than any other zone in the area. It is popular with day visitors and weekend breakaway visitors. Tel: +27 12 318 9500 Fax: +27 12 252 3524 Email: email@example.com Email: firstname.lastname@example.org Physical address: 54 van Velden Street, Brits 0250 Postal address: PO Box 106, Brits 0250 Website: www.madibeng.gov.za The Hartbeespoort Dam/Magaliesberg complex with its water sports attractions, high-density recreation facilities, adventure activities and cultural experiences has become North West’s gateway for Gauteng visitors. 127 north west business 2013 PROFILE Moses Kotane Local Municipality Moses Kotane Local Municipality is located within the Bojanala District of North West Province. Moses Kotane is now classified as Category B4 Local Municipality which is mainly rural with communal tenure. Such a municipality has, at most, one or two small towns in its area. It is one of the five local municipaliNono Dince, ties constituting the Municipal Manager Bojanala Platinum District Municipality, classified as Category C1. of Mogwase and Madikwe. The N4 Corridor, which is the east-west bound road connecting Rustenburg and Pretoria, runs to the south of Moses Kotane Local Municipality. The R510 north-south bound road connects Moses Kotane Local Municipality to the north. The municipality is headed by Mayor Fetsang Mokati-Thebe who works with a nine member executive committee. They head the following portfolio committees: • Human Resources and Administration • Finance and Audit • Intergrated Development Planning and Performance Management Systems • Infrastructure Moses Kotane Local Municipality is • Community Services bordered by: • Local Economic Development • Thabazimbi Local Municipality in the north, • Housing and Rural Development which is situated in the Waterberg District • Special Projects Municipality of the Limpopo Province • Madibeng Local Municipality in the east The municipal public-accounts committee (Bojanala Platinum District Municipality) was established in 2011, and is chaired by • Rustenburg Local Municipality (Bojanala Councillor Sipho Vava. Platinum District Municipality) • Kgetlengrevier Local Municipality in the south Administration is headed by the Municipal (Bojanala Platinum District Municipality) Manager Nono Dince, who has five heads of • Ramotshere Moiloa Local Municipality in departments reporting directly to her. The the west (Ngaka Modiri Molema District departments are: Municipality) • Planning and Development • Corporate service The municipality covers an area of approxi- • Budget and Treasury Office mately 5 220km² and is mostly rural in nature, • Community Services comprising 107 villages and two formal towns • Infrastructure and Technical Services north west business 2013 128 PROFILE Vision A caring and responsive municipality that is the best to live in, work for, and do business with. Mission • Providing responsive, transparent and accountable leadership • Creating an environment for business growth and job creation • Providing sustainable services Values • Integrity • Honesty, • Transparency • Accountability Office of the Municipal Manager Tel: +27 14 555 1307 Fax: 086 654 5962 (SA only) Email: municipalmanager@ moseskotane.gov.za Communications and Intergovernmental Relations Unit Tel: +27 14 555 1403 Fax: 086 658 3601 (SA only) Email: email@example.com Disaster Management Tel: +27 14 558 2699 Mabeskraal Library Tel: +27 14 550 0223 CONTACT details Infrastructure and Engineering Services Tel: +27 14 558 2699 Main office Tel: +27 14 555 1300/1401 Fax: +27 14 555 6368 Water and Sanitation Tel: +27 14 558 2719 Office of the Mayor Tel: +27 14 555 1305 Fax: +27 14 555 7064 Email: firstname.lastname@example.org Customer care Tel: +27 82 523 2720 Office of the Speaker Tel: +27 14 555 1309 Fax: +27 14 555 7635 Email: email@example.com 129 north west business 2013 PROFILE Faces of the executive committee Cllr Maria Matshaba, Single Whip Cllr Fetsang MokatiThebe, Mayor Cllr Ralesole Dlale, Speaker of Council Cllr Dotty Tlabyane, Portfolio Head of Finance, Audit and Corporate Support Services Cllr Thomas Manganye, Portfolio Head of Integrated Development Planning and Performance Management Systems Cllr Nketu Nkotswe, Portfolio Head of Housing and Rural Development Cllr Sipho Vava, Chairperson of Municipal Accounts Committee Cllr Caroline Motshabi, Portfolio Head of Local Economic Development Cllr Ezekiel Mashimo, Portfolio Head of Infrastructure Exco Member Cllr Kabelo Lesele, Exco Member Cllr Dithothi Tshetlhane, Portfolio Head of Special Projects Cllr Amos Setou, Exco Member north west business 2013 130 PROFILE Rustenburg Local Municipality Introduction The Rustenburg Local Municipality was established by North West Provincial Gazette No 5 574 dated 29 September 2000 in terms of Section 12 of the Municipal Structures Act, Act 117 of 1998. In accordance with this notice, existing municipalities were disestablished and the new Rustenburg Local Municipality came into being. through best practice, sustainability and inclusive governance Economy of the region The city of Rustenburg functions as a service hub for many of the economic activities in the surrounding area. Although the area is fairly arid, there is still a significant emphasis on agricultural activity in the region – particularly livestock farming as well as growing of citrus fruit, The Rustenburg Local Municipality was estab- tobacco, wheat, flowers and plants. Mining is a lished as a category B municipality with an key activity in the area but Rustenburg is also Executive Mayor and Ward Committees. home to local manufacturing and distribution After a major restructuring and transforma- companies. tion process during 2001/02, the Rustenburg Local Municipality is entering its fourth year Economic growth driven by mining of operation in its current framework. The The municipality is reputed to be one of South Rustenburg Local Municipality consist of two Africa’s fastest-growing urban areas. This siginterlinked organisational streams; the one nificant growth is largely attributed to the providing political leadership and governance impact of the world’s largest platinum mines and the other performing the operational and in the immediate vicinity of the town, namely, administrative functions. Anglo Platinum, Impala Platinum, Xstrata and Lonmin. With approximately 97% of the total Rustenburg Local Municipality is governed by platinum production occurring in Rustenburg, 72 Councillors. A total of 36 councillors are the mining sector provides around 50% of all elected on ward representation, whilst 36 are formal employment. from a system of proportional representation. The Ward Councillors are responsible for conContact details veying local concerns and issues to the Council. The Council, the city’s highest decision-making Key contact people: body meets once a month. Rustenburg Local Jacky Kola, Local Economic Development Municipality is a category B municipality cur- Director rently consisting of 38 wards. Tel: +27 14 590 3528 Cell: +27 79 269 1958 Vision Email: firstname.lastname@example.org A world class city where all communities enjoy a high quality of life. Tebogo Molete, Tourism and Marketing Development Coordinator, LED and 2010 Mission Tel: +27 14 590 3321 To continuously improve the quality of life, Email: email@example.com economic growth and eradicate poverty Website: http://rustenburg.gov.za/ 131 north west business 2013 index INDEX Absa Enterprise Development�������������������������������������������������������������������������������������������������������������������������������������� 90 Anglo American Platinum��������������������������������������������������������������������������������������������������������������������������������������������������� 3 Bakgatla-Ba-Kgafela Traditional Administration������������������������������������������������������������������������������������������������� 20 Frontier Market Network��������������������������������������������������������������������������������������������������������������������������������������������� 9, 74 Global Africa Network�������������������������������������������������������������������������������������������������������������������������������������������� 47, 125 Impala Platinum�������������������������������������������������������������������������������������������������������������������������������������������������������������� 7, 63 Industrial Development Corporation (IDC)����������������������������������������������������������������������������������������������������������101 Invest North West����������������������������������������������������������������������������������������������������������������������������������������������������34, OBC KSB Group SA������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 61 Madibeng Local Municipality��������������������������������������������������������������������������������������������������������������������������������������126 Moses Kotane Local Municipality�����������������������������������������������������������������������������������������������������������������������������128 National Department of Agriculture, Forestry and Fisheries (DAFF)��������������������������������������������������������� 57 National Department of Water Affairs (DWA)������������������������������������������������������������������������������������������������������� 84 National Empowerment Fund (NEF)�������������������������������������������������������������������������������������������������������������������������102 Ngaka Modiri Molema District Municipality���������������������������������������������������������������������������������������������120, 122 North West Development Corporation (NWDC)������������������������������������������������������������������������������������������ 38, 40 North West Gambling Board������������������������������������������������������������������������������������������������������������������������������������������ 48 Protea Hotel: Mafikeng����������������������������������������������������������������������������������������������������������������������������������������������������� 45 Rustenburg Association of Business�����������������������������������������������������������������������������������������������������������������������108 Rustenburg Local Municipality�����������������������������������������������������������������������������������������������������������������������������������131 Seda Platinum Incubator����������������������������������������������������������������������������������������������������������������������������������������� 28, 66 Small Enterprise Development Agency (Seda)������������������������������������������������������������������������� 94, 96, 98, 100 Transnet Engineering������������������������������������������������������������������������������������������������������������������������������������������������ IFC, 76 Transnet Pipelines���������������������������������������������������������������������������������������������������������������������������������������������������������5, IBC Verder Pumps������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 68 Wesvaal Chamber�������������������������������������������������������������������������������������������������������������������������������������������������������������109 north west business 2013 132 INVEST NORTH WEST SOUTH AFRICA