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2013/14

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Office of the Premier

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 division’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

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contents

contents Northern Cape Business 2013/14 Edition

page 12

Introduction Foreword9 A unique guide to business, investment and tourism in the Northern Cape. The Northern Cape is offering the renewable energy sector a home. Acting Premier Grizelda Cjiekella is upbeat about the economic potential of the Northern Cape.

10

Special features Regional overview of Northern Cape Province Mining, tourism and agriculture have long since been staples of the Northern Cape economy, but astronomy and adventure sports are making waves.

12

Northern CapeDepartment of Economic Development and Tourism The Northern Cape Department of Economic Development and Tourism profiles investment opportunities in the Northern Cape Province.

18

Square Kilometre Array telescope The world’s greatest radio-astronomy project is heading for a Karoo home.

30

page 30 Northern Cape Business 2013/14

2

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contents Space to roam Game ranching in the Northern Cape has become increasingly popular and lucrative.

32

Commodities and logistics Major rail projects are redefining mining prospects in the Northern Cape.

34

Rare-earth elements Rare earths are bringing a sparkle to the mining sector.

36

Bloodhound SuperSonic Car Project The Northern Cape is preparing for a bid to set a new world land-speed record.

38

Overview of the South African economy Key facts and figures on South Africa’s demographics, economy, trade and investment.

42

Destination Northern Cape Tourism48 Adventure and spectacular desert landscapes are at the heart of the tourist offering of the Northern Cape. A feast for the senses The Partnerships Unit of the Department of Economic Development and Tourism profiles award-winning accommodation and six exciting routes for visitors to explore.

52

Economic sectors Agriculture78 Grapes, sheep and goats are big earners in the Northern Cape. Aquaculture and mariculture Fish can contribute to improved food security.

83

Wine and grapes Orange River wines are growing in popularity in China.

88

Mining90 The Northern Cape has vast reserves of manganese and iron ore.

page 90 Northern Cape Business 2013/14

4

contents Renewable energy International solar companies are beating a path to the sunny Northern Cape.

98

Engineering101 New rail plans will boost De Aar. Transport104 Vast distances make transport links doubly important in the Northern Cape. Banking and financial services Agricultural credit is important to the Northern Cape economy.

106

Development finance and SMME support Product development is a priority of the provincial government.

115

page 98 Education120 The Northern Cape will have its own university in the near future.

Government South African National Government An overview of South Africa’s national government departments.

124

Northern Cape Provincial Government A guide to the Northern Cape’s provincial government departments.

130

Northern Cape Local Government A guide to the district and local municipalities in the Northern Cape.

132

References Sector contents

76

Index140 Maps Northern Cape locator map Northern Cape regional map Northern Cape municipalities Northern Cape Business 2013/14

16 17 134

6

credits

Production

Advertising

Administration

Publisher Chris Whales

Sales director Mark Leven-Marcon

Managing director Clive During

Editor Katie Reynolds

Key accounts manager Loudon Cito

Financial controller Brett Watson

Researcher and writer John Young

Advertising representatives Debbie Bender-Overmeyer, Nathalie Horswell, Jeremy Petersen, Christoff Scholtz

Administration and accounts Charlene Steynberg, Natalie Koopman

Creative director Ian Jamieson DTP operator Colin Carter

Distribution Lizé Fourie

Sales support Nadia Dicks

Printing CTP

Production assistant Anjé Robberts

Distribution Northern Cape Business is distributed internationally on outgoing and incoming trade missions, through the regional trade and investment agency; to 115 foreign offices in South Africa’s main trading partners around the world; at top events and 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: info@gan.co.za | Website: www.gan.co.za

Copyright: Northern Cape Business is an independent publication published by Global Africa Network (Pty) Ltd. Full copyright to the publication vests with Global Africa Network (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network (Pty) Ltd. Disclaimer: While the publisher, Global Africa Network (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Northern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information. Photo credits: Flickr, Anglo American, Orange River Wine Cellars, Kxo’xo Leather Designs, Geoff Brown of Planet KB, Green Kalahari River Marathon, Stefan Marjoram, Shaun Loureiro-Railways Africa and SA Hot Rods. Cover photographs: (vineyard, telescope, quiver tree) Veer, (bucket wheel reclaimer) African Rainbow minerals / Geoff Brown, (daisy) iStockPhoto, (Bloodhound supersonic car) Bloodhound SSC.

Northern Cape Business 2013/14

8

Foreword

Northern cape Business

highlights

page 30 The Square Kilometre Array project will directly and indirectly benefit a range of sectors in the area.

page 38 The Bloodhound SuperSonic Car Project will massively boost the Northern Cape’s tourism offering.

page 48 Boasting events like the Maloof Money Cup and the Green Kalahari Canoe Marathon, the province is a hotbed of activity.

page 90 New developments and key regeneration projects will add to the province’s already impressive mining pedigree.

A unique guide to business, investment and tourism in the Northern Cape Province.

N

orthern Cape Business 2013/14 is the fifth edition of this highly successful publication that has since its launch in 2009 established itself as the premier business and investment guide to the Northern Cape Province. Officially endorsed by the Office of the Premier of the Northern Cape, Northern Cape Business is unique as a business journal that focuses exclusively on the Northern Cape and that also carries full Audit Bureau of Circulations (ABC) certification, meaning its print run and circulation of 15 000 copies is independently audited and verified. A range of complementary online features have also been introduced to give participants in and readers of the journal a wider range of communication options. These include the website www.northerncapebusiness.co.za, the Northern Cape Business e-book and a live feed for up-to-date news and announcements. Global Africa Network (www.gan.co.za), the publisher of Northern Cape Business, specialises in business-to-business print and electronic publications, producing a series of officially endorsed, region-specific, annual print journals. Every province in South Africa is now covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business. Global Africa Network thanks the dedicated sales team and the professional and committed writers, editors and designers who produced this edition of Northern Cape Business. We thank the Office of the Premier, the Northern Cape Provincial Government as well as the companies and municipalities that supported this undertaking. Chris Whales Publisher, Global Africa Network Email: chris@gan.co.za www.northerncapebusiness.co.za www.gan.co.za

9

Northern Cape Business 2013/14

message

The Northern Cape is offering the renewable energy sector a home. Acting Premier Grizelda Cjiekella is upbeat about the economic potential of the Northern Cape.

2.6% in 2011. More than We are committed to build90% of households have ing a transparent, responsive access to water inside their and responsible administration dwellings or in their yards that has the capacity to deliver services and improve the living • More than 85% of households use electricity as a standards of our people. power source Census 2011 allowed us the opportunity to measure • Two thirds of households have access to flush toilets progress. Some of the results in key areas are: • The official unemployment rate for the Northern Cape declined to 27.4% in 2011, The basis of our provincial plans, while the average house- programmes and initiatives is the hold income more than National Development Plan. Infrastructure expansion is a doubled • 82.4% of households re- key pillar to improve the living side in formal structures conditions of our communities • The percentage of persons and create job opportunities. 20 years or older with no Significant progress has been schooling decreased from registered with the establish22.7% in 1996 to 11.3% in ment of a university in the prov2011, while the percentage ince. Wits University has been of persons with matric or appointed to provide technical The publication of the fifth edihigher more than doubled project-management services, tion of Northern Cape Business from 11.1% in 1996 to 23% and land and space has already is a welcome event. This wellin 2011 been identified. The Northern regarded book provides an • The Northern Cape, de- Cape Provincial Government spite being by far the most foresees the new university opportunity to showcase the water-scarce province, becoming a symbol of the new achievements of both governmanaged to reduce the order, democracy, inclusiveness, ment and private enterprise, percentage of households growth and opportunity. and a chance to explain the without access to piped investment potential of our Mining and agriculture water from 6% in 2001 to are currently the province’s province to a wider audience.

Going forward

Northern Cape Business 2013/14

10

message most impor tant sectors. Renewable energy is a sec- efforts and development. In The Northern Cape has the tor within the green economy collaboration with the global Gamagara Mining Corridor and the Northern Cape has community, Africa took a giant which has the world’s rich- managed to create 4 709 jobs scientific leap forward! est manganese and iron- in the second bid window. The unique size and natuore deposits. ral conditions in the Northern It is envisaged that the Cape position it to be the prime world’s largest manganese destination for extreme toursintering plant and mine The agricultural potential of this ism in terms of culture, nature, by Kgalagadi Manganese, province is massive for growth heritage and sport. As a fitowned by women, will serve and expansion. ting example, the province will The Comprehensive Agri- host in 2013 the Bloodhound as a crucial investment to pave the way for local value- cultural Support Programme land-speed-record attempt. addition and manufacturing to (CASP) and Ilima/Letsema are Besides the attempt to set a among the key programmes to new land-speed record, the tackle poverty. It is hoped that the mining provide support to smallholder project has already implementinvestment taking place in the and black commercial farmers ed programmes to encourage iron-ore and manganese in- for production and marketing learners to pursue studies in dustries will provide a welcome of produce, including value- mathematics, science and boost to the construction and chain activities. technology Proje cts include the other economic sectors. The The event will inject muchprospects for the construc- Ramskop Calvinia abattoir, needed economic activity into tion sector are expected to Tshwaraganang Hydroponics in the area and also popularise improve with the planned con- Windsorton (a packaging facil- the Kalahari as a holiday and struction of the university, the ity for cucumbers sold through tourism destination to a widSquare Kilometre Array (SKA) FreshMark) and the Vineyard er audience instead of just a project, the investments in Development Scheme. niche clientele. Progress has been made by the rail upgrades for the Oryx The job creation and SMME Iron Ore line and the Sishen- Cape Malting House in building development initiatives of the Coe ga mangane se line, a malt-producing plant on the provincial government are banks of the Modder and Riet also pursued in the context among others. The Sishen/Saldanha Rail rivers. This is a joint initiative be- of strengthening the tourInvestment has the potential tween the provincial government, ism sector. In the month of to create up to 16 000 jobs. the Industrial Development September 2012, we hosted It will also support capital Corporation and the Foundation the annual Maloof International projects such as the Kathu for African Business and Skateboarding event in Industrial Supply Park and Consumer Services (Fabcos). Kimberley. A total of 21 SMMEs The Square Kilometre Array benefited from the event with Meat Processing Plant. As a province, we will en- is another infrastructure project 14 rendering catering services sure that the renewable-en- with great potential. The suc- and seven selling products ergy sector finds a home in cessful bid to host the SKA is including, among others, arts the Northern Cape. We have a major milestone for the coun- and crafts. packaged our application to try’s science and technology the Department of Trade and Industry for a Special Economic read more Zone (SEZ) on the basis of the Visit: www.northern-cape.gov.za Solar Corridor.

Key focus points

11

Northern Cape Business 2013/14

special feature

Regional overview of the

Northern Cape Province The sun is shining on the Northern Cape – by Transnet to expand its rail capacity from the and attracting dozens of solar-power inves- Northern Cape to the Eastern Cape, where a tors anxious to participate in South Africa’s manganese smelter is to be built. independent power producers’ programme. One of China’s biggest mining companies, Exports of iron ore continue to grow, several Jinchuan, has taken a stake in Wesizwe platinum new manganese projects are underway and and has control of Metorex, which has baselarge reserves of rare-earth elements are metal operations in Zambia and the Democratic exciting the mineral sector. Grapes and wine Republic of Congo. In the Northern Cape, the dominate the agricultural export basket. large new manganese mine at Kudumane is being bankrolled by a 49% stake in the project controlled By John Young by Asia Minerals Limited (AML) of Hong Kong. The China Guodian Corporation has an interest in a wind-farm project at De Aar (with Mulilo lsewhere in Africa, learned articles are Renewable Energy). Recently, Orange River Wine being written about how ‘the Chinese Cellars proudly announced that it had won six are coming’. In the Northern Cape, prizes at the China Wine Awards. Sales to China this is old news. It is Chinese demand have increased tremendously in recent times. that is behind the growth in export volumes of But it is not just the Chinese who have been iron ore (Transnet plans to spend R28-billion beating a path to the Northern Cape. With the on the expansion of the Sishen-Saldanha rail announcement that the prestigious Square line from 53-million tons-per-annum to an an- Kilometre Array (SKA) telescope project was ticipated 83mtpa). It is Chinese demand that coming to the province, it can be said that the is behind several new mining projects that are scientific world has given South Africa and the forging ahead in the Kalarahi and the decision Northern Cape a huge vote of confidence.

E

Northern Cape Business 2013/14

12

special feature

13

Northern Cape Business 2013/14

special feature The overall value of the SKA scheme is estimated at R15-billion, and the various phases of the huge project will be implemented over many years. There will be significant spinoffs for a large number of sectors within the Northern Cape and throughout South Africa. The Northern Cape government is hoping to leverage these scientific advances to fast-forward the process of obtaining a university for the province. Only Mpumalanga and the Northern Cape of South Africa’s provinces do not have universities. A group of very fast Britons is beating a path along a road laid out in the Karoo, north of Upington. The Bloodhound Project aims to break the land-speed record, and is projected to take off in the second half of 2013. The project is also attempting to raise awareness about science and engineering through a schools programme. The Northern Cape is South Africa’s largest province, covering 30% of the country’s landmass on the western side bordering the Atlantic Ocean, Namibia and Botswana. Mining and agriculture are the province’s most important sectors. The starkly beautiful landscape of the Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site, while the natural spring flower show that appears in Namaqualand is one of the wonders of the world. Most of the province falls into the category of semi-arid (apart from the coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold. The western parts of the province are famous for spectacular displays of flowers in spring. The Orange River is the most important geographical feature of the province, providing irrigation to support a thriving grape, sultana and wine industry. Other crops such as lucerne, cotton, wheat, peanuts and maize are grown in the Orange River Valley and in other irrigation scheme areas such as the Vaalharts Irrigation Scheme in the eastern part of the province. Approximately one-million people live in the Northern Cape, where the principal languages Northern Cape Business 2013/14

14

are Afrikaans (68%) and Setswana (21%). The San people live in the arid regions of the north. The mining sector is strong and varied, with the province’s iron ore and manganese resources making up significant portions of South Africa’s mineral export basket. Mining contributes 27.6% to gross regional domestic product (GRDP). Sishen is the biggest iron-ore mine in the country and its owner, Kumba Iron Ore, is engaging in a massive new project at Kolomela (previously known as South Sishen). The 6 209 employees of Kumba who were allocated 3% of the company’s shares (through an employee share-ownership plan, or Esop) were paid out a total of R2.66-billion in cash in December 2011. The second tranche will be paid out in 2016. The manganese sector is also growing with several new mines under construction and capacity at existing mines being expanded. There has been quite a shake-up of diamondmine ownership in the Northern Cape in recent years, with Petra Diamonds buying many of De Beers’ assets. In the Namaqualand area, Trans Hex has acquired former De Beers properties. The province also has copper, lead, zinc, mineral sands, gypsum, granite, asbestos, fluorspar, semi-precious stones and marble. The amount of sunshine received in the Northern Cape has led to the province winning the right to host the vast majority of solar projects approved by national government in the first two windows of its private producers’ bidding programme. This will bring tens of millions of investment – and new skills – into the provincial economy. Investors and participating companies include Spanish, Norwegian, Chinese and Saudi Arabian entities. Eskom is pursuing the idea of a giant solar park to be located near Upington. The province is well served with respect to transport and communications, despite its vast size (361 830 square kilometres). Airports at Kimberley and Upington are quite substantial and many smaller towns, mines and game reserves have landing strips. Although the

special feature province has many roads, maintaining them is proving to be a very difficult and expensive task. The Northern Cape does not have a major port although Port Nolloth serves as an adequate fishing harbour. The creation of a major port is being investigated, in line with provincial government’s plans to increase the amount of produce manufactured within the province’s borders before being exported. Investments in projects along the Namaqua Development Corridor are intended to see these plans come to fruition. The Northern Cape is divided into five district municipalities:

Frances Baard District Municipality Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp. This district is the smallest but with a population of approximately 325 500, it is the most densely populated. Although Kimberley is historically renowned for diamond mining, its economy is now driven by its role as the administrative headquarters of the province. Strategically located and with good infrastructure, Kimberley is the leading centre in the province for retail, financial services, education, commerce and light industry.

While the district is driven mainly by tertiarysector activities in the Kimberley area, primary activities in mining and agriculture are more prominent in rural municipalities. Agriculture in the region comprises crop cultivation and stock and game farming. The Vaalharts Water Scheme is the largest irrigation project of its kind in the southern hemisphere.

John Taolo Gaetsewe District Municipality Towns: Kuruman, Kathu, Hotazel. Kuruman is the headquarters of local government in this region. The local spring produces 20-million litres of water every day. Most of the district is situated on the Ghaap Plateau, over 1 000 metres above sea-level, and can experience extreme temperatures. Most agricultural activity is limited to grazing, although game hunting is growing. Kathu has a well-developed CBD. The Sishen iron-ore mine outside Kathu is a vast undertaking, providing employment for thousands of people. Samancor’s Mamatwan and Wessels manganese mines and plants are situated at Hotazel. Almost half of the population in the Kgalagadi’s district live in rural villages.

Namakwa District Municipality Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay.

The province is home to an abundance of fauna and flora.

15

The Namakwa District is situated in the north-western corner of the province, and the country, bordering on Namibia and the Atlantic Ocean. The district is sparsely populated, and predominantly rural. Northern Cape Business 2013/14

special feature ZIMBABWE

Limpopo NAMIBIA North West

Mpumalanga Gauteng SWAZILAND KwaZuluNatal

Free State

NORTHERN CAPE

LESOTHO

Eastern Cape Western Cape

MOZAMBIQUE

BOTSWANA

the municipal headquarters, has national significance as a railway junction. The district is home to three of South Africa’s major dams. Agricultural production includes wheat, maize, peanuts, grapes, beans, potatoes, nuts and sheep farming. Pixley Ka Seme is the largest woolproducing district in South Africa, but most of what is produced is processed in the Eastern Cape. As a consequence, opportunities exist for the establishment of a cotton mill, a tannery and a facility to add value to semiprecious stones. Horse breeding is a valuable contributor to the regional economy.

The mining and agricultural sectors provide most employment, while tourism and small- Siyanda District Municipality scale manufacturing are also present. The region’s economy gets a great boost every spring Towns: Upington, Kakamas, Kenhardt, Groblershoop, Postmasburg. when tourists flock to see the veld in bloom. The climate and soil support certain niche The Orange River supports a thriving agricultural crops, and the sites and sights are unique to sector and a growing tourism sector. The investthe region, offering opportunities in agriculture ment climate is ripe for tourism along the Orange and tourism. Niewoudtville is the site of a new River and around unique physical attractions such as the Augrabies Falls. rooibos-tea factory. Mining activities take place in Kgatelopele, The /Ai/Ais/Richtersveld Transfrontier Park, the Namakwa National Park and the where diamonds and lime are found. Together Tankwa Karoo National Park have the poten- with sheep and cattle farming, mining provides tial to grow as travel destinations, as does the most of the employment to be found in Siyanda. The diamond mine at Finsch is Petra Diamond’s western coastline. newest and largest acquisition. Most of the population of the //Khara Hais Pixley Ka Seme District Municipality Local Municipality lives in Upington. The town is one of the economic hubs of the Northern Towns: De Aar, Hanover, Carnarvon, Cape: it has an airport and good infrastrucDouglas, Marydale, Prieska, Hopetown, ture. Agriculture is a prominent feature of the Richmond, Noupoort, Norvalspont, local economy, as well as wholesale and reColesberg. tail services in and around the town. The The district covers 102 000 square kilome- processing of wine and dried fruit represents tres in the central Karoo and has four national one of the biggest manufacturing activities in roads passing through it. De Aar, the site of the province. Northern Cape Business 2013/14

16

special feature Motorway

NORTHERN CAPE PROVINCE

Main Road Railway

N

BOTSWANA

Union’s End

North West N18

Rietfontein

NAMIBIA

Van Zylsrus Askham

Vryburg

Hotazel

N14

Kuruman R31

Sishen

Upington Onseepkans Augrabies Alexander Bay

Port Nolloth

Steinkopf

Pofadder

R31

Campbell Groblershoop N10

Kenhardt

N14

Marydale

Nababeep

Barkly West R64

KIMBERLEY Ritchie

Douglas

N8

Hopetown

Prieska

Okiep Kleinsee Springbok

N12

Ulco

Postmasburg

Keimoes Kakamas

N14

Vioolsdrif

WarrentonChristiana

N14

N10

Hartswater

Free State

N12

Strydenburg

N7

Kamieskroon

Brandvlei

Hondeklipbaai Garies

Van Wyksvlei Vosburg

Williston

R27

Calvinia Vanrhynsdorp

R63

Loxton

R48

Colesberg N10

Hanover

N12

R63

Nieuwoudtville Vredendal

De Aar

Carnarvon

Loeriesfontein

Petrusville

Britstown

Victoria West

Fraserburg

Middelburg

N1

Three Sisters

Clanwilliam

R63

Beaufort  West

Sutherland

R27

Somerset East N12

Western Cape

R75

Willowmore

N7

Worcester

R44

Paarl

CAPE TOWN

N9

Graaff-Reinet

Eastern Cape N1

Saldanha

Noupoort

Richmond

N7

R45

N1 N9

N1

Stellenbosch

Oudtshoorn R62

N9

George

N15

N2

Knysna Mossel Bay

N2

Caledon Hermanus

17

Uitenhage

PORT ELIZABETH

Jeffreys Bay

Northern Cape Business 2013/14

focus

An abundance of opportunities The Northern Cape Department of Economic Development and Tourism seeks to provide potential visitors to and investors in the Northern Cape with a socioeconomic overview and a compelling business case of existing opportunities in the province.

Mining and mineral beneficiation play huge roles in the provincial economy.

Provincial growth and development strategy The following key economic sectors are focused on to realise the socioeconomic priorities of the province: • Agriculture and agri-processing • Fishing and mariculture • Mining and mineral processing • Manufacturing • Tourism • Knowledge economy • Energy

Demographics The Northern Cape has the smallest population, 1 096 731 (Statistics South Africa – midyear population estimates 2011) in South Africa. This constitutes 2.17% of the population of South Africa. The Northern Cape has a population density of three Northern Cape Business 2013/14

20

persons per square kilometre (2011), which is the lowest in the country.

Economic growth Looking at the real annual economic growth rate per region for 2010, all of the provinces had positive growth, in contrast to all of the provinces showing negative growth in 2009. The national growth rate is not as high as was previously projected, which shows a slower recovery from the recent economic crisis. The Gauteng Province

focus recorded the highest provincial 2008 and 2009, but positive growth in 2010. This was maineconomic growth rate (3.2%) for ly because of the positive growth in mining and quarrying. In 2010. The Northern Cape had a 2010, there was again negative growth in agriculture, forestry growth rate of 1.9%. The nation- and fishing. Both the secondary and tertiary industries showed al growth rate for 2010 was 2.9%. positive growth in 2010. The biggest contributor to the Northern The South African economy Cape GDPR is mining and quarrying. The smallest contributor recorded growth of 3.6%, bet- is construction. tered only by the Western Cape (3.7%) and Gauteng Province (4.1%). All of the other provincial economies recorded The unemployment rate of all of the provinces except the Northern growth rates lower than that Cape increased from the fourth quarter of 2011 to the first quarter of of the South African economy. 2012. Comparing the national unemployment rate to the first quarter The Northern Cape posted an of 2011, an increase of 0.2 of a percentage point can be observed. average economic growth rate of 2.1% over the period. The Northern Cape growth slowed down from a rate of When comparing the first quarter of 2012 with the first quarter 1.8% in 2008 to -1.5% in 2009 of 2011, there has been an increase in employment in all sectors and then increased to 1.9%, (mining, manufacturing, utilities, construction, trade, finance and showing some recovery after community and social services) except for agriculture, transport the recent financial crisis, at and private households. The highest employing sectors are constant 2005 prices. This community and social services, and agriculture. Between the fourth quarter of 2011 and the first quarter of 2012, can be attributed to the net growth in the primary, second- the largest employment losses could be observed in the construcary and tertiary industries of tion and manufacturing industries. Employment increased most the Northern Cape. The key in private households and agriculture industries. Comparing the first quarter of 2011 to the first quarter of 2012, attribute here is the fact that the Northern Cape is a primary employment increased by 304 000 jobs. Finance and other busiproducer whose products are ness services, trade, and community and social services together exported through the Western accounted for 88% of the rise in employment. Cape, Eastern Cape and KwaZulu-Natal harbours and Province 1995 2005 2010 the OR Tambo Airport. Western Cape 14.6 14.6 14.1 There was negative growth in the primary industries in Eastern Cape 8.3 7.9 7.7

Labour market

Employment by industry

population groups African

537 688

White

123 399

Coloured

431 834

Asian

3 810

Total

1 096 731

Table 1: Northern Cape population by population group

Northern Cape

2.3

2.2

2.3

Free State

5.7

5.2

5.5

16.8

16.2

15.8

6.1

6.4

6.7

KwaZulu-Natal North West Gauteng

33.9

34.3

33.7

Mpumalanga

6.7

6.6

7.0

Limpopo

5.7

6.6

7.2

Table 2: Provincial percentage contributions to national output

21

Northern Cape Business 2013/14

focus In the Northern Cape, about 95 000 of the labour force are unemployed (quarter one, 2012) i.e. 24.9%, down from 26.7% in the previous quarter. From the first quarter of 2011 to the first quarter of 2012, 25 000 jobs were created provincially. There are 34 000 discouraged job seekers in the province (a decrease of 5 000 quarter-on-quarter). The labour force participation rate has decreased to 52.6%, indicating that 47.4% of the working-age population are not economically active (they depend on social grants or other income earners). The absorption rate (percentage employed of the labour force) and labour force participation rate (percentage of population forming part of the labour force) stayed fairly constant at low levels.

and tobacco products. Other mining and quarrying suffered a significant decrease in 2008 and decreased further in 2009. Agriculture and mining increased significantly annually. There has been a significant decrease in the export of furniture and other items. Forestry and logging exports increased dramatically from 2006 to 2010.

Exports

Top Northern Cape export destinations

In South Africa there was positive growth in exports from 2006 to 2008 and again from 2009 to 2010. However, the exports reached a high in 2008. The Northern Cape had negative growth The UK was the largest imin exports from 2006 to 2009 with positive growth from 2009 to porter of Northern Cape 2010. The monetary value of the Northern Cape exports was still goods and services for 2006 and 2007, the US for 2008 and much lower in 2010 than in 2006 and 2007. The biggest export sectors in the Northern Cape are ag- the Netherlands for 2009 and riculture and hunting, mining and quarrying, food, beverages 2010. From 2006 to 2008, Bel-

Industry

% Change 2008 2009 2010

% Contribution 2008 2009 2010

Primary industries

-2.9

-7.9

4.1

35.1

33.2

32.3

Agriculture, forestry and fishing

10.7

-2.6

-0.1

7.5

7.4

6.0 26.2

Mining and quarrying

-6.0

-9.4

5.3

27.5

25.8

Secondary industries

3.4

0.1

2.4

6.8

7.4

7.3

Manufacturing

3.6

-5.5

7.3

3.0

2.3

2.3

-0.4

0.2

1.4

2.2

3.0

3.1

Construction

Electricity, gas and water

8.0

12.8

-5.9

1.6

2.1

1.9

Tertiary industries

4.0

-0.7

0.8

48.5

50.0

51.0

Wholesale, retail and motor trade; catering and accommodation

1.5

-5.4

1.5

9.5

10.0

10.8

Transport, storage and communication

3.0

-0.9

1.3

7.5

7.4

6.6

Finance, real estate and business services

6.9

-1.1

1.2

12.4

12.4

12.5

Personal services

4.2

0.9

-2.9

7.1

8.0

8.8

General government services

3.6

2.7

2.2

11.9

12.1

12.3

Table 3: Northern Cape industry contributions Northern Cape Business 2013/14

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focus gium was the second-largest importer, in 2009 it was the UK and in 2010 it was the US. The third-largest value of exports went to Germany in 2006, Israel in 2007, the United Arab Emirates in 2008, Belgium in 2009 and again the United Arab Emirates in 2010. The fourth-largest value of exports went to Israel in 2006, the US in 2007, the Netherlands in 2008, the United Arab Emirates in 2009 and the UK in 2010. The fifth-largest importer of Northern Cape goods and services was the Netherlands from 2006 to 2007, Israel in 2008 and Hong Kong (China) from 2009 to 2010.

Exports to SADC countries

Country

2008

2009

2010

Belgium

138 786 975

67 174 656

89 721 407

Germany

18 568 723

12 000 251

18 116 146

Hong Kong (China)

42 653 604

44 087 809

93 443 436

Israel

91 004 940

29 028 428

28 584 765

Netherlands

108 056 943

190 296 970

133 214 726

United Arab Emirates

108 091 157

65 953 594

104 555 986

United Kingdom

57 595 008

88 277 629

101 253 538

United States of America

183 701 200

33 640 994

120 110 843

Table 4: Top Northern Cape export destinations (in Rands)

Country

2008

2009

2010

Brazil

138 800

1 229 310

3 755 374

China

34 737 653

4 425 209

15 973 603

India

1 902 739

70 000

332 025

8 806 989

13 225 887

6 410 278

Russia / Russian Federation

National exports to South African Development Community Table 5: Northern Cape exports to BRICS countries (in Rands) countries increased annually from 2006 to 2008 but de- machinery and household appliances. These two sectors made creased significantly in 2009. up 65% of the total exports to these countries in 2010. Some recovery was, however, This is also based on the fact that the Northern Cape is a made in 2010. The two sec- key access point to Namibia and linked to the south-western parts tors with the highest value of of Botswana. exports for 2006 to 2010 were fuel, petroleum, chemical and rubber products; and metal products, machiner y and The competitive and comparative advantages of the Northern household appliances. These Cape can be summarised as follows: sectors made up for more than • Mineral resources 50% of the national exports to • Climate and air quality the rest of the SADC countries • Open spaces and distances every year from 2006 to 2010. • Astronomy In 2010, the biggest export- • Coastline ing sectors in the Northern Cape to the rest of the SADC The way to approach these opportunities is through the key countries were wood and wood economic sectors and these are as follows: products; and metal products, • Mining and mineral beneficiation

Economic potential and investment profile

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Northern Cape Business 2013/14

focus

Exciting new astronomy projects are boosting the already well-established sector.

Agriculture and agri-processing Fishing and mariculture Manufacturing Tourism Knowledge economy Energy

supplied by the Northern Cape which has 80% of the world’s • manganese reserves, most of • which are concentrated in the • John Taolo Gaetsewe District. • Granite processing shows major potential in the Namaqua district of the province. Tigers eye: All South Africa’s The Northern Cape has an abundance of mineral resources and reserves of this semi-precious this stretches throughout the province. These include diamonds, stone are concentrated in the iron ore, manganese, copper, granite and semi-precious stones Northern Cape. to mention just a few. Sugilite: The Northern Cape Diamonds account for 27% of the Northern Cape’s mining out- is the primary producer of this put. A total of 95% of South Africa’s diamond production currently semi-precious stone. passes through Kimberley and is processed in Kimberley; 97.6% of all South African alluvial diamond mining activities take place in a 200km2 radius from Kimberley; and these are mostly traded and processed in Kimberley. Deposits of lead, manganese, iron, zinc, limestone and gypsum are plentiful. Lead: The Northern Cape produces 13.4% of the world’s ex- Agriculture is the second-most important economic activity ports of lead. Iron: Most of South Africa’s iron-ore production comes from the in the province. The Northern Northern Cape. The Sishen Mine is the biggest source of iron ore in Cape is generally drier than South Africa and is the third-biggest iron-ore producer in the world. the rest of South Africa, but Manganese: More than 25% of the world’s manganese is has fertile soil, several rivers • •

Mining and mineral beneficiation

Agriculture and agri-processing

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focus and produces some of the Extensive canal systems have been constructed for irrigation country’s finest-quality ag- purposes to supply water to more than 60 000 hectares of ricultural products. The arid irrigation land. Agriculture and agri-processing are important conditions have benefits for economic production sectors and sources of employment and livestock producers in that income (commercially as well as a source of subsistence income). the nutritional value of the According to Statistics South Africa, livestock sales were the veld remains relatively high most significant contributor to the Northern Cape agricultural throughout the year. Two of sector (40.1%). Livestock sales were followed by horticultural the biggest rivers in South produce and field crops which contributed 25.9% and 23.9% Africa, namely the Orange respectively to the sector. and the Vaal, run through the Northern Cape and form the backbone of approximately 140 000 hectares of irrigation The Northern Cape offers favourable biological conditions, in the province. Irrigation is excellent shore-based infrastructure, the presence of a number also taking place from the of pioneering private-sector mariculturalists, a strong research Harts, Riet and Modder rivers. and development base and an ideal environment for investment

Fishing, aquaculture and mariculture

DISTRICT MUNICIPALITY

FOCUS POINTS

John Taolo Gaetsewe DM

Hotazel: Development of a manganese ore smelter Kuruman: Semi-precious stones Sishen: Development of a pig iron-ore smelter The rehabilitation of mines Sand Industrial minerals

Namakwa DM

Okiep: Development of a copper refinery. Aggeneys: Development of a zinc smelter at Gamsberg Small-scale mining Industrial minerals

Pixley ka Seme DM

Douglas: Alluvial diamond-mining opportunities. Niekerkshoop: Semi-precious stone mining De Aar: Dolerite mining Hopetown and Marydale: Salt-mining opportunities. Industrial minerals

Siyanda DM

Mier LM: Diamond-mining opportunities.

Frances Baard DM

Kimberley: Diamond mining

Lutzputs: Iron, copper and silver mining potential Barkley West: Alluvial diamond-mining opportunities. Barkley West: Semi-precious stones Table 6: Mining opportunities in the Northern Cape

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Northern Cape Business 2013/14

focus and growth in this industry along the West Coast. The following trade and investment opportunities are available: • Port Nolloth Community Cooperative Fish Factory • Four abalone ranching rights – possible joint venture with local partners • Possible mariculture partners in fishing, abalone ranching, mariculture, kelp and kelp processing • Infrastructure for oil and gas industry services: revitalisation of the Port Nolloth and Hondeklipbaai Fish Factories • Ranching rights being issued • Setting up Port Nolloth as the service centre for the coastline in terms of ranching. Community group and Benquila Investments as possible JV or partnership • Kelp processing and export • The establishment of an oyster and abalone hatchery in order to cater for the growing demand for oyster and abalone spat

Mining

• • •

Agriculture • • • • • • •

• •

Projects •

capture and manage the economic boom

Kathu Industrial Supplier Park Apply for mining licence Depending on preferred commodity, explore joint venture or merger Establish a service office in the Gamagara Mining Corridor to

Livestock production and development programme Lesotho irrigation project Beef production Commercialisation of goats Mutton/lamb production Aquaculture Orange River Smallholder Farmer Settlement and Development Programme Vaalharts revitalisation programme Oranje-riet development programme Game breeding and hunting

Science, technology, BPO and ICT •

SKA-related goods and services

The fishing, aquaculture and mariculture sectors are all the focus of investment programmes.

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focus

The province has a plethora of natural tourism assets.

Business process outsourcing and offshoring call centre New Nor thern Cape University

Manufacturing •

• • • •

Infrastructure • • • • •

Port Nolloth Harbour Upington cargo hub and mothballing De Aar rail cargo hub 35 000+ houses to be built in Gamagara Mining Corridor Kathu Industrial Supplier Park

Kathu Industrial Supplier Energy Park: mining, transport, • Upington Solar Park construction and renew- • Independent Power Supplier: wind, gas, solar, hydro, biomass • Goods and services able energy Upington cargo and elec- • Fracking and uranium/nuclear energy to be explored tronics hub: SKA, renewable energy and aircraft Tourism • Bloodhound SuperSonic Car Project mothballing Kimberley: jewellery and • Adventure sport • Commercialisation of nature reserves diamonds, food Heineken malt production • Resorts: De Beers and Douglas Holiday Resort, Boesmansput and plant Diving Resort De Aar: Renewable energy • SKA Tourism Centre Upington vehicle testing: • Big Hole Custom built high-speed • Formula Drift World Cup vehicle-testing track Kimberley International read more Diamond and Jewellery Visit: http://economic.ncape.gov.za Academy

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Northern Cape Business 2013/14

special feature

Square Kilometre Array telescope The world’s greatest radio-astronomy project is heading for a Karoo home.

S

outh Africa’s bid to host the Square Kilometre Array (SKA) telescope, the biggest development in radio astronomy in history, was capped with success in May 2012 when the international committee announced that South Africa was a joint winner with Australia. There was some disappointment that the R15-billion was being shared with the country’s big sporting rival, but much more excitement about the scope of the project that lies ahead for South Africa’s scientists.

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There will be big spin-offs for manufacturing companies, universities, students and researchers, service and infrastructure providers, among others. The presence of such a vital project on South African soil should make it easier for bodies such as the Technology Innovation Agency to motivate young scientists and entrepreneurs. The SKA telescope is an aperture-synthesis instrument. Signals from each of 3 000 radio telescopes (half of which will be located at Carnarvon and the balance of which will be distributed

special feature around the continent) will be combined in such a way that the telescope’s diameter will in effect be the distance between the radio telescopes furthest apart from one another – in this case, a distance of some 3 000km! The site furthest north will be located in Ghana. The central computer for the system will have the power of one billion PCs. The speed of the computers will be so fast as to defy belief. Dr Bernie Fanaroff, director of the South Africa SKA Project, says, ‘SKA is expected to collect more data in one week than humankind has collected in its entire history.’ Mankind will have its first clear pictures of what the universe looked like 13.7-billion years ago. According to the skatelescope.org website, the data collected by the SKA in a single day would take nearly two million years to play back on an iPod. To facilitate all of this data transfer, the Council for Scientific and Industrial Research (CSIR) has given notice that a R100-million second network, with speeds of 10 gigabytes a second, would be installed at the astronomy site. Neotel will install the network in a partnership with Broadband Infraco. The existing astronomical facilities at Sutherland will also benefit from this faster network. Broadband Infraco laid a network infrastructure from Cape Town to Carnarvon in 2011. SKA South Africa’s engineering and monitoring office is in the Cape Town suburb of Pinelands.

and the project to be complete by the end of 2016. The intention is that MeerKAT will develop technologies appropriate to the SKA. This will include the use of composite, one-piece reflectors, single-pixel wideband receivers, low-cost, high-reliability cryogenic systems, and reconfigurable digital-processing systems. The South African Research Chairs Initiative (SARChI) of the National Department of Science and Technology (DST) and the National Research Foundation (NRF) has put about R240-million into the creation of five university chairs in support of the SKA project. More than 300 university students have also received support for studies in science and engineering through the SKA project and about 700 jobs have been created. Rhodes University has an SKA research chair and the Centre for Radio Astronomy Techniques and Technologies at the university will house two post-doctoral candidates and three students in 2014. This will grow to a team of six as the project progresses. Two professors are currently located at the centre, which is housed in the university’s Department of Physics and Electronics. Construction of infrastructure to support MeerKAT and SKA is underway with the foundations of buildings being the responsibility of Group Five Coastal, and the buildingmanagement system being overseen by Schneider Electric South Africa. By late 2012, more than R2-million worth of goods had been supplied by local businesses to the SKA South Africa project. The 64 antennas that will make up the comMeerKAT plete MeerKAT are being constructed by South African company Stratostat Datacom, with In bidding for the ambitious project, there have technical help from General Dynamics SATCOM been considerable benefits for astronomy in Technologies. The R632-million contract is set to South Africa. In the first phase, a single dish be completed by the end of 2016, with the first (XDM) was built at Hartebeesthoek Radio As- dishes set to be up and running by January 2014. tronomy Observatory (HartRAO) near Pretoria. Some 75% of the total contract will be spent in By 2010, the seven dishes required for the sec- South Africa. ond phase of the project (KAT-7) had been built in the Karoo. MeerKAT is the final phase of the local project read more – and the first phase of the larger SKA scheme. This will entail 64 dishes being established in Visit: www.frontiermarketnetwork.com/ the Karoo, with the first to be in place by 2013 article/1752

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Northern Cape Business 2013/14

special feature

Space to roam Game ranching in the Northern Cape has become increasingly popular, and increasingly lucrative.

I

nvest R5-million in cattle and in five years you will earn a return of 4.8% on your money. Invest the same amount of money in sable antelope, and the value of your investment could go up by 45.2%. Is it any wonder that the game-ranching business is booming? These figures are drawn from the 2013 Absa Agriculture Outlook. The wildlife-ranching sector in South Africa now encompasses more than

Northern Cape Business 2013/14

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10 000 farms (from about 3 500 in 1992) and covers more than 20-million hectares. This means that there is in private hands about three times more conservation land than there is under the protection of national and provincial parks. Twice as many animals are on these private farms than in the public parks. Commercial wildlife ranches cover 16.8% of the country’s landmass, with about 20% located

special feature in the Northern Cape Province (Mail & Guardian). calf were sold in April 2012 for R20-million. The Provincial Premier Hazel Jenkins, speaking at the auction brought in a total of R146-million. opening of the 7th International Wildlife Ranching Hunting is a lucrative market, with the largest Symposium in Kimberley in 2011, said that the number of trophy hunters coming from the US. province has about 1 500 ranches. Limpopo The National Department of Environmental Affairs Province has about half of the country’s ranches. calculated that the revenue generated directly by Premier Jenkins went on to say that hunting, hunting in 2009 was R650-million. and its economic multipliers, contributed about The African Sky website lists a daily price of R1-billion to the provincial economy on an annual $450 for a hunter accompanied by a professional basis. Employment opportunities in the sector hunter. Trophy prices range from $35 000 for an include tracking, skinning, taxidermy, tour-guiding elephant and $13 500 for a buffalo to $450 for and professional hunting. a bushpig. Concerns about conservation ensure that there Venison and biltong are the key products deis always a debate about the role that hunting rived from game hunting. South Africans are should play in the tourist offering. The first national more likely to hunt for biltong than for trophies. Hunting Indaba was held at The Palace, Sun City, The Absa Agricultural Outlook states that the in October 2012. This brought together leading fig- world supply of venison is 60 000 tons short ures in national and provincial government, wildlife of demand. With South Africa exporting less ranchers and representatives of the hunting sector. than 2 000 tons annually, there is clearly a big National Minister of Water and Environmental opportunity in this market. Affairs Edna Molewa told the indaba that the huntEco-tourism is a broad category encompassing and game-farming sectors were important ing leisure tourism, game viewing and the gamepartners in ‘conservation, tourism and economic lodge market. South Africa has large numbers development’. of lodges catering to the high end of the market The Professional Hunters’ Association of and there is scope for the development of more South Africa has put the overall value of the eco-tourism venues that are more suited to the wildlife industry to the national economy at budget of the local traveller. R7.7-billion. The industry is said to employ Premier Jenkins told the Kimberley symposium, 140 000 people. The Confederation of Hunting ‘Eco-tourism has become one of the leading and Associations of South Africa says that the sector fastest-growing sectors with an annual growth of is now bigger than the sugar and dairy sectors. approximately 10%.’ She linked the growth of the sector to the fact that only 17% of South Africa’s agricultural land has high production potential, and Segments noted that on marginal land, of which there is a good deal in the Northern Cape, wildlife ranching The wildlife-ranching sector comprises four main is one of the few economic activities that can components: breeding and auctions, hunting, contribute to economic growth and employment. processing and eco-tourism. Wildlife ranching is sure to grow in significance South Africa in 2013 has 60% more wildlife in the economic profile of the Northern Cape. than it did in 1900, and a total of about 19-million Game animals need space to roam, and there’s game animals now inhabit the land. The value of no shortage of space in the Northern Cape! game has also increased exponentially. Rare animals such as the sable antelope can read more bring returns of over 45% on investment, while a buffalo with a good pedigree can attract incredible prices at auction. A buffalo cow with an Visit: www.frontiermarketnetwork.com/ impressive horn spread and its four-month-old article/1343

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Northern Cape Business 2013/14

special feature

Commodities and logistics Major rail projects are redefining mining prospects in the Northern Cape.

T

he Northern Cape has two of the most Rail is responsible for only 14% of the consignificant railway structures in South tainers that are delivered to destinations around Africa. The junction at De Aar binds the South Africa, with the balance being carried on whole western side of the country and the roads. State-owned company Transnet is leading Sishen-Saldanha railway line is one of the biggest a shift from road to rail. At a grain symposium in of its kind in the world. De Aar could soon be the 2012, Transnet’s agricultural freight executive site of a new Freight Intermodal Terminal. stated that turnaround times had improved from Sishen-Saldanha is one of the technological 40 days in May 2010 to 20 days in November 2011. wonders of the world, having broken a world re- Where 8 000 tons of agricultural produce had cord for the longest and heaviest train ever as- been carried by rail in 1992, the 2010 figure was sembled. The line’s key task is to transport iron just 3 000 tons. Logistics planners are hoping ore from mines in the Northern Cape to the port that the former statistic can help change the latter. of Saldanha. One of the Northern Cape’s other big comThere are a number of iron-ore expansion pro- modities is manganese. Several new operations jects underway, most significantly the multi-billion- have started already, or will go into production rand schemes at Kolomela (Kumba) and Khumani in coming months. Vital to the economics of (Assmang). Line operator Transnet Freight Rail these mining enterprises is transport cost and (TFR) has committed to an R8.7-billion upgrade efficiency. of the rail corridor. The iron-ore channel is being At the moment, the province’s manganese extended from 38-million tons-per-year to 60- is transported via the general freight line to Port million tons-per-year. Some form of private-public Elizabeth. Transnet has pledged to upgrade partnership might be created to expand the line. this channel. Northern Cape Business 2013/14

34

photo: Shaun Loureiro-Railways Africa

special feature Another railway development that could have a big impact on logistics in the Northern Cape is the reopening of the Douglas-Belmont line. The opening in December 2012 of a similar branch line, Orkney-Vierfontein, in the neighbouring province of North West, is expected to more than double grain cargo volumes transported out of that region. Once the Douglas-Belmont line is operational, it would be economically viable to build foodprocessing plants in the area. Transnet’s expansion plan is based on its Market Demand Strategy: the manganese of the Northern Cape that markets are demanding is an example of how the process works. Other mooted projects in the transport, logistics and infrastructure sphere that have the potential to make a big impact on the provincial economy are: • De Aar Freight Transpor t Hub: A detailed proposal has been put to the provincial Freight Logistics Forum with regard to The existing capacity of four-million tons per upgrading De Aar’s already important status annum (mtpa) will grow to between 7-12 mtpa by as a major railway junction. De Aar has 110km 2013 and possibly as much as 22 mtpa by 2017. of existing rail lines. A plan is being investigatTransnet successfully tested a 208-wagon ed to turn De Aar into a freight-transport hub. train from a manganese mine to Port Elizabeth in This is in line with national government plans September 2012. The 2.2km train weighed 16.6 to get the bulk of the country’s freight off the tons and was powered by 18 diesel locomotives, overused road network and back onto trains. using the same distributed power system that is • Upington International Airport Cargo Hub: Upington Airport has one of the longest runused on the iron-ore line. ways and is capable of accommodating most Until the line is fully functional and able to cope aircraft. A planned public-private partnership with all the manganese, Transnet has identified will run the airport as a transport cargo hub. Bloemfontein as an intermodal hub: manganese The hub could deal with commodities such will be taken to Bloemfontein by rail and then be as citrus, grapes, fish and meat. transferred to trucks for delivery to Durban. The running of the test train was also a chance • Port Nolloth Harbour development: The Northern Cape does not have a major to inaugurate a new rail siding at Tshipi é Borwa, harbour, although Port Nolloth is registered a new project of the Tshipi é Ntle Manganese as a commercial port. The provincial governMining company, a joint venture between ment is working with national government to Pallinghurst Co-Investors and a black empowget the port upgraded. erment company, Ntsimbintle Mining. Another new venture that has great significance is the Kalagadi manganese project, led by Kalagadi Manganese Ltd. It is this company read more (in which the Industrial Development Corporation holds 10%) that intends building a smelter at Visit: www.frontiermarketnetwork.com/ article/1391 Coega in Port Elizabeth.

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Northern Cape Business 2013/14

special feature

Rare-earth elements Rare earths are bringing a sparkle to the mining sector.

W

ith South Africa’s mining industry experiencing a number of upheavals in the course of 2012, there was good news out of Namaqualand. There is great interest in the land between the villages of Garies and Bitterfontein, and this time

Northern Cape Business 2013/14

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the flowering of the Namaqualand daisies is not the focus – this area contains reserves of rareearth elements, and this is something the world needs badly. There are 15 rare-earth elements (REE) and many parts of the modern economy

special feature depend on them. David Gleason of Business Day suggests that the list of uses of REE is ‘almost endless’ and cites yttrium (in high-temperature superconductors), promethium (nuclear batteries), holmium (lasers), thulium (X-ray machines) and lutetium in PET scan detectors. Applications related to fuel cells, hybrid cars and wind turbines are among other uses to which REEs can be put. China controls 95% of the global supply of REEs and is in the process of reducing the amount that it exports. This makes it critical to find new sources. According to REE miner Galileo Resources, world demand of 120 kilotonnes (kt) in 2010 is expected to grow to between 180kt and 240kt by 2014. Southern Africa is the site of many explorations for REEs and there are two active projects in South Africa: Steenkampskraal in the northwestern Western Cape and the Zandkopsdrift project in the Northern Cape. The projects in two different provinces are in fact not very far apart. Galileo bought a 70% stake in Rare Earth International in 2012, thereby gaining exposure to properties in Zambia and Mozambique. The company is also developing the Glenover project near Thabazimbi in Limpopo Province. Frontier Rare Earths (listed on the Toronto Stock Exchange) is the company developing the Zandkopsdrift mine in the Northern Cape. It has secured an offtake agreement with South Korean parastatal Korea Resoures Corp (Kores) and signed a memorandum of understanding relating to Korea buying shares in the firm and the mine as the project develops. Engineering News reported in February 2012 that $48-million was available for all feasibility studies. The 450 000 tons of total rare-earth oxides contained in the B zone of Zandkopsdrift is the biggest and best grade of its kind outside of China, according to Engineering News. The mine will produce 20 000 tons per year of rare-earth oxides. The other project that is moving along is at Steenkampskraal, about 70km from Vanryhnsdorp. Rights to mine were granted in 2010 to Steenkampskraal Monazite Mine Ltd, a subsidiary of Rare Earth Extraction Company Ltd (Rareco), which has its base in Stellenbosch.

37

Since then, Canadian giant Great Western Minerals Group (GWMG) has taken ever-increasing stakes in Rareco. The mine was mined for thorium by Anglo American many years ago for the nuclear-fuel industry. A Rareco director told Business Times in 2010 that the mine had ‘the richest rare-earth deposit in the world’, and said that the mine’s average ore grade was 20%. The main REE at the mine is cerium, an important component in catalyticconverter manufacture. GWMG has an offtake agreement with a company in the Toyota Group, Aichi Steel, and is investigating a joint venture with the Chinese company Ganzhou Qiandong Rare Earth Group for the construction and operation of a REE seperation plant at Steenkampskraal. An REE plant in this area would further boost the growth of the West Coast as a mining destination. A R40-million prefeasibility study is underway to investigate the possibility of constructing a large minerals-beneficiation plant at Saldanha. A consortium called Rare Minerals Industries (not to be confused with rare earths) is proposing that titanium, zirconium, silicon and magnesium be processed at the plant, the construction of which might cost as much as $1.5-billion. An attempt to prospect for rare earths south of the two sites currently under development (and relatively near to Saldanha) was halted in April 2012 when the Cape High Court ruled against prospecting activity near Piketberg. An interim interdict was granted against Bongani Minerals to stop the company looking for rare earths, tungsten and molybdenum. The main mineral in the area is tungsten, and the deposit being targeted is the largest in the world, according to the company.

read more Visit: www.frontiermarketnetwork.com/ article/1424 Northern Cape Business 2013/14

special feature

Bloodhound SuperSonic Car Project The Northern Cape is preparing for a bid to set a new world land-speed record

A

n airport hangar in a small British town rocked to the roar equivalent to several Boeing 747s taking off together when the Bloodhound project’s hybrid rocket was tested for the first time in October 2012. Weighing in at 450kg, the rocket is the key to the attempt on the world land-speed record that will happen on Hakskeen Pan in the Northern Northern Cape Business 2013/14

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Cape in the second half of 2013. Liquid oxidiser was fired into the rocket at a pressure of 820lb per square inch, the ‘equivalent to holding a large family car in the palm of your hand’ (www. bloodhoundssc.com/rocket). The decision by the Northern Cape Department of Roads and Public Works to employ local community members to clear the site for the world-record bid has created many work

photos: Stefan Marjoram

special feature opportunities for previously unemployed people in Loubos and Rietfontein. The project is part of the Extended Public Works Programme (EPWP) and 315 workers have received the necessary equipment to do the work and appropriate clothing, including wide-rimmed hats. An extensive worldwide search was conducted (using space-shuttle radar data and satellite imagery) to find the perfect site. Hakskeenpan is 200km north of the Northern Andy Green is the daredevil that plans to break the record. Cape’s second-biggest town, Upington, and about 400km north of Verneukpan, the site of the 1929 attempt to break the record by British daredevil Captain (later Sir) Malcolm Campbell. Hakskeen Pan is ideally suited to the bid by the Bloodhound SuperSonic car to set a new land-speed record. Criteria included being long enough (at least 16km), flat enough and firm enough to support 6.5 tons of motor car. Wing Commander Andy Green is the current holder of the world record The surface of Hakskeen Pan has to be completely clear of debris. but intends setting a new one in the Northern Cape. The car will be fitted with two jet engines and have power equivalent to the and beverage, and business support and engipower of 180 formula-one motor cars. neering sectors. Television images of the unspoilt The Northern Cape Provincial Government is beauty of the Northern Cape will massively boost including 50 schools in the Bloodhound Project, the efforts of the tourism authority to market the leveraging countless opportunities for learning province’s assets. about science, mathematics, engineering and technology. The schools chosen include the province’s 17 Dinaledi schools, which already read more specialise in mathematics and science. The huge technical team that will descend on the Northern Cape to support the project will Visit: www.frontiermarketnetwork.com/ undoubtedly boost the accommodation, food article/1749

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focus

Locals are a proud part of Bloodhound project The Northern Cape Department of Roads and Public Works has used the record-breaking project to curb unemployment.

‘H

ardworking, eager, proud of his work, and an inspiration to others’: these words best describe Hendrik Kortman. He is one of 317 Expanded Public Works Programme workers that has been employed by the Northern Cape Department of Roads and Public Works to work on a daily basis at Hakskeenpan, preparing the track for the Bloodhound SuperSonic land-speed record. Hendrik is differently abled and does not allow his disability to stand in the way of earning a living. He works independently, using a spade and bucket to clear the track of cobbles and pebbles. In light of the growing problem of unemployment in the region, Hendrik regards himself as fortunate to work at the pan. ‘I do not have a wife or any children, but the amount of money that I receive allows me to purchase food and clothes.’ This job opportunity gave hope to Hendrik, as he believes the government has given him a better life. Like Hendrik, approximately 300 families from five towns (namely Loubos, Rietfontein, Klein Mier, Groot Mier and Philandersbron) now have an income for the first time in many years. Regarding the high rate of unemployment in the Northern Cape Province and low levels of literacy and education, the Department of Roads and Public Works is turning the tables for the socioeconomic status of individuals – once again pushing back the frontiers of poverty. The Department of Roads and Public Works stands central with the implementation of its Expanded Public Works Programme (EPWP) and pays a wage of R850 every two weeks, thus giving hope to previously jobless and marginalised individuals. Families no longer have to struggle to make a day-to-day living. The Northern Cape Provincial Government will spend close to R7.5-million on creating the world’s best land-speed track. MEC for Roads and Public Works Dawid Rooi stated: ‘A bulldozer would

read more Visit: www.northern-cape.gov.za Northern Cape Business 2013/14

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have done this job within a short period of time, but we deliberately choose to make it an EPWP project so that we could create job opportunities for the local communities.’ The Department of Roads and Public Works is proud to announce that a total of 317 jobs have been created, consisting of 300 workers and 17 team leaders. The Northern Cape agreed to clear all obstacles on the pan and create a 20km x 1.1km surface that is completely level, has no obstacles including stones, dips or bumps on it, and has a surface quality that will enable the Bloodhound SSC (SuperSonic Car) to reach a speed of 1 600km perhour safely.

focus

Providing healthcare and creating jobs The New Referral Hospital in Upington, constructed and managed on behalf of Northern Cape Department of Roads and Public Works for the Department of Health, is set to improve the quality of healthcare services.

T

he new 267-bed referral hospital with modern and advanced medical equipment and a larger medical and specialist team will replace the former Gordonia Hospital. The hospital facility consists of theatres, an emergency unit, renal unit, burns unit, pharmacy unit, oncology unit, a 72-hour psychiatric facility, and other units such as a maternity unit and a forensic mortuary. On the same premises, there is a tuberculosis hospital, an EMS unit and six blocks of staff housing that will attract and accommodate the best specialists and nurses. During the construction of the health facility, many local SMMEs were afforded business opportunities, such as landscaping, bricklaying and paving of internal roads and the parking area. These opportunities created several jobs and simultaneously skilled jobless people in the Upington community. The internal roads and landscaping contractors subcontracted four local enterprises to work on various sections of the external roads. The new hospital, with its upmarket, private-hospital appearance, was constructed taking various green concepts into consideration

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to reduce the impact on the environment. The air-conditioning system makes use of an ice bank that cools at night, and during the day the air conditioner uses the accumulated cool air. Autoclaves (the water that has been used to sterilise medical utensils and equipment) and steam will be used for irrigation purposes in the garden. In terms of construction, the size of the windows was reduced to be more energy efficient as smaller windows allow for less air conditioning. In the staff housing units, heat pumps that use 70% less electricity have been installed instead of electrical geysers. The medical facility aims to improve the standard and quality of healthcare services of Upington and the surrounding communities. Upon completion, the hospital will be handed over to the provincial Department of Health which will be responsible for advertising all medical and administrative posts. The new hospital, having more units and sub-units, will contribute to curbing unemployment in the area.

Visit: www.northern-cape.gov.za. 41

Northern Cape Business 2013/14

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

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, 2003–2011. Source: Statistics South Africa

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 second-largest platinum miner. Northern Cape Business 2013/14

Year

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

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, 1998–2009. Sources: www.thedti.gov.za, www.reservebank.co.za, World Bank, Statistics SA

42

special feature Sector

Value in millions (R)

% Real change from 2010

% of GDP

63 984 2 260 381 357 756 78 532 120 420

-.04 0.2 2.4 1.3 0.8

2.2 8.8 12.1 2.6 4.1

386 430

4.4

13.0

220 060

3.3

7.4

Agriculture, forestry and fishing Mining and quarrying Manufacturing Electricity and water Construction (contractors) Wholesale and retail trade, catering and accommodation Transport, storage and communications Finance and insurance, real estate and business services Personal services General government services Total value added at basic prices Taxes less subsidies on products

565 224

3.5

19.1

183 493 434 224 2 670 504 293 757

2.4 3.9 3.0 4.4

6.2 14.6 90.1 9.9

GDP at market prices

2 964 261

3.1

100

Table 3: Breakdown of South Africa’s GDP at current prices, per sector, 2011. Source: statistics south africa

African Customs Union (non-SACU) trading partners in April 2012, after a deficit of R5.5-billion in March, taking the cumulative trade deficit in April 2011 to R36.5-billion, compared with R7.5-billion in the first four months of 2011. A record R17.4-billion deficit was set in January 2009, but as exports began to improve, so the deficits narrowed in 2009 to become surpluses in 2010. South Africa recorded its first annual trade surplus in seven years in 2010 of R4.8-billion, following a few stronger than expected surpluses on the trade account during the year. In 2012, however, the rise in the oil price in the first few months, coupled with a sharp reduction in platinum exports, saw the non-SACU foreign trade balance firmly in the red. The old myth that a weaker rand leads to more exports is once again disproved by the facts, as import growth was 23.5% in 2011, while export growth was 19.9% when the rand was weaker due to a R15-billion deficit. Prior to November 2011, when the rand had been stronger, export growth had exceeded import growth. In 2010, when the rand was strong because export growth of 14.9% exceeded import growth

Trade: imports and exports South Africa’s international trade has risen sharply over the last 10 years (table 4). In 2004, the value of imports rose above that of exports. Tables 5 and 6 show the largest import and export sectors respectively, for April 2012. Important import sectors in April 2012 were machinery (R15.9-billion), mineral products – chiefly crude oil (R13-billion), transport equipment (R10.9-billion) and chemicals (R5.4-billion). On the export side, the most important sectors were mineral products, chiefly coal and iron ore (R14.8-billion), precious metals and diamonds (R10.2-billion), base metals (R7-billion) and transport equipment (R4.6-billion). Most of South Africa’s foreign trade takes place with Asia, the United States and Germany (tables 7 and 8). In 2011, China, the United States and Japan were, in descending order, the country’s top export markets, while top import-source countries were China, Germany and the US. South Africa recorded a trade deficit of R9.9-billion for its trade with non-Southern

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Northern Cape Business 2013/14

special feature Year Imports in R-m

Exports in R-m

Sector

Value in R-m

1999

147 356

165 555

2000

187 608

210 373

1. Machinery, mechanical and electrical

15 903

2001

216 033

251 330

2. Mineral products

12 991

2002

275 427

314 102

3. Transport equipment

2003

258 839

275 581

4. Chemical products

5 420

2004

306 927

296 246

5. Base metals

3 190

331 405

6. Plastics, rubber

2 591

396 529

7. Textiles

1 726

8. Optical, medical, photographic

1 579

2005 2006

351 665 465 040

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

10 880

9. Foodstuffs, beverages

1 433

10.Vegetable products

1 045

Total

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: www.sars.gov.za

Source: www.sars.gov.za.

of 8.1%, there was a R4.8-billion surplus, the first annual surplus since 2003. In the first four months of 2012, when the rand was substantially weaker than in the same period in 2011, exports only grew by 7.4% y/y, while imports surged by 20.6% y/y. In mid-2009, South Africa ranked 61 out of 121 countries, from 59th out of 118 in 2008 in the World Economic Forum’s Global Enabling Trade Report. But in 2010, it slipped to 72 out of 126 countries. It ranks above Zimbabwe (122), Ivory Coast (123), Kenya (105), Tanzania (97), Argentina (95) and India (84).

Sector 1. Mineral products

92 269

3. Vehicles, aircraft, vessels

49 938

4.Machinery, mechanical electrical

47 748

5. Chemical products

31 203

6. Vegetable products

21 204

7. Foodstuffs, beverages

19 660

8. Paper, pulp

10 931

9. Plastics, rubber

9 504

Total

5 230 590 207

Table 6: South Africa’s top export sectors, April 2012.

South Africa’s privately held business (PHB) owners’ intentions to grow through acquisition seem to align with expectations of BRICS (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. Northern Cape Business 2013/14

126 512

2. Base metals

10. Animals, animal products

Foreign direct investment and public investment

Value in R-m

Source: www.sars.gov.za

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 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

44

special feature 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-construc-

Country 1. China

Value in R-m 103 174

2. Germany

77 396

3. USA

56 944

4. Japan

34 377

5. Saudi Arabia

32 294

6. India

29 220

7. UK

28 965

8. Iran

tion 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. 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.

27 121

9. Nigeria

22 655

10. Italy

19 574

Table 7: South Africa’s top 10 import source countries in 2011. Source: www.sars.gov.za

Country

Value in R-m

Year

Q1

Q2

Q3

Q4

1. China

90 210

2003

15.70

16.00

15.90

16.00

2. United States

61 044

2004

16.00

16.20

16.20

16.20

3. Japan

55 635

4. Germany

42 684

5. UK

29 001

6. India

22 224

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

7. Switzerland

22 902

8. Netherlands

22 902

2009

23.20

22.40

21.20

20.30

9. Zimbabwe

17 776

2010

20.30

19.88

19.40

18.90

10. Mozambique

17 680

2011

18.80

19.00

18.90

18.90

Table 8: South Africa’s top 10 export markets in 2010.

Table 9: Ratio of gross fixed-capital formation to GDP.

Source: www.sars.gov.za

Source: www.reservebank.co.za

45

Northern Cape Business 2013/14

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destination northern cape A guide to business and leisure travel services, conferencing and accommoDation in the northern cape

destination overview

Tourism Adventure and spectacular desert landscapes are at the heart of the tourist offering of the Northern Cape.

sector insight The eyes of the world will be on the Northern Cape when a car powered by a rocket takes on the land-speed record. • The rights to host the Maloof Money Cup skateboarding events have been secured to 2015. • The first Kalahari Desert Speed Week attracted lots of noisy participants. • The opening of the 2 500-seater Mittah Seperepere Convention Centre is a boost for Kimberley’s convention sector. • The inaugural Green Kalahari Canoe Marathon attracted 45 paddlers. The Maloof Money Cup skateboarding event brings together some of the greatest competitors in the field.

S

outh Africa’s biggest province is determined to take advantage of its wide open spaces. The province’s tourism strategy targets adventure tourism (4x4 trails, hiking, river-rafting) and desert tourism, which includes the stark delights of the Kalahari and the Richtersveld, and spectacular spring-flower displays. The Northern Cape Tourism Authority (NCTA) has increasingly been focusing on adventure sports (under the brand ‘Northern Cape Extreme’) and the organisation and promotion of events, including festivals. The top two events on the tourism events calendar in the recent past and in the near future are the Maloof Money Cup, the international skateboarding championships, held for the first time in Kimberley in 2011, and the Bloodhound Project, the attempt Northern Cape Business 2013/14

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on the land-speed record that will be held north of Upington in the desert in 2013. Kimberley’s visitor accommodation was stretched to the limit for the Maloof Money Cup, with caravan parks and nearby towns also filling up quickly for the popular event. A big music concert was also held. This was the first time the event had been held outside the US. The rights to host the event until 2015 have been secured.

destination overview The provincial government estimates that the national marketing value of the event being broadcast to 260 countries was in the region of R10-million. The three-day event sold 15 000 seats, and the Skateboarding for Hope initiative that followed the event reached more than 20 000 young people in 230 towns across South Africa. Nearly 400 people have been employed in various capacities in preparation for the attempt that will be made to break the land-speed record in the second half of 2013. The Bloodhound Project is described in greater detail elsewhere in this publication. The site for the record attempt is Hakskeen Pan, north of Upington. Chosen for its flatness, the pan was also the place where the inaugural Kalahari Desert Speed Week was held in August 2012. Describing the ‘Martian landscape’ he encountered at the Speed Week, Thomas Falkiner of the Sunday Times wrote: ‘A giant lake bed long forgotten by water, its scab-like surface runs uninterrupted until it melts clumsily into the horizon. High above hangs one of the bluest skies you’ve ever seen. Dare to walk out into the lonely expanse and you are lost in a vacuum of hot silence, your sense of direction thwarted by a million shimmering images.’ But many petrol-heads did indeed ‘dare to walk out’, albeit in thunderingly loud V8s and hot-rods of every type. The festival of fast cars not only raised

The Kalahari Desert Speed Week is a haven for petrol-heads.

the image of the Northern Cape as a destination, but acted as a test run of the ground along which the rocket-powered car is going to run in 2013. The Northern Cape Provincial Government Growth and Development Strategy targets tourism as one of the key sectors with the capacity to ‘grow, transform and diversify the provincial economy’. The sector’s direct contribution to provincial gross domestic product (PGDP) is about 6%. In addition to events, attention is also being given to the potential of niche tourism, a sector that is growing fast. Assets unique to the Northern Cape include a large number of arid areas (for lovers of deserts and desert life) and very clear night skies (for sky-gazers, a niche that already exists but has tremendous potential to expand). Although the tourism offering is already well developed and there has been considerable investment in infrastructure in recent years, the potential for the Northern Cape to capture more of the domestic and international tourism market is immense. The most recent investment is the 2 500-seater Mittah Seperepere Convention Centre that opened in 2012, and is

Festivals March: Kakamas Sultana Festival April: Diamonds and Dorings, Kimberley May: Upington Agricultural Show August: Hantam Vleisfees, Calvinia September: Gariep Arts Festival (Kimberley), Kalahari Kuier Fees (Upington), Cultural Festival, Okiep October: Boek Bedonnerd Festival, Richmond December: Namakwa Festival, Springbok

49

Northern Cape Business 2013/14

destination overview

located near the Big Hole in the centre of Kimberley. With the town’s biggest hotel situated in the same precinct, the Convention Centre will make it much easier to sell the provincial capital as a meetings, incentives, conference and events (MICE) destination. Progress in that field was evidenced when Kimberley was chosen to host the 7th International Wildlife Ranching Symposium in late 2011, with delegates from 20 countries present. The Northern Cape’s position as a hunting and wildlife-ranching destination is dealt with in a separate article in this publication. According to the 15-year review of the Northern Cape published in March 2009, tourist numbers into the province have shown a steady rise over the previous five years. Bed-nights-sold decreased in more recent times due to the global recession, but

Northern Cape SMME tourism in 2012 Small tourism enterprises at the Durban Indaba and at tourism expos internationally • Made 1 539 contacts • Made 457 strong leads • Entered into 69 partnerships • Closed 136 deals (35 more than in 2011) • Initiated a visit by several American travel journalists to Kimberley and the Quiver Tree Route. SOURCE Northern Cape Department of Economic Development and Tourism

Northern Cape Business 2013/14

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the overall picture for tourism in the Northern Cape looks good. The Northern Cape is a nature-lover’s paradise. It has five provincial reserves and six national parks, a stunning variety of landscapes and endless potential for adventure tourism, hunting, and observing stars, rock paintings and flowers. Diamond fields, diverse cultures, battlefields and the Orange River are some of the province’s other major assets. The 2007 decision by UNESCO to inscribe the Richtersveld Cultural and Botanical Landscape as a World Heritage Site (South Africa’s eighth) has great significance for the tourism industry in the Northern Cape, and for the prospects for ecotourism in general. This 160 000-hectare landscape of mountainous desert is managed by the semi-nomadic pastoral Nama people.

photo: Green kalahari canoe marathon

The Green Kalahari Canoe Marathon is held over 99 kilometres on the Orange River.

destination overview Tourism regions and routes The province is divided into five tourism regions, coinciding with the boundaries of the district municipalities. The Diamond Fields region contains the spectacular Big Hole, the Mokala National Park and many Anglo-Boer War battle sites. The AngloBoer War Route is a welldeveloped tourist attraction. The town of Kimberley is itself an attraction, with fine examples of Victorian architecture. The Karoo region encompasses the south-eastern portion of the province. While most of the region is dry, the Vanderkloof Dam is a major tourism asset. Many of the region’s small towns are geared to cater to tourists drawn to the magic of the Karoo’s open spaces. Rock art is found in several locations. The Namakwa region is famous for its flowers, but it also hosts the South African Astronomical Observatory, several historic mission settlements, the Namaqua National Park (on the West Coast) and the aweinspiring IAiIAis/Richtersveld Transfrontier Park. Springbok and Calvinia are the two major towns in this huge district, which is also the only Northern Cape region with a coastline. The north-western portion of the province is known as the Green Kalahari, much of which is taken up by national parks. The Kgalagadi Transfrontier Park (with Botswana) encom-

passes 3.7-million hectares, making it one of the biggest conservation areas in the world. The Kalahari Red Dune Route is a network of guesthouses, reserves and farms to guide the visitor to the great park, offering country hospitality and hearty food along the way. The first Green Kalahari Canoe Marathon attracted 45 paddlers over three days in 2012. The marathon was held over 99km. The Orange River provides the lush landscape in which the grapes of the several hundred producers of Orange River Wine Cellars prosper. The rushing waters of the Augrabies Falls National Park provide another popular attraction. The Kalahari in the north-east is home to many of the province’s biggest mines, but also to great numbers of raptors, vultures and owls. A specialist raptor route has been developed. Birders can look out for 50 species, including the booted eagle, the pygmy falcon and the bateleur. Tours of the area’s vast open-cast mining operations can be arranged. Hunting is a lucrative subsection of the tourism sector that is doing well in this region. The Roaring Kalahari Route guides tourists to out-of-the-way towns to experience real life, and bring economic development to rural areas, at the same time giving a real sense of the size of the wilderness area. The Northern Cape has its fair share of annual festivals. Some of them have gained good reputations, such as the Vleisfees (meat festival), which has been held in Calvinia in the heart of the Hantam region since 1990. Vast quantities of lamb and mutton compete for the attention of festival-goers with a vintage car rally and a Miss Vleisfees competition. Richmond has a festival called Boek Bedonnerd – a phrase that is not easily translatable! Kimberley’s Gariep Arts Festival is gaining a reputation as the venue for outstanding performances and events. Upington’s Kalahari Kuier (Visit) Festival has outgrown its focus on the raisin, and has become all-encompassing and includes a popular race, the Kumba Iron Ore Classic. More than 30 000 people have been known to attend the event, providing a welcome boost for the local economy.

online resources Gariep Arts Festival: www.gariepfees.co.za Hantam Vleisfees: www.hantamvleisfees.co.za Kalahari Kuier Fees: www.kalahari-kuierfees.co.za Northern Cape Tourism Authority: www.northerncape.org.za Richtersveld: www.richtersveld-conservancy.org South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net

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Northern Cape Business 2013/14

Economic Development & Tourism Department: Economic Development & Tourism NORTHERN CAPE PROVINCE REPUBLIC OF SOUTH AFRICA

www.experiencenortherncape.com

destination overview

Escape to the Northern Cape Whether you are seeking isolation or adventure, pristine nature or authentic cultural experiences, the Northern Cape has something to offer everyone.

T

he Northern Cape is without doubt South Africa’s best destination when it comes to variety and unique tourism experiences. It offers visitors the famous ‘double six’ park experience as we boast six national parks, including two transfrontier parks, namely the Kgalagadi and |Ai-|Ais/ Richtersveld transfrontier parks. In addition, there are six scenic provincial nature reserves to explore, including Witsand, which is famous for its ‘roaring’ white dunes. The Northern Cape is also home to three magnificent deserts, namely the Kalahari, Richtersveld and Karoo. Furthermore, the province prides itself on offering some of the most authentic and unique cultural experiences as it is home to the Khomani, !Xun and Khwe San, Nama, Griqua and other cultural groups. Stargazing in the province is unrivalled and it hosts two of the biggest telescopes in the southern hemisphere, the South African Large Telescope in Sutherland and the Karoo Array Telescope in Carnarvon. There are also a number of private individuals Northern Cape Business 2013/14

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who offer attractive stargazing evenings, including great local meals to go with it. The province has some of the best bird-watching opportunities and is home to both the biggest and smallest raptor – the martial eagle and pygmy falcon. It also has some of the most unique plants such as the ‘half human’ and the rare giant quiver tree that grows 12 metres tall and lives for more than 400 years. Who can forget the miles and miles of Namaqualand flowers blooming in spring or the awe-inspir-

destination overview ing Big Hole in Kimberley and • William Humphrey’s Art Gallery the world’s largest collection of • Diamond diggings excursions uncut diamonds on display at • Vaal River adventure activities • McGregor Museum the Big Hole Museum? Talking of diamonds, excur- • Game farms and game drives sions to the diamond diggings • Taxi to Galeshewe near Kimberley and on the • Mokala National Park Diamond Coast are offered by • Wildebeestkuil Rock Art Centre local tourist guides. But there • Gariep Arts Festival is more to do in the province • Diamonds & Dorings Festival of extreme sport, extreme cul- • Barney Barnato golf challenge ture and extreme nature as it • Maloof Money Cup South Africa (world skateboarding championship) offers visitors more than 20 cultural festivals every year and • Kimberley International Convention Centre a number of attractive tourist • !Xun and Khwe San cultural villages routes to explore. There is the Richtersveld Route, Quiver Tree Route (Upington, Riemvasmaak The Karoo Region and Augrabies Falls), Karoo Highlands Route (Victoria West Tourist highlights to Nieuwoudtville), Kalahari • Karoo Highland Route Red Dune Route, and Cape • Karoo architecture to Namibia Route (Garies to • Vanderkloof Dam • Corbelled houses Vioolsdrif) to name a few. So it should be no surprise • Blikkies Bar that the Northern Cape is a • Orange River adventure activities highly prized destination when it • Colesberg mountain-bike trails comes to photographic safaris • Anglo-Boer War tours and people looking for some- • Vaal River ferry rides thing proudly South African but • Colesberg Kemper Museum decisively different from every other province in the country.

The Diamond Fields Region Tourist highlights • • • • • • •

Kimberley Big Hole Open Mine Museum Belgravia historical walk Kimberley City historical walk Ghost trails Kimberley birding walk Anglo-Boer War battlefields

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Northern Cape Business 2013/14

destination overview • •

Seal colony tours Diamond Coast Route

The Kalahari Region Tourist highlights • • • • • • •

• • • • • •

The Green Kalahari Region

Rolfontein Nature Reserve Doringkloof Nature Reserve Carnarvon Fly-In Kreeberg Festival Williston Winter Festival Parasailing

Tourist highlights • •

The Namakwaland Region

• •

Tourist highlights • • • • • • • • • • • • • •

Pella Cathedral South African Astronomical Observatory Namakwaland flowers Giant quiver trees Pachypodium (‘half human’) trees Richtersveld World Heritage Area |Ai-|Ais/Richtersveld Transfrontier Park Missionary history Tours of Port Nolloth harbour Nama cultural engagement Goegap Nature Reserve Namakwa National Park Atlantic West Coast Shipwreck tours

• • • • • • • • • • •

read more Visit: www.experiencenortherncape.com

Northern Cape Business 2013/14

Roaring Kalahari Route Raptor route ‘Kuruman Eye’ oasis Wonderwerk Caves San rock paintings Camelthorn tree forest Kathu Golf Club

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Kgalagadi Transfrontier Park Green Kalahari Canoe Marathon Augrabies Falls Riemvasmaak trails Orange River wine cellars Kalahari Red Dune Route Quiver Tree route Ferry rides on Orange River Donkey monument San cultural engagement Kalahari Festival Tours of the vineyards Eg y ptian-st yle wate r wheels Witsand Nature Reserve ‘Roaring’ white dunes !Xaus Lodge

destination profile

Department of Economic Development and Tourism The Northern Cape offers a truly unique tourism experience and the Partnerships & Industry Development Unit of the Department of Economic Development and Tourism aims to maximise the potential of the tourism sector as a driver of economic growth in the province.

Mission To contribute to sustainable economic growth in the Northern Cape through market-matching and exceptional product and enterprise development, winning marketing strategies and industry transformation, thus converting the province into a competitive domestic and international destination.

Departmental tourism services • • • • • • • • • •

Tourism research Transformation of the Northern Cape tourism industry Tourism skills development Advice on grading establishments Tourism destination development Tourism experience development Tourism support to municipalities Tourism support to communities Destination marketing and promotion Tourism awareness programme and outreaches

feedback from visitors to the province on their experiences as tourists, be it about the hospitality, quality of service, quality of the province’s attractions and tourist facilities or complaints – in the unlikely case of having had a bad experience while travelling around the Northern Cape.

Feedback The department values any suggestions, recommendations and ideas on how to improve and grow the Northern Cape as a domestic and international destination. It would also appreciate any

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contact info Tel: +27 53 839 4000 Email: feedback.tourism@gmail.com. Website: www.experiencenortherncape.com

Northern Cape Business 2013/14

destination profile

Letona Tourism Guesthouse Letona Tourism Guesthouse, located in Kuruman in the Northern Cape, is a three-star establishment offering luxury accommodation as well as meals.

Provincial Winner 2011

Main attractions in the area • • • • • •

The Eye of Kuruman Kgalagadi Transfrontier Park Game farms in the vicinity Sishen and Kuruman mines Moffat Mission Boesmans Caves

Target markets Local and international tourists. A perfect stopover for the business and leisure travellers looking for more than just cleanliness and comfort.

Since inception, the black-owned, family run Letona Tourism Guesthouse has been recognised for its service excellence and was announced as the winner in the Northern Cape Emerging Tourism Entrepreneur of the Year Awards 2011.

Key facts and figures Year established: 2007 No of employees: 6

Description of facilities/services

Accommodation: • •

BEE status

10 fully air-conditioned suites, of which some are luxury suites A three-bedroom self-catering unit

% black ownership: 100% % black staff: 100%

Conference facilities: •

Approximately 35 delegates can be accommodated in the onsite conference facilities

Other amenities: • • • • • • •

Pool and garden Gym Bar fridges in all rooms Braai area Entertainment theatre with big-screen TV Safe parking area Televisions with DStv in all suites

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contact info Key contact person: Mamagowa Letaba, Managing Director Tel: +27 53 712 3073 Cell: +27 82 442 7696 Fax: 086 610 1333 (SA only) Email: bookings@letonaguesthouse.co.za or letona.tourism@gmail.com Physical address: 40 Hibiscus Street, Kuruman 8460, South Africa Website: www.letonaguesthouse.co.za

destination profile

Boitumelo Jwa Sechaba Guesthouse An award-winning, luxury four-star guesthouse, affectionately known as ‘BJS’. Boitumelo Jwa Sechaba Guesthouse opened its doors in 2009 and immediately became a favourite among travellers, attracting many return guests. The establishment is situated in the tranquil Minerva Gardens suburb of historical Kimberley. As such, it is situated just off the N12 main road between Johannesburg and Cape Town, five minutes’ drive from the largest mall in Northern Cape Province as well as Kimberley Airport. BJS is a luxury guesthouse offering 20 airconditioned en-suite rooms with DStv, bar fridges and tea and coffee. It also offers four luxury self-catering family units, each with three bedrooms, two bathrooms, lounge, kitchen and garage.

BJS caters for small functions.

Target markets Boitumelo Jwa Sechaba is active in the following target markets: domestic travellers, international holiday-makers, self-catering families, business travellers, government and public enterprises.

BJS has opened a farmstyle lodge with 41 luxurious rooms which brings the total number of ensuite rooms to 61. This new farmstyle lodge has a breathtaking garden which is used for wedding Year established: 2009 ceremonies. The chapel and the conference Number of employees: 20 facility will be open by the end of November 2013.

Key facts and figures contact info

Amenities • • • • • • • •

Key contact person: Boitumelo Kies, Owner and Manager Tel: +27 53 832 4857 Cell: +27 82 513 3954 Fax: +27 53 832 4857 Email: info@bjsguesthouse.co.za Physical address: 10 Senate Way, Minerva Gardens, Kimberley, South Africa Postal address: PO Box 3667, Diamond 8305, South africa Website: www.bjsguesthouse.co.za

Bed and breakfast Meeting facilities Guest lounge Swimming pool Lapa with barbeque area Small function event planning Laundry Shuttle service and secure parking

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Northern Cape Business 2013/14

destination profile

Repa Guesthouse Repa Guesthouse is an award-winning, four-star accommodation establishment known for its high level of service and attention to detail.

Repa Guesthouse is a luxurious, comfortable and elegant accommodation facility, situated in an upmarket Kimberley area referred to as Hillcrest Prestige. The owner, Neiso Mophule, operates the business with the philosophy that ‘one cannot think well, love well and sleep well, if you have not dined well!’

There are 17 rooms with modern decor.

It is for this reason that she has gone out of her way to ensure that Repa Guesthouse offers 17 rooms with modern decor, and four 4-star selfcatering units each with its own barbeque area. Repa also caters for the needs of business travellers and small business groups as it offers a four-star meeting and events venue with a capacity of 50 people. It has a catering service with trained chefs.

Repa Guesthouse was the winner of the coveted Northern Cape Emerging Tourism Entrepreneur of the Year Award in 2009.

contact info

Amenities

Key contact people: Neiso Mophule, Owner and Manager Chris Mophule, Owner

Bed and breakfast, DStv, meeting facilities, business centre, bar fridges, coffee and tea, guest lounge, lapa with barbeque area, catering service, trained chefs and laundry.

Key facts and figures Year established: 2006 Number of employees: 12

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Tel: +27 53 861 3132 Cell: +27 79 517 0022 Fax: 086 607 5832 (SA only) Email: info@repa.co.za Physical address: 79 Aviva Road, Hillcrest Prestige, Kimberley, South Africa Postal address: PO Box 9444, Mankurwane, Kimberley 8300, South Africa Website: www.repa.co.za

destination profile

Hotel Kgalagadi The ideal place for the tourist wishing to explore an authentic African village or to stage an event out of town.

The hotel offers guests 17 standard rooms, 10 chalets and a single executive suite. The hotel also has a number of large and medium-sized meeting facilities, including a cinema-styled theatre. The restaurant can seat 66 people. Hotel Kgalagadi is a place where many happy guests get together for a taste of the Northern Cape at its cultural best.

Amenities

Hotel Kgalagadi, a unique and proud village hotel, is situated in Batlharos some 10 minutes’ drive north-east of Kuruman. Here there are still plenty of donkey-carts, people riding on horses, and community life guided by traditional values and tribal lekgotlas. Visitors to Batlharos will have an opportunity to mix with the friendly people of the village.

• • • • • • •

International tourists and groups include Hotel Kgalagadi in their itineraries, not only because it is a popular stop-over on the way to the Kgalagadi Transfrontier Park, but because of its unique architecture, its great food and its high service levels.

Bed and breakfast Meeting facilities with a capacity of between 30 and 200 Business centre Restaurant Swimming pool Catering service Village excursions Traditional dancing and music on request

Key facts and figures Year established: 2004 Number of employees: 14

Owner Meshack Nkadimang is a respected village character and was voted South Africa’s first tourism ambassador in 2008. In the same year, Hotel Kgalagadi won the coveted Northern Cape Emerging Small Tourism Enterprise of the Year Award.

contact info Key contact person: Meshack Nkadimang, Owner Tel: +27 53 774 1990 Cell: +27 72 457 6102 Fax: +27 53 774 1703 Email: mnkadimang@yahoo.com Physical address: 1639 Main Road, Batlharos, Kuruman, South Africa Postal address: PO Box 1174, Kuruman 8460, South Africa Website: www.hotelkgalagadi.co.za

Another hallmark of Hotel Kgalagadi is the number of vintage cars used for transporting guests. These cars are hand-built by Meshack Nkadimang himself. He also made most of the signature furniture pieces himself and will arrange traditional entertainment on request.

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Northern Cape Business 2013/14

destination profile

Heerengracht Hotel Heerengracht Hotel is actually a small hotel nestled in one of Kimberley’s most exclusive suburbs.

In a nutshell, Heerengracht Hotel, situated in the Royldene suburb, is a quality three-star-graded hotel with great service and affordable rates. The hotel offers luxurious suites, family self-catering units and standard rooms. There are 20 rooms in total. In addition there is a large sparkling pool, lapa and built-in barbeque area and a shuttle service for guests. Heerengracht Hotel provides convenience for travellers using the N12 route connecting Cape Town and Johannesburg, as well as travellers en route between Upington and Bloemfontein. It is also a short drive from the Diamond Pavilion Mall, Big Hole Museum, McGregor Museum and the provincial parliament.

The hotel has 20 rooms and two meeting venues.

• • • • •

Swimming pool Lapa with barbecue Catering service Laundry Shuttle service Tour brokering

The conference facilities are popular with corporate • companies and with government. Heerengracht offers two venues seating between 20 and 30 people. Not only is it the well-appointed conference facility that makes it highly competitive in the mar- Year established: 2003 Number of employees: 13 ket, but the quality of the catering weighs in too.

Key facts and figures

Thami Sebusi, owner of Heerengracht Hotel, is a very hands-on manager and takes personal charge of service delivery and in-house training of staff. This is at the root of the success of Heerengracht Hotel, which won the coveted Northern Cape Emerging Tourism Entrepreneur of the Year Award in 2007.

Amenities • • • • •

Bed and breakfast DStv Meeting facilities Bar fridges Coffee and tea

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contact info Key contact person: Thami Sebusi, Owner and Manager Tel: +27 53 831 1531 Cell: +27 83 655 2765 Fax: +27 53 832 1916 Email: info@heerengracht.co.za Physical address: 42 Heerengracht Street, Royldene, Kimberley, South Africa Postal address: PO Box 3528, Diamond 8305, South Africa Website: www.heerengracht.co.za or www.kelesedi.co.za

destination profile

Ekhaya Guest House Ekhaya is a three-star establishment situated in the centre of Galeshewe, one of South Africa’s oldest townships.

• • • • • • • • •

Description of business

Target markets

Ekhaya Guest House is known for its excellent customer service, which makes it popular with tourists and local guests.

The target markets are as follows: • Domestic tourists • International tourists looking for an authentic experience in a real South African township • Conference and business travellers • Travelling families • Government and public entities • Cultural enthusiasts

This guest house was the provincial and national ETEYA winner for 2005. Ekhaya offers two executive en-suite cottages with spa-baths and separate showers. It also has four spacious en-suite rooms with a bath and shower and a two-roomed miner’s shanty with an open-roof shower where visitors can have a real South African township experience. Township tours can be arranged on request.

Key facts and figures Year established: 2004 Number of employees: 14

contact info

Ekhaya also caters for weddings and conferences. The conference facility can accommodate up to 80 people and entertainment for all occasions can be arranged.

Key contact person: Karel Phentela, Owner Tel: +27 53 874 3795 Mobile: +27 84 621 7877 Fax: 086 545 5986 (SA only) Email: ekhayag@telkomsa.net Physical address: Corner of Hulana and Montshiwa streets, Galeshewe, Kimberley 8300, South Africa

Description of services • •

Lapa barbeque area Bed and breakfast Conference facilities (80 people) Restaurant and catering Swimming pool Laundry Secure parking Bar facilities Shuttle services on request

14 en-suite rooms with DStv Cultural township tours can be arranged (guests to be transported by tuk-tuk)

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Northern Cape Business 2013/14

destination profile

Ubuntu Guesthouse Ubuntu Guesthouse is conveniently situated in the tranquil suburb of Ernestville, Kimberley – a quiet place surrounded by beautiful trees. It offers spa services and the best beds in the city.

Discover comfort and excellent service away from home in the elegant Ubuntu Guesthouse and Spa. It is conveniently situated in the tranquil suburb of Ernestville, a quiet and perfect place to ease the mind, body and soul – overlooking De Beers Farm. Ubuntu Guesthouse offers five elegantly decorated rooms with en-suite bathrooms with shower and bath, with a choice between kingsize or twin beds. It also offers a range of spa treatments to revive and revitalise guests’ natural harmony. Careful attention has been paid to every detail to ensure that the business- or leisuretraveller’s stay is most pleasant and memorable.

One family room en-suite (sleeps four) One honeymoon room en-suite Three classic rooms

• • •

In-room amenities: • • • • • •

DStv Percale linen Tea/coffee Heaters Fans Laundry and newspaper (on request)

% black ownership: 100% % black staff: 80%

contact info

There is an onsite spa offering a variety of therapeutic massages (including sports, fullbody and Indian head massages, manicures and pedicures) Dining options: Continental or full English breakfast

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Big Hole Kamfers Dam Flamingo Casino Renowned museums and galleries Kimberley and Galeshewe Tours Tours of the amazing Diamond City of Kimberley can be arranged

BEE status

Spa:

Light lunches served on the veranda Dinner by prior arrangement

Main attractions in the area •

Accommodation: •

Description of facilities/services

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Key contact person: Yvonne Kema, Owner Tel: +27 53 832 7000 Cell: +27 71 499 2211 Email: info@ubuntuguesthouse.co.za Physical address: 49 Boshof Road, Ernestville, Kimberley 8300, South Africa Website: www.ubuntuguesthouse.co.za

destination profile

Ibhotwe Guest House Ibhotwe is an isiXhosa name for ‘The Palace’ (‘house of the king’). It is therefore no wonder that the owners of this three-star guesthouse strive to give their clients royal treatment at all times.

Ibhotwe Guest House, situated in the suburb of Ipeleng in Galeshewe, Kimberley, is an upmarket yet affordable guesthouse for holidaymakers and business executives. The seven-roomed establishment was voted a runner-up in the Northern Cape Emerging Tourism Entrepreneur of the Year Award for 2011. It was also crowned the provincial winner of the Northern Cape Tourism Service Excellence Awards for 2010.

Description of facilities/services Rooms:

• • • •

Presidential suite Executive suite Luxury rooms The boardroom can accommodate meetings of up to 20 people Galeshewe itself is an interesting suburb with a noteworthy history dating back to diamond-rush days. It was the first black town in the Republic of South Africa to have a fully fledged town council and the first township to hold a protest march that united all races in the country. Noteworthy attractions are the home and office of the struggle stalwart Robert Sobukwe.

Other services and amenities: • • • •

• •

DStv Bar fridges Secure parking Catering – meals are provided for guests and meeting delegates and catering for outside events can be arranged Shuttle service and township tours Meeting facilities

contact info

Main attractions in the area Kimberley boasts a number of popular attractions including the Big Hole, the McGregor Museum, Magersfontein Battlefield, Flamingo Casino, William Humphrey’s Art Gallery and the Duggin Cronin Gallery.

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Key contact person: Mpho Siyo, Owner Tel: +27 73 735 0358 or +27 84 818 4005 Fax: 086 661 0729 (SA only) Email: info@ibhotwe.co.za Physical address: 91 Seboane First Avenue, Ipeleng, Kimberley, South Africa Website: www.ibhotwe.co.za

Northern Cape Business 2013/14

destination profile

Villa D’ Este Guest House This boutique guest house in Kimberley is conveniently situated a five-minute drive from the airport and within walking distance of three major shopping malls. It is well-known for its Indian cuisine and service excellence.

Villa D’ Este Guest House was a finalist in the Northern Cape Emerging Tourism Entrepreneur of the Year Awards in 2011 and the owners pride themselves on their friendly, personal service with superior facilities and comfort. The guest house is graded three-stars superior and AA Travel Guide – Highly recommendable.

Description of facilities/services

interesting architecture and a variety of museums and galleries. There are also a number of game farms and holiday resorts in close proximity to Kimberley.

Rooms:

The guest house offers a choice of six en-suite rooms with private access, all of which overlook the pool and garden. All rooms are airconditioned and have a 32-inch LCD TV with DStv. The rooms also contain a desk for those needing a space to work. Rates include bed and breakfast.

Target markets

Other services and amenities: • • • • • • • •

Key facts and figures

Swimming pool and braai area Dining room (seating up to 26 people) Conference facilities for 25 people Travel agency on the premises Secure parking Shuttle services on request Lunch and dinner on request (all food is strictly halaal) Free wifi

Year established: 2010

contact info

Main attractions in the area Aside from being the provincial and business capital of the Northern Cape, Kimberley is a city with an interesting history and it offers a number of tourist attractions. These include the Big Hole, Northern Cape Business 2013/14

Business and leisure travellers

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Key contact people: Farouk Wookey, Owner Zora Wookey, Owner Tel: +27 53 832 2781 Mobile: +27 83 261 2342 Fax: 086 603 1232 (SA only) Email: fwookey@wwidetravel.co.za Physical address: 4 MacDougall Street, Kimberley 8300, South Africa Website: www.villadestekimberley.co.za

destination profile

Jo’s Guesthouse and Hantamkraal Restaurant With a ‘larger than life’ character at the helm, Jo’s Guesthouse and Hantamkraal open-fire restaurant has become an institution in Calvinia.

Jo’s Guesthouse and Hantamkraal Restaurant is close to the scenic Akkerendam nature reserve and is within walking distance of most of Calvinia’s tourist attractions. Owner Jo Fritz puts in a tremendous effort to ensure that guests’ needs are taken care of and the establishment was voted a finalist in the Northern Cape Emerging Tourism Entrepreneur of the Year Award in 2009 and 2010.

Description of services Lamb pies baked in tin cups are popular with guests.

• • •

Bed and breakfast Self-catering units Backpackers Open-fire restaurant Farm-dam style swimming pool Catering service Corporate functions

Jo’s Guesthouse in Calvinia consists of a num- • ber of accommodation units, some offering • self-catering services. Clients are provided • with a choice of 10 guesthouse rooms and 20 • self-catering guest flats. The establishment is graded at two stars but staff pride themselves on rendering a five-star service to guests 24 Year established: 2005 hours a day. Number of employees: 13 Hantamkraal Restaurant is a new addition to the business and is already very popular with contact info guests. This unique 60-seater open-fire restaurant prides itself on its traditional cooking finesse, Key contact person: which includes the best tripe and bobotie in Jo Fritz, Owner and Manager Namakwaland, lamb pie baked in tin cups and Tel: +27 27 341 2247 delicious baked puddings. Cell: +27 84 461 3773 Fax: 086 651 9352 (SA only) Hantamkraal also offers a catering and full eventEmail: joscalvinia@kingsley.co.za management service for functions up to 2 000 Physical address: 10 Vierling Street, Calvinia people.

Key facts and figures

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Northern Cape Business 2013/14

destination profile

Taxi to Galeshewe Tours Taxi to Galeshewe is a unique township tourism experience that combines the utilisation of real African minibus taxis with visits to historical sites, other tourist attractions and taverns in Galeshewe, one of the oldest townships in South Africa.

Mural art by a local artist at the Bantu Hall (Galeshewe Centre). Mayibuye Precinct in Galeshewe.

The service is a fun, guided tour that can last from a half day to a full day depending on the client’s needs. The main goal is to contribute to direct and indirect job creation for the local community of Galeshewe by working together with the community as part of the tours offered by Taxi to Galeshewe. Galeshewe was the first black town in the Republic of South Africa to have a fully fledged town council and the first township to hold a protest march that united all races in the country. The owner, Thami Sikhupelo, is a colourful character and has been involved in tourism since his younger days.

Points of interest • • • •

Office of struggle stalwart Robert Sobukwe.

Target market

Mayibuye Multi-purpose Centre – Professional Sports and Arts Centre The Bantu Hall – Galeshewe Centre The home and office of struggle stalwart Robert Sobukwe The Mayibuye Precinct

BEE status 100% black ownership Northern Cape Business 2013/14

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Local and international tourists

contact info Thami Sikhupelo, Owner Cell: +27 83 763 5172 Email: thamisikhupelo@gmail.com Physical address: 23 Sol Plaatje Street, Galeshewe, Kimberley 8335

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Kokerboom Food and Wine Route This route is truly a feast for all the senses.

The kokerboom is a botanical symbol of the area.

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he Orange River area, through which the Kokerboom Route traverses, is a major food and wine producing area in South Africa. The Oranjerivier Wynkelders is the largest in the southern hemisphere, and second-largest in the world, typically processing 140 000 tons of grapes each season. More than 100 000 tons of fresh grapes are exported from Upington each season. Non-traditional agriculture products like pecan nuts, citrus and dates are also making inroads. Most of the South African Dried Fruit Corporation’s (SAD’s) products, like raisins, peaches, apricots and plums, come from this area. The Kokerboom Food and Wine Route is a land of contrasts. This arid zone, with its rugged mountains and desert-adapted species, is stiflingly hot in summer (up to 45ºC) and chilly on winter nights. The Great Gariep, known more commonly as the Orange River, winds through the landscape and brings it to life. This river was once called ‘God’s gift to the Southern African thirstland’. The greenbelt along the river’s banks contrasts sharply with the rising rocky cliffs. Irrigation schemes have stretched the greenbelt into the desert, making acres of vineyards and other ag-

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riculture possible. About 50% of South Africa’s vineyards are found in the Orange River valley and southern Kalahari. The Kokerboom Food and Wine Route takes the traveller into one of the most interesting and beautiful areas of South Africa’s Northern Cape Province and embraces the towns and settlements of Keimoes, Kanoneiland, Kenhardt, Augrabies, Upington and Marchand. The route has something for everyone. In addition to visiting the popular Augrabies Falls, visitors can relax in hot springs, go river rafting, go on 4x4 trips, hike, bird watch, sample local delicacies and wines, touch the unique kokerboom (quiver tree) and even take a leisurely donkey-cart ride through town – all while enjoying the friendly hospitality of South Africa’s Northern Cape Province. The route gets its name from the kokerboom, which is a botanical symbol of that part of the world. Along the route one can experience dry, rugged mountains, desert-adapted animal and plant life, red Kalahari dunes, stifling summer temperatures by day, and freezing desert temperatures at night. Northern Cape Business 2013/14

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Kalahari Red Dune Route This route offers a wide range of exciting excursions and activities – perfect for those in search of adventure!

The landscape is ideal for 4x4 trail driving, and trails cater for novice and experienced drivers.

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he area covered by the Kalahari Red Dune Route extends north of Upington in the Northern Cape into the toe-shaped protrusion of South Africa to the Namibian border. The route incorporates the first formally declared Transfrontier Conservation Area in Africa, the Kgalagadi Transfrontier Park. This park straddles the South Africa-Botswana border and is one of the largest parks in the country. This route networks a group of individual guesthouses, farms and game reserves in the remote northerly area of the Northern Cape. This is the land of prancing springbok, black-maned Kalahari lions and the everevasive leopard and cheetah. But the legendary hospitality and accommodation that is complemented by endless stories, and traditional dishes like roosterkoek, nabbas, venison and melktert are what make every visit really special. For visitors attuned to culture and history, the Kalahari Red Dune Route offers the opportunity to experience regional cusNorthern Cape Business 2013/14

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toms and folklore, sample traditional cuisine, and meet the warm and welcoming people of the Kalahari. The salt pans in the area are world famous, and the Bloodhound Supersonic Car project (an attempt to break the land-speed record) will take place on one such pan, called Hakskeen Pan. The Kalahari is also known internationally for its hunting opportunities.

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Open Africa Richtersveld Route This route is ideal for the adventurous traveller.

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he Open Africa Richtersveld Route is a collection of businesses, facilities and entrepreneurial initiatives, naturally grouped together due to the nature of the attractions, roads, routes, entry and exit points into and out of the Richtersveld area. The Richtersveld is unique in many ways. It has unique biodiversity, and with the World Heritage Site and the beautiful coastline, the area has a lot to offer. The beautiful quiver trees are a sight not to be missed. Some of the main attractions of the area are the Orange River Mouth (RAMSAR) nature reserve and a mine museum at Alexander Bay. The cool climate on the coast is one place you want to be in the summer time. The area also has sunsets like visitors will not find anywhere else. The |Ai-|Ais/Richtersveld Transfrontier Park, as well as Richtersveld World Heritage Site, are internationally known as great destinations for adventurous travellers, and are the next popular place to visit on the route. The Richtersveld Route further consists of a great variety of attractions that vary from water-related activities (such as river rafting, fly-fishing in the river and fishing in the Atlantic) to camping and travelling on 4x4 routes to remote and amazing wilderness camps. With a bit of effort, cultural experiences can be arranged. Interaction with the locals is becoming more and more popular. Tourists who are interested in birding, geology, history, botany, photography and nature will not be disappointed when visiting the Richtersveld Route. Although the Richtersveld is generally associated with 4x4 driving, many of the destinations can be reached with normal vehicles. In some areas, a vehicle with high ground clearance and the correct tyres is sufficient. Activities like birdwatching at the river mouth (Alexander Bay), and drives to towns like Vioolsdrift, Steinkopf, Lekkersing, Eksteenfontein, Kuboes and Sanddrift can be done with a vehicle capable of driving on corrugated gravel roads. Some roads in the park and conservation area are exciting 4x4 drives. There are also more technical routes for serious 4x4 fanatics.

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The Northern Cape is a land of contrasts, from arid plains to stunning waterfalls.

There are tour operators offering packages for persons who do not own 4x4 vehicles, or are intimidated by the remote areas and rough roads of the Richtersveld, or who do not own camping equipment. Making use of these services also gives tourists access to proper and first-hand information on all the various attractions. Good food, especially seafood, is plentiful, and can be enjoyed in restaurants with great views and atmospheres, as well as friendly owners and staff.

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Karoo Highlands Route This route is a must-visit for astronomy enthusiasts, and is also steeped in rich Anglo-Boer War history.

The South African Large Telescope (SALT) is situated in the Northern Cape.

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he Karoo Highlands Route is situated in the north-eastern part of the Western Cape and southern part of the Northern Cape in South Africa. The route covers small Karoo towns such as Matjiesfontein, Sutherland, Fraserburg, Williston, Carnarvon, Loxton, Victoria West and Beaufort West and is commonly referred to as the Great Karoo. The Great Karoo has an area of more than 400 000km². From a geological point of view, it has been a vast inland basin for most of the past 250 million years. At one stage, the area was glaciated and Northern Cape Business 2013/14

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the evidence for this is found in the widely-distributed Dwyka tillite. Later, at various times, there were great inland deltas, seas, lakes or swamps. During this time enormous deposits of coal formed and that still contribute significantly to the economy of South Africa. Even though volcanic activity took place on a titanic scale, ancient reptiles and amphibians prospered in the wet forests and their remains have made the Karoo famous among palaeontologists. The South African Large Telescope (SALT) is the largest optical telescope in the southern hemisphere, and is located in Sutherland in the Northern Cape. The Square Kilometre Array (SKA) project will be the world’s biggest telescope – and one of the biggest scientific projects ever. The majority of the SKA – the full dish array and the dense aperture array – will be built in Africa, and the region with the highest concentration of receivers will be constructed in the Northern Cape, about 80km from the town of Carnarvon (the same site as where the MeerKAT is being constructed).

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Diamond Coast Route This route is aimed at travellers who seek to escape from reality and get away from it all.

The Diamond Coast Route is situated on the rugged coast of the Northern Cape.

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ituated in the north-western corner of South Africa’s rugged Northern Cape is the stretch of pristine coastline aptly named the Diamond Coast. These shores have remained virtually unknown to the public at large as it is within the restricted and previously forbidden diamondmining areas. The valuable mineral treasures hidden within its sands have made these restrictions necessary but diamonds are not the only treasures. The Sandveld has been jealously guarded, and while still largely unspoilt and crime-free, is home to many indigenous plants, animals and insects. The coastline, with its flowing dunes and mysterious shipwrecks, has been opened to the fortunate few who can participate in the organised guided tours. And any visitor to the West Coast or Richtersveld will find that a tour of the Diamond Coast will vastly enhance the experience of this unique mix of coastal plain and semi-arid inland areas. The route forms part of the Namakwa National Park and basic accommodation and campsites are

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available all through the route. A visit to the Kleinzee Museum, which was established in 1985, offers exhibits depicting the history of Namaqualand Mines, shipwrecks, geological, paleontological and archaeological finds as well as a heritage display.
 Several restaurant and catering options are available in Kleinzee and Koingnaas, and a nine-hole golf course provides further entertainment to those interested in golfing.

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Cape to Namibia Route The array of attractions and activities offered is truly a treat for those lucky enough to experience this remarkable route.

The combination of wildlife and wild flowers make the Cape to Namibia Route a must-see.

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his route begins in Cape Town and winds its way up to Vioolsdrift, and eventually ends in Namibia. It offers a plethora of activities in a combination found nowhere else on the planet. This is the one route where you can touch dinosaur fossils, dive in kelp forests, play in the snow, revel in the cacophony of hundreds of thousands of seals and gannets, immerse yourself in the spectacle of the second-biggest canyon on earth, kayak in white and blue water, eyeball black-maned lions and sip German beer to oompah music. Perhaps best of all, it is a year-round route, with new activities unfolding as the seasons turn. The variety can all be a little overwhelming, which is why many visitors return again and Northern Cape Business 2013/14

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again. The Northern Cape section of the route is best-known for its seasonal flowers. The Goegap Nature Reserve near Springbok is a must-see, and the Springbok-Concordia area is rich in Anglo-Boer War lore. The first commercial copper mines in South Africa originated in the regions of Springbok, Nababiep, Okiep and Concordia.

focus

northern cape routes contact details Diamond Coast Route

Kalahari Red Dune Route

SANParks contact: Bernard van Lente

Contact Person: Johan Rossouw

Tel: +27 27 672 1948 Cell: +27 83 640 4915 Email: bernard.vanlente@sanparks.org.za

Tel: +27 78 804 0027 Email: minetter@vodamail.co.za Website: www.openafrica.org/route/ Kalahari-Red-Dune-Route

Kokerboom Food and Wine Route Cape to Namibia Route

Contact Person: Maxi Compion

Namakwa Tourism Information Office Contact Person: Pearl Heyn

Cell: +27 82 743 1736 Email: maxi@keimoesinfo.co.za Website: www.openafrica.org/route/ Kokerboom-Food-and-Wine-Route

Tel: +27 27 712 8036 Email: pearlh@namakwa-dm.gov.za

Open Africa Richtersveld Route

Karoo Highlands Route

Contact Person: Johan de Waal

Contact Person: Theo Wolfhaardt

Cell: +27 82 335 1399 Cell: +27 83 928 3571 Email: mail@richtersveldtours.co.za Website: www.openafrica.org/route/ Richtersveld-Route

Cell: +27 83 231 3094 Email: info@discoversutherland.co.za Website: www.openafrica.org/route/ Karoo-Highlands-Route

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contents

key sectors Overview of the main economic sectors of the Northern Cape Province

Tourism48 Agriculture78 Aquaculture and mariculture

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Wine and grapes

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Mining90 Renewable energy

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Engineering101 Transport104 Banking and financial services

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Development finance and SMME support

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Education

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South African National Government

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Northern Cape Provincial Government 130 Northern Cape Local Government

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overview

Agriculture Grapes, sheep and goats are big earners in the Northern Cape.

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he Northern Cape is a major exporter of table grapes, fruit and meat, and is responsible for much of South Africa’s sheep and goat farming. Most crop farming takes place along the fertile banks of the Orange River or in the intensely irrigated Vaalharts region in the north-east. The irrigation scheme comprises more than 800km of canals and covers more than 32 000 hectares where crops such as peanuts, cotton, wheat and fruit are cultivated. Olives SA and P-Farm Snacks are just two of the companies active in the area. The two biggest dams located on the border of the Northern Cape, the Gariep and Vanderkloof dams, also provide water to schemes that sustain agricultural projects as far away as in the southern Eastern Cape. The Gariep Dam has a capacity of 5 000 million cubic metres and the Vanderkloof Dam, which is the main control of water flows, can store up to 3 200 million cubic metres.

Companies Several of South Africa’s biggest agricultural companies are active in the Northern Cape. Northern Cape Business 2013/14

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sector insight Niewoudtville rooibos tea has been exported to Germany, Spain and Japan. • GWK’s turnover in 2012 was close to R5-billion. • The Super Chicken project in the Frances Baard District Municipality is to be revived.

GWK (Ltd) has 10 grain depots, several of which were expanded in 2011, a transport company (Flotank), and in 2011 it acquired a fertiliser company, Sidi Pirani. Altogether, GWK has six divisions and has been diversifying all along the value chain over the last few years, a

overview strategy that speaks of confidence in the sector’s potential. In 2012, turnover rose to R4.9-billion, up from R3.2ANIMAL PRODUCTS 37% billion the year before. Profits FIELD CROPS 34% were less impressive, but only HORTICULTURAL CROPS 29% because the Douglas-based company paid out R100-million in dividends to members. KLK Landbou is based in Upington and does most of its work in the western parts of the province. Nineteen retail Farm income in the Northern Cape. SOURCE: Agriculture and Agro-processing Sector Strategy, PGDS, 2004-2014. outlets, four successful Build it franchises, 12 petrol stations, three abattoirs and two motor dealerships, together with MANUFACTURING 67% a strong auction division, acUNUSABLE LAND 20% counted for turnover in 2012 of CONSERVATION 12% R1.4-billion. BKB took a 20% shareholding in the company in ARABLE 1% 2011, and followed this with an offer to buy all shares. This was rejected and KLK shareholders are in the process of deciding on a buy-back of BKB’s stake. OVK is another company active in the province, although Current land uses in the Northern Cape. Agriculture and Agro-processing Sector Strategy, Provincial Grow th and its headquarters are in the Source: Development Strategy (PGDS), 2004-2014. Free State. OVK’s turnover rose to R2.9-billion for the year irrigation area, which is fairly close to the company headquarters ended February 2012, up from in Klerksdorp in North West Province. The company’s specialises in the storage and handling of grains and oilseeds. R2.4-billion the previous year. Kaap Agri is a large, Western Cape-based company, with a OVK has 43 trade branches, several vehicle dealerships presence in four provinces and Namibia. The first Northern Cape (New Holland, Case and Toyota), operating points opened in 2011. a finance division, manufacturing facilities for maize meal and wheat meal, an abattoir and six Processing fuel depots. The Gariep Abattoir in Strydenburg is one of its Many opportunities exist in the Northern Cape for adding value through processing to products such as dates, olives, fruit, biggest assets. Senwes reported turnover vegetables and vine products. The provincial government is strongly supportive of new of R7.3-billion in the first six months of 2012. The compa- agri-processing ventures and a number of such projects are ny’s Northern Cape activities receiving support, including a rooibos-tea factory and a barleyare focused on the Vaalharts malting plant.

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overview National Trade and Industry Minister Rob Davies says that the Emerging farmers agri-processing sector employs about 177 000 people. Turning produce into food or juice makes up about 11% of the total The entire value chain of agriculture in South Africa is under manufacturing value added. Pasteurisation equipment was installed at the R54-million rooi- scrutiny, with the aim to help bos factory in Niewoudtville in 2012, and tea has been exported small-scale farmers by improving infrastructure, creating new to Germany, Spain and Japan. A malt production plant is to be built on the banks of the Mod- markets and assisting them to der and Riet rivers. This is a joint venture between the provincial gain access to the big buyers government of the Northern Cape, the Industrial Development such as supermarkets. In many areas, private comCorporation (IDC), the Foundation for African Business and Consumer Services (Fabcos) and agricultural company GWK. At full panies such as South African capacity, the plant will produce 100 000 tons of barley per year, Breweries, Woolworths and Pick n Pay are already onmainly for the beer-brewing industry. Skaapland Meat Emporium in Upington is one of the biggest board. Massmart is commitbutcheries in South Africa, sometimes processing upwards of ted to creating opportunities for 15 tons of beef in a week. Covering 1 960 square metres, the emerging farmers through its Direct Farm Programme. The company employs 50 people and has a branch in Cape Town. The Warrenton Super Chicken abattoir project in the Frances company has committed to an investment of R15-million for Baard District Municipality is set to be revived. the years to 2017, and to add 1 500 black farmers to its supply chain. Massmart has signed an agreement with Crop Tons TechnoServe to roll out this proMaize 550 000 gramme. Woolworths is using Wheat 252 000 the same NGO in Limpopo. An organic farmer/retailer Barley 53 000 scheme that aims to proGroundnuts 21 500 mote emerging farmers was Northern Cape crop production in 2011. launched in 2012, linking the SOURCE: DALRD budget speech, 2012/13 Department of Trade and Industry (dti) with Shoprite, Pick n Pay and Spar. product tons The National Department of Table grapes 14-million cartons for export Agriculture, Forestry and FishWine grapes 108 000 tons eries (DAFF) is set to publish a new black economic empowRaisins 40 000 tons erment (BEE) charter in which Lucerne 320 000 tons at least 10% of production and Sheep 7.7-million (27% of RSA) commodities is set aside for emerging farmers. Goats 522 000 (7.4% of RSA) DA FF h a s b u d g ete d Cattle 492 000 (3.5% of RSA) R4-billion to assist emerging Greasy wool 5 700 tons farmers get access to markets. DAFF aims to increase Produce of the Northern Cape. SOURCE: Adapted from Agriculture and Agro-processing Sector Strategy, PGDS, 2004-2014. the number of smallholder Northern Cape Business 2013/14

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overview

photo:orange river cellars

The Orange River Cellar vineyards are irrigated by the canal system from the Orange River.

The 2012/13 budget speech of the DALRD highlighted food producers in the country by 50 000, and to have a total of security, with a pledge to curb the challenge ‘through support 250 000 by the year 2020. As to smallholder farmers and increase our investment in the agrithe DAFF strategic plan says, processing industry’. ‘There is a need to coordinate and integrate all the support provided to smallholder and Crops subsistence producers.’ The Northern Cape De- The Orange River supports the cultivation of grapes of many kinds partment of Agriculture, Land (covered in a separate section of this publication) and citrus. The Reform and Rural Develop- region officially became South Africa’s 18th citrus-growing region ment (DALRD) has adopted a in 2009. Several billion rand went into preparing large areas along Comprehensive Rural Develop- the banks of the Orange River for citrus cultivation. The region ment Strategy (CRDS), with the is particularly well suited for the cultivation of Valencias, lemons Riemvasmaak site having acted and grapefruit, and the dry, hot conditions mean that it is easy as a pilot project. Successes at to control pests. Of the 97 000 bales of cotton (200kg each) produced in South Riemvasmaak include the laying of bulk waterpipes, the up- Africa in 2010/11, the Northern Cape was responsible for 43 000 grading of sports facilities and bales. This represented a 153% rise over the previous season’s upgrade of sanitation works, yields, according to Cotton SA. With 7 324 hectares under irrigathe building of community halls tion, the province produces excellent yields. The biggest area for and creation of stock-handling cotton cultivation is the Vaalharts region. An attempt to develop the pecan-nut industry is underway facilities. The CRDS is to be extended to three other districts, on a farm 130km of Kimberley. The Northern Cape Economwith 186 solar-energy units ic Development Agency has identified the company NENSIS already having been installed Nuts as a potential partner for the local community in the Lower Majeakgoro Pecan Nut Project. at Heuningvlei.

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overview

The Northern Cape Province is home to 27% of the national sheep flock.

Livestock Sheep make up 64% of animal production in the province, and 52% of animal products (DALRD). Upington is the main centre for karakul-sheep farming in South Africa. The karakul pelt is valuable, although the market is nothing like as good as it was before the anti-fur campaigns of the 1990s. The province has the second-most number of sheep after the Eastern Cape: 7.7-million (27% of the national flock). The Kalahari Kid Corporation (KKC) is a joint venture between

online resources Aginfo (trading as AMT): www.agrimark.co.za Agricultural Research Council: www.arc.agric.za Agri South Africa: www.agrisouthafrica.com Citrus Growers Association: www.cga.co.za Deciduous Fruit Producers Trust: www.dfpt.co.za Kalahari Kid Project: www.kalaharikid.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za National Department of Science and Technology: www.dst.gov.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development Agency: www.nceda.co.za Perishable Products Export Control Board: www.ppecb.com Thoroughbred Breeders’ Association: www.tba.co.za

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the Northern Cape Provincial Government, some private investors and emerging farmers. With about 500 000 goats in the province, the skills and experience in herding and slaughtering are already present. DAFF is promoting the Boer goat breed as an indigenous type that is hardy and has a good meat ratio. The game-ranching business is dealt with elsewhere in this publication. The Northern Cape is a premier horse-breeding destination. The area around Colesberg has developed a reputation for breeding champions, with famous golfer Gary Player being among the many top breeders who have established facilities in the district. Mauritzfontein, the famous Oppenheimer stud farm, is close to Kimberley.

overview

Aquaculture and mariculture Fish can contribute to improved food security.

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ith food security uppermost in the minds of national and provincial planners, fish farming is increasingly seen as a good option. Forty farmers have signed up for the Vaalharts Catfish Project. The scheme lies in the Phokwane Local Municipality, north of Kimberley, which falls under the Frances Baard District Municipality. The project is expected to be very profitable. Conservative projections estimate an annual production of 1 200 tons of fish from 40 ponds in the first phase. The Northern Cape Economic Development Agency (NCEDA) is leading the project. The Northern Cape’s 313km-long coastline has numerous depressions carved out along the coast by now defunct mining operations. These are being converted to pools for the cultivation of abalone and oysters, and old mine-pumping equipment is being used to oxygenate water. The bright sunshine and strong winds of Namaqualand provide excellent conditions for mariculture. The former mining town of Kleinzee is already the site of an abalone farm, the first phase of which will produce 100 tons per annum. Seven seaweed-production dams for feeding, water purification and heating have been built. In the full production phase, 182 jobs will be created. Diamond-mining company De Beers, which has sold its mines in the area, is involved in the R40-million project through its black-empowerment partner Ponahalo. Fishing company Irvin & Johnson is the other company working on the project. A joint venture by the National Department of Science and Technology (DST) and HIK Abalone is running an abalone project in Hondeklip Bay with the intention of producing 120 tons of abalone for sale.

online resources Aquaculture Association of South Africa: www.aasa-aqua.co.za National Department of Science and Technology: www.dst.gov.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development Agency: www.nceda.co.za South African Institute of Aquatic Biodiversity: www.saiab.ac.za

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sector insight Catfish farming in the Frances Baard District Municipality has started well. • An abalone farm has been established in Kleinzee. The coastline of the Northern Cape has 2 000 hectares of kelp beds. There is a growing domestic and international demand for kelp. The provincial government of the Northern Cape has invested R20-million in a mariculture park at Port Nolloth. Students from Hondeklipbaai and Port Nolloth were enrolled at the University of Stellenbosch for relevant certificate courses, and the John Ovenstone factory is now the site of small-scale hatcheries for abalone and oysters. Premier Fishing has a lobster-processing plant in Port Nolloth.

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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.

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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 Northern Cape Business 2013/14

R50-million will be allocated for the promotion of local agro-processing 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.

and prioritises the eradication of poverty and reduction of inequality among our people. 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 foodsecurity 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.

Food processing and agroindustries 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 year-on-year growth of 3%. This has brought the total employment in the sector to 630 000.

Agro-processing

International trade

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.

South Africa’s trade of both primary and processed agricultural products has grown from R10billion worth of exports in 1996, to about R48-billion in 2011. Our wine exports are soaring, not-

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message withstanding the recent global 2011, we had devastating • The revitalisation of various economic slowdown. irrigation schemes, includfloods in a number of provinces. We are now exporting three We have begun the process ing the Vaalharts-Taung times more wine than we did a of implementing the Flood irrigation scheme decade ago. Exports of fish and Assistance Scheme, with its em- • The refurbishment and upgrading of agricultural fish products have rapidly ex- phasis on infrastructure repairs. colleges panded in China and Cameroon. An amount of more than R990Timber and forestry products million has been made available • Various projects such as grain storage facilities are gaining ground in China through the MTEF period until and rehabilitated irrigaand Indonesia. We are export- 2014/15 as part of the scheme. tion schemes in the foring more and more maize to Animal disease outbreaks mer homelands, fencing Zimbabwe. have presented serious chalincluding border fences Despite our success story as lenges to our industry. Our deand animal quarantine a country that is a net exporter partment will have to improve facilities at our borders of food, international trade on its capacity to deal with has yet to include more black such disasters, as they impact To support these initiatives, the farmers in the equation. As a adversely on the rural economy. Comprehensive Agricultural department we are committed R954-million is allocated for Support Programme (CASP) is to changing this. plant and animal production, in- allocated R1.5-billion, of which Our department is posi- cluding inspection and labora- over R52.5-million will be used tioning itself to participate in a tory services, and R935-million for infrastructure at the agriculmeaningful way in BRICS. The for agricultural research, which tural colleges, R322-million for department will open offices in represents a substantial in- the extension recovery plan, Russia, India and Brazil, in ad- crease over the previous year’s R762-million for infrastructure dition to the one that is already allocation. Furthermore, R868- (mostly on-farm), and R398operating in China. million is allocated to food secu- million for flood-damaged inrity initiatives and R349-million frastructure in disaster areas. In addition, the Land Care for extension support services, including new-farmer develop- allocation for the coming year The department is the custodian ment support. is R115-million, while the Ilima/ of South Africa’s forest resourcOur ‘Strategic Integrated Letsema programme gets a es, which cover over 40-million Project 11’ on agro-logistics total of R415-million. hectares of the country’s land and rural infrastructure (part of I appeal to all members of surface area. The forest sec- the integrated infrastructure plan the department and readers of tor employs about 201 025 approved by the Cabinet and this publication to look deep workers and provides approxi- the Presidential Infrastructure into your work and your hearts mately 77 000 direct jobs and Coordinating Commission) in- and ask what more you can do 30 000 indirect jobs. The cludes plans for the following: to contribute to making South Forestry and Natural Resources • Fresh-produce market- Africa a better country. Together, ing depots for smallholder we can work towards food Management branch will get farmers R1.2-billion during this financial security for all. year to manage our forests and • Production infrastructure for crops and animals natural resources. Our country has been plagued by natural disasters read more and animal diseases. Between December 2010 and January Visit: www.daff.gov.za

Funding allocation

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Aquaculture gives back to communities The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries is engaged in a plethora of groundbreaking initiatives.

The Fisheries Branch of the Department of Agriculture, Forestry and Fisheries (DAFF) is engaged in a national programme to revitalise the sector, therefore a number of research and development activities are ongoing.

Seaweed is mainly grown as food for abalone farming.

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quaculture is the farming of aquatic organisms such as fish, crustaceans, molluscs and aquatic plants. It involves cultivating freshwater and saltwater populations under controlled conditions, and can be contrasted with commercial fishing, which is the harvesting of wild fish. The current marine aquaculture industry concentrates mainly on three species, namely abalone, oysters and mussels. In addition, the sector grows seaweed mainly as food for abalone farming, while prawns have not been cultivated since 2004. The aquaculture of marine finfish, at best, is only on the brink of starting commercial production. The marine aquaculture sector contributes approximately 4% to the value of production in the fishing industry. This is very low in terms of the international standards, but the sector is still in a developing phase. It must also be pointed out that the rugged South African coastline and the lack of sheltered bays are not ideal for aquaculture activities. The South African aquaculture sector generates direct permanent employment and mainly benefits poor coastal communities. The employment opportunities therefore assist in alleviating poverty in disadvantaged areas. The sector also indirectly creates employment by supporting interlinked businesses through infrastructure development and the manufacturing of equipment. Northern Cape Business 2013/14

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Research and development Marine aquaculture is a technology-driven industry that relies heavily on research to develop new species and the appropriate technology for commercial production. At present, marine aquaculture in South Africa is dominated by molluscan shellfish farming (abalone, mussels and oysters), and exciting new industry initiatives are presently underway that are exploring the culture of indigenous marine finfish. However, despite these enterprises, there is considerable scope for the sector to diversify further. In fact, expanding the species base can be regarded as a prerequisite for the development of a globally competitive industry as well as for bringing appropriate technol-

focus ogy to small-scale, communitybased operations. The Fisheries Branch of DAFF, together with local industries and universities, plays a significant role in this regard, and is presently involved with a number of research projects that are investigating the feasibility of various candidate species for aquaculture, promoting environmentally sustainable aquaculture practices, and improving the biosecurity of aquaculture activities in South Africa. The research activities of the Fisheries Branch are divided into five key areas: Marine finfish research Support is required for the development and/or adaptation of marine culture technologies to establish reliable breeding and rearing techniques for a number of marine finfish species. There is a need to focus on a limited number of species, while maintaining the flexibility to act on viable emerging projects. Present research addresses the culture of economically important species, such as the dusky kob (Argyrosomus japonicus), white stumpnose (Rhabdosargus globiceps) and Cape hake (Merluccius capensis). Marine invertebrate research Research and development of culture technologies for marine invertebrates is presently focused on two economically important species, the South African scallop (Pectin sulci-

costatus) and sea urchin (Tripneustes gratilla). Key areas of research include brood-stock conditioning and spawning, gonad enhancement, larval rearing, grow-out, nutritional studies and growth trials. Marine aquaculture disease research Research involving the diagnosis, biology and containment of pathogenic organisms associated with marine aquaculture candidate species is important in sustaining the marine aquaculture sector. Some of the key areas of research include morphological and molecular diagnosis, integrated pest-management strategies, treatment trials, and impacts and epidemiology of pathogens on farmed and wild-caught animals. Environmental impacts Marine aquaculture practices, particularly intensive feedsupplemented systems, have the potential to cause serious negative environmental impacts, affecting not only the sustainability of farm operations themselves, but also other users of the coastal resource. The initial expansion of the global prawn and finfish farming sectors provides numerous examples of poor planning and implementation, and to a large extent provides the basis for the current negative perception of aquaculture. Competitive pressures, technology development and more efficient regulation are directing aquaculture towards best management and sustainable practices. Marine aquaculture in South Africa is poised for a rapid expansion phase as farming practices diversify and extend into new realms. Harmful algal bloom research Harmful algal blooms (HABs) cause harm by producing toxins that accumulate in shellfish or fish, or through the accumulation of biomass that may impact marine life, food webs and the environment in negative ways. The number of harmful blooms, the economic losses that result, the resources affected, and the number of toxins and toxic species are all considered to have increased dramatically in recent years. HABs have particularly adverse effects on aquaculture, ranging from reduced growth and reproduction to mass mortalities, which lead to significant losses in harvestable resources, and to spoiled or contaminated products.

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overview

Wine and grapes Orange River wines are growing in popularity in China.

Orange River Wine Cellars is renowned for its wide range of red, white and sparkling wines.

Wine Warm to hot conditions, coupled with the nutrient-rich land on Northern Cape Business 2013/14

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sector insight The raisin industry achieved record payouts in 2012. • Villard Blanc and Chenin Blanc are popular winecultivar plantings. • T he Nor thern Cape Vineyard Development Scheme has been launched. the banks of the mighty Orange and sharply contrasting temperatures at times, combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm. Of the wines characterised as ‘other varietals’, the Orange River grows 40% of them. The

photo: orange river cellars

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he Northern Cape’s Orange River wine region accounts for 25.6% of South Africa’s Colombard vines and 10% of its Chenin Blanc. According to SA Wine Industry Information & Systems, the Orange River region has 4.96% of the total hectares under wine grapes in South Africa, and 3.49% of the total number of vines. Table grapes are a large part of the province’s agricultural offering, with just less than half the country’s table grapes produced in the Northern Cape. Farmers have managed to recover better than expected from the bad floods of 2011 but there has obviously been a decrease in yield. This was exacerbated by the record returns that were achieved for the raisin industry in 2012. This meant that all dualpurpose cultivars (like Sultana and Merbein that can be used for juice and raisins) were dried to the detriment of the wine crop (VinPro Harvest Report, 2012).

overview focus is on Colombard and wine to the retail group Spar. Grapes are collected from 749 farmHanepoot grapes. ers along the Orange River for a distance of more than 350km. There are plans to add Orange River Wine Cellars has been selling wine to China for 40 000 tons of grapes for wine, five years, but is experiencing a sharp growth in sales to that huge juice and raisins to the Northern market. The company won six gold medals at the 2012 China Cape’s capacity. A draft six-year Wine Awards. plan has been developed for Douglas Wine Cellar produces about 6 000 cases per year. the Northern Cape Vineyard Together with the Landzicht cellar (just over the border in the Free Development Scheme that State), Douglas Wine Cellar is a GWK company. The Douglas cellar will be implemented by the crushes 7 000 tons of grapes every year and produces 5.6-million Northern Cape Department litres of wine. of Agriculture, Land Reform Hartswater Wine Cellar is a part of the region’s other big agriculand Rural Development, the tural company, Senwes. Two wine brands (Overvaal and Elements) National Agricultural Marketing are produced in the Hartswater irrigation area north of Kimberley. Council, the Land Bank, Distell, Winetech and Orange River Table grapes, raisins and sultanas Wine Cellars. An SA Wine Industry Information & Systems (Sawis) re- The Northern Cape produces 49% of South Africa’s table grapes. Seventy percent of the Sultana grapes grown in the Lower port stated that planting of wine grapes decreased dramatically Orange River region are used for vine-fruit products. There are 1 250 in 2012, with raisin cultivars Sultana grape growers in the province, producing three Sultana-type such as Merbein being pre- grapes that rank among the best in the world: the Sultana Clone H5, ferred. The most popular wine a new hybrid called Merbein Seedless, which has proved resistant cultivars are currently Villard to splitting after rain, and the most popular type, the 143B. The following vine-fruit products are produced in the Northern Blanc and Chenin Blanc, with ‘mainly old unproductive culti- Cape: sun-dried Thompson Seedless raisins, Dipped Orange River vars’ being uprooted: Chenel, Sultanas, Golden Sultanas, Muscat Raisins and Monuca Raisins. An example of successful Sultana-grape production in the provRaisin Blanc, Clairette Blanche ince is the SAD Vine Fruit (Pty) Ltd, which owns the largest driedand older Colombar. The crop size for the Orange vine fruit processing and packaging plant in South Africa. The River was 118 004 tons in 2012. Upington-based firm employs more than 350 people when in full (VinPro Harvest Report, 2012). production. As much as 80% of vine fruit grown in South Africa is This was 8% down on the pre- exported, primarily to Europe. The South African Table Grape Industry Partnership works to vious year. The crop for 2013 is expected to show growth, promote South Africa as the first choice of international retailers. possibly by as much as 20%. Orange River Wine Cellars online resources is a large co-operative with six wineries. OWC has a winery Northern Cape Department of Agriculture, Land Reform and Rural at its head office in Upington Development: www.agrinc.gov.za (where there is also a juice-conOrange River Wine Cellars: www.orangeriverwines.com centration plant) and at Keimoes, SA Wine Industry Information & Systems: www.sawis.co.za Groblershoop, Kakamas and South African Table Grapes Industry: www.satgi.co.za Grootdrink. South African Wine and Brandy Company: www.sawb.co.za Orange River Wine Cellars Wines of South Africa: www.wosa.co.za supplies 2.4-million litres of

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overview

Mining The Northern Cape has vast reserves of manganese and iron ore.

sector insight

declining and that prices might not continue to rise as steeply as they did in the five previous years. Several new projects are underway, including Tshipi he Northern Cape has a concentration of base metals (iron é Borwa, a project of the ore, manganese, zinc and copper) and industrial minerals Tshipi é Ntle Manganese such as gypsum, salt and building stone. Kimberley was Mining Company, a joint venhistorically the centre of diamond mining and it still has ture between Pallinghurst active mines, but diamonds are also found in the Richtersveld, in Co-Investors and a blackNamaqualand, and along the Orange River. e mpowe r me nt compa ny. Mining is the biggest contributor to gross regional domestic Tshipi é Borwa announced in product (GRDP), at 30%. There is strong demand, particularly October 2012 that the compafrom China, for the province’s main minerals: iron ore and man- ny had more than 40 000 tons ganese. Analysts warned in 2012 that Chinese demand was available for processing.

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photo: Anglo American

Several black-owned manganese projects are underway. • Kumba Iron Ore’s Kolomela mine was officially opened in June 2012. • Rockwell Diamonds is building a new processing plant at Saxendrift Hill. • African Rainbow Minerals Limited is a major player in the Northern Cape mining sector. • The Kudumanee manganese mine opened near Hotazel in May 2012. • New technology is putting Springbok copper back in the spotlight. • A rare-earths deposit in Namaqualand is attracting a lot of attention.

overview Iron ore is mainly found at controls parasites in livestock. Diatoms Organic Animal Health Sishen and Kathu, while zinc is supplying to about 60 agricultural co-operatives and sales and copper are mined at Okiep, are growing. Assmang is a 50/50 joint venture between African Springbok and Aggeneys. Rainbow Minerals Limited (ARM) and Assore Limited. African Granite is found in many parts Rainbow Minerals Limited is a niche, diversified mining company of the province and there are that has a number of large projects underway involving key comlarge quantities of aggregate modities, such as platinum, ferrous metals, coal and copper. around De Aar. Mineral sands are mined in the province’s Iron ore western region. Finds of rare-earth elements in Namaqualand have excited In June 2012, Anglo American then-CEO Cynthia Carroll and Minister a good deal of interest. This is of Mineral Resources Susan Shabangu opened Kumba Iron Ore’s covered in a separate section Kolomela mine. The mine was delivered on budget (R8.5-billion) and on time. The mine will produce about nine-million tons per annum of this publication. The decision by Anglo and provide full-time employment for 840 people. The company’s American and De Beers to sell annual wage bill for the mine will be R320-million. A feasibility study many of their South African on the Kolomela mine expansion will take place in 2014. The company told Engineering News it intends producing 70assets has led to considerable ownership changes to mines in million tons of iron ore per year in South Africa by 2019. Not long ago, total output was about 28-million tons, but in July Kumba the Northern Cape. AfriSam has a cement fac- had reached 50 mtpa, boosted in large measure by volumes out tory at Ulco. PPC Lime has of Kolomela. Kolomela is near Postmasburg, south of Sishen, where one of two large plants in the northeastern corner of the province the world’s biggest open-pit mining operations is located. Kumba’s existing mine at Sishen is undergoing an extensive and Lafarge runs a gypsum mine in Pofadder. Kelgran expansion programme that will receive a total of R5.1-billion in Africa has several granite and funding. In 2011, the mine produced 38.9-million tons of iron ore. dimension-stone quarries, and Most of this was exported, with just over six-million tons sold to Salt Refiners and Packers get ArcelorMittal South Africa. With Kumba Iron Ore CEO Chris Griffiths moving to the post of their salt from Grootwitpan near Upington. Other miner- CEO of Anglo American Platinum, Norman Mbazima became CEO als include limestone, gyp- and executive director of Kumba on 1 September 2012. Kumba Iron Ore controls 74% of the Sishen Iron Ore Company. sum, granite, verdite, mica, rose quartz and various semi- A local community trust and workers control some of the shares, while resources group Exxaro has a 19.9% stake. precious stones. Assmang is spending R5.5-billion on ramping up producRecent research on uses of diatoms – ancient algae tion of iron ore at Khumani to 16-million tons per year. The comthat were protected by shells pany’s Beeshoek mine in the Postmasburg area is another very made of silica – has opened important source. up a whole new industry in the Northern Cape. Assmang’s Khumani Iron Ore Mine has Mineral sands invested R5.4-million in a local business in the tiny town of Exxaro’s other big exposure in the Northern Cape is at Namakwa Deben which is turning these Sands, purchased from Anglo American in 2008. Zircon, titania diatoms into a substance that slag and pig iron are produced from facilities at Brand-se-

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overview

Baai (mineral-sands mine), Koekenaap (a minerals-separating Energy. Each of these BEE complant) and a smelter at Saldanha in the Western Cape. Exxaro’s panies is 49%-owned by Hong mineral-sands operations now form part of the new company, Kong ore trader Asia Minerals New Tronox, in which Exxaro has a minority share. The minerals- Limited (AML). sands business in South Africa (including KwaZulu-Natal) reported The Mail & Guardian (3-9 R3.5-billion in revenue for the six months to June 2012. August 2012) put the number of BEE mines being developed in the Kalahari mangaManganese nese field west of Kuruman at seven. Among the biggest are The giant companies in this sector are Assmang and Samancor. the Tshipi é Borwa (mentioned Assmang’s N’chwaning II and Gloria mines in the Black Rock above), Kalagadi Manganese area work very rich deposits. Manganese is exported through Port and United Manganese of Elizabeth primarily to Japanese and German customers. Kalahari. Samancor Manganese has two large mines in the Northern Mining advisory company Cape, at Wessels and Mamatwan. The company is 60% owned Venmyn predicted in the Mail by BHP Billiton and 40% by Anglo American. & Guardian that 18% of world The Northern Cape produces more than 84% of South Africa’s production would come from iron ore. China is spending billions of dollars every year on importing the Kalahari field within two the major component of steel production. years. South Africa has 80% Several new black-owned manganese projects are underway. of the world’s reserves of Kudumane was opened in May 2012. It is located near Hotazel manganese but has thus far and is to be developed at a cost of R1.5-billion. The first ore is been slow to bring it out of the expected to be produced in the middle of 2014, with initial rates of ground. 1.5-million tons-per-year rising to 2.5-million tons-per-year as the Kalagadi Manganese, the project reaches maturity. women-controlled company This a venture of the Kudumane Manganese Resources, which is that is developing a major jointly owned by Northern Cape Manganese and Dirleton Minerals & manganese-mining operation Northern Cape Business 2013/14

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photo: Geoff brown - planet kb

The Northern Cape Province is a well-established hub of mining activity.

overview

photo: Anglo American

at Hotazel at a total cost of The new rail link will also serve the R4.2-billion Kalagadi smelter R6.5-billion, is also building the at Coega. Transnet is targeting 16-million tons-per-annum to be world’s biggest manganese- delivered to Port Elizabeth initially, and then to Ngqura, as and sinter plant. The plant will pro- when the new port starts handling manganese. This should duce 2.4-million tons of sinter happen by 2016. product. Of this, 700 000 tons will make its way to the Eastern Cape where a new smelter is Copper, lead and zinc to be built. Arcelor Mittal sold its 50% Okiep and Springbok were the places to be in 1855, when the stake in Kalagadi Manganese northern part of what was then the Cape Colony was the centre after some acrimonious ex- of a frantic copper craze. Production stopped early in the 20th changes between the steel century, but new technology has opened up possibilities for giant and the founder of the copper prospecting in the area. Cuperex announced a new plant to be constructed near project, Daphney MashileNkosi. She now controls 50%, Springbok in October 2012. The company’s patented hydrometwith Kalahari Resources (40%) allurgical technology cuts the cost of producing copper at remote and the Industrial Development sites by more than half. The first plant is expected to produce Corporation the other share- 2 400 tons of copper per year, with a second plant planned for nearby Concordia set to produce 12 000 tons-per-annum. holders. The Northern Cape is responsible for around 18% of South Transnet has announced that it will transport manganese Africa’s total copper production, with the two most prominent from the Northern Cape to Port mines in Nababeep and Aggeneys. The Carolusberg Mining Elizabeth in much greater vol- Complex has copper reserves of 37.5-million tons, while the umes in future. To this end, it put Nigramoep deposit has 15-million tons. Mines in Aggeneys in Namaqualand are responsible for a distributed-power train with 18 diesel locomotives and 208 approximately 93% of South Africa’s lead production, and 12% of all world lead exports. Zinc is less abundant, but the wagons on the tracks in 2012.

The majority of Kumba’s iron ore originates from the Sishen mine.

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overview province is still responsible for about 43% of South Africa’s overall zinc production.

London-listed Petra Diamonds owns the Kimberley mine in a joint venture with Sedibeng Mining, a blackDiamonds empowerment company. Other companies in the provAlthough the global market for diamonds was somewhat de- ince are Pikwane Diamonds pressed in 2012, Toronto- and JSE-listed Rockwell Diamonds (five sites), Trans Hex (Baken in reported increased yields from its two Northern Cape assets. the Lower Orange region and Carats sold from Saxendrift rose 12% year-on-year (July 2012) three mines in the Richtersveld), and Klipdam’s new continuous-mining operation produced a Namakwa Diamonds and 20% increase in processed volumes. Alexkor, a joint venture between In 2012, the company signed agreements with four small-scale the national government (51%) operators to mine parts of its properties on a royalty basis. A and the community of the new processing plant worth R18-million is under construction Richtersveld. at Saxendrift Hill. Dwyka Diamonds, Diamond The world’s foremost producer of uncut diamonds, De Beers, Core Resources and Tawana expects annual production from its South African operations to Resources are also active. be about seven-million carats, but a smaller percentage of that will be coming out of Northern Cape Province than used to be Black economic the case. Having sold its underground operations at Kimberley to Petra empowerment Diamonds, De Beers sold South Africa’s second-biggest diamond mine, Finsch, 165km west of Kimberley, to the same com- In 2011, 6 000 Kumba Iron Ore pany for R1.4-billion in early 2011. The company’s Namaqualand workers received a dividend mines have been closed and are in the process of being trans- on their employee shareholding of R2.7-billion. In addition ferred to Trans Hex. De Beers has also stopped trying to recover diamonds from to this pay-out, Kumba paid the sea off South Africa and is concentrating its marine efforts R500-million to local communities and continues to pay divion Namibian waters. Petra Diamonds’ recent purchases mean the company now dends to its black-controlled owns eight mines. Finsch will produce 1.5-million carats in its first partner, Exxaro, which has full year of operation, pushing the company’s total production had a 20% stake since 2006. closer to a short-term target of three-million carats. With a total The employee scheme will pay resource base of 300-million carats, the company is aiming for out again in 2017. The Sishen Iron Ore Company Community production of five-million carats in 2019. Development Trust benefits from the dividends of a 3% online resources stake in Sishen Iron Ore and Chamber of Mines of South Africa: www.bullion.org.za these monies are spent on Diatoms Organic Animal Health: www.diatoms.co.za community projects in health, Geological Society of South Africa: www.gssa.org.za e nte r p r i s e d eve l o p m e nt Mining Qualifications Authority: www.mqa.org.za and welfare. National Department of Mineral Resources: www.dmr.gov.za SA Diatomite: www.diatsa.com Southern African Institute of Mining and Metallurgy: www.saimm.co.za

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profile

Petra Diamonds Petra Diamonds has, in recent years, grown into a leading independent diamond mining group with a strong African base.

Petra’s fast development has established the company as the largest diamond mining group listed on the London Stock Exchange and its exceptional growth profile positions the group as a unique investment opportunity within the sector. Through its strong and responsible leadership, Petra is investing in the expansion and optimisation of its world-class assets in order to deliver significantly increased production in the years to come. Plans are in place to grow annual production to five-million carats by 2019. This growth in output places the company in a strong position to benefit from the positive longterm fundamentals for the diamond industry, where demand is forecast to outpace supply. Underpinning Petra’s strategy is a focus on safety and sustainability, thereby driving value for all stakeholders, including the communities in which Petra’s operations are situated.

Finsch Diamond Mine, a technologically advanced and modern mine in the Northern Cape, is Petra Diamonds’ latest acquisition.

Leadership and responsibility

Focus on safety and sustainability

The company is committed to the responsible development of its assets, to the benefit of all stakeholders. For this reason, significant capital is being invested to ensure sustainable production from all of its major mines, including those in the Northern Cape.

Corporate social responsibility is integral to the way the group structures and operates its mining, development and exploration projects. This not only includes the company’s mandatory commitments regarding the safety, health and wellbeing of employees, communities and the environment,

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profile but also recognition and consideration of these in all planning it does.

ings over time, which will in turn deliver value to all stakeholders. This includes the social and economic benefits that its host communities will derive from the sustained investment in, and operation of, Petra’s mines.

Investing

Petra has committed significant capital in order to extend the lives of its mines. The company believes that the prospects in the diamond market bode well for the long-term future of the industry, and that responsible investment in and development of its assets can deliver long-term benefits Finsch A major producer with world-class infrastructure. to its stakeholders.

A snapshot of Petra’s major mines in the Northern Cape Key facts

Optimise recoveries

Petra is focused on ‘value’ as opposed to ‘volume’ production, and plans its mining and processing to capture a mine’s optimal roughdiamond profile.

• • • •

World-class assets Petra has acquired five of the world’s important diamond mines, two of which – Finsch Diamond Mine and Kimberley Underground Mines JV – are in the Northern Cape, and in so doing has compiled a major diamond resource of over 300-million carats.

Kimberley Underground Mine JV Operation comprises Bultfontein, Dutoitspan and Wesselton kimberlite pipes. Key facts •

Expansion of mines and exploration

Petra has expansion plans in place at each of its operations and is seeking to discover new, economic kimberlites through its exploration programme in Botswana.

Finsch produces a number of 50-plus-carat stones annually Production of 1 104 618 carats in FY 2012 Average value per carat of US$138 816 people: 762 employees, 54 contractors Petra ownership 74%; BEE partners 26% (21% Senakha Diamonds Investments (Pty) Ltd, 5% Petra Diamonds Employee Trust)

• • •

Historic source of large diamonds and fancy yellows Production of 68 422 carats in FY 2012 High average value per carat of US$320 581 employees Petra ownership 74%; BEE partners 26% (Sedibeng Mining (Pty) Ltd)

Production growth Petra has set out a transparent growth path that is expected to see production rising from 2.2-million carats in the 2012 financial year to five-million carats by the 2019 financial year.

contact info

Stakeholder value Petra’s exceptional growth profile is expected to deliver substantially higher revenues and earn-

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Tel: +27 11 702 6900 Fax: +27 11 706 3071 Email: info@petradiamonds.com Website: www.petradiamonds.com

Northern Cape Business 2013/14

overview

Renewable energy International solar companies are beating a path to the sunny Northern Cape.

B

y the end of 2012, the first two windows of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP) had been concluded. The biggest winners were bidders offering projects using solar photovoltaic technology, with no fewer than 27 projects getting the green light. The overwhelming majority of these successful bids were awarded in the Northern Cape, together with the only three concentrated solar power (CSP) projects to be given the go-ahead. The Development Bank of Southern Africa approved loans of R9.6-billion in the first window alone. Ten of these 14 projects were in the Northern Cape. Engineering News estimates that the REIPPP will lead to an investment in South Africa of about R200billion to 2016. The intention is that independent power suppliers will be producing 3 725MW by that date. Solar-photovoltaic (PV) technology is clearly the early frontrunner, although some of projects are quite small in terms of the amount of electricity that they will produce. Three of the biggest projects (and the only CSP designs approved in the country) will collectively supply 200MW from sites near Pofadder, Upington and at Bokpoort, between Carnarvon and Britstown. The Bokpoort project will cost about R4.5-billion and represents the first investment into South Africa by Saudi Arabia’s ACWA Power International. A 10MW hydroelectric project on the Orange River and a large wind scheme near Victoria West have been approved, but it is in solar energy that the Northern Cape’s great advantage lies. Long-term annual direct normal irradiance (DNI) at Upington is 2 816kWh/m2 according to a survey done for Stellenbosch University by Slovakian company GeoModal Solar. CSP Today reports a national average that is among the best in the world. Stellenbosch University’s Solar Thermal Energy Research Group has six sites monitoring irradiation levels. At a solar investor conference, held in Upington and attended by 400 delegates from countries such as Spain, India and South Korea, Dipuo Peters, the National Minister of Energy, outlined the competitive advantages of the Northern Cape for solar power, over and above its extremely high irradiation levels: • Relative closeness to the national power grid compared to other areas with comparable sunshine Northern Cape Business 2013/14

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sector insight Twenty solar projects have been approved in the province. • The rural Droogfontein community has a 4% stake in the company that will build 170 000 solar panels on its land. • Rand Merchant Bank is the lead arranger for WBHO Building Energy’s R3-billion solar-energy facility at Kathu. Water from the Orange River • Access to two airports • Good major roads • A flat landscape Feasibility plans are being done on building a massive solar park that will generate an eighth of the county’s electricity needs – 5 000MW – near Upington. Sixteen square kilometres of land has been identified and Eskom is looking for private •

overview partners. The park, which will cost more than R150-billion, will generate 1 000MW in its first phase. The Eskom-led project is intended to be at the centre of a solar hub that will attract private-sector projects because of economies of scale and quicker implementation times if the area is already zoned for solar-power generation. One of the biggest solar-PV projects is being constructed by the joint venture WBHO Building Energy. The Kathu Solar Energy Facility will generate 75MW and supply the vast mining operations in the area. Rand Merchant Bank is the lead arranger of the financing of this R3-billion project. Standard Bank is behind the other 75MW scheme, the Kalkbult project being designed by Norwegian company Scatec Solar. Mainstream South Africa is doing several projects, including Droogfontein solar PV (48.25MW). The company will build 170 000 solar panels on the land owned by the Droogfontein Communit y Property Asssociation, which has taken a 4% stake in the energy company (The New Age). Mainstream SA, a joint venture between Mainstream Renewable Power (Ireland) and Genesis Eco-Energy (SA), has also established a consortium that includes Absa Capital, Thebe Investment Corporation and Siemens Energy Southern Africa, which it hopes will play a role in turning South Africa into a renewable-energy hub.

Local manufacturers of solar equipment are set to increase production radically as a result of the REIPPP. Tenesol South Africa, a subsidiary of the French company with a factory in Cape Town, has won the contract to build both solar farms near Douglas. The company reports that it produced the equivalent of 800 000 photovoltaic modules in 2010.

Wind and other sources Most of the early allocations for wind projects have been granted to sites in the Eastern and Western Cape, but 790MW must still be allocated. A number of wind-energy projects are in the pipeline at these sites in the Northern Cape: • Witberg and in the Roggeveld near Sutherland (G7 Renewable Energies) • Sutherland and Victoria West (Mainstream SA) • De Aar (Mulilo Renewable Energy, with China Guodian Corporation) • Namaqualand (De Beers, with Eskom and other companies, on land no longer used for diamond mines). In 2011, Eskom did a scoping report for a 300MW wind project at Kleinzee The Northern Cape Economic Development Agency is promoting a project that will turn invasive species into biomass. Cement producer AfriSam is keen to reduce its dependence on fossil fuels at its plant in Ulco, north of Kimberley. Surrounding farm lands would be cleared of useless vegetation and converted into biomass that can generate energy. One of the sites being looked at by Eskom for a new nuclear plant is on the Namaqualand coast, at a site called Brazil near Kleinzee. The province’s 313km-long coastline is also suitable for the exploitation of wave energy.

online resources CSP Today: www.csptoday.com CSP World: www.csp-world.com Energy Resource Centre: www.erc.uct.ac.za Eskom: www.eskom.co.za Green Cape: www.green-cape.co.za National Department of Energy: www.energy.gov.za Solar Thermal Energy Research Group: http://blogs.sun.ac.za/sterg/ South African Wind Energy Association: www.sawea.org.za Southern African Solar Thermal and Electricity Association: www.sastela.org Sustainable Energy Africa: www.sustainable.org.za Sustainable Energy Society of Southern Africa: www.sessa.org.za

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overview Location

Project

Lead company

De Aar

De Aar Solar

Mainstream Renewable Power

De Aar

Solar Capital De Aar

Solar Capital

De Aar

Solar Capital De Aar 3

Solar Capital

De Aar

Mulilo Renewable Energy Mulilo Renewable Energy Solar PV

MW 48.25 75 75 9.65

Douglas

Greefspan PV Power Plant

AE-AMD Renewable Energy

10

Douglas

Herbet PV Power Plant

AE-AMD Renewable Energy

19.90

Kalkbult

Kalkbult Project

Scatec Solar

72.50

Kathu

Kathu Solar Energy Facility

WBHO Building Energy

Kenhardt

Aries Solar

Bio Therm Energy

Kimberley

Droogfontein

75 9.65

Mainstream Renewable Power

48.25

Linde, between Hanover Linde Project and Colesberg

Scatec Solar

36.80

Pofadder

Konkoosies

BioTherm Energy

Postmasburg

Lesedi PV Project

Cobra, Gransolar and Kensani

Postmasburg

Jasper Power Company

Solar Reserve

Prieska

Mulilo Renewable Energy Mulilo Renewable Energy Solar PV

Sishen

Sishen Solar Facility

Acciona Energy

Upington

Upington Solar PV

Enel Green Power

9.65 64 75 19.93 74 8.9

REIPPP solar photovoltaic (PV) projects approved in the Northern Cape, first two windows. SOURCES: pv-tech.org.za and Engineering News

Location

Project

Lead company MW

Bokpoort

Bokpoort CSP Independent Power Project

AC WA P ower International

50

Pofadder

KaXu Solar One

Abengoa

100

Upington

Khi Solar One

Abengoa

50

REIPPP concentrated solar power (CSP) projects approved in the Northern Cape, first two windows: SOURCES: csp-world.com and Engineering News

Location

Project

Type of energy Lead company

Kakamas, Orange River

Neusberg Hydro-electric Project A

Hydroelectric

Victoria West

Nobelsfontein Wind Power Wind Project

Mulilo Renewable Energy Gestamp and Shanduka

Other REIPPP hydroelectric projects approved in Northern Cape, first two windows. Northern Cape Business 2013/14

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MW 10 72.75

overview

Engineering Mining and rail projects are boosting the engineering sector in the province.

A

list of the firms working on Kumba’s Sishen expansion project reads like a who’s who of South African engineering. The R5-billion project is one of the many mining ventures engaging engineers in the Northern Cape. Among the companies active at Sishen listed by Engineering News are TWP, IMS Engineering, Murray & Roberts, Bateman, Grinaker-LTA, Krupp, Concor, DCD-Dorbyl, Duisburg and Alstom. Mining is by some distance the most important sector for engineering, but other sectors are growing. The amount of rail activity set to take place around De Aar in the next few years (with the expansion of the manganese line to Port Elizabeth) will boost the scope of Transnet Engineering’s workshops. Precision engineering is required to install and service the huge telescopes that dot the hillsides around the town of Sutherland. The coming of the massive international SKA telescope project will expand this kind of activity by several degrees of magnitude. Solar power is also attracting engineers. Construction and engineering company Group 5 is building a 150MW concentrated solar-power plant, and Telkom’s decision to build a solar-power park will provide work for specialists. The Strategic and Sustainability Services Unit of engineering and environmental consultant Royal HaskoningDHV has drafted a comprehensive Environmental Management Framework for the John Taolo Gaetswe District Municipality. Aurecon is providing an environmental impact assessment for a proposed wind farm near Prieska. But it is the large projects in the mining sector that provide the bulk of the work for engineers and contractors. TWP Projects

online resources

sector insight Nearly two dozen engineering firms are working on a single iron-ore expansion project. • TWP Projects has opened a regional office in Kathu. has opened a new regional office in Kathu. In 2012, the company handed over to Kumba a R232-million bucket-and-bowl workshop facility at the Sishen mine. The 50m by 40m workshop will start its life as a maintenance workshop for the mine’s giant trucks and then be used to maintain other mine equipment. A permanent vehiclemaintenance workshop will be completed in 2013 at a cost of R1.4-billion. In the 12 months to June 2012, Osborn Engineered Products supplied eight machines to manganese mines in the province, including apron feeders, vibrating grizzly feeders and jaw crushers. One new mine ordered equipment to the value of R14-million.

Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Institution of Civil Engineering: www.saice.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za Steel and Engineering Industries Federation of South Africa: www.seifsa.co.za

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interview

Keeping operations running smoothly National General Manager of the Coach Business for Transnet Engineering Andile Silo gives an overview of the company’s operations in the Northern Cape, and highlights some of the major projects that are ongoing.

Andile Silo

Please give an overview of Transnet Engineering’s operations in the Northern Cape. In the Northern Cape, we have the locomotives business as well as the wagons business. The province is the hub for our locomotivemaintenance operations, and many locomotives come through the Kimberley plant. We refurbish 18Es, 7Es, 9Es, as well as 34 and 35 diesel locomotives. We also provide auxiliary services for the wagons business. We service various types of wagons, including grain wagons. What are your duties?

biography Andile Silo started his career as centre manager at the wagons plant in Uitenhage, and then became regional operations manager in 2006, responsible for the western region (Uitenhage, New Brighton and Cambridge in the Eastern Cape, and Bellville and Saldanha in the Western Cape). The Northern Cape was incorporated shortly after. In 2008, he was appointed national business manager for rolling stock equipment. He relocated to Bloemfontein, where he was responsible for the entire plant in that town. In 2012, Andile was appointed general manager for the coach business nationally. Northern Cape Business 2013/14

I ensure that all the services are rendered to the businesses within the Northern Cape area, such as the recruitment of staff, and I provide essential services like safety, human resources, financial services, ICT services; these all go through my office. The building or implementation of all facilities goes through me. I also hold all the centre meetings to understand what requirements the staff have, and will allocate specific duties to the managers. I visit the plant with my entire management team on a quarterly basis, as I am based in Bloemfontein. When we are there, we talk to management and address the entire workforce to ascertain any concerns that they might have. In short, I am the overseer of all the main functions and businesses within the Northern Cape Province. Are there any new projects or developments that Transnet Engineering is undertaking in the province? There is a facility in De Aar that has not been used for years. So, in our quest to provide employment in rural areas, we will be opening a depot there, and it will be up and running by mid-2013. Our plan is to employ people staying in that area, and they will maintain the wagons for us. The amount of work that we have ongoing in the Bloemfontein plant is too much, as the demand exceeds the capacity of that plant. Therefore, in line with our Market Demand

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interview Strategy (MDS), we decided to open the new De Aar plant.

We have numerous corporate social investment projects. We have built about 100 desks for donation to local schools. We have identified a few schools in the Northern Cape that would benefit from receiving these desks. The beauty of this project is that students themselves built the desks. We as Transnet Engineering embarked on a project to buy welding machines for further education and training (FET) colleges countrywide. We have identified three FET colleges within the Northern Cape and Free State provinces that will benefit from this project. Fifteen welding machines have been identified for these colleges. The launch date for handing over these donations has not been confirmed, but will occur in the course of 2013. In terms of attracting local talent, we advertise in the local newspapers and go to the local colleges in the area in order to create as much exposure as possible. We interview the possible employees, and if they make the short list, we urge them to do assessments. Those that pass are added to our database. In the De Aar area, we go through the Department of Labour because it also has a database of people looking for work.

we decided to train our own people, so that we would have a healthy supply of workers in the area. We have also implemented the Learnership Project for the locomotive business. We approached about 50 students that were studying in the Kimberley area. We realised that people from various areas like Port Elizabeth and Cape Town were not interested in going to work in rural areas like the Northern Cape. So we decided to establish our own hub, and train our own people, so that we would have a healthy supply of workers in the area.

What is the Market Demand Strategy? Transnet’s Market Demand Strategy (MDS) will expand and modernise the country’s ports, rail and pipelines infrastructure over a period of seven years to promote economic growth in South Africa. The main pillar of the MDS is the R300-billion investment programme. The MDS will make Transnet one of the biggest rail freight companies in the world. Rail volumes will increase from around 200-million tons to 350-million tons. About 288 000 jobs will be created within the South African economy, and R7.7-billion will be spent on training, skills development, bursaries and grants by 2018/19. Transnet plays a pivotal role in supporting government’s drive for infrastructure-led economic growth. The MDS will enable the company to transport goods in a reliable, efficient and costeffective manner.

In recent years, Transnet identified an opportunity to stockpile an accessible supply of iron ore in the Northern Cape in order to service global demand. Has this opportunity been exploited? We are providing iron ore and various other commodities from the Northern Cape. The plan was implemented and we are stockpiling the iron ore already, over and above the manganese that we keep at that location. We keep the commodities there because of its convenient proximity to transport routes. The manganese is also huge in that area. We are ramping up from 104 wagon trains to 208, in line with the MDS. We are building new 20E locomotives that will be channelled to that area.

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overview

Transport Vast distances make transport links doubly important in the Northern Cape.

SA Airlink services a feeder network of smaller towns and regional centres throughout the country.

A

key task for the transport sector in the Northern Cape sector insight is to get minerals and agricultural products to ports and markets. This function is dealt with in a separate section The move to rail should boost of this publication. the local economy. The central location of the Northern Cape Province provides it • De Aar’s rail workshops will soon be humming with with a key role in South Africa’s transport and logistics strategy. activity. Recent moves by the provincial government of the Northern Cape • The Northern Cape has are intended to align provincial priorities with national plans. One 22 000km of gravel roads. example of this is the drive to get freight off the country’s trucks and onto its rail wagons. A Transport Investors Conference hosted by the Northern Cape The TE factory at Uitenhage will in 2011 heard that the plans to boost the country’s rail capacity lead the manufacturing drive, will have a direct and positive impact on the provincial economy. but De Aar’s role will increase With rail central to the future of South Africa’s transport plans, De over the seven years to 2020. Aar’s future as a major freight-transport hub becomes much more Other transport plans for the feasible. A study has been commissioned for this project. De Aar is province (dealt with more fully already a key junction for the western half of the nation’s rail network. in the logistics special feature Rail Express reports that Transnet Engineering (TE) is going to in this publication) are: bring De Aar’s workshops back to life. With vastly increased vol- • To develop Upington Airport into an international umes of manganese set to run on the line from the Northern Cape cargo hub. to Port Elizabeth, construction of new wagons and the maintenance of wagons is going to be a vital component of the operation. • To expand and improve Northern Cape Business 2013/14

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overview the Douglas/Belmont rail- Taolo Gaetsewe District Municipality disrupted schooling for branch line. Despite an thousands of school pupils for months in 2012. upgrade in 2005, the line still operates at 50% of intended capacity and can- Rail not accommodate 40-ton The Sishen-Saldanha railway line carries massive quantities of iron wagons. • To upgrade and expand the ore from the heart of the province to the west coast at Saldanha harbour at Port Nolloth. (in the Western Cape). Transnet Freight Rail (TFR), which operates the line to Saldanha on the west coast, has plans to eventually be able to carry Roads 60-million tons per year. The Northern Cape is a huge province but it is well served Air by transport links. Major national highways define the The Northern Cape’s two major airports run by Airports Company boundaries of the province: South Africa (ACSA) received expensive upgrades in the leadthe West Coast Highway up to the Soccer World Cup, with R17-million being spent on (N7), the N12 that runs along Kimberley and R31-million on Upington. Kimberley Airport caters the province’s eastern edge for about 132 000 passengers every year. The SA Red Cross Air and the N14 connecting the Mercy Service operates out of the airport. A business park is being investigated to complement Upington west with the east across the northern half of the prov- Airport. About a million tons of grapes pass through the airport ince. The N8 links Kimberley annually, and good quantities of fruit and fish also form part of the to Bloemfontein, Maseru cargo load. Tourists use the airport for access to the Kgalagadi and Augrabies Falls National Parks. As it is situated in an area and beyond. The Northern Cape has with clean desert air, the airport is suitable as a facility for the 3 025 kilometres of paved long-term parking of mothballed aircraft. Airlink flies to Upington, road and 22 000 kilometres of and charter company Walker Flying Services is based there. The Northern Cape has many good landing strips. The Sishen gravel road, comprising 21% of the national road network. airfield is a licensed aerodrome and serves the mining industry, It has been estimated that while the Namakwa District Municipality has three good airstrips between 40% and 50% of all at Calvinia (a private field that is 1 250m long), Springbok and roads need immediate repair Alexander Bay. Gariep Dam airstrip is tarred and, with a 1 360m runway, can cater for Learjets. or upgrading. MEC for Roads and Public Works Dawid Rooi said in online resources December 2012 that, despite Airports Company South Africa: www.acsa.co.za the figure of 21%, the provAir Traffic and Navigator Services: www.atns.co.za ince received only 3% of the Northern Cape Provincial Government: www.northern-cape.gov.za national roads budget. He Railroad Association of South Africa: www.rra.co.za estimated that the backlog South African Civil Aviation Authority: www.caa.co.za for road maintenance was South African National Roads Agency Limited: www.sanral.co.za R5.4-billion. Transnet Engineering: www.transnet.net Large protests about the Transnet Freight Rail: www.transnet.net state of roads in the John

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overview

Banking and financial services Agricultural credit is important to the Northern Cape economy.

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he main towns of the Northern Cape offer the full range of banking and financial services, with Kimberley being the regional headquarters for most large organisations. The retail banks of the small towns such as Kathu around the giant iron-ore mining operation at Sishen had a lot of work to do when the Kumba Iron Ore Company’s Employee Share Ownership Plan paid out its first share – more than R2-billion – in December 2011. With more than 6 000 employees receiving more than halfa-million rand each, the term ‘run-on-the-bank’ took on a new meaning. Kumba spent more than R1.2-million on workshops to prepare the workers for their new wealth. As of 2012, Absa Capital is the banker of the provincial government of the Northern Cape, as it is for three other provincial governments and 20 of the Northern Cape’s 32 local municipalities. One of the results of the tragic events that happened at a platinum mine in 2012 is a new focus on unsecured microlending. Illegal lending is thought to have contributed to the violence that erupted at Marikana (in the neighbouring province of North West). With mining being such an important part of the Northern Northern Cape Business 2013/14

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sector insight Mine workers attended workshops to prepare them for sudden wealth. • Absa Capital is the provincial government’s new banker. • Capitec’s client base grew 31% in 2011/12. Cape economy, these developments are going to be watched carefully. African Bank has been expanding its services beyond providing unsecured loans to include credit cards and insurance, but its main business is providing credit for Ellerines Holdings Retail Stores, in-

overview cluding Fairdeal, Town Talk, New markets Ellerines, Lubners, Furniture City and FurnCity. There are A high percentage of the population of the Northern Cape live in branches in 11 towns, includ- rural areas and are members of burial societies or saving groups ing Kathu. Many low-income (stokvels), but products such as the Mzansi account for lowearners pay for goods and income earners are attracting them to formal banking. The Finscope 2010 survey shows that 38% of South African furniture on terms. Retail bank Capitec Bank adults use the informal sector, although the percentage of banked has made remarkably quick individuals is markedly up since the survey began in 2003: just progress in gaining market over 50% of the population used formal banking products then, share – and not only among against 63% in 2010. The survey found that about 24% of South African adults still the previously unbanked. A client base growth of 31% in have no relationship with banks, so the scope for growing the the 2011/12 year proved this, market remains huge. In a bid to bring in even more previously unbanked South and took the bank’s total number of clients up to 4.2-million. Africans, the country’s biggest retail banks are offering new In the context of the closure of services: several of the big four’s rural • In 2009, Absa rolled out Absa Transact at specific Entry Level and Inclusive Banking (Elib) branches. These 63 branches branches, it is significant that represent 8% of Absa’s branch network but they generate Capitec Bank has a presence 35% of loans. In 2012, the bank launched Payment Pebble, in small towns such as De a card-based mobile-payment device. Aar and Barkly West. It has branches in 11 Northern Cape • FNB offers EasyPlan for first-time banking customers. The bank’s eWallet product, whereby money can be sent to towns, with four in Kimberley cellphones, is proving very popular. and two each in Upington and Kathu. Nationally, the bank • The Pay2cell system allows for the transfer of money from one FNB account to another using a cellphone. has 534 branches. The country’s biggest re- • Standard Bank community-banking initiative offers a lowcost cellphone-banking service. Retailers can act as agents tail banks, Absa and Standard for the bank, even in very remote rural areas. There are 222 Bank, have about 800 and such ‘bank shops’ (Shoprite, Pep, Spar and spazas) in the 680 branches respectively. Northern Cape. The Northern Cape’s agricultural credit sector is well • The Nedbank Business Banking division is part of a decentralised system that aims to gain insight into local conditions. catered for. In addition to the The bank’s reach into rural areas has been enhanced by its agricultural divisions of all the branch-in-a-box concept. major banks, and specialists such as the Land and Agricultural Development online resources Bank of South Africa (Land Bank), the large agriculAuditor-General of South Africa: www.agsa.co.za tural companies all have Banking Association South Africa: www.banking.org.za finance divisions. These inFinancial Services Board: www.fsb.co.za clude Senwes Credit, GWK, Institute of Bankers in South Africa: www.iob.co.za OVK and Upington-based Insurance Institute of South Africa: www.iisa.co.za KLK Landbou, which offers Office of the Ombudsman for Banking Services: www.obssa.co.za short-term, agricultural and South African Reserve Bank: www.resbank.co.za medical insurance.

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A bank that understands the Northern Cape The Standard Bank Group has been an integral part of South Africa for more than 150 years.

Standard Bank is a full-service banking group that includes tural offering is its Agricultural life insurance and asset-management activities undertaken via Advisers who work closely with Liberty Life and Stanlib. In the Northern Cape, Standard Bank the Relationship Managers to provides complete business, personal and private banking offer- give assistance with the comings to micro, small, medium and commercial enterprises through pilation of comprehensive its extensive footprint of 42 branches and business banking agricultural reports. representations, 134 AccessPoints and 154 ATMs. Agriculture is characterised by strong cyclical trends. The bank offers structured finance that takes the effects of these Standard Bank’s customer approach to business banking is cycles into account. Whether based on relationship-banking principles. Standard Bank rec- clients need to acquire new ognises the need for businesses to have a banking partner. The property, finance equipment or bank can help establish and run clients’ businesses by offering fund operating expenses, the professional and convenient interactions with the bank that en- bank has a solution to meet able efficient business operations. Standard Bank understands their requirements. business and wants to help clients grow and remain successful. The bank’s commitment to Alternatively, utilising self-service banking channels such as BBBEE is driven by the need to Internet banking, Business Online or AutoBank machines is often create an economically sustainmore convenient for general transactions. able black-business sector as The purpose of this structure is to create an integrated and a foundation for its growth and holistic approach to facilitate and develop innovative and cus- profitability. Funding BBBEE tomised solutions to address clients’ requirements optimally, includes buying into existing including transactional, payment, cash, savings and investment, farming operations, the exlending, wealth and foreign trade and currency solutions. The pansion of existing operations, client’s banker will act as the head of a relationship team who integration along value chains, will take a multi-disciplinary approach to ensure that Standard contract finance and comBank offers a seamless and integrated banking service. munal land. Standard Bank’s Leveraged Finance team can give guidance on structuring deals and how the different Standard Bank has a team of agricultural specialists to advise parties could be organised efclients on a range of areas related to their agricultural busi- fectively. ness. A team of specialised Relationship Managers with sound The bank also recently apknowledge of agriculture can provide clients with appropriate proved a national R500-million financial support. An existing part of Standard Bank’s agricul- Agricultural BEE Ring-Fenced

Business banking

Agricultural banking

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focus Credit Line that will be used to term funding for infrastructure development, project finance, overprovide finance to previously draft facilities, various investment options and treasury. disadvantaged black agricultural farmers with the assistance of some sort of mentoring entity to ensure transfer of skills. The While Standard Bank recognises the importance of the business focus will be on black farmers side of its offering, it is also interested in the financial wellbeing of that have acquired land through the employees in each business. land restitution and will focus on providing production finance in certain industries, including The bank’s inclusive banking strategy is aligned to its vision of grain, livestock and citrus. being a leading financial-services group in emerging and informal customers. It is about making banking accessible to all, sustainably premised on the design principles of affordability, simplicity, Standard Bank has exten- convenience, security and dignity. sive experience in partnering To make banking more accessible, Standard Bank has created with the public sector. It has a new distribution network that puts a Standard Bank point of repestablished good working resentation within walking distance of every South African, where relationships with numerous they live and work. To achieve ubiquity, Standard Bank adopted public-sector bodies and has the agent model (branchless banking). This low-cost third-party developed a solid understand- distribution channel comprises 8 000 retail agents (supermarkets, ing of their unique arrange- spaza shops, butcheries, etc) called AccessPoints, in communities ments and requirements. throughout the country. The bank’s local relationIn the Northern Cape, Standard Bank has 134 of these Bank ship-management approach Shops, at which customers are able to do basic financial transacwill ensure dedicated support, tions such as deposits and withdrawals (encashment) where they with an ongoing effort to assist live and work, without having to travel to a branch, thus saving on clients to improve processes travelling costs. As an example, the areas in the Northern Cape and operational efficiencies such a Klein Mier, Groot Mier, Sandrift, Rietfontein (all of which are within the public sector. The remote and closer to Namibia) now have access to banking. bank’s offering includes long-

Employee banking

Inclusive banking

Public-sector banking

Standard Bank has implemented AccessPoints in some communities that allow customers to access banking services without having to visit a branch.

A total of 134 AccessPoints have been installed thus far in various rural and urban locations, such as townships, spaza shops and small businesses.

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Northern Cape Business 2013/14

interview

Completely committed to the Northern Cape Mercia Bloem, provincial head of Standard Bank in the Northern Cape, talks about the bank’s operations in the province.

Tell us about Standard Bank’s operations in the Northern Cape Province.

Mercia Bloem, provincial head

Standard Bank was established 150 years ago. It was the first bank established in Kimberley and the first bank to have a provincial executive team within the province. The provincial executive team is a 10-member team located in Kimberley. The executives head up different functions within public sector and business banking. Apart from having a head of business centres, we have a provincial head of business banking who oversees all business banking operations. Lastly, we have a provincial head who oversees all operations of the business within the Northern Cape. Our footprint is as follows: • 42 Branches and agencies • 154 ATMs • 134 Bank Shops We continue to expand our footprint through various points of representation. We are the only bank with representation in 13 towns in the province. In your view, what is the short- to medium-term outlook for the economy of the Northern Cape?

biography Mercia Bloem is the provincial head for Standard Bank in the Northern Cape.

Northern Cape Business 2013/14

The gross domestic product of the Northern Cape is expected to grow by an average of 3% according to Stats SA. This is on the back of increased mining activity and new renewableenergy plants. Early into 2014 we should see more economic activity due the Square Kilometre Array (SKA) project and the new university. Standard Bank has great confidence in the Northern Cape economy hence our investments in infrastructure growth and revamps of our branches across the province. We have highly skilled people to service our Business, Agriculture, Public Sector and Personal Banking.

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profile

Standard Bank Northern Cape Standard Bank is able to offer a comprehensive service to customers in the Northern Cape as it has a full executive team based in the province.

Provincial Executive Committee – Customer facing Provincial Head Mercia Bloem

Provincial Sales Manager Albert Khoele

Tel: +27 53 807 8249 Fax: +27 86 507 9488 Email: mercia.bloem2@ standardbank.co.za

Tel: +27 53 807 8254 Fax: +27 86 635 9742 Email: albert.khoele@ standardbank.co.za

Head Business Banking Mike Symington

Business Centre Head Mthuthuzeli Makoba

Tel: +27 53 807 8251 Fax: 086 632 6844 Email: mike.symington@ standardbank.co.za

Tel: +27 53 807 8224 Fax: +27 83 742 6147 Email: mthuthuzeli.makoba@ standardbank.co.za

Manager: Local Market, Kimberley Tembani Ngqeza

Regional Sales Manager – SBFC Ben Meintjes

Tel: +27 53 807 8170 Fax: +27 86 754 3551 Email: tembani.ngqeza@ standardbank.co.za

Tel: +27 53 807 8238 Fax: +27 86 225 8642 Email: ben.meintjes@ standardbank.co.za

Manager: Local Market, Kuruman Veronica Wildt

Business Unit Manager: VAF, NC Thabang Tau

Tel: +27 53 712 8421 Fax: +27 86 266 2856 Email: veronica.wildt2@ standardbank.co.za

Tel: +27 53 807 8305 Fax: +27 53 807 8225 Email: thatothabang.tau@ standardbank.co.za

Head Public Sector Phillip Maribe

Provincial Agric Manager Jean De Villiers

Tel: +27 53 807 8171 Fax: +27 86 754 3303 Email: phillip.maribe@ standardbank.co.za

Tel: +27 53 807 8172 Fax: +27 86 633 1982 Email: jean.devilliers@ standardbank.co.za

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profile

Account Executives, Northern Cape – Customer facing Account Executive Harold Dettmer Tel: +27 53 474 7113 Fax: +27 53 474 0094 Email: harold.dettmer@ standardbank.co.za Address: 19 DF Malan Street, Hartswater 8570

Account Executive Johan Theron Tel: +27 53 807 8217 Fax: +27 53 807 8173 Email: johan.theron@ standardbank.co.za Address: 1st Floor, cnr Bultfontein and Lennox streets, Kimberley 8301

Account Executive Neil Strauss Tel: +27 53 203 0737 Fax: +27 86 635 5941 Email: neil.strauss@ standardbank.co.za Address: 24 Church Street, Hopetown 8750

Account Executive Frikkie van de Venter Tel: +27 53 807 8211 Fax: +27 86 632 6883 Email: frikkie.vandeventer2@ standardbank.co.za Address: 1st Floor, cnr Bultfontein and Lennox streets, Kimberley 8301

Account Executive Peter Serei Tel: +27 53 712 8918 Fax: +27 86 633 1982 Email: peter.serei@ standardbank.co.za Address: cnr Main and Voortrekker streets, Kuruman 8460

Account Executive Hendrik Liebenberg Tel: +27 54 338 8322 Fax: +27 86 635 5910 Email: hendrik.liebenberg@ standardbank.co.za Address: cnr Scott and Hill streets, Upington 8800

Account Executive Dries Burger Tel: +27 53 712 8915 Fax: +27 86 635 5950 Email: dries.burger@ standardbank.co.za Address: cnr Main and Voortrekker streets, Kuruman 8460

Account Executive Jean Blomerus Tel: +27 53 298 5804 Fax: +27 53 298 5830 Email: jean.blomerus@ standardbank.co.za Douglas SPAR Centre, cnr Arnott and Loch Roper streets, Douglas 8730

Account Executive Steven Maclean Tel: +27 53 807 8218 Fax: +27 86 632 5694 Email: steven.maclean@ standardbank.co.za Address: 1st Floor, cnr Bultfontein and Lennox streets, Kimberley 8301 Northern Cape Business 2013/14

Account Executive Ethenne Kapank Tel: +27 53 632 6205 Fax: +27 86 635 5888 Email: ethenne.kapank@ standardbank.co.za Address: 10 Alida Street, De Aar 7000

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profile

Account Executives, Northern Cape – Customer facing Account Executive Koos de Wee Tel: +27 54 338 8322 Fax: +27 86 635 5910 Address: cnr Scott and Hill Streets, Upington 8800 Email: koos.dewee@standardbank.co.za

Provincial Executive Managers – Support functions Operational Risk Manager Thabo Foko

Manager Workplace Optimisation Thea Rautenbach

Provincial Finance Manager: Northern Cape Jatin Ratan

Provincial Change Manager Cherlon Simons

The position of Provincial HR Consultant is currently vacant.

Standard Bank boasts a large footprint in the Northern Cape.

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interview

Catering to the needs of entrepreneurs Vicky Ramela, general manager of Absa’s Enterprise Business: Central Region in the Northern Cape, highlights the importance of creating new jobs as a catalyst to improving economic growth.

Vicky Ramela

What is Enterprise Business, and how does it service clients in the Northern Cape? Enterprise Business is a key component of the bank’s operations. It services many clients within the province through its 15 branches that each house dedicated Enterprise Business bankers. What products and services does Enterprise Business offer?

biography Vicky Ramela holds an MSc in Engineering Business Management from Warwick University in the UK, and a BCom degree from the National University of Lesotho. She is a certified member of the Institute of Internal Auditors (CIA), a designation granted by the Institute of Internal Auditors (IIA). Vicky was appointed general manager– central region: enterprise banking and her responsibilities include proactively leading and managing the central region sales team by embedding a sales culture with a focus on acquisition, retention and expansion, thus motivating the economic value for clients. Northern Cape Business 2013/14

Apart from access to funding, Absa has highlighted the following key aspects to developing sustainable businesses: • Access to markets (innovative solutions) • Access to non-traditional lending solutions • Access to non-financial support Absa has also developed a range of products and services to cater for the needs of entrepreneurs, emerging markets and SMEs. Please explain the importance of small businesses to the economic growth of the country, with particular emphasis on Northern Cape Province. Creation of jobs and growing our country’s economy is top of mind for our government. This happens through the formalising and empowerment of small business in the Northern Cape; a task that will require our government to work hand in hand with the private sector, especially the financial institutions, if we are to see steady progress in the small business sector. Absa stands firm behind our government’s vision of an adaptive and restructured economy characterised by: • Accelerated economic growth • Employment creation • Greater equity by 2014 Key to achieving these objectives is the development of SMEs, as they are the biggest contributors to the country’s GDP, the driving force of economic development and employ in excess of 60% of the total labour force.

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overview

Development finance and SMME support Product development is a priority of the provincial government.

sector insight An SMME village has opened in Galeshewe. • Hundreds of bee hives are providing a living for members of a Deben cooperative. • The Bed Factory is thriving.

photo: anglo american

Butterfield Bakery franchises in Kathu were established using funds provided by Kumba through Anglo American Zimele.

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elping start-up businesses grow into sustainable enterprises that can feed families and provide employment is a priority for several agencies, private initiatives and government departments in the Northern Cape. The Northern Cape Department of Economic Development and Tourism (DEDT) has a unit devoted to product development, and it channels funds into promising small enterprises, particularly in the manufacturing sector.

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In 2011/12, the DEDT-supported Bed Factory had 65 employees and had started distributing its products to other provinces. The 2012/13 budget for the support of 51 SMMEs from the Economic Growth and Development Fund was R32.5million. These businesses are almost all in the manufacturing sector. An amount of R5.6-million is to be spent in 2012/13 by the Northern Cape Economic Development Agency (NCEDA) to prepare SMMEs for exporting their products. NCEDA is an agency of the DEDT and also handles trade and investment promotion for the province. An annual jamboree that focuses on SMMEs and brings together many of the agencies that can help entrepreneurs has been held under the auspices of the DEDT since 2009. In 2012, the Provincial SMME Pilgrimage involved several Northern Cape Business 2013/14

overview

municipalities, the Frances port small, medium and micro enterprises focus on agricultural Baard SME Trust, Absa Bank, production and food security. Small Enterprise Development The decline of diamond mining in the western regions has Agency (Seda), Small Enterprise made it even more important for small, rural communities to be Finance Agency, the Productiv- able to feed themselves. ity Institute, the National DeAnglo American’s Zimele launched a business-enterprise partment of Trade and Industry hub in the Namaqualand town of Kleinzee in 2011, and granted (dti), the Construction Industry R14-million in low-interest loans to small enterprises, which led Development Board (CIDB) to the creation of about 400 jobs in the area. and the National Department The investment priorities of the National Department of Sciof Social Development. Doz- ence and Technology (DST) have ensured that the tiny hamlet of ens of SMMEs were helped Onseepkans on the banks of the Orange River is now growing in various ways in the course rose geraniums for profit. The DST and Council for Scientific and of the pilgrimage, including Industrial Research (CSIR) are supporting the project to develop gaining access to business rose-geranium essential oils. planning, application and Farmers and entrepreneurs living in the Succulent Karoo region market access information. of the province can apply to the Skeppies Fund, the funding arm A radio drama show is to be the Succulent Karoo Ecosystem Programme (SKEP). This initiative developed that will tell the story has the backing of the Development Bank of Southern Africa and of how small businesses can several international conservation bodies. gain access to the support that In the small town of Deben near the huge iron-ore mines at is available from government Sishen, a 10-member co-operative is doing well from the sale of and agencies such as Seda. organic honey. Business Day reported in 2012 that the members Standard Bank supports currently run 300 hives, but will be adding 300 more as they a training programme run by scale up the business. One of the members told the newspaper’s TechnoServe called Believe representative that he would be driving a Jeep in five years. IronBegin Become. Winners receive ore company Kumba teamed up with the National Development up to R75 000 in seed capital. Agency (NDA) in 2009 to establish the co-operative. Many of the programmes in Frances Baard District Municipality includes the Sol Plaatje the Northern Cape that sup- municipality. In 2012, Sol Plaatje inaugurated the Galeshewe Northern Cape Business 2013/14

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photo: Kxo’xo Leather Designs

Kxo’xo Leather Designs won a national business-plan competition organised by Seda.

overview SMME Village, a facility that will provide a new home for nearly 100 small businesses.

National support service National 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 SMEs, 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. Seda is an agency of the dti, and supports the growth of viable businesses through advice, mentoring, access to technology, referrals, providing access to markets and business linkages. The agency helps small enterprises in applying for funding. There are six branches of Seda in the province. In partnership with the DEDT, the Ntataise Programme rewards and gives incentives to small businesses. The focus in 2012 was the creative industry. Seda also runs a national business-plan competition. The provincial winners in 2012 were My Northern Cape TV, Cazz Electronics and Computer Services, Otxipangi Traders and Kxo’xo Leather Designs. The National Empowerment Fund (NEF) is also 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

online resources Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za Land and Agricultural Development Bank of South Africa: www.landbank.co.za National Department of Science and Technology: www.dst.gov.za National Department of Trade and Industry: www.dti.gov.za National Development Agency: www.nda.org.za National Empowerment Fund: www.nefcorp.co.za Northern Cape Economic Development Agency: www.nceda.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za Succulent Karoo Ecosystem Programme: www.skep.org

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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. The NEF is planning to open a Northern Cape office soon. The Industrial Development Corporation (IDC) provides finance across a range of sectors, from agriculture to tourism. The biggest investment of the IDC in the Northern Cape is through its stake in a new manganese mine and sinter plant located near Hotazel. The IDC also has a 36.5% shareholding in Karsten Group Holdings, a diversified agricultural and exporting company with a primary focus on dates and table grapes. Karsten employs more than 4 000 people on a seasonal basis. Through the IDC’s Transformation and Entrepreneurial Scheme, a black-economicempowerment project is underway at Kakamas, where emerging farmers are planting citrus. Vaal Community Citrus should create 1 330 jobs. Other IDC projects in the province support ventures in barley and groundnuts, cut flowers, alluvial diamonds and chrome chemicals. The IDC is also heavily invested in a large number of solar-power projects that have been approved in the province (see Energy overview).

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focus

Funding products and services The National Empowerment Fund (NEF) has approved over R4.4-billion (October 2012), a milestone that has supported more than 30 000 jobs countrywide.

Mandate

Funding

Established by the National Empowerment Fund Act No 105 of 1998, the NEF is a driver and a thought-leader in promoting and facilitating black economic participation through the provision of financial and non-financial support to black-empowered businesses as well as by promoting a culture of savings and investment among black people.

The NEF is an agency of the dti mandated to promote black economic participation. Its funding mandate is guided by the Codes of Good Practice on Broad-Based Black Economic

Product/Fund

Description

Entrepreneurship Finance

For starting a new business

Funding amounts R250 000 – R10-million

Procurement Finance

For tenders and contracts

R250 000 – R10-million

Franchise Finance

For pre-approved franchise licences

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

R250 000 – R75-million

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

Liquidity and Warehousing

The NEF has BEE Facilitator status**, which can help black shareholders and companies wishing to sell a stake while keeping the shareholding black

R2-million – R75-million

*Rural and Communit y Development Fund

For agri-processing, tourism, mining and beneficiation, manufacturing, etc

R1-million – R50-million

*Strategic Projects Fund

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

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.

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focus Empowerment, as well as by the Industrial Policy Action Plan. The NEF provides business loans from R250 000 to R75-million across a range of sectors, for start-up, expansion and equity-acquisition purposes. A key requirement for NEF funding is for the investees to be directly involved in the operations of their businesses.

Funding criteria Each application for funding is assessed in terms of the following criteria: • minimum percentage of black ownership or interest • black women empowerment • black managerial and operational involvement • commercial viability of the business • specific product criteria • job creation • geographic location (rural/urban/disadvantaged areas) • community involvement • compliance with all the relevant laws and regulations • return on investment • the possibility of co-funding with another public- or privatesector institution

contact info Limpopo Province Physical address: Suite 8, Biccard Park, 43 Biccard Street, Polokwane 0699 Tel: 0861 NEF LIM (0861 633 546) Email: limpopo@nefcorp.co.za

Head Office: Gauteng Province Physical address: West Block, 187 Rivonia Road, Morningside 2057 Tel: +27 11 305 8000 Fax: +27 11 305 8001 Call centre: 086 184 3633 / 0861 (THE NEF) Email: applications@nefcorp.co.za (Funding), info@nefcorp.co.za (General Enquiries)

Mpumalanga Province Physical address: Trust Building, 16 Brander Street, Nelspruit 1200 Tel: 0861 NEF MPU (0861 633 678) Email: mpumalanga@nefcorp.co.za

Eastern Cape Province Physical address: 7b Derby Road, Berea, East London 5241 Tel: 0861 NEF ECP (0861 633 327) Email: easterncape@nefcorp.co.za

North West Province Physical address: 32B Heystek Street, Sunetco Office Park, Ground Floor, Rustenburg 0299 Tel: 0861 633 697 Email: northwest@nefcorp.co.za

Free State Province Physical address: 34 Fountain Towers, Corner Zastron and Markgraaf Streets, Westdene, Bloemfontein 9300 Tel: 0861 NEF FSP (0861 633 377) Email: freestate@nefcorp.co.za

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: westerncape@nefcorp.co.za

KwaZulu-Natal Province Physical address: Smart X-Change Building, 5 Walnut Road, Durban 4001 Tel: 0861 NEF KZN (0861 633 596) Email: kzn@nefcorp.co.za

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overview

Education and training The Northern Cape will have its own university in the near future.

sector insight

C

olleges and secondary schools in the further education and training (FET) sector have received major investments over the last few years, as the drive to improve the country’s skills base intensifies. The Northern Cape has two FET colleges. With about R4-million available in bursaries, attendance at these institutions has grown dramatically. In the 2011/12 financial year, the Provincial Government of the Northern Cape provided 14 bursaries in civil and mechanical engineering, quantity surveying and architecture, all of which fall into the classification of ‘scarce skills’. The Northern Cape Urban FET College comprises two campuses in Kimberley: City Campus and Moremogolo Campus. City Campus has three departments: business studies, engineering studies and a business unit that organises short courses in partnership with public and private partners. Moremogolo offers business studies or skills training. The Northern Cape Rural FET College has campuses at Kathu, Upington, De Aar, Kuruman and Namaqualand. These colleges offer courses in finance, economics and accounting, engineering, Northern Cape Business 2013/14

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IT and computer science, management, hospitality, marketing and tourism. Distance university Unisa has a presence in Kimberley, as does Damelin, which offers courses in business, information technology and hospitality. With some students choosing to study in Cape Town, educational institutions such as the College of Cape Town, particularly in fields such as engineering, attract a certain number of students. The National Minister of Higher Education has appointed two task teams to ‘explore appropriate university models’ for the establishment of a university in the Northern Cape. The Premier of the province is committed to getting the university up and running ‘in the shortest time possible’. While the Northern Cape

photo: anglo american

The provincial government awarded 14 tertiary bursaries in 2012. • The Sishen Iron Ore Communit y Development Trust and Rhodes University are improving teachers’ skills. • Standard Bank supports the Maths Centre for Professional Teachers.

overview does not yet have a university, it has more than one institution with a high reputation for research. The Kimberley Africana Museum houses a Tswana version of the Bible and an impressive general collection. The McGregor Museum specialises in cultural and natural history, archaeology and social anthropology. Branches of the museum deal with photography (Duggan-Cronin Gallery), aviation, the Anglo-Boer War (Magersfontein Battlefield Museum) and rock art.

Schools A four-year programme has been launched to improve the quality of teaching in Northern Cape schools. The Sishen Iron Ore Community Development Trust (SIOCDT) and Rhodes University are offering 108 teachers the chance to earn Bachelor of Education degrees in three streams: foundation phase, mathematics and languages. The HeyMath Project is being piloted across the province. This is an IT-based programme that aims to develop a stronger culture of maths learning, and is supported by Cell C. Standard Bank supports the Maths Centre for Professional Teachers in Kuruman. The centre serves 16 schools in the area. The Dinaledi initiative, in 17 schools across the province, is a programme that actively promotes science and mathemat-

ics as subjects. These schools, together with 33 others, will take part in the Bloodhound Project, the plan to beat the land-speed record that will take place in the desert north of Upington. In the 2012/13 year, the provincial government will undertake 34 education infrastructure projects, including the building of three new schools.

Training The provincial government has called on ‘big business’ and stateowned enterprises to play a large role in providing the technical skills required by the provincial economy. Agreements have been signed by the provincial government of the Northern Cape with the government of Armenia and the Diamond and Jewellery Company of Armenia to provide training in the diamond industry. The Kimberley International Diamond and Jewellery Academy (KIDJA) was established in November 2011, and 50 students have been enrolled in diamond cutting and polishing courses. De Beers Consolidated Mines (DBCM) has been active in the Northern Cape for more than a century. DBCM’s Lesedi Centre for Human Capital Development in Kimberley offers courses in business skills, mining skills and technical skills. These can be used by DBCM employees or by employees of partner companies. Kumba Iron Ore runs certified courses in plumbing and masonry out of its Tshipi Skills Training Centre. An artisan-training centre in Kathu offers courses in plate welding, millwrighting, electrical work and diesel mechanics. A Skills Development Indaba in Manufacturing was held in the 2011/12 financial year, where it was decided that critical subjects to be taught include Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM).

online resources Mining Qualifications Authority: www.mqa.org.za National Department of Basic Education: www.education.gov.za National Department of Higher Education: www.dhet.gov.za Northern Cape Rural FET College: www.ncrfet.co.za/ Northern Cape Urban FET College: http://ncufetcollege-edu-za.ncc.co.za/ Sishen Iron Ore Community Development Trust: www.sioc-cdt.co.za

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College of Cape Town As a leading provider in the further education and training (FET) band, the College of Cape Town has much to offer students and prospective partners.

The courses lead to recognised qualifications that are demanded by commerce and industry. The college has eight campuses situated in the central area of the peninsula, and serves the greater Cape Town area, including the traditionally disadvantaged areas and townships. The college offers various full-time and part-time, practical trade tests, short courses and skills programmes in: engineering, business and general studies. The national certificate (vocational) that provides Grade 9 learners with a vocational alternative to an academic Grade 10-12 is based on industry-focused training on the NQF levels 2-4. It has various other options available for post-school learners.

Why the College of Cape Town? The college is registered with the Department of Higher Education and Training and its programmes are quality assured by Umalusi, SETAs and professional institutions. The College of Cape Town was successful in obtaining Institution for Sectoral or Occupational Excellence (ISOE) status with the following SETAs: • Manufacturing, Engineering and Related Services SETA (merSETA) • Education, Training and Development Practices SETA (ETDP-SETA) • Mining Qualifications Authority (MQA) • Insurance SETA (Inseta)

Training campuses The college has eight campuses spread across the city and surrounding areas: • Athlone • City • Crawford • Gardens • Gugulethu • Pinelands • Thornton • Wynberg The campuses have well-equipped workshops, lecture rooms, computer rooms and studios for practical work and offer a wide range of academic and practical courses. The College of Cape Town also has three residences – at the City, Crawford and Thornton campuses.

Key facts and figures: Year established: February 2002 No of staff: 520 No of registered students: 8 591

Its quality management system complies with ISO9001 standards and it is accredited by the SABS.

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contact info Key contact people: Jannie Isaacs, CEO Sharon Grobbelaar, Corporate Communications and Marketing Manager Email: info@cct.edu.za Tel: +27 21 404 6700 Info centre: 086 010 3682 (SA only) Fax: +27 21 404 6701/086 615 0582 Physical address: 334 Albert Road, Salt River, Cape Town Postal address: PO Box 1054, Cape Town 8000 Website: www.cct.edu.za

interview

Exposing students to business and industry Chief executive officer of the College of Cape Town Jannie Isaacs highlights the college’s efforts to build sustainable links between students and potential employers. There are ambitious plans to increase the number of students at tertiary institutions between now and 2030. How is the college initiating and planning for this?

Jannie Isaacs

The College of Cape Town is strategically repositioning itself to remain relevant and responsive to the changing needs within the sectors that it serves. The college is embarking on an intensive infrastructure development plan to ensure that it has the required facilities and infrastructure to be responsive into the future. Provision is being made for an anticipated growth of 15% in student numbers for 2013. Is the College of Cape Town doing anything to build links between students and potential employers in the region?

biography Jannie Isaacs has been involved in vocational education and training for the past 38 years, as teacher, lecturer, manager and head of a college. In 1997, he became rector of the former Cape College, a position he held until the college was merged. Jannie has acquired a range of qualifications, including a teacher’s diploma, BA and B.Ed degrees, and an Honours degree and MBA from Stellenbosch University. He is currently the chief executive officer of the College of Cape Town.

The College of Cape Town has identified the placement of students in work places as one of the strategic goals for the future. This will imply that each student will be exposed to industry and business during their study for periods of between five and 15 days per year. Further to that, the college will also facilitate and assist graduates to find employment. The College of Cape Town Work Placement Unit has been expanded to 10 staff members who will assist our graduates to secure work-placement opportunities. This unit will also identify potential employers for our various placement programmes. Employers are encouraged to contact this unit should they be able to provide work-placement opportunities on a full-time, part-time or internship basis. What is the biggest challenge you face in providing quality further education and training to people in the province?

In recent years, government has made available significant financial support to prospective students. Despite this, many students still experience several challenges in gaining access to educational institutions. A significant challenge is the shortage of job opportunities for graduates and lack of apprenticeships in the engineering and related industries.

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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 AuditorGeneral 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: 012 321 8870 Email: abednigo@po.gov.za Website: www.thepresidency.gov.za

President: Jacob Gedleyihlekisa Zuma

Deputy President: Kgalema Motlanthe

Departments in the Presidency National Planning Commission Minister: Trevor 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: patti@po.gov.za Website: www.thepresidency.gov.za Northern Cape Business 2013/14

National Government Departments Dept of Agriculture, Forestry and Fisheries Minister: Tina JoematPettersson Physical address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 Fax: +27 12 321 8558 Email: ronikar@daff.gov.za Website: www.daff.gov.za

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listings Department of Arts and Culture Minister: Paul Mashatile Physical address: 10th Floor, Kingsley Centre, 481 Church str, cornernr Steve Biko & Pretorius streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3006 Fax: +27 12 440 4485 Email: minister@dac.gov.za Website: www.dac.gov.za Department of Basic Education Minister: Angelina Motshekga Physical address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X895, Pretoria 0001 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Email: mabua.s@dbe.gov.za Website: www.education.gov.za Department of Communications Minister: Dina Pule Physical address: Block 3, Nkululeko House, 33 Iparioli Office Park, 399 Duncan Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8292 Fax: +27 12 362 6915 Email: moses@doc.gov.za Website: www.doc.gov.za Department of Cooperative Governance and Traditional Affairs Minister: Richard 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: charlottem@cogta.gov.za Website: www.cogta.gov.za

Department of Correctional Services Minister: Sibusiso Ndebele Physical address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 Fax: +27 12 323 4111 Email: nomtobeko.tomga@dcs.gov.za Website: www.dcs.gov.za Department of Defence and Military Veterans Minister: Nosiviwe MapisaNqakula Physical address: cnr Delmas Avenue & Nossob streets, Erasmuskloof, Pretoria Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 Fax: +27 12 347 0118 Email: def-minister@mweb.co.za Website: www.dod.mil.za Department of Economic Development Minister: Ebrahim Patel Physical address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 0255 Email: ministry@economic.gov.za Website: www.economic.gov.za Department of Energy Minister: Elizabeth Peters Physical address: Travenna Office Campus, 75 Meintjies & Schoeman str, Pretoria Postal address: Private Bag X646, Pretoria 0001 Tel: +27 12 444 4265 Fax: +27 12 444 4505 Email: zodwa.batyashe@energy.gov.za Website: www.energy.gov.za

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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: raganyag@dwa.gov.za Website: www.environment.gov.za

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: ntsiki@dhs.gov.za Website: www.dhs.gov.za Department of International Relations and Cooperation Minister: Maite 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: minister@dirco.gov.za Website: www.dirco.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: hlakun@health.gov.za 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: makwetu.n@dhet.gov.za Website: www.dhet.gov.za

Department of Justice and Constitutional Development Minister: Jeffrey 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: ministry@justice.gov.za Website: www.justice.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: minister@dha.gov.za Website: www.home-affairs.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: pamella.salusalu@labour.gov.za Website: www.labour.gov.za

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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: lerato.maibelo@dmr.gov.za 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: nambini.ngubo@dpw.gov.za 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: mashegoameliah@saps.gov.za 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: nnotshe@ruraldevelopment.gov.za 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: mashige@dpe.gov.za Website: www.dpe.gov.za Department of Public Service and Administration Minister: Lindiwe Sisulu Physical address: Batho Pele House, 116 Proes Str, Pretoria Postal address: Private Bag X916, Pretoria 0001 Tel: +27 12 336 1063 Fax: +27 12 326 7802 Email: esterk@dpsa.gov.za 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: melanie.titus@dst.gov.za 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

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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: mdletshes@dot.gov.za 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: raganyag@dwa.gov.za 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: mwillemse@tourism.gov.za Website: www.tourism.gov.za Department of Trade and Industry Minister: Rob Davies Physical address: Block A, 3rd Floor, the dti Campus, cnr Meintjies and Esselen streets, Sunnyside, Pretoria Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 Fax: +27 12 394 0337 Email: lneethling@thedti.gov.za Website: www.thedti.gov.za Northern Cape Business 2013/14

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: tseleng@po.gov.za Website: thepresidency.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: minreg@treasury.gov.za Website: www.treasury.gov.za

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listings Government Communication and Information System (GCIS)

Police Civilian Secretariat

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: eben@gcis.gov.za Website: www.gcis.gov.za

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: irish.qhobosheanej@saps.og.za or xuban@saps.org.za Website: www.nationalsecretariat.gov.za

Independent Complaints Directorate (ICD)

South African Revenue Service

Physical address: CT Forum Building, 114 Vermeulen Street, Pretoria Postal address: Private Bag X941, Pretoria 0001 Tel: +27 12 399 0000 Fax: +27 12 399 0204 Email: gracemohlala@icd.gov.za Website: www.icd.gov.za

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

Statistics South Africa

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: info@opsc.gov.za Website: www.psc.gov.za

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: info@statssa.gov.za 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.

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Northern Cape Provincial Government A guide to the Northern Cape Province’s government departments. www.northern-cape.gov.za

Provincial Coat of Arms The Northern Cape Province’s coat of arms was approved on 25 August 1997 by the Provincial Legislature, having been developed by the province’s Directorate of Arts and Culture. The motto written in the /’Auni language of a clan of Bushmen people, ‘sa k//?a: !aisi ?uisi’ translates as ‘strive for a better life’.

Office of the Premier

Department of Cooperative Governance, Human Settlements and Traditional Affairs

Acting Premier: Grizelda Cjiekella Physical address: JW Sauer Building, 6th Floor, cnr Roper and Quinn streets, Kimberley 8301 Postal address: Private Bag X5016, Kimberley 8300 Tel: +27 53 838 2600/2900 Fax: +27 53 838 2690 or 086 543 3636 (SA) Email: premierspa@ncpg.gov.za Website: www.northern-cape.gov.za

MEC: Mosimanegape Kenneth Mmoiemang

Department of Agriculture, Land Reform and Rural Development

Department of Economic Development and Tourism

MEC: Norman Shushu

MEC: John Block

Physical address: 162 George Street, Kimberley 8301 Postal address: Private Bag X5018, Kimberley 8300 Tel: +27 53 838 9100 Fax: +27 53 832 4328 Email: aditene@ncpg.gov.za Website: www.agricnc.gov.za

Physical address: Room 1419, 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Postal address: Private Bag X5054, Kimberley 8300 Tel: +27 53 830 8404/1 Fax: +27 53 830 8464 or +27 53 832 2672 Email: jwilson@ncpg.gov.za

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Physical address: JS du Plooy Building, 9 Cecil Sussman Road, Kimberley 8301 Postal address: Private Bag X5005, Kimberley 8300 Tel: +27 53 830 9422 Fax: +27 53 831 4832 or 086 205 9798 Email: ammoiemang@ncpg.gov.za

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listings Department of Education

Department of Social Services and Population Development

MEC: Grizelda Cjiekella Physical address: 156 Barkley Road, Homestead, Kimberley 8301 Postal address: Private Bag X5023, Kimberley 8300 Tel: + 27 53 830 7160 Fax: +27 53 830 7177 Email: mletsoso@ncpg.gov.za Website: www.ncedu.ncape.gov.za

MEC: Alvin Botes

Department of Environment and Nature Conservation

Department of Sport, Arts and Culture

Physical address: Mimosa Complex, Barkley Road, Homestead, Kimberley 8301 Postal address: Private Bag X6110, Kimberley 8300 Tel: +27 53 807 5600 Fax: +27 53 807 5603 Email: ptiger@ncpg.gov.za

MEC: Pauline Williams MEC: Sylvia Lucas

Physical address: New Park, 1 Albertyn Street, Kimberley 8301 Postal address: Private Bag X6091, Kimberley 8300 Tel: +27 53 831 4152 Fax: +27 53 833 1454 Email: askermand@ncpg.gov.za

Physical address: 4th Floor, Metlife Towers, cnr Market Square and Stead Street, Kimberley 8301 Postal address: Private Bag X6010, Kimberley 8300 Tel: +27 53 832 1022 Fax: +27 53 832 1026 Email: pmathakgane@ncpg.gov.za

Department of Health

Department of Transport, Safety and Liaison

MEC: Mxolisi Sokatsha MEC: Patrick Mabilo

Physical address: 36 Memorial Road, Belgravia, Kimberley 8301 Postal address: Private Bag X5049, Kimberley 8300 Tel: +27 53 830 2000 Fax: +27 53 833 1925 Email: btyhaliti@ncpg.gov.za

Physical address: 1st Floor, Southey Chambers, Southey Street, Kimberley 8301 Postal address: Private Bag X1368, Kimberley 8300 Tel: +27 53 839 1719 Fax: +27 53 832 4249 Email: mmogorosi@ncpg.gov.za

Department of Roads and Public Works

Provincial Treasury

MEC: Dawid Rooi

MEC: John Block

Physical address: 9-11 Stockroos Road, Square Hill Park, Kimberley 8301 Postal address: Private Bag X5065, Kimberley 8300 Tel: +27 53 839 2100 Fax: +27 53 839 2289 Email: rsass@ncpg.gov.za

Physical address: 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Postal address: Private Bag X5054, Kimberley 8300 Tel: +27 53 830 8401 Fax: +27 53 832 2672 Email: jwilson@ncpg.gov.za

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Northern Cape Local Government A guide to district and local municipalities in the Northern Cape Province.

Local municipalities Gamagara Municipality Tel: +27 53 723 2261 Fax: +27 53 723 2021

Frances Baard District Municipality Physical address: 51 Drakensberg Avenue, Carters Glen, Kimberley 8301 Postal address: Private Bag X6088, Kimberley 8300 Tel: +27 53 838 0911 Fax: +27 53 861 1538 Email: sandy.greenan@fbdm.co.za Website: www.francesbaard.gov.za

Ga-Segonyana Municipality Tel: +27 53 712 9320 Fax: +27 53 712 3581 Moshaweng Local Municipality Tel: +27 53 773 9300 Fax: +27 53 773 9350

Local municipalities Dikgatlong Municipality Tel: +27 53 531 0671 Fax: +27 53 531 0624

Namakwa District Municipality

Magareng Local Municipality Physical address: Van Riebeeck Street, Springbok 8240 Postal address: Private Bag X20, Springbok 8240 Tel: +27 27 712 8000 Fax: +27 27 712 8040 Email: info@namakwa-dm.gov.za Website: www.namakwa-dm.gov.za

Tel: +27 53 497 3111/2/3 Fax: +27 53 497 4514 Phokwane Municipality Tel: +27 53 474 9700 Fax: +27 53 474 1768 Website: www.phokwane.org.za Sol Plaatje Municipality Tel: +27 53 830 6911 Fax: +27 53 833 1005 Website: www.solplaatje.org.za

Local municipalities Hantam Municipality

John Taolo Gaetsewe District Municipality

Kamiesberg Municipality

Physical address: 4 Federal Mynbou Street, Kuruman 8460 Postal address: PO Box 1480, Kuruman 8460 Tel: +27 53 712 8700 Fax: +27 53 712 2502 Email: nkele.more@gmail.com Website: www.taologaetsewe.gov.za

Northern Cape Business 2013/14

Tel: +27 27 341 8515 Fax: +27 27 341 8501

Tel: +27 27 652 8000 Fax: +27 27 652 8001 Karoo Hoogland Municipality Tel: +27 53 391 3003/3182/3985 Fax: +27 53 391 3294 Website: www.karoohoogland.co.za

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listings Kh창i-Ma Municipality

Thembelihle Municipality

Tel: +27 54 933 1000 Fax: +27 54 933 0252

Tel: +27 53 203 0008/5 Fax: +27 53 203 0490

Nama Khoi Municipality

Ubuntu Municipality

Tel: +27 27 718 8100 Fax: +27 27 712 1635 Website: www.namakhoi.org.za

Tel: +27 53 621 0026 Fax: +27 53 621 0368

Richtersveld Municipality

Tel: +27 51 753 0777/8 Fax: +27 51 753 0574

Tel: +27 27 851 1111 Fax: +27 27 851 1101 Website: www.richtersveld.gov.za

Umsobomvu Municipality

Siyanda District Municipality Pixley Ka Seme District Municipality Physical address: Culvert Road, Industrial Area, De Aar 7000 Postal address: Private Bag X1012, De Aar 7000 Tel: +27 53 631 0891 Fax: +27 53 631 2529 Email: pixley@telkomsa.net Website: www.pixleykasemedm.co.za

Physical address: cnr Le Roux and Hill streets, Upington 8801 Postal address: Private Bag X6039, Upington 8800 Tel: +27 54 337 2800 Fax: +27 54 337 2888 Email: dngxanga@siyanda.gov.za Website: www.siyanda-dm.co.za

Local municipalities Emthanjeni Municipality

Local municipalities !Kai! Garib Municipality

Tel: +27 53 632 9100 Fax: +27 53 631 0105 Website: www.emthanjeni.co.za

Tel: +27 54 431 6300 Fax: +27 54 431 6338

Kareeberg Municipality

Tel: +27 53 384 8600 Fax: +27 53 384 0326

Tel: +27 53 382 3012 Fax: +27 53 382 3142 Website: www.kareeberg.co.za

Kgatelopele Municipality

//Khara Hais Municipality

Renosterberg Municipality

Tel: +27 54 338 7000 Fax: +27 54 338 7351 Website: www.kharahais.gov.za

Tel: +27 53 663 0041 Fax: +27 53 663 0180

!Kheis Municipality

Siyancuma Municipality Tel: +27 53 298 1810 Fax: +27 53 298 3141 Siyathemba Municipality Tel: +27 53 353 5300 Fax: +27 53 353 1386 Website: www.siyathemba.co.za

Tel: +27 54 833 9500 Fax: +27 54 833 9509 Mier Municipality Tel: +27 54 531 0019 Fax: +27 54 531 0019 Tsantsabane Municipality Tel: +27 53 313 7300 Fax: +27 53 313 1602

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MUNICIPALITIES IN THE NOTHERN CAPE

Metropolitan/District Municipality Boundary Local Municipality Boundary

Siyanda

District Municipality

Richtersveld

Local Municipality

N

BOTSWANA NCDMA08

North West NCDMA045

NAMIBIA

John Taolo  Gaetsewe

Mier

Joe Morolong

Gamagara

NCDMAO8

GaSegonyana

Phokwane

NCDMA09 Magareng Kgatelopele

Siyanda

Frances Baard

Tsantsabane

//Khara Hais

Dikgatlong

!Kai! Garib Richtersveld

!Kheis Nama Khoi

Khâi-Ma

NCDMA08

Sol Plaatje

NCDMA07 Siyancuma

Siyathemba Thembelihle

Free State

NCDMA07

NCDMA06

Pixley Ka Seme Kamiesberg

Kareeberg

Namakwa

Renosterberg

Emthanjeni Umsobomvu

Hantam Ubuntu

Karoo Hoogland

Eastern Cape Western Cape

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profile

Northern Cape Chamber of Commerce and Industry Kimberley The Northern Cape Chamber of Commerce and Industry Kimberley is a professional service organisation that acts on behalf of its members as a facilitating, coordinating and representative body.

History The Northern Cape Chamber of Commerce and Industry (NOCCI) Kimberley was established on 22 February 2000 with the amalgamation of the Chamber of Business and the Kimberley Afrikaanse Sakekamer. These two organisations had served the business community of Kimberley for the previous 130 years.

Value

There is a NOCCI tourism office at the Big Hole in Kimberley (Tel: +27 71 206 1895).

Services • •

NOCCI aims to add value to the following groups: • Members • Decision-makers • Investors • Community

• • • • •

Benefits Being part of NOCCI Kimberley offers members the opportunity to interact with other businesses, share their experiences, identify needs and problems and get support in handling them. NOCCI Kimberley also strengthens the voice of business for better representation when it comes to economic-development policy-making at a government level. Membership fees to NOCCI Kimberley are affordable.

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NOCCI News Information from national bodies such as the Afrikaanse Handelsinstituut and the South African Chamber of Commerce and Industry Networking opportunities Well-equipped office structure Representation on various bodies Access to the Tender Board Expertise on executive committees in every field Capacity-building opportunities

contact info Key contact people: Sharon Steyn, Chief Executive Officer Email: sharon@nocci.co.za Beverley Deke, Secretary Email: beverley@nocci.co.za Tel: +27 53 831 1081 Tel: +27 71 206 1895 (Tourism office) Fax: +27 53 831 1082 Physical address: The Biznizz Centre, Shop 14, Long Street, Kimberley 8301 Postal address: PO Box 350, Kimberley 8300 Website: www.nocci.co.za

Northern Cape Business 2013/14

profile

South African Local Government Association An association of municipalities that is at the cutting edge of quality and sustainable services.

The South African Local Government Association (SALGA) is an organisation mandated by the Constitution to assist in the transformation of local government in South Africa.

Role SALGA sets out its role as follows: Represent, promote and protect the interests of local government • Transform local government to enable it to fulfil its developmental role • Enhance the role of provincial local government associations as representatives and consultative bodies on local government • Raise the profile of local government • Be recognised by national and provincial governments to be the national representative of local government and consultative body in respect of all matters concerning local government • Ensure full participation of women in local government • Act as the National Employers’ Organisation for the municipal and provincial member employers • Regulate the relationship between the members and the employers within the meaning of section 213 of the Labour Relations Act • Provide legal assistance to its members regarding with matters that affect employee relations •

Chairperson Cllr Willie Johnson

of organised local government. The Act allows organised local government to designate up to 10 part-time representatives to the National Council of Provinces and to further nominate two persons to the Financial and Fiscal Commission, which advises the finance ministry on budget issues. They participate in intergovernmental structures and are able to influence national and provincial legislation and to gauge the impact of such legislation on local government.

Mandate The Organised Local Government Act of 1998 recognises SALGA and the nine provincial local government associations as representatives Northern Cape Business 2013/14

Acting Provincial Executive Officer Johannes Ruiters

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contact info Key contact people: Johannes Ruiters, Acting Provincial Executive Officer Zamajobe Sithole, Marketing and Communications Officer Tel: +27 53 836 7900 Email: zsithole@salga.org.za Physical address: No 1 and 2 Darcy Street, Kimberley 8300 Website: www.salga.org.za

focus

Acknowledging local successes in the province The South African Local Government Association (SALGA) Northern Cape is turning the spotlight on the recent successes made in the local government sector.

S

outh African Local Government Association (SALGA) Northern Cape wants to highlight some of the progress that has been happening in the local government sphere, and to congratulate those that have done well and encourage those that didn’t do so well to aim for better in future. •

Arbor City Awards Khara Hais Local Municipality (Upington) won the Arbor City Award for 2012. The award is a competition that was introduced to promote the greening of cities and towns in South Africa.

• •

Top three municipalities SALGA welcomes the Department of Water Affairs’ acknowledgement and congratulation of Hantam Local Municipality for the commitment of officials responsible for diligently doing their task. For this small Karoo municipality, this is a massive achievement. Thembelihle Local Municipality is another small municipality whose Blue Drop performance this year justifies an impressive provincial second place. Magareng Local Municipality makes consistent progress each year, which speaks volumes of the strategic approach towards improvement. In addition, SALGA, along with the department, salutes GaSegonyana Local Municipality for its impressive improvement from a meagre 25.40% (in 2010) to 37.32% (in 2011) and 72.27% (in 2012).

age. Projects have been launched encompassing the Northern Cape towns of De Aar, Kathu, Prieska and Victoria Wes. The Square Kilometre Array project: Earmarked for the town of Carnavon in the Northern Cape. Shale gas exploration in the Karoo, Northern Cape. Te r r e s t r i a l Digital Television components rollout: Key implementer is the Department of Communications. A multi-campus university in the Northern Cape: Target towns: Upington, Kimberley and Kuruman. Some of the private sector and parastatal initiated projects include projects by Transnet for its infrastructure programme. Kumba Iron Ore and Tshipi E Ntle Ore engaging in manganese mining.

Looking forward The following are high-profile projects that are happening in the municipal space, and that local government intends to take full advantage of as these projects aim to promote economic growth and job creation for the communities of the Northern Cape: • Solar and wind projects in the green energy sector: These are aimed at addressing South Africa’s chronic electricity short-

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read more Visit: www.salga.org.za Northern Cape Business 2013/14

profile

Frances Baard District Municipality Frances Baard District Municipality is the smallest district in the Northern Cape; however, it accommodates the largest proportion of the population of the province.

Vision To be a municipality with a clear developmental focus, providing quality services to its people.

dating back to 1899, Flamingo Casino, game farms, Kamfers Dam (flamingo-breeding island), Ghost Tours and the ‘Big Hole’ Tram Route.

Economic profile

Mandate

Frances Baard District Municipality is the strongest economic region in the province, accounting for 36% of the provincial gross domestic product (PGDP). According to a 2007 Quantec Research report, within Frances Baard District Municipality, contribution to the regional GDP is dominated by Sol Plaatje (74%), Phokwane (15%), Dikgatlong (8%) and Magareng (2%). The economy of the district consists of the primary (agriculture and mining), secondary (manufacturing, electricity and construction) and tertiary (trade, transport, financial and social services) sectors.

An effective governance framework, systems, policies and structure are absolutely crucial to the proper functioning of a district municipality such as Frances Baard. Good governance is a concept that describes the process through which the municipality sets priorities, makes decisions, strengthens accountability and engages in constructive interaction with the public and other institutions.

Tourism Although predominantly a mining and agricultural region, Frances Baard District Municipality also offers rich experiences in terms of culture and history. Two of the largest rivers, the Orange and Vaal, flow through the district. Kimberley is the capital city of the Northern Cape. It is situated in the centre of South Africa. Kimberley offers visitors a plethora of fascinating tourist attractions such as: the William Humphrey Art Gallery, the Duggan Cronin Gallery, which holds a collection of early photographs of Africans, various old buildings and monuments

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The municipality has a mandate to: • Provide a democratic and accountable government for local municipalities • Ensure the provision of services to communities in a sustainable manner • Promote a safe and healthy environment • Encourage the involvement of communities and community organisations in the matters of local government • The district municipality has been assigned level-one and -two accreditation in terms of the housing function. Level-two accreditation status gives municipalities the responsibility to approve and manage housing-construction programmes and ensure technical quality assurance.

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profile Key Performance Area Key Performance Indicator % improvement in project planning % access to potable water, sanitation, electricity Municipal Infrastructure Development and Basic Service Delivery

Local Economic Development (LED)

Municipal Institutional Development and Transformation

Good Governance and Public Participation Municipal Financial Viability Management

% reduction in the housing backlog % formalised informal settlements % access to basic services in informal settlements % completed feasibility studies % suitable land for human settlements identified and acquired % increased direct investment % increased employment through EPWP projects % packaged incentives for sector and SMME development % improved tourism attractions % developed tourism products % increased market share % improved quality of drinking water and waste water % improved status of food premises % approved environmental impact assessments % implemented waste minimisation strategies % increase in capacity at local municipalities in disaster management % improvement in response and recovery to incident in local municipalities % increase in fire-fighting capacity at three local municipalities % support to local municipalities to implement a effective human resource management function % improved ICT infrastructure accessibility % compliance with the IDP review process in the district in terms of the adopted IDP Framework and Process Plan % sound performance management implementation in FBDM and the district % facilitation of urban development in terms of approved spatial plans % support and assistance with GIS to local municipalities in the district % improvement in relations between communities and the district through the implementation of the adopted communication strategy % implementation of a sound municipal internal audit function % compliance in promoting and implementing sound financial management practices in line with the MFMA and other guidelines of National Treasury % financially sound and sustained local municipalities

Key performance areas and indicators for the Frances Baard District Municipality

Key facts and figures

contact info

Local municipalities: Dikgatlong Municipality, Magareng Municipality, Phokwane Municipality, Sol Plaatje Municipality Major towns: Kimberley, Barkly West, Warrenton, Jan Kempdorp, Hartswater Main roads: N12, N18, R29, R47 Airports: Kimberley Airport Area covered: 13 518.19km²

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Key contacts: Khadi Moloi, Executive Mayor Brummer Maribe, Speaker Mamikie Bogatsu, Municipal Manager Tel: +27 53 838 0911 Fax: +27 53 861 1538 Email: gerline.roman@fbdm.co.za Physical address: 51 Drakensberg Avenue, Carters Glen 8301 Postal address: Private Bag X6088, Kimberley 8300 Website: www.francesbaard.gov.za

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index

index Absa������������������������������������������������������������������������������������������������������������������������������������� 3, 114 Boitumelo Jwa Sechaba Guesthouse�����������������������������������������������������������������������������������������59 College of Cape Town����������������������������������������������������������������������������������������������������������� 5, 122 Ekhaya Guest House������������������������������������������������������������������������������������������������������������������63 Frances Baard District Municipality������������������������������������������������������������������������������������������� 138 Frontier Market Network�������������������������������������������������������������������������������������������������������������46 Global Africa Network�������������������������������������������������������������������������������������������������������������9, 95 Heerengracht Hotel���������������������������������������������������������������������������������������������������������������������62 Hotel Kgalagadi���������������������������������������������������������������������������������������������������������������������������61 Ibhotwe Guest House�����������������������������������������������������������������������������������������������������������������65 Industrial Development Corporation (IDC)��������������������������������������������������������������������������������� IBC Jo’s Guesthouse and Hantamkraal Restaurant���������������������������������������������������������������������������67 Letona Tourism Guesthouse�������������������������������������������������������������������������������������������������������58 National Department of Agriculture, Forestry and Fisheries��������������������������������������������������84, 86 National Empowerment Fund���������������������������������������������������������������������������������������������������� 118 Northern Cape Chamber of Commerce and Industry (NOCCI) Kimberley�������������������������������� 135 Northern Cape Department of Economic Development and Tourism������������������� 18, 20, 28, OBC Northern Cape Department of Economic Development and Tourism: Partnerships and Industry Development Unit������������������������������������������������� 52, 54, 58-68, 69-75 Northern Cape Department of Roads and Public Works������������������������������������������������������������40 Northern Cape Office of the Premier������������������������������������������������������������������������������������������� 10 Petra Diamonds��������������������������������������������������������������������������������������������������������������������������96 Repa Guesthouse�����������������������������������������������������������������������������������������������������������������������60 SA Airlink��������������������������������������������������������������������������������������������������������������������������������������7 South African Local Government Association (SALGA)������������������������������������������������������������� 136 Standard Bank������������������������������������������������������������������������������������������������������������������ 108, 110 Transnet Engineering���������������������������������������������������������������������������������������������������������IFC, 102 Ubuntu Guesthouse��������������������������������������������������������������������������������������������������������������������64 Villa D’ Este Guest House�����������������������������������������������������������������������������������������������������������66 Northern Cape Business 2013/14

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The IDC is the biggest supporter of tenders awarded in the

Over the next five years, the IDC will make available R25 billion

Department of Energy’s Renewable Energy Independent

to fund projects related to green industries.

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.

Chillibush8603IDC

The power behind renewable energy

Telephone: 086 069 3888 Email: callcentre@idc.co.za To apply online for funding of R1 million or more go to www.idc.co.za

Mining

Science & technology

Manufacturing

Solar energy

Tourism

Agriculture & agro-processing

Fishing & mariculture Tel: 053 839 4000 Fax: 053 831 3668 Metlife Towers, Market Square Private Bag X6108, Kimberley 8300 Republic of South Africa Intranet website: http://econ.ncape.gov.za Internet website: http://economic.ncape.gov.za

BPO & O


Northern Cape Business 2013-14