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A commitment to inclusive growth CEO of the FDC Ikhraam Osman invites business people to explore the opportunities on offer in the Free State.

IKHRAAM OSMAN CEO, Free State Development Corporation


he recovery in agricultural output had been accompanied by increased consumer confidence. Adding to the good news, manufacturing output expanded in August for the first time in 2017. Both external and domestic as well as cyclical and structural factors have contributed to the slowdown in emerging markets. On average, external factors have been the main cause of the slowdown. Such factors have included weak global demand due to falling commodity prices. Export trade has been shifting towards emerging market economies such as China and India, with the advanced economies’ combined share of the overall export basket having declined. The rest of Africa has become one of the largest markets for South Africa’s merchandise exports, accounting for 27.8% of the overall export basket in 2016, up from a 25.4% FREE STATE BUSINESS 2018

share in 2010. The extent of South Africa’s trade concentration is higher at the sectoral level, but has also been improving. The manufacturing sector accounted for 60% of the merchandise export basket in 2016, compared to 57.1% in 2010. In line with Free State Growth & Development Strategy and the mandate of broadening access to economic opportunities to Free State-based business sector, the Free State Development Corporation will continue to unlock business opportunities for both local direct and foreign direct investors. This 2018-2019 Free State Business publication presents the Free State’s value proposition as a business and tourism destination. The province is open for business with the annual Macufe “Mangaung African Cultural Festival” that brings up to 150 000 travellers into the City of Roses, “Bloemfontein” as is commonly known. The “Tabalaza Initiative” which is a brainchild of MEC for Economics, Small Business, Tourism and Environmental Affairs, Dr Benny Malakoane, will continue to link start-up start up innovative business initiatives in the Free State with funding and mentoring support from established business. Key opportunities in the Free State includes the following:

A leading agricultural commodities producer presenting significant opportunities across the agro-processing value chain. • Mangaung Metro has announced a R100-billion infrastructure investment programme to unlock, business, retail, real estate and infrastructure development along the N8 Corridor. • A newly launched Special Economic Zone attracting investments in Food Processing, Manufacturing, Logistics and Beverages. • An attractive incentive package is available for manufacturing entrepreneurs that sign a minimum of five-year lease agreements. • The FDC in partnership with the dti is in a process of revitalising existing industrial parks and developing new ones. The FDC investment facilitation team can help you to explore business opportunities in the Free State. •

Free State Development Corporation (FDC) Driving enterprise development and investment in the Heart of South Africa, the Free State province.

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

SMME/co-operative funding and support The FDC provides products and services to SMMEs and co-operatives in the form of financial support (business loans) as well as business development support (facilitating training and mentoring service providers). The principal loan products offered to Free State entrepreneurs by the FDC are: • Start-up loans for recently established businesses that are mainly at formative stages. • Expansion loans offering viable and existing businesses the capital needed to expand. • Business take-over finance to assist potential clients to acquire a business as a going concern. • Bridging finance for SMMEs with short-term cashflow problems with contracts or tenders.

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

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

Rental holidays of up to three months. Special incentives and discounts for BEE companies or individuals.

Investor services The FDC offers a range of services to investors and businesses looking to trade in the Free State. These include the following: • Project appraisal and packaging. • Promotion and facilitation of investment projects and facilitation of access to finance. • Providing access to business and government networks and assistance with business retention and expansion. • Information on statutory requirements, investment advice and assistance with investment incentive applications and business permits. • Assisting with the development of local and international markets and facilitating joint ventures/ equity partnerships through identification of local partners.

For additional information please contact the Free State Development Corporation on +27 51 400 0800. /


CONTENTS Free State Business 2018 Edition.

Introduction Foreword6 Free State Business is a unique guide to business, investment and tourism in the province. FDC message


CEO of the FDC Ikhraam Osman invites business people to explore the opportunities on offer in the Free State.

Special features Regional overview of the Free State


The launch of the Maluti-A-Phofung Special Economic Zone was a significant event for the economy of the Free State. The N8 Corridor


Linking communities and creating economic opportunities. Free State Development Corporation opportunities 14 The Free State Development Corporation is driving a number of exciting investment opportunities in the Free State province. Establishing a business in SA


The barriers to doing business in South Africa have been eased for local and international companies. SA investment incentives


The South African government has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors.





The National Development Plan is a blueprint serving as a guideline to government departments and state entities on how they can play a role in government wide efforts of creating decent work, reducing unemployment and poverty. The Unemployment Insurance Fund is among the leading state entities in the implementation of the provisions of the NDP to address the slow economic growth, unemployment and poverty in South Africa. The UIF social investment mandate ensures that, additional to earning good financial returns, investments must be supportive of long term economic, social and adhere to sustainable environmental outcomes. The investments must also yield a good social return for the country. These investments have sustained 6 860 jobs of which 3 024 are permanent, 3 836 are temporary/seasonal and 195 are new jobs created during the financial year ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY The UIF investments are contributing to the energy requirements of South Africa and the investments in the renewable energy sector provides a total capacity of 192 megawatt of electricity of which 117 megawatt is solar energy and 27 megawatt is wind generated electricity. The De Aar project is a shining example of the UIF energy investments and this project produces 90 megawatt of electricity and was completed in April 2016. The solar plant in the area generates enough electricity to power 15 000 houses. Another mainstay project is the Phakwe Group ran projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY The UIF investments in this regard are undertaken under the banner of the UIF Agri-Fund in partnership with Futuregrowth and Day Breaker Poultry Project. The UIF Agri-Fund has invested in 4 farms situated in Mable Hall in Limpopo. One of the farms is a cash crop farm spanning 450 hectares. The farm in the last financial year produced 235 hectares of white maize, and cotton was planted in an area covering 28 hectares. A further three farms are located in the Saron area in the Western Cape. In this project a total of 178 hectares has been used to plant grapes, 37 hectares has been used to pant citrus fruit. Furthermore, there is potential to plant an additional 92 hectares of grapes. The Daybreaker Poultry project operates in Gauteng, Limpopo and Mpumalanga and the combined projects have facilities to grow 1.6 million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES The UIF concluded two investments in this regard that include a BEE hospital manager, Busamed to build a private hospital in Modderfontein and Fund Manager Razorite Heatlhcare that focus on the provision of affordable heathcare facilities that include rehabilitation and sub-acute centres. The Modderfontein hospital is a 220 hospital bed with subacute facilities. This hospital is under construction. While the RH Fund Manager has concluded seven investments that include: • Busamed with four hospital facilities • HealthMed with two facilities

INVESTMENTS IN EDUCATION UIF has invested in three investments that play a role to unlock access to education. The investments were concluded with Eduloan – an organisation that provides financial support to tertiary students and South Point and Educor organisations that provide student accommodation. By March 2016, Eduloan had disbursed about R446 986.64 benefiting 34 047 students, whiles South Point provided about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT The UIF has concluded two investments with the aim of supporting small and medium enterprises. In this regard the PIC on behalf of UIF has concluded investment deals with Musa Capital and TOSACO. The investments will support more than 250 SMMEs across various sectors inclusive of agriculture and affordable housing. Musa Capital for example has a supply chain of over 250 SMME’s that have facilitated the creation of 2 500 jobs. TOSACO investments is planning to advance capital to young black entrepreneurs who aspire to own and manage Total Filling stations around the country.

For more information: Call: 0800 843 843 or visit:


Economic sectors Agriculture38 Record maize harvests are helping the national economy. Mining40 Diamonds are sparkling in the Free State. Manufacturing49 Regional industrial policy aims to attract investors. Oil and gas


Free State gas fields could feed new power stations. Tourism54 The game industry is set to boost the wider tourism sector. Education and training


Access to education is improving. Banking and financial services


Many agricultural companies are active in financial services. Development finance and SMME support


A business park in Sasolburg is supporting black industrialists.

Government Free State provincial and local government


A guide to the provincial government departments, metropolitan, district and local municipalities.

Reference Gauteng


Sector contents




North West Fezile Dabi Mafube Ngwathe





Regional map Municipal map

11 64

Northern Cape


Thabo Mofutsanyana







Setsoto Masilonyana

KwaZulu Natal Mangaung










Metropolitan/District Municipality boundary


Local Municipality Boundary

Eastern Cape

District Municipality


Local Municipality



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

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse


ree State Business 2018 is the eighth edition of this successful production. Since its launch in 2008, Free State Business has established itself as the premier business and investment guide to the Free State Province. Supported and utilised by the Free State Development Corporation (FDC), the publication is unique in that its focus is exclusively on the business and investment environment of the Free State. The print journal is supported by the ebook edition at and updates, business news and event listings can be found on the monthly Business SA e-newsletter, with a circulation of over 30Â 000. Global Africa Network Media (, the publisher of Free State Business, specialises in business-to-business print publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Ad sales: Sydwell Adonis, Nigel Williams, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman

Chris Whales Publisher, Global Africa Network Media Email:

Distribution & circulation manager: Edward MacDonald Printing: FA Print



Free State Business is distributed nationally on outgoing and incoming trade missions; via the Free State Development Corporation (FDC); at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, airport lounges and companies.

Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: | Website:

Member of the Audit Bureau of Circulations

ISSN 1999-5059

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Free State 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.

COPYRIGHT | Free State Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by, Public Domain Images, Wikimedia Commons,, Eugene Armer RailPictures, Roodt Architects and Pixabay.




FREE STATE PROVINCE A new Special Economic Zone is attracting investors The official launch in April 2017 of the Maluti-A-Phofung Special Economic Zone was a significant event for the economy of the Free State. By John Young


from a central source, storage facilities, packaging of produce and getting products to market. The use of small towns such as Cornelia, Tweeling, Excelsior and Tweespruit as hubs under the Comprehensive Rural Development Programme (CRDP) should boost the rural economy and provide opportunities for investors. The idea of clustering developments is also behind the N8 Corridor concept which covers Bloemfontein, Botshabelo and Thaba Nchu. Within this are several projects including the ICC Precinct (hotel and convention centre in Bloemfontein), BioMedical Park, Airport Node (logistics and supply chain, warehouses, residential apartments, hospitals, schools, hotels and new shopping malls), and tourism infrastructure for the Naval Hill Development. Another important pillar of the economy of the Free State, the chemicals and fuels hub at Sasolburg, is modernising and expanding. International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its various products.

lthough agriculture and mining remain the mainstays of the provincial economy, diversification and expansion through initiatives such as Special Economic Zones (SEZs) are key to the future of the centrally located province. Sectors prioritised at the Maluti-A-Phofung SEZ (which is located on South Africa’s busiest highway, the N3) include logistics, ICT, automotive, pharmaceuticals, manufacturing and agri-processing. The 1 000ha site will have four zones: agri-processing, light industrial, heavy industrials and a container terminal. The reference to agri-processing points to a broader trend in economic planning in South Africa – the desire to create value-added goods out of raw materials. This applies to agriculture (in which the Free State enjoys great riches) and minerals. Five agri-parks are planned in each of the Free State’s district municipalities which will boost production so that more produce is available for beneficiation. Within these parks, support for rural smallholders will be available in terms of equipment hire FREE STATE BUSINESS 2018


SPECIAL FEATURE The Provincial Government of the Free State has hosted two events targeting foreign investors, called the Free State Global Investors Trade Bridge. In November 2016 the first Free State/Madeira Flower Festival took place in Parys. This is a first step in creating links to export markets in floriculture and horticulture. A new water pipeline from the Xhariep Dam is being built to serve the Xhariep District and the Mangaung Metro. A steady and reliable water source is an important component in attracting investment. Five major national highways intersect the centrally located province which is also well served by rail and air links. The Bram Fischer International Airport in the provincial capital city of Bloemfontein is the site of a multi-phase industrial and commercial development. Two leading universities (the University of the Free State and the Central University of Technology) have several campuses across the province.

The Free State shares borders with six other provinces, in addition to the Mountain Kingdom of Lesotho. A summer-rainfall region with a mean annual rainfall of 532mm, the Free State’s climate, soil types and topography vary greatly within the province, with plains in the west and mountains in the east. The western and southern areas are semi-desert, with some Karoo vegetation occurring in the south. The Free State produces significant proportions of South Africa’s wheat (30%), sunflowers (45%) and maize (45%). As such, it is ranked third in contribution to national GDP in agriculture.

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

Mangaung Metropolitan Municipality Mangaung Metropolitan Municipality is a Category A municipality which governs Bloemfontein, Botshabelo and Thaba Nchu. The sixth-largest city in the country, the Mangaung municipal area covers more than 6 263km² and has a population of about 850 000 people. The languages spoken in the area are mainly Sesotho, Afrikaans, English and Setswana. Bloemfontein, which is responsible for about 25% of provincial GDP, is at the centre of a development node known as the N8 Corridor which is Game-changing development intended to boost development along the road from Lesotho to Kimberley and Upington in the A potentially game-changing development in the North West province. Several projects are under local economy is the building of a R200-million way in and around the provincial capital, includhelium extraction plant to exploit a natural gas and ing an Airport Node (logistics, supply chain, flats, helium field near the towns of Virginia, Welkom and shopping malls), Naval Hill (projected new hoTheunissen. With proven reserves of 25-billion cubic tel in the nature reserve), expansion of Hamilton feet, the rights to the field are owned by Renergen Business Park. The city’s Fresh Produce Market is an important and they will be worked by Afrox, a subsidiary of the cog in the distribution of agricultural produce in the Linde Group of Germany. Another emerging sector is solar energy. The region while it is connected to all other centres by Xhariep, Lejweleputswa and Mangaung regions good rail and road links. There is a marshalling yard, have among the best direct solar radiation kWh/m² a petroleum depot and two airports (one military). in the country. Rezoning for solar farms has already The national Supreme Court of Appeal is located in taken place in Theunissen, Bloemfontein, Fauresmith Bloemfontein and the National Museum has superb rock art exhibits. and Hoopstad.



SPECIAL FEATURE Xhariep District Municipality Towns: Trompsberg, Koffiefontein, Zastron, Philipollis, Edenburg, Fauresmith, Smithfield, Wepener The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam. Crops are produced in the northern parts of the district whereas sheep farming predominates in the south. Trompsberg has the second-biggest sheep-shearing barn in the country. Diamonds, gravel and clay are mined at Koffiefontein. Jagersfontein is one of the first places where diamonds were found, and it has its own version of the Big Hole to prove it. The town of Bethulie is a good stopping-over place for tourists wanting to experience the water sports available on the Gariep Dam. The dam is also the site of small hydro-power and aquaculture projects which are intended to create employment and tackle food security. The nearby Tussen die Riviere Nature Reserve and the Mynhardt Game Reserve have a variety of wildlife in spectacular settings. Jacobsdal’s Landzicht winery has proved itself as a worthy producer of wine. San rock paintings and Anglo-Boer War sites are plentiful. Fauresmith hosts an annual horse endurance race and Smithfield is the venue for a “Chill” festival every winter, the “Bibber Fees”. The steel bridge over the Caledon River at Wepener is a national monument.



Lejweleputswa District Municipality Towns: Welkom, Virginia, Boshof, Christiana, Bultfontein, Bothaville Mining is the most important economic activity in this area, also known as the Free State Goldfields, but it is also the most important maize-growing area in South Africa. A large natural gas field has been discovered on what used to be gold turf. Bothaville is the self-proclaimed Mielie Capital of South Africa but it is a name that is apt. The town hosts the annual NAMPO maize festival and the headquarters of Grain SA. Mining town Welkom is the major urban centre in the district. The town of Virginia is the site of a jewellery school and it is intended that this will form the nucleus of a jewellery beneficiation hub and an IT hub. The area has tourist assets such as a holiday resort on the Allemanskraal Dam, the Goldfields Wine Cellar in Theunissen and the Willem Pretorius Game Reserve but there is potential for growth in the heritage sector. Fezile Dabi District Municipality Towns: Sasolburg, Parys, Kroonstad, Frankfort, Heilbron, Viljoenskroon The chemical complex at Sasolburg is the economic driver in the district, which shares a border with Gauteng province along the Vaal River. The town of Heilbron is another important industrial centre and Frankfort does important agricultural processing

Potchefstroom Ottosdal Klerksdorp




North West


Vereeniging Lethabo Parys Sasolburg Vredefort Villiers Viljoenskroon N1 R30 Heilbron Bothaville



Wesselsbron Welkom Virginia




Northern Cape N12

Jacobsdal Petrusburg



Thaba Nchu

Fouriesburg Ficksburg

Dewetsdorp N6

Harrismith Van Reenen Phuthaditjhaba Ladysmith Golden Gate National Park R74

Bethlehem Clarens



Colenso Estcourt








Botshabelo R26 Hobhouse




Senekal Winburg











Vrede Reitz


R64 N8


Kroonstad Odendaalsrus

Hoopstad Christiana








Trompsburg Smithfield Bethulie Rouxville De Aar


Eastern Cape

Motorway Main Road Railway

Thabo Mofutsanyana District Municipality Towns: Phuthaditjhaba, Bethlehem, Tweespruit, Ladybrand, Clarens, Harrismith, Vrede, Ficksburg Tourism and fruit farming are the two principal economic activities of this area which is characterised by beautiful landscapes: the Maluti and the Drakensberg mountain ranges, wetlands in the north, well-watered river valleys and the plains of the north and west. The most famous asset is the Golden Gate National Park. Industrial activity is undertaken at Harrismith and Phuthaditjhaba, where the Free State Development Corporation is promoting investment. The Maluti-aPhofung Special Economic Zone (SEZ) at Harrismith is a multi-modal transport and logistics hub. The commercial centre of the district is Bethlehem while Clarens and Ficksburg have become famous for their artists and cherries respectively. Marquard produces 90% of South Africa’s cherries. The north of the district has many sunflower seed farms. The Basuto cultural village in Qwa Qwa offers beautifully made crafts, and rock paintings.

work. Kroonstad is the district’s second-largest town and has a number of engineering works and a railway junction. A new kraft paper factory has been planned for Frankfort. A good proportion of South Africa’s grain crop is sourced from this district and when the vast fields of sunflowers and cosmos flowers are in bloom, a marvellous vista is created. The Vaal River presents opportunities for yachting, rafting and resort-based enterprises. Parys is a charming town and Vredefort is home to a World Heritage Site – the Vredefort Dome where a meteor crashed to earth. Fezile Dabi District Municipality is the biggest contributor towards the provincial GDP, contributing approximately 35%. The Fezile Dabi area is mostly dominated by the industrial power of Sasol, with the manufacturing of refined petroleum, coke and chemical products adding largely to its GDP. The establishment of ChemCity, a wholly owned subsidiary of Sasol, has also added a business incubator that allows SMMEs to feed off and diversify from the opportunities that prevail due to the energy consortium operating in the area.



The N8 Corridor Linking communities and creating economic opportunities.


he Free State capital city of Bloemfontein is well known for its central location. Three major national highways pass through the city: the N1 is South Africa’s main north-south connection, the N6 links Bloemfontein with a coastal industrial development zone in East London and the N8 connects the provincial capital with Lesotho’s capital, Maseru, in the east and the Northern Cape city of Kimberley to the west. While the first two roads carry significant amounts of cargo and are well-utilised, the N8 still has untapped potential. The N8 Corridor is the focus of a range of initiatives which aim to improve connections, stimulate economic activity and improve the delivery of services and housing to Free State citizens, particularly to those who live in Botshabelo and Thaba Nchu. A plan for the coordinated development of the N8 Corridor has been approved by a range of bodies and is being funded by the Development Bank of Southern Africa (DBSA) and the Mangaung Metropolitan Municipality. To understand the scope of the plans, one has only to list the other interested parties in the project: South African National Roads Agency (SANRAL), Airports Company South Africa (ACSA), Interstate Buslines (IBL), Transnet, Mangaung Chamber of Commerce and Industry, Motheo District Municipality, Free State Provincial Government, private developers and financial bodies. FREE STATE BUSINESS 2018

The N8 Corridor concept covers Bloemfontein, Botshabelo and Thaba Nchu. Within this are several projects including the ICC Precinct (hotel and convention centre in Bloemfontein), Bio-Medical Park, tourism infrastructure for the development of Naval Hill and the planned Airport Node. The illustration is a concept design for an office park at the Airport Node by the Paragon Group.

Infrastructure Existing infrastructure is being used as the hub for additional developments and schemes. Bram Fischer International Airport, the province’s major airport, is managed by Airports Company South Africa (Acsa). Facilities at Bloemfontein Airport are shared with Air Force Base (AFB) Bloemspruit, which serves the central region, and the SA Red Cross Air Mercy Service. A project covering 2 000ha and expected to cost in the region of R100-billion over several phases has been initiated at the airport. A development plan for the area has designated five precincts: Terminal, Boulevard, General Aviation, Airport Industria and Grasslands. The Road Lodge Hotel was built within this conceptual plan. A range of land uses beyond the hotel are envisaged, including warehousing, hospital care, commercial, service stations,


SPECIAL FEATURE conferencing, retail, motor vehicle dealerships, car rental, logistics hub and a showground. New infrastructure in the form of the new Naval Hill Reservoir has been established to service the additional businesses and houses which the N8 Corridor development will create. The reservoir will ultimately have a capacity of 70ml. Power utility Eskom is to be approached with a view to rerouting the power lines along the N8 which currently inhibit development in the area around the Corridor. Botshabelo has a manufacturing sector which employs more than 10 000 people in textiles, plastics and other sectors. However, the bulk of the employed population of Botshabelo commute to Bloemfontein every day, using buses or taxis. A number of factory buildings and parcels of publicly owned land in Botshabelo and along the N8 are either not used or under-utilised. Close to 30% of the residents of the greater Mangaung metropole live in Botshabelo. Many residents are employed in the informal economy in the area. This is also true of Thaba Nchu, which is a short distance further down the N8 towards Lesotho.

corner of N8 and the Main Road. Being able to shop at the mall means far less travelling on the busy road to Bloemfontein. Efficiency, inclusion and sustainability are the three watchwords for planners in relation to all plans with regard to the CBDs of Botshabelo and Thaba Nchu. The IDP includes a suggestion that the use of bridges be explored as a way of linking spaces within the city of Bloemfontein.

CBD development An important part of the Mangaung Metropolitan Municipality’s most recent Integrated Development Plan (IDP) relates to reviving or stimulating the central business districts (CBDs) of the three towns in the metro. Thab Nchu has a small central business district but mostly comprises 42 rural villages which fall under the Chieftancy of the Baralong boo Seleka of Thaba Nchu. The opening of the Botshabelo Mall in November 2016 was a big event for the residents of the area and a significant step towards boosting the town’s CBD. The 21 000m² facility is a joint venture between Khora Investments and STANLIB Direct Property Investments. Nine hundred jobs were created in the building phase of the R350-million project, with a further 1 100 jobs in the operational phase. Large retailers, furniture stores and banks have established a presence at the mall, which is on the

Housing The 2016/17 IDP brings together the concept of the N8 Corridor with a number of important principles related to providing better housing: • Travel distances within the city need to be shorter. Therefore, the city should embark on denser mixed developments. • In rural areas, settlements patterns must balance the social, cultural and agricultural needs of families. • Improved access to work and social amenities, including sports and recreational facilities. • De-racialising the built environment through the accelerated release of land and the development of the seven land parcels in Cecilia, Brandkop, Pellisier, Vista Park and Hillside View, to bring integration and create economic opportunities.




Free State Development Corporation investment opportunities The Free State Development Corporation is driving a number of exciting investment opportunities in the Free State province.

SCIENCE PARK To develop a world-class science park through the provision of a purpose-built facility designed to provide fully serviced office and laboratory space for conducting cutting-edge research in a range of fields including agri-technology, applications development, computer programming, datamining and management, digital content production, design, food research, game development, healthcare technologies, medical innovation, product design and development, law and intellectual property, linked to the University of the Free State and Central University of Technology. Concept To develop world-class infrastructure to support incubation of a network for companies to do research, product development, technology testing, software applications development, programming and housing of innovative startup enterprises. The Science Park will house the following: • Innovation Centre • Bio Centre • IT Centre • Catalyst • Enterprise House These will create a platform for a joint research and research collaboration between universities and biotechnology companies, to migrate both the University of the Free State (UFS) and Central



University of Technology (CUT) registered research patents into new business opportunities. Facilities and services All-inclusive, flexible, short-term rental agreements at competitive rates • 24/7 access • High-quality broadband access (up to 1GB) with ICT Active accreditation • Free onsite parking • A dedicated Customer Service team • Free PR service for residents • Direct links to the University of the Free State – offering the advantage of technology and knowledge transfer, and access to equipment and library facilities. •

Conference and meeting room facilities Wide range of conference and meeting rooms at discounted rates with video conferencing • Networking zone with free wi-fi • Shared laboratory facilities • Virtual Offices, flexible co-working and hot desk facilities. •

Research and development Links to the University of the Free State and Central University of Technology Research Teams and partnership funded by the dti (Department of Trade & Industry) and the Department of Science an Technology and its agencies • N8 Research Partnership, Universities of Leeds, Sheffield and York • On-site management and dedicated team. •

Project location Bloemfontein, Mangaung Metro, N8 Corridor

Required Investment ZAR 400m

To discuss these opportunities, contact Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment Tel: +27 51 4000 800 Email: | Email: Prof Ryk Lues, Director Tel: +27 51 507 3145 | Email: Ms ZP Sintiya, Administrative Assistant Tel: +27 51 507 3121 | Email:






There is an opportunity to establish a sand mining business 6km outside Bethlehem – called Beth­ lehem Water and Sand (Pty) Ltd – to supply Beth­ le­hem and the surrounding towns with build­ing, plaster and brick-making sand. Milestones • Business plan completed. • Geological report available. • EIA completed and ROD is available. • Mining permit obtained. Project Requirements The project sponsor requires capital injection and participation by BEE partners with experience in the sand mining value chain, or sand distribution. Location Dihlabeng Local Municipality in Bethlehem. Investment Required The project requires funding to the tune of R120-million. The project has the potential to create 120 jobs when fully operational.

A technology partner and investor is required to partner with a local investor to set up a medical waste treatment facility. Concept To design a modern medical and solid waste treatment facility. The company implements Electro-Thermal Deactivation processes to dispose of healthcare risk waste. This is a non-burn technology that has zero emissions. Pathogens are treated with 50 000V within the ETD (Microwave) and this renders the waste clean and harmless. Location Virginia in Matjhabeng. Investment Required Estimated project cost R30-million. To discuss opportunities on this page, contact Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment Tel: +27 51 4000 800 | Email: Email:

DPE & PVC PIPES MANUFACTURING Project Requirements A technology partner is required for individual investors that have expressed interest. Investment Required Investment required is estimated at R10-million. Manufactured products and manufacturing processes must be SABS-certified.

A private-sector investor is required to establish and operate a plastic extrusion facility at Parys in the Ngwathe Local Municipality. Concept Plastics extrusion is a high-volume manufacturing process in which raw plastic is melted and formed into a continuous profile. Extrusion produces items such as pipe/tubing, weather stripping, fencing, deck railings, window frames, plastic films and sheeting, thermoplastic coatings and wire insulation.




Reasons to invest in the Free State The Free State offers an abundance of opportunities for local and international investors and traders, through the Free State Development Corporation. About the Free State Situated in the heart of South Africa, the Free State is the country’s third-largest province and borders Lesotho as well as six of the eight other provinces, including the country’s economic centre, Gauteng. The Free State is an ideal trading partner both within South Africa, and with Africa and other international markets. The province has excellent infrastructure and transport links, and provides easy access to the main ports of Durban, East London and Port Elizabeth.

Factors that favour investment in the Free State Factors positioning the province as a favourable business and investment destination:

• • • • • • •

• •


Centrally located with easy access to markets within South Africa and Africa. Availability of a large and affordable labour pool. Excellent infrastructure (roads,rail, airports, offices, education, banking and medical facilities). Competitive land and building costs. Low factory rentals. Abundance of natural resources. Recreational and lifestyle facilities. Most developed telecommunications network in Africa. Open to business, trade and foreign investment. Availability of required skills pool. Attractive investment regime.



Maluti-A-Phofung SEZ investment opportunities


aluti-A-Phofung Special Economi c Zone (SEZ) has been established in terms of the Special Economic Zones Act, Act No. 16 of 2014. The programme is intended to deepen industrial development and improve manufacturing competitiveness in the Maluti-APhofung Municipality. Located in Harrismith and Tshiame in the Eastern Free State, MAP SEZ is strategically located on the N3 national road, halfway between Johannesburg and Durban. MAP SEZ offers in total up to 1 000 hectares of land for industrial development. Since Durban port is the busiest in the southern hemisphere, this therefore means that N3 carries majority of the traffic to different locations in South Africa and the neighbouring countries such as Lesotho and Swaziland. MAP SEZ constitutes the Free State leg of the massive Durban-Free State-Gauteng logistics and industrial corridor that is intended to strengthen the logistics and transport corridor between South Africa’s main industrial hubs to: • Improve access to Durban’s export/import facilities. • Integrate Free State Industrial Strategy activities into the corridor. • Build a new port in Durban. • Expand an aerotropolis around OR Tambo International Airport.

• Pharmaceuticals. • Medical devices. • Logistics and distribution. • Agro-processing. • Food processing. • Trade facilitation. • Rail-based container terminal

SEZ Project Pipeline

• Maluti-A-Phofung SEZ operator permit granted by

There are already 18 manufacturing companies (ranging from pharmaceutical to automobile companies) that have signed letters of intent to locate in the MAP SEZ. Some of the sectors targeted for establishment within the MAP SEZ are as follows:

• Perimeter fencing has been completed. • Bulk infrastructure roll-out is in process. • Marketing and promotion to build a robust IDZ

(Transnet Freight Rail).

• Automotive cross docking facilities. • Logistics and supply chain management. • Information & Communi­cation Technology. • Logistics.

Benefits Benefits that will be derived from locating within MAP SEZ includes: • 15% Corporate Tax, national is 28%. • Building Allowance. • Employment Incentive. • Customs Controlled Area. • 12i Tax Allowance.

MAP SEZ Milestones • MAP SEZ was launched by President Zuma on 25 April 2016 and is open for business.

Minister of Trade & Industry after cabinet approval.

project pipeline is in process.

To discuss these opportunities, contact Sipho MG Tshabalala, Marketing & Communications Manager Tel: +27 51 4000 804 | Cell: +27 78 076 8676 | Email: | Website:






The building of a world-class, integrated food processing park to include food processing, warehousing, cold storage and manufacturing facilities to enhance production efficiencies. Location MAP SEZ Food Processing precinct. Milestones • Concept developed. • Business plan completed. • Marketing the opportunity to prospective investors. Investment Required Investment estimated at R750-million.

The establishment of a Kraft paper factory that will predominantly use waste container board paper and virgin pulp to produce Kraft liner, linerboard, fluting and semi-extensible sack Kraft. Production capacity is about 180 000 tonnes per annum. Concept The mill will use both virgin (20%) and recycled pulp (80%) as raw material in its production process with the aim of capturing small and medium corrugators. Pulp to be used is unbleached and manufactured by suppliers using the Kraft process. The Kraft process produces strong unbleached papers that can be used for bags and boxes. Location Frankfort, Free State. Milestones • Feasibility phase. • Project designs completed. Project Requirements • A technology partner and investor that is a player in the wood and paper value chain is required to partner with the IDC and local paper convertors to establish and operate Frankfort Paper Mill SA. • Project partners will be responsible for bulk take-off. Investment Required Investment estimated at R1.4-billion.

MEDICAL EQUIPMENT AND DEVICES MANUFACTURING The FDC has signed an investment agreement with two leading Chinese companies (in the medical devices and electronic equipment value chain) to establish a medical devices and medical apparatus and instrumentation manufacturing plant in the newly designated MalutiA-Phofung SEZ. Location Maluti-A- Phofung SEZ. Milestones • Investment agreement signed. • South African subsidiary of the Chinese company (Medipro) has been registered. • Negotiations to fast-track investment are in process. • The company has CE certification. Investment Required Investment estimated at R600-million.

To discuss this opportunity, contact Lizeka Matshekga, Head: Forestry & Wood Products Business Unit, Industrial Development Corporation Tel: +27 11 269 3779, Email: Email:

To discuss the above opportunities, contact Sipho MG Tshabalala, Marketing & Communications Manager Tel: +27 51 4000 804 | Cell: +27 78 076 8676 Email:




Why invest in solar generation plants in South Africa • • • • • •

South Africa’s solar irradiation levels are among the best in the world (>2 000kWh/m²). Transition to a cleaner energy mix (low carbon path). Strong local content from government (glass, mirrors). Strong, established local construction companies. Experience in building power stations and mines. Current steel and pipes production meeting CSP requirements.

• •

A target to generate 45% of all new electricity from renewable sources by 2030. The ongoing success of the renewables procurement programme and the growing interest of international developers and funders are helping South Africa to improve its ranking from nowhere to top 10 investment destinations in the world (Renewable Energy Country Attractiveness Index 2014). South Africa is the region’s clear leader for clean energy development with record investments of over US$10-billion in 2012 and 2013.

Drivers for PV and CSP investments • • • •

Environmental issues such as pollution and exploitation of natural resources. Climate change due to CO2 emissions from fossil fuels. Energy security through diversification of supply. Sustainable development.










Bloemfontein, Tokologo LM

May 2014



Solar Reserve

3.8-billion, 1-billion cost of financing



Jacobsdal, Letsemeng LM

Aug 2016


Under construction

Enel Green Power




Tokologo LM

Nov 2014



Sun Edison



Korean Solar Power Consortium




Kopanong, Bethulie LM


600MW Planned

Concept develop­ment and project design


Matjhabeng LM


75MW Planned

New development

FRV Energy South Africa

Project occupies 180ha of the Farm Beyers 186 (393ha)



Matjhabeng LM


75MW Planned

New development

FRV Energy South Africa

Project will occupy 180ha of the Farm Beyers 186 (393ha)





SOLAR GENERATION PARKS Projects Location Xhariep District, Mangaung Metro as well as Lejwele­putswa. Conversion Technologies Both photovoltaic modules and concentrated solar power (CSP) plant conversion technologies can be implemented.

The project aim is to recruit a private investor to set up a solar park in the Xhariep, Lejweleputswa and Mangaung regions, as these offer some of the best direct solar radiation (kWh/m²). Process Investors may participate in both off-grid and on-grid supply solutions. Off-grid is where the solar generation plant is directly supplying an independent user or seller, for example a mine or an industrial estate. On-grid is where investors participate in South Africa’s successful Renewable Energy Independent Power Producer Procurement (REIPPP) Programme managed by the Department of Energy (DOE) and finally supply the grid.

SOLAR WATER HEATERS A private investor is required to set up a solar water heaters manufacturing plant in Botshabelo Industrial Area. The manufacturing process may involve the following: • Fabrication of panel storage tanks. • Assembly of tank, panel coil and other components. • Inspection and commissioning. • Required raw materials for the manufacturing of solar water heaters are copper aluminium MS sheet, pipe, glass fibre, GI sheets, thermostat and insulation material. Why Solar Water Heaters • Eskom electricity demand management programme.

Strong local content on SWH procurement by DOE and Eskom. • Financial and technology capabilities to manufacture and supply locally produced systems. • Construction Sector Education Training Authority (CETA) and Energy Sector Education Training Authority offers accredited Level 4 plumbing qualification. • Availability of plumbing skills currently serv­ing the mining, gas and petroleum industries. Location Botshabelo within the N8 Corridor. Investment Required To be determined at feasibility. •

To discuss these opportunities, contact Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment Tel: +27 51 4000 800 | Cell: +27 71 674 5730 Email: or




GREEN ENERGY IT and possibly technology partner for future growth. • A team of three are driving business development. Investment Required The project requires an experienced technology partner that is a player within the solar and LED lights value chain and an investor that will guarantee take-off of products manufactured.

Green Energy is a South African company that assembles solar home lighting systems. The idea behind this project is to contribute towards harnessing solar energy to generate power. Location The company intend to locate its solar home lighting manufacturing plant in Maluti-A-Phofung. Milestones The FDC financed seed funding to the tune of R210 000 for the following: • Product development to redesign its products so that they can meet international standards for export market. • IP registration. • Business case development to solicit financial

To discuss this opportunity, contact Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment Tel: +27 51 4000 800 Email:



Concept The intention is build 10 x 40 000 broiler houses, 10 x 220 000 broiler hatcheries and 8 x 20 000 layer houses. Location These facilities could be located in the following municipalities: Lejweleputswa, Fezile Dabi, Thabo Mofutsanyana. Investment Required R6.5-billion is required to increase the size of the poultry production market in the Free State.

Concept The FDC is promoting an opportunity to increase the production of sunflower, soya beans, dry beans and lucerne. If investment is forthcoming 448 981ha could be put into production by 2030. Location Various agricultural areas in the Free State. Investment Required An estimated R585.8-million is needed.

To discuss these opportunities, contact Dr Tankiso Masiteng Tel: +27 82 568 2447 Email:




ROOFSHEET MANUFACTURING Concept The FDC is keen to facilitate the production of roofsheets made from corrugated iron, IRB and chromadek. Location Matjhabeng Local Municipality.

Investment Required R25-million in capital expenditure is needed.

APPLE PRODUCTION Concept Investment is required to add 2 000ha of apple orchards on agricultural land in the Eastern Free State. Location Maluti Fruit, a pack house in Bethlehem, Free State, has launched Remmoho, a BEE project that will focus on increasing apple production in the province.

One of the advantages of growing apples in the Free State is that the fruit from the region is the first to be harvested during the Southern Hemisphere growing season – a full two to three weeks before fruit from the more traditional growing areas in the Western Cape. A business plan has been completed and would be available to prospective investors.

To discuss these opportunities, contact Frank Tlhomelang, Tel: +27 51 4000 800 | Cell: +27 71 674 5730 Email: or



Concept Convert an old, unused mining shaft into a tourist attraction that will enable people to experience life below the surface. Location Virginia (Matjhabeng). Investment Required R300-million.

Concept An opportunity exists to set up a jewellery design and manufacturing operation adjacent to an existing jewellery school. Location Virginia (Matjhabeng). Investment Required R20-million.

To discuss these opportunities, contact Mpolokeng Mokalobe, Tel: +27 51 400 9585 Email:






Concept There are plans to establish a Cut, Make and Trim (CMT) factory in order to manufacture clothing in the Free State. Location Maluti-A-Phofung Municipality (QwaQwa). Investment Required Finance is sought for purchase of machinery and working capital for 12 months.

Concept The establishment of a plant for waste recycling and conversion into usable products as well as the generation of energy from waste. Location Mangaung Metropolitan Municipality (Bloemfontein, Botshabelo and Thaba Nchu). Investment Required R65-million. A business plan has been completed and would be available to prospective investors.

LED LIGHT MANUFACTURE Concept The manufacture and retail of light-emitting diodes (LEDs). Location Anywhere within the Free State. Investment Required R15-million.

TOOLING AND MACHINERY MANUFACTURE Concept Manufacturing of metal, steel and plastic products for automotive, rail, aviation, mining and other similar industries. Location Botshabelo. Investment Required R15.1-million in capital expenditure is needed.

TEXTILE MANUFACTURING Concept To establish a textile manufacturing facility producing spun yarn and woven cloth for supply to Cut, Make and Trim (CMT) facilities in the Free State and the rest of South Africa. Location Maluti-A-Phofung Municipality (QwaQwa). Investment Required R76-million is required.

To discuss these opportunities, contact Frank Tlhomelang, Manager: Research & Development & Acting GM: Trade & Investment Tel: +27 51 4000 800 | Cell: +27 71 674 5730 Email: or




Free State trade opportunities The Free State province offers a wide range of trading opportunities The Free State’s main exports are: • Mineral products. • Plastics and articles thereof. • Chemical products. • Vehicle and transport equipment. • Agricultural equipment. • Semi-precious stones, metals, imitation jewellery. • Base metals and articles thereof. • Textile and textile articles. • Vegetable and fruit products. • Wood and articles of wood. • Raw hides and skins, leather and articles thereof. • Medical or surgical instruments and apparatus. • Live animals.

Additional breakdown of products: • Minerals (gold, coal, diamonds, clay, limestone, salt, gypsum, granite, sand stone aggregates). • Agriculture (maize, wheat, sorghum, potatoes, sunflower, red meat, vegetables, dry beans, fruit, peanuts, wool, poultry, dairy, cherries). • Floriculture (cut flowers). • Chemicals (fuels, waxes, synthetic fuel, liquid carbons). • Agricultural machinery and equipment. • Vehicles (trailers). • Arts and crafts.


HEAD OFFICE FDC House, 33 Kellner Street, cnr of Markgraaff Street, Westdene, Bloemfontein 9300 Tel: +27 51 4000 800 | Fax: +27 51 447 0929

357K Clubview, Phuthditjhaba Tel: +27 58 714 0060/64 Fax: +27 58 714 0071 Industriqwa/Harrismith Office

MOTHEO DISTRICT OFFICES Botshabelo Office 35 Orange Str, Industrial, Botshabelo 9781 Tel: +27 51 534 1101/02/03 | Fax: +27 51 534 1104 Thabo-Nchu/Motheo Office 102 Manyane High Way, Selosesha, Thaba Nchu 7983 Tel: +27 51 873 3901 2476 | Fax: +27 51 873 3402

Cnr Amanda and de Lange, Tshiame A, Harrismith 9880 Tel: +27 58 635 1112 Fax: +27 58 973 2603

XHARIEP DISTRICT OFFICE Xhariep Office Cnr Van Riebeeck and Voortrekker, Khoisan Building, Trompsburg 9913 Tel: +27 51 713 0342/3 | Fax: +27 51 713 0342

31 NJ Van der Merwe Crescent, Sasolburg 1942 Tel: +27 16 976 8944/5 Fax: +27 16 973 2603


For additional information on trading opportunities please contact the Free State Development Corporation on +27 51 4000 800. | |



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


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

outh Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straight-forward process with assistance being offered by organisations such as the Department of Trade and Industry and provincial investment agencies like the Free State Development Corporation (FDC). South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country. The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, the FDC can offer specific advice about the business environment in the province. Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under new legislation, no new Close Corporations can be created but CCs can convert to companies.

Registration with the receiver of revenue • As a Provisional Taxpayer • As a VAT vendor • For Pay As You Earn (PAYE) income tax payable on money earned by employees • For Standard Income Tax on Employees Registration with the Department of Labour Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment Insurance Fund (UIF). Register with Compensation Commissioner for Compensation Fund: Files with the Compensation Fund (in the Department of Labour) for accident insurance (Workmen’s Compensation). Registration with the local authority Relevant only to businesses dealing in fresh foodstuffs or health matters. Other procedures Checking exchange control procedures (note that non-residents are generally not subject to exchange controls except for certain categories of investment) • Obtaining approval for building plans • Applying for industry and export incentives

Registration of company The company must be registered with the Comp­anies and Intellectual Properties Commission, (CPIC) in Pretoria within 21 days of the company being started. There are a range of administrative procedures that need to be fulfilled. FREE STATE BUSINESS 2018


SPECIAL FEATURE • Applying for import permits and verifying import

• Is the prospective employee appropriately quali-

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

fied and do they have the relevant experience? Business permits Foreign nationals who wish to establish their own business or a partnership in South Africa must, apart from having sufficient funds to support themselves and their family, be able to invest at least R2.5-million in the business. The funds must originate overseas, be transferable to South Africa and belong to the applicant (ie emanate from the applicant’s own bank account). The business must also create jobs for South African citizens. After six months to a year, proof will have to be submitted that the business is employing South African citizens or permanent residents, excluding family members of the employer. Applications for work permits for self-employment can only be lodged at the South African Consulate or Embassy in the applicant’s country of origin. The processing fee is US$186. The applicant would also have to lodge a repatriation guarantee with the consulate/embassy equivalent to the price of a one-way flight from South Africa back to his or her country of origin. This guarantee is refundable once the applicant has either left South Africa permanently or obtained permanent residence. Any application for an extension of a business permit may be lodged locally. The processing fee per passport holder is R425. Some countries also need to pay R108 per return visa. A list of countries to which this applies is available from the Department of Home Affairs. The FDC assists investors in applying for the relevant work permits to conduct their business.

Business entities There are a variety of forms which businesses can take, including private and public companies, personal liability companies , non-profit companies, state-owned companies and even branches of foreign companies (or external companies). Branches of foreign companies fall under section 23 of the Companies Act of 2008 and are required to register as “external companies” with the CIPC. An external company is not required to appoint a local board of directors but must appoint a person resident in South Africa who is authorised to accept services of process and any notices served on the company. It must also appoint a registered local auditor and establish a registered office in South Africa. Patents, trademarks and copyrights Trademarks (including service marks) are valid for an initial period of 10 years and are renewable indefinitely for further 10-year periods. Patents are granted for 20 years, normally without an option to renew. The holder of a patent or trademark must pay an annual fee in order to preserve its validity. Patents and trademarks may be licensed but where this involves the payment of royalties to non-resident licensors, prior approval of the licensing agreement must be obtained from the dti. South Africa is a signatory to the Berne Copyright Convention. Permits for foreign nationals Work permits In considering whether or not to grant a work permit, the Department of Home Affairs will first evaluate the validity of the offer of employment by conducting a number of checks to confirm the following: • Has the Department of Labour been contacted? • Has the position been widely advertised? • Is the prospective employer able to prove that he or she has tried to find a suitably qualified local employee prior to hiring a foreigner?

What would the FDC do for you? The FDC will help new businesses by assisting in project appraisal and packaging, putting investors in touch with relevant agencies and government departments, alerting investors to investment incentives and setting up joint ventures where required. A full description of the services offered by the FDC is reflected elsewhere in this publication.




South African investment incentives The South African government, particularly the Department of Trade and Industry, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors.


outh Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade and Industry (the dti) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: FREE STATE BUSINESS 2018


Conceptualisation of the project – including feasibility studies and research and development (grants for R&D and feasibility studies, THRIP, Stp, etc) Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) Some of the incentives are sector-specific for

SPECIAL FEATURE example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP).

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

Incentives for SMMEs Manufacturing A lot of emphasis is placed on the potential role of small, medium and micro enterprises in job creation and a number of incentives are designed to promote the growth of these businesses. These include: • Small Medium Enterprise Development Programme (SMEDP) • Isivande Women’s Fund • Seda Technology Programme (Stp). Seda is the Small Enterprise Development Agency, an agency of the Department of Small Business Development that exists to promote SMMEs.

Key components of the incentive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was scheduled for launch in 2016. The grants are not handouts as the funding covers a maximum of 50% of the cost of the investment, with the remainder to be sourced elsewhere. The Enterprise Investment Programme (EIP) makes targeted grants to stimulate and promote investment, BEE and employment creation in the manufacturing and tourism sectors. Aimed at smaller companies the maximum grant is R30-million. Specific tax deductions are permissible for larger companies investing in the manufacturing sector under Section 12i of the Income Tax Act.

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

Other incentives Other incentives available to investors and existing businesses in more than one sector include the: • Technology and Human Resources for Industry Programme (THRIP) • Support Programme for Industrial Innovation (SPII) • Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises • Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure • Co-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives

ONLINE RESOURCES Official South African government incentive schemes: Department of Trade and Industry: Industrial Development Corporation: Free State Development Corporation (FDC):




Making it easier to do business with Nedbank Whole-view Business Banking™ Kevin de Beer, Nedbank Provincial General Manager for Retail and Business Banking for Free State and Northern Cape, explains how Nedbank can help business owners in these regions.

on what’s most important to you – running your business,’ says de Beer. In line with our new brand proposition encouraging clients to see money differently, our Free State and Northern Cape agriteams are committed to providing key support, as well as advisory and business services to all roleplayers involved in the agrispace in both provinces. We will share our financial expertise and play a role in advancing profitable, sustainable practices throughout the agricultural production and consumption value chain.

There is good news for Free State and Northern Cape business owners and entrepreneurs seeking a unique banking experience. Nedbank Business Banking has business managers, located across both provinces, specialising in commercial industries as well as the agricultural sector. De Beer says his team is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. ‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate

We recognise that farmers today face many challenges, and to remain competitive, they continually have to improve and adopt best practices and new technologies. ‘We encourage you to see money differently with Whole-view Business Banking™, says de Beer. ‘We are also involved in a number of initiatives with the public sector, ensuring that such partnerships support provincial government goals in respect of job creation and growing the economy,’ de Beer concludes. If you are interested in taking your business to the next level, please call Kevin de Beer on +27 (0)51 400 5813, send an email to or visit


Nedbank Business Bundle is a game changer with savings and personalised services for small enterprises The new Business Bundle from Nedbank is a game changer for small enterprises in the Free State and Northern Cape, offering the best value for money when compared to rival offerings.

With the country’s challenging economic environment, the Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees – contributing directly to the bottomline at a time when every cent counts. In line with Nedbank’s new brand proposition to see money differently, the Business Bundle resonates with the bank’s commitment to do good by promoting small enterprises. ‘As a bank for small businesses we are committed to partnering with entrepreneurs to help grow their businesses. As such, Nedbank is always looking at ways in which we can help unlock the value of our clients’ businesses. We support their business growth journeys by providing practical tools to help them run their businesses,’ says Kevin de Beer, Nedbank Provincial General Manager, Retail and Business Banking for Free State and Northern Cape. ‘Small businesses are the lifeblood of our economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the smallbusiness sector.’ To see how Nedbank can help your small business reach its goals, call Kevin de Beer on +27 (0)51 400 5813, send an email to or visit

Trust us to protect your business against everyday risk Shareen Gobichund, Regional Manager of Broker Channels for Free State and Northern Cape, says Nedbank Insurance is not a onesize-fits-all business. Nedbank Insurance has evolved into a business that provides integrated insurance to individual and business clients. Our offering comprises comprehensive short-term and life insurance solutions, as well as investments. Nedbank Insurance provides a comprehensive offering of short-term products on behalf of blue-chip insurers. If you are interested in expert advice on the type of cover that is right for your business needs, look no further. Nedbank has a team of specialists ready to provide you with the information you need to make an informed decision. For more information call Shareen Gobichund on +27 (0)31 364 3308, send an email to or visit

Nedbank Ltd Reg No 1951/000009/06 Nedbank Ltd Reg No 1951/000009/06. Authorised financial Authorisedservices financial services and registered provider (NCRCP16). and registered creditcredit provider (NCRCP16).


Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life assurance, asset management, banking, healthcare and general insurance. To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards in each province to serve as links between the province and the business. These Provincial Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of this province and its people.

MEET SILAS SEBILOANE Chairperson of the Free State Provincial Management Board “What brings all of us together as a business is our customers, and they are the centre of everything that we do and they inform the decisions that we make. Our primary objective in the Free State and across the group is to collaborate and share our resources, expertise and wisdom always with our customers’ interests at heart at all times. This approach will always will enable us to deliver a holistic financial solution ecosystem of financial support and guidance to each and every one of our customers, and enable us to do great things and enable positive futures.” We undertake to: n Build a workable internal relationship across all business units. n Strengthen our external relationships with key stakeholders by introducing each other in the market. n Integrate market activities and resources in order to defend our market share and close for competitors. n Joint stakeholder functions. n Collaborative community and CSI projects that will represent one Old Mutual in the community.

ombds 4.17.10479.02



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NEED A FINANCIAL PARTNER THAT MAKES A POSITIVE IMPACT ON SOCIETY? Old Mutual is deeply committed to playing a significant role in building a strong and financially inclusive South Africa. As a responsible business committed to caring for our communities, the Old Mutual Foundation addresses socio-economic challenges through investing in: • Small business development and entrepreneurship • Youth unemployment through skills training • Strategic education initiatives • Caring for vulnerable communities In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In the Free State the Old Mutual Foundation invested a total of R486 756 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In the Free State, 14 organisations have received a total R279 850 as a result of staff volunteering efforts.

ombds 7.2017 L10479.8


Old Mutual is a Licensed Financial Services Provider

OLD MUTUAL FOUNDATION CASE STUDIES IN THE FREE STATE The Old Mutual Education Flagship Project (OMEFP) is a national education initiative started in 2013 to invest R350 million over seven years into underresourced schools in key provinces such as Ntemoseng High School in Botshabelo, Free State. The overarching goal of the project is to increase the number of bachelor passes in maths and science so that more students can access university education. In partnership with the University of the Free State, this project was able to increase the scope of mentoring programmes for school teachers in key subjects. It is interventions such these which have contributed to Ntemoseng High School becoming one of the top-performing schools out of 14 schools in Botshabelo.

The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In the Free State Masisizane disbursed funds of R3 649 172 to two clients which created 50 new jobs.


and others are expected to create or retain a total of 75 jobs. Once phase one is fully implemented and proof of concept has been achieved, Pick n Pay is planning a national rollout. The next phase will target additional stores in Gauteng and Western Cape. Masisizane Fund intends to further participate in the rollout, attracting other partners.

WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programmes promote financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector.

Pick n Pay Spaza Township Economy Revitalisation Programme The programme was initiated by the Gauteng Department of Economic Development (GDED) following a township revitalisation roadshow that included a visit by the provincial government and its partners to 65 townships across Gauteng in 2014.

In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes.

The five new stores co-funded by Masisizane Fund (R6 118 733), Old Mutual Foundation (R2 000 000),

For more information, contact Silas Sebiloane at

In the Free State 8 969 individuals were trained in our Old Mutual On the Money financial education programmes.

KEY SECTORS Overview of the main economic sectors in the Free State Agriculture


Mining 40 Manufacturing 49 Oil and gas




Education and training


Banking 57 Development finance and SMME support



Agriculture Record maize harvests are helping the national economy.

SECTOR INSIGHT Value addition and agriprocessing are sector priorities. • The drought cut potato yields by two thirds.


griculture makes up 4% of the Free State’s gross domestic product but the province’s efficient farming operations contributed a total of 10% of South Africa’s agricultural output. There was great relief in late 2016 and early 2017 when the long national drought broke in the central and northern areas of the country. Potato yields in the eastern Free State were reduced below 10 tons per hectare during the worst period, against previous years where yields of better than 30 tons (and sometimes 45 tons) were achieved. So good was the recovery–particularly in the Free State’s great strength, grains–that agriculture helped push the national economy into positive growth in the middle of 2017. A record maize crop of 16.4-million tons was good news for exporters and consumers. A 25kg bag of maize meal was 8% cheaper in June 2017 than it was a year before (Business Times). The Free State has 32 000km² of cultivated land and a further 87 000km² of grazing land and natural veld. A summer-rainfall region with a mean annual rainfall of 532mm, the Free State’s climate, soil types and topography vary greatly within the province, with plains FREE STATE BUSINESS 2018


in the west and mountains in the east. The western and southern areas are semi-desert, with some Karoo vegetation occurring in the south. The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), potatoes (33%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). Red meat and dairy are other important products. Game hunting is a growing sector, and several large Free State farms have been converted from stock to game farms. Crop production represents about two thirds of the province’s gross agricultural income. The main crops are maize and wheat. Sunflowers, sunflower seeds, sorghum and soy beans are other major crops. The Mangaung Fresh Produce Market plays a vital role in the sector, catering as it does to householders, bulk buyers, informal traders, agents and farmers.

OVERVIEW The NAMPO Harvest Day held in Bothaville every year is one of the biggest agricultural festivals and exhibitions of its kind in the world. The annual Farmer Patent Competition is sponsored by Grain SA and Omnia, the fertiliser company. Bothaville is located in the Lejweleputswa District Municipality on the western boundary of the Free State with North West. So far west is Bothaville that Senwes counts it as part of its North West region. The giant agricultural company, with its headquarters in the North West city of Klerksdorp, has three separate regions for the rest of the Free State. The company deals with no less than 20% of the country’s oilseeds and grain through its 68 silos. VKB Agriculture, another of the province’s large agricultural companies, has invested heavily in the Grain Field Chicken abattoir in Reitz (together with the broiler houses in Tweeling). The Industrial Development Corporation (IDC), which has a 23% stake in the project, intends to help develop the Free State as the poultry hub of South Africa. VKB’s headquarters are in Reitz in the north-eastern part of the province and the group has nine brands in sectors such as fuel, grains, animal feed and foods. The financial division held information sessions with emerging famers in 2016 to explain how farmers can benefit from the partnership between VKB and the Land Bank. VKB has development programmes with 51 emerging commercial farmers in the province and data on 140 developing farmers.

Agri-processing The Free State Department of Agriculture and Rural Development (DARD) has highlighted the fact that only 11% of the province’s primary agricultural production is processed within the province’s boundaries. In 2017 DARD hosted a summit on “Repositioning the Free State Province for Agricultural Value Adding and Processing Towards 2030”. Investors are being encouraged to look at baby vegetables, wholesale meat production (including poultry) and leather manufacturing. Key to commercialising these agricultural options is access to finance and the IDC has been very active in the province in this sphere. There are hopes that the official launch of the Maluti-A-Phofung Special Economic Zone will also boost the agri-processing and agri-logistics sectors. Five agri-parks are planned in each of the Free State’s district municipalities. Within these parks, support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market. The agri-parks are intended to provide a network for farmers and manufacturers, and training will be available. Clover has three factories in the Free State: Bethlehem (milk powder, whey mixtures and creamers); Frankfort (butter, the largest such factory in the country, where ghee and roller dried milk powder is also made) and in Heilbron (whey, buttermilk, condensed milk and packaging). The Homsek Group is an integrated dairy-products producer with one of the biggest Ayreshire herds in the world. Its factories in Bloemfontein supply Woolworths. The head office of Country Bird Holdings is in Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird Logistics controls 45 chilled and frozen vans.

CONTACT INFO Department of Agriculture and Rural Development Physical address: Gielie Joubert Street, Glen, Bloemfontein 9360 Tel: 051 861 8510 | Fax: 051 861 8578 / 086 723 8206 Website:

ONLINE RESOURCES Agricultural Research Council: Free State Department of Agriculture and Rural Development: Grain SA: National Department of Agriculture, Forestry and Fisheries:




Mining Diamonds are sparkling in the Free State.

SECTOR INSIGHT Quality diamonds have been extracted at Koffiefontein since 1870. • Seriti Resources has bought the New Vaal Collier y from Anglo American.


iamonds, coal and gold are the three main minerals found in the Free State but the decline of gold mining is a cause for concern. Several summits and a Mining Indaba have focussed on what kind of economic activity can replace gold mining. The mining sector makes up 11% of provincial GDP and continues to play a vital role in the economy. A minerals beneficiation strategy has been developed because this sector is seen as a key area for potential growth. Coal is mostly found in the northern part of the Free State and the gold fields, which form part of the Witwatersrand Basin, stretch from north of Welkom to south of Virginia. Petra Diamonds’ Koffiefontein mine is on the western edge of the province, about 80km from Kimberley. The mine is regarded as a lowgrade deposit, but the diamonds produced are of high value. White stones of excellent quality are produced and fancy pink diamonds are sometimes found. The first mine was found in the area in 1870 and Petra plans to continue mining until 2025 but there are indications that mining could go on even beyond that date. FREE STATE BUSINESS 2018


Petra will increase production at Koffiefontein from 50 500 carats per annum (ctpa) in 2017 to about 85 000 ctpa in 2019. The mine increased revenue to $25.7-million in 2016, an increase of 44%. The price achieved per carat rose by 10% from 2016, reaching $506 in 2017. Petra has seven mines in South Africa. The Star mine, in which Petra (75%) is in partnership with Sedibeng Mining, is the other Free State asset. The Lace Mine near Kroonstad went into business rescue in November 2016 after heavy rains affected operations. In May 2017 owner DiamondCorp put its listed holding company into administration. The primary lender was the Industrial Development Corporation (IDC). De Beers’ Voorspoed diamond mine will have a production capacity of 800 000 carats per year when it is fully operational. During the building phase, about

OVERVIEW R70-million was generated in the region, and the company intends spending R400-million per year on developing its capacity. In 2016 De Beers, the South African government and the South African diamond-cutting industry launched a project to encourage diamond beneficiators. Among the first companies involved are Thoko’s Diamonds, African Diamonds, Nungu Diamonds and Kwame Diamonds.

Coal The Sigma-Mooiplas mine is run by Sasol Mining and supplies Infrachem in Sasolburg with twomillion tons of coal per year. Seriti Resources has purchased the New Vaal Colliery from Anglo American. Together with two other mines in Mpumalanga Province, Seriti paid R2.3-billion. New Vaal is in the middle of a triangle of three towns that play an important part in industrial production: Vereeniging, Sasolburg and Vanderbijlpark. The mine employs more than 900 people and supplies about 15-million metric tons of coal to Eskom’s Lethabo power station annually.

in the Free State but most of its gold assets are in Gauteng. Reports in August 2017 suggested that the company was looking to retrench more than 7 000 workers across several mines. AngloGold Ashanti’s Vaal River Complex operations are mostly near the town of Orkney in the North West Province. However, the Great Noligwa, Kopanang and Moab Khotsong mines are all across the Vaal River in the Free State. The complex includes one uranium plant, four gold plants and one sulphuric acid plant. In 2017 two of the company’s gold mines, including Kopanang in the Free State, were shut down because getting to the ore body was becoming too expensive and too dangerous. Village Main Reef runs the Tau Lekoa mine in the same vicinity. Taung Gold, a Chinese company, runs the Jeanette mine near Welkom. Most of Harmony’s operations, including a tailings treatment, are in the Free State. The mines are Tshipong and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at Welkom. Phakisa has mineral reserves of just over five-million ounces of gold and Harmony has invested heavily in the project. Gold mines in the Free State also supply a substantial portion of the total silver produced in the country, and large concentrations of uranium occurring in the gold-bearing conglomerates of the goldfields are extracted as a by-product.

Other minerals By-products of gold operations (uranium, silver, platinum-group metals and sulphuric acid) and bentonite are also found in the province. Among the companies running large quarries in the Free State are Lafarge, Raumix and Corobrik. Sand, stone aggregate, gypsum and granite are found at various sites throughout the province. Limestone and calcrete occur in the western Free State where salt is also panned. Production is concentrated around the Florisbad salt pan, north-west of Bloemfontein. The Ocean Bentonite Mine near Koppies in the northwest Free State is one of only two in the country.



Sibanye Gold came into existence as a result of the unbundling of Gold Fields but it has now been rebranded as Sibanye Stillwater because of the purchase of a platinum and palladium mine in the US of that name. The company is responsible for the Beatrix mine

Chamber of Mines of South Africa: www. Geological Society of South Africa: Mining Qualifications Authority: National Department of Mineral Resources: South African Mining Development Association: Southern African Institute of Mining and Metallurgy:




Making a lasting impact Malcom Hendrickse, General Manager of De Beers’ Voorspoed Mine, notes the importance of a highly trained and competent workforce.

Malcom Hendrickse

What is the history of Voorspoed Mine? The history of Voorspoed Mine dates back to 1906. In 1912, the mine shut down, mainly as a result of the kimberlite ore that was very hard to mine with the technology of the day. It lay dormant until 2005 when the De Beers board approved an investment of R1.3-billion. Mining officially began in December 2007, and our very first carat was produced in June 2008. There was always something special about the gem quality produced at Voorspoed, and even today, the mine is renowned for its special stones. How important is employee training at Voorspoed? Our people are core to our business, and their safety and personal development is of paramount importance to us. Our priority is that every employee goes home safely after every shift, and that’s why we are proud of our record of no Lost Time Injuries since 1 October 2014. In addition to safety, we strive to create a competent and highly trained workforce through our skills training programmes. We had a very young workforce when we started operating, and we have done a lot in terms of broadening their scope from a development perspective through accredited, relevant and transportable qualifications.

BIOGRAPHY Malcom Hendrickse attained a BEng Chem degree at the University of Stellenbosch and worked for the Anglo American Gold Division before returning to De Beers. On secondment to Debswana he held various positions at plant manager level. He has been Ore Processing Manager (Venetia Mine), Operations Manager (The Oaks Mine) and SASSA Business Unit Manager for De Beers Marine. After a spell as General Manager of Kimberley Mine, he took the same post at Voorspoed Mine in 2016. FREE STATE BUSINESS 2018

Are there programmes to advance women in the workplace at the mine?

The number of women at the helm of the load and haul operations makes us particularly proud of the progress we have made in advancing women at Voorspoed. The Mining Charter aims to promote women in the industry, and there’s an active drive at De Beers to support this. For us, it has not just been a numbers game; we are far exceeding our targets. What is the life of the mine?

Our mining right licence expires in 2023; however, based on our cost operating model, the current life of the mine is 2020. How has Voorspoed Mine contributed to community development?

We are proud and passionate about our communities and we always get involved in projects that make a significant and lasting impact. We believe that the relationships we have forged with our communities are contributing positively towards the socio-economic development of the Free State.



Working together to prosper Ethical business practice entails caring for the environment and sustainable community development. De Beers’ Voorspoed Mine is actively involved in a wide range of community events, health drives and educational initiatives. The mine partners with NGOs, government departments and charities to work with communities in improving social conditions and the lives of community members.

Senior Human Resources Manager Sihle Nkomo ready to take his test.

Voorspoed employee Maria Salani signs up for the HIV awareness campaign.

A stage play to dramatise important points on Global Safety Day.

Stakeholder engagement meeting at the Town Hall, September 2017.

Ready for the lecture to begin at Career Youth Day.

Voorspoed Mine teamed up with the SA National Council for the Blind to raise awareness about the challenges faced by blind people.




Building a lasting legacy Mine community development.

Thumbs up for the new media centre: DBCM CEO Phillip Barton and Education MEC Tate Makgoe with the Executive Mayors, school principal, KST trustees and learners of Ntsoanatsatsi Primary.


he De Beers Voorspoed Mine is located within the Fezile Dabi District Municipality in the northern part of the Free State province. The nearest big town is Kroonstad.

The mine’s Social and Labour Plans (SLP) are founded on its geographic location and on building relationships with surrounding entities such as the local municipalities of Ngwathe and Moqhaka. As Corporate Affairs Manager Andrew Moremi explains, “Before we can embark on any mine community development process we have to consult these two municipalities and consult the integrated development plans (IDP).” Once the needs of the communities (including the “labour sending areas”) are investigated, projects are then planned. The key document for social investment is the SLP, a mandated requirement for mines. The latest SLP has been developed to guide social investment for the five-year period from 2017 to 2021.

Education the cornerstone A thorough needs analysis was undertaken which resulted in most of the investment being in the field of education. This was true for the previous SLP (2012-2016) and for the SLP that will last beyond the closure of the mine. “The company has taken a deliberate decision,” says Moremi, “that for empowerment to be really permanent and sustainable you’ve got to base it on education because that cannot be taken away. It is a means to an end and not an end in itself. We wanted to act based FREE STATE BUSINESS 2018


on sustainable thinking.” The Social and Labour Plan which informed Voorspoed’s mine community development for the years 2012 to 2016 had four main planks: 1. Educational support and upliftment: Teacher development and support for mathematics and science. A financial assistance programme assists with tuition at tertiary institutions. 2. Rural schools development programme: Infrastructure such as classrooms, media centres or libraries. 3. Social uplif tment pro gramme: Poverty alleviation programmes and support for local NGOs such as creches, health interventions, soup kitchens and programmes for the elderly. 4. Zimele Voorspoed Hub: Enterprise and supplier development, which is dealt with separately in this publication. In every case, the budget for the support for these programmes has been exceeded. An amount in excess of R30-million was spent against an original commitment of R14.2-million. The reason is simple, says Moremi, the need was greater than was anticipated. “When we got to the schools and discovered the scope of work required, we realised we needed

FOCUS to go the extra mile to really make those schools conducive for a good learning environment.”

Into the future The latest SLP builds on the previous plans, with a continued focus on education. The projected budget for the 2015-2017 SLP is R25.3-million. But the company looks beyond compliance. Moremi says, “The underlying message is that you make sure that you address the real need. We’re not promising to overspend but we are driven more by the need to address the social impacts that are there.” Phuleng Primary School is an example of a legacy project we are targetting in a labour sending area. Located in the Maokeng township of Kroonstad, the 120-year-old school had classrooms that were found by structural engineers to be too poor to repair. Voorspoed Mine has committed to building new structures. Technical designs of the school have been completed and consultations are under way with all the affected parties. The building process is expected to begin in early 2018. On 16 November 2017 Voorspoed launched a new media centre at Ntsoanatsatsi Primary School which is part of the Free State School Build Programme. To assist school pupils, Voorspoed sponsored a camp in October. “There was a full week of tuition support for about 373 students who were from the 12 schools in the district.” The results for matric pupils in the Free State

have improved dramatically recently, but Moremi is careful to say that Voorspoed was “part of the success” and acknowledges the role played by partners such as the Kagiso Shanduka Trust and the Department of Education. Under the Higher Education and Training Support programme, 17 students were funded in 2017 and students will again receive support in 2018. This support is offered at the tertiary institution of the student’s choice, whether a TVET college or a university. Support for local municipalities for the provision of basic services is also part of the legacy plan for Voorspoed. This relates to bulk water, electricity and sanitation. Moremi reflects, “The intention is to give some support to the two municipalities on basic infrastructure because we’ve realised with the drought that struck the Free State and these two municipalities in the past, there were challenges with regard to infrastructure. We want to really work in partnership with the two municipalities and boost areas where there’s a need for support, so that will also be carried through for the next five years.”

Voorspoed Mine community projects scorecard Project

Progress • Ntsoanatsatsi media centre: complete

Free State School Build Programme

• Mahlabatheng refurbishment: complete • Phuleng new classrooms: designs complete

Municipal basic services

Scoping and costing to be initiated

in fra struc ture support Mathematics and science teacher

Implemented, October 2017

development and Winter School Parys Day Care Centre for the Aged

Scoping, plans and costing to be initiated

Healthcare infrastructure support

Scoping and costing to be initiated

programme Corporate social investment via local

Projects selected and implementation in

area committees (various)


Higher education and training

17 students identified, approved and paid

sup port programme




Preparing for success in business Enterprise and supplier development.


busy and complex mining operation such as Voorspoed needs a range of suppliers. Whether it involves transporting workers to and from work, catering or maintenance, there is a great deal of work to be done that goes beyond the core business of diamond mining. This presents an opportunity to support and develop the local economy where the mine operates. But simply making a decision to use local suppliers is not enough, because the skills needed to do the work (or run a business efficiently and profitably) may not be there. This is where an enterprise and supplier development programme becomes a key element in the plan to support local entrepreneurs and service providers.

Incubation The Voorspoed Mine Enterprise and Supplier Development Manager is Theodor Moeti. He explains the underlying concept as incubation. “This is where we equip people with business management skills.” The incubation programme aims to create independent businesses that are able to go beyond a craftsman using their skills or someone having a product to sell in a once-off transaction, to becoming thriving businesses that will last and grow. “All applications were from Fezile Dabi district and then a shortlist was compiled from those applicants. This ensures that the successful candidate is also local.” Other business ideas that have been raised in the Incubation Programme include agri-processing, bio-diesel manufacturing, compost manufacturing, landscaping and waste recycling. The key, as Moeti stresses, is that they should be “stand-alone businesses”, independent of the mine and mine contracts.

Supplier devopment programme The company that supplies the specialist training for business management skills is TrioPlus Development. Eight local companies have been identified to learn more about business skills such as financial management, pricing and costing, human resources, marketing, operational management and entrepreneurial awareness. Also included FREE STATE BUSINESS 2018


are the key skills of management and leadership. Moeti notes that the appointed service provider is responsible for mentorship. “We appointed TrioPlus Development to ensure that the businesses succeed, and they become sustainable in the long run. During this mentorship the service provider addresses and develops and trains the business owner.” Important objectives are to make sure that they render a quality service to the mine, and that the business remains sustainable even after the life of mine. Not all training is outsourced. Says Moeti, “Say for instance if we see that a contractor is taking too long to replace a bolt, we then get one of our engineers internally, a mine employee, to come and train on site. In this way we also give support.”

A shining star In 2016 four people wanted to apply for the plant cleaning and maintenance contract but they were not registered as a business. The Voorspoed enterprise and supplier development unit assisted them with business registration and with an application to get the capital to buy equipment. A significant discount was negotiated on the machinery


and the loan was obtained from mining-related sectors. Local residents are being assisted to prepare Zimele, the Anglo American for a broader range of employment and business opportunities. funder of small enterprises. With funding of R3.2-million, Blue Motion General Construction went from strength to strength to the point that they now employ 26 people. The four-person team (including one female and two youths) are now in discussions with mentors about how they might expand their range beyond the mine. September 2017 orporate Affairs Publication One way of stimulating local supplier development is to ensure Members of Mmetlakgola Transport own a share in the company transporting that contracts are awarded to local Voorspoed Mine workers. suppliers wherever they can offer the pre-requisite skills. The transport sector is another area of opportunity. For example, Mmetlakgola Transport, a company formed by 36 members of two Kroonstad Taxi Associations, owns a 26% share in Multi Transport through  an empowerment deal facilitated  by De Beers for the transportation  of its employees. Anglo Zimele  has recently approved a loan of R4.2-million to assist Mmetlakgola Transport to purchase busses. A small      TrioPlus Development provides SMME training. dividend has already been paid by  the venture.        A contract was awarded in 2016        to Lekoa Technologies to run the      mine’s conveyor belt maintenance.  Voorspoed and Dunlop Industrial have since conducted specialist training sessions for employees of      Lekoa, where certificates of compe tence have been awarded.


orspoed Mine

  

           Voorspoed is looking ahead  to the future. Incubators are  no longer focussing purely on  construction and catering and

Looking ahead

De Beers Voorspoed Mine Incubation Support Programme was launched in June 2017 in Kroonstad with 35 entrepreneurs with potential.

FREE STATE BUSINESS 2018 47   


Broadening horizons Voorspoed Mine training focuses on widely applicable skill sets to empower employees.

Portable skills

Work Experience trainees.


ines, like many other businesses, have a natural life span, which obviously has implications for the workforce and the wider community. The important thing is that proper plans are put in place so that challenges can be met.

Hans Kgasago is leading the Voorspoed mine closure project and in this project works with the Voorspoed community and workforce as part of preparing for the future. His focus is to manage the transition, specifically focusing on environmental rehabilitation and integrated closure plans. The current Voorspoed mine workforce is 407 employees with 59% of these being from the local labour sending areas of Ngwathe and Moqhaka municipalities. Thirty-one percent of the total workforce are women. Voorspoed has consistently progressed towards the advancement of women. Human Resources Business Partner, Lungile Zimu, explains that a programme was started in 2014 to develop women to be ready for promotion when opportunities become available. The aim was to “start a programme to create a pipeline of opportunity,” and as a consequence, women with potential working as operators have risen beyond foreman roles to being shift-bosses. But while the advancement of women has been a focus area, this has not been at the exclusion of other initiatives to advance the workforce generally, and to enable those with potential to advance. In keeping with the strategy for securing the future, Voorspoed’s bursary programme is expanding beyond the technical fields such as engineering or metallurgy. “We want to focus on diversifying to create a positive legacy,” says Ms Zimu. For a young person without experience, getting a job is a challenge. Even applying for job can be a daunting prospect. Understanding this, the department hosted a job entry and work conduct workshop for the community, especially youth, in September 2017, and a group of 17 Work Experience graduates are currently gaining work experience at Voorspoed. In some cases, this is necessary for converting their qualifications into a national diploma FREE STATE BUSINESS 2018


Valuable skills are those that can be applied to more than one kind of industry, and “portable skills” forms a key component of Voorspoed’s planning for the future. As Johnny Deyzel, HR Practitioner, explains, “De Beers aims to facilitate training skills to enable employees to meaningfully compete for opportunities post Voorspoed Mine. All our skills programmes and learnerships are geared so that all the operators have a skill that they can apply somewhere else.” After a consultative process involving organised labour, 10 of the most transferrable skills were prioritised for 2017, and Voorspoed is ensuring that these skills are receiving the appropriate focus in its training programmes. In addition, a programme to offer skills training to community members has been included in Voorspoed Mine’s most recent Social and Labour Plan. Informed by the Social Impact Assessment conducted in 2016, community development needs were included in the SLP. Three areas of training that were identified as being particularly important were plumbing, welding and water treatment. In addition to offering artisan training. Voorspoed Mine has together with the Department of Labour identified 15 local women as deserving candidates and they currently attend courses in these key disciplines.


Manufacturing Regional industrial policy aims to attract investors.


anufacturing makes up 9% of Free State gross domestic product, and this comprises 4% of South Africa’s total. The Free State Regional Industrialisation Policy is being reviewed to ensure integration of infrastructure, bulk service provision, industrial sites and export and tax incentives to attract investment. The Industrial Park in Botshabelo was relaunched in June 2016. This R60-million project, part of a scheme to revitalise industrial parks in the province, hosts 12 manufacturing companies. A Risk Sharing Funding and Black Industrialist Scheme supports black industrialists. Innovation in manufacturing is encouraged at the Product Development Technology Station (PDTS) at the Central University of Technology (CUT). The PDTS helps small businesses with the technology to design new products, to test them or to improve existing products. The PDTS is funded by the Technology Innovation Agency (TIA) and works in partnership with another CUT unit, the Centre for Rapid Prototyping and Manufacturing (CRPM). Tax and other incentives are attracting manufacturers to the province’s Special Economic Zone (SEZ), the 1 000ha Maluti-a-Phofung SEZ at Harrismith on the N3. Companies from China, Bulgaria and India have expressed interest. Among the projects in the pipeline are a factory making transformers and one to make medical equipment. The existing manufacturing sector has capacity in many sectors including chemicals, agri-processing, textiles, carpets, engineering, packaging, furniture and jewellery.

CONTACT INFO Department of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Dr Benny Malakoane Postal address: Private Bag X20801, Bloemfontein 9300 Tel: 086 110 2185 | Fax: +27 51 400 9593 Website:

ONLINE RESOURCES Free State Development Corporation: National Department of Trade and Industry: The Manufacturing Circle:


SECTOR INSIGHT The Industrial Park in B o t shabelo has been relaunched. Harrismith is home to Nouwens Carpets and Boxmore Plastics. Boxmore Packaging’s new PET beer bottles are the first PET bottles specifically designed for beer on the SA market. Empire Gloves makes industrial gloves. Kroonstadbased Octa Engineering makes specialised rail carriages for the mining sector. In Bloemfontein, Transnet Engineering manufactures new wagons for the Transnet group, including iron ore and cement wagons and fuel tankers. The Industrial Development Corporation is supporting the clothing and textile industry with loans and investments. The towns of Botshabelo, QwaQwa and Thaba Nchu have factories employing several thousand people. Nearly 20% of the Free State’s manufacturing sites are devoted to food and beverages. Landzicht Wine Cellar, an operation that distributes 2.4-million litres of wine every year from Jacobsdal, has a new bottling plant. Chemicals are a major sector within the Free State manufacturing basket. Sasol, Omnia and AECI are the major companies.



Oil and gas Free State gas fields could feed new power stations.

SECTOR INSIGHT Sasol has converted its Sasolburg operations from coal to gas. • Afrox is building a helium plant.


new national focus on gas as a fuel to supply energy will benefit the Free State. Sasol’s Sasolburg operations in the northern part of the Free State are a key national asset in the gas sector and there are early signs that there are large gas fields in the province. Natural gas is an inexpensive alternative to coal. Although the coal is still powering most power stations in South Africa, it is a finite resource. Petroleum Agency SA is the state agency responsible for promoting and regulating exploration and production of oil and gas in the country. Data suggests that the Free State has 23-billion cubic feet of gas underground but only exploration can confirm this. If the gas is found in large quantities, then up to four new power stations could be built in the province. Four applications for gas exploration in the Free State have recently been made. The two from Rhino Oil and Gas Exploration South Africa are part of a series of applications that the British Virgin Islands-based FREE STATE BUSINESS 2018


company has made across three provinces, “most of which”, according to the Mail & Guardian, have been granted. Rhino’s two Free State applications cover 2.8-million hectares. The other two are from Motuane Energy in the Lejweleputswa District Municipality (between Virginia and Senekal) and Sungu Sungu Gas in the Thabo Mofutsanyana District Municipality (south of Memel). Both applications have been opposed by farmers: Sungu Sungu withdrew its application before a High Court hearing in November 2016. Sasol is doing its own conversions at its plants. The major economic sectors using gas are the metals sector and the chemical, pulp and paper sector. Brick and glass manufacturers are also big consumers. A major investment by Afrox (a member of the Linde group) will see a R200-million plant built to extract helium near Virginia. Renewable energy company

OVERVIEW Renergen owns the right to the natural gas and helium field around Virginia (which has proven reserves of 25-billion cubic feet). Afrox will operate the plant and sell the helium. Bus companies will buy another product which the plant will supply, compressed natural gas. This is a cheaper alternative than diesel. Renergen’s natural gas subsidiary, Tetra4, has secured a R218million loan from the Industrial Development Corporation to build a 107km pipeline network from Virginia. Afrox operates a CO2 liquefier at Sasolburg which supplys the bottling and hospitality markets, where demand is strong.

Alternatives An energy-from-methane power plant now running at the Beatrix gold mine neatly encapsulates a shift from the old economy to the new. Although the Sibanyeowned gold mine still has significant reserves of the mineral, it is the shift to this new technology that is sparking interest and showing the way to creative energy solutions. Sibanye’s predecessor as owner of the mine, Gold Fields, was the first gold miner to sell certified emissions reductions (carbon trading units) and now the mine is producing 2MW of power for the mine’s operations. The Beatrix Project was registered as a methane-gas-capture project with the United Nations Framework Convention on Climate Change (UNFCCC). Aggreko, a company

that specialises in providing temporary power, is running the operation in partnership with Sibanye. During the 2010 FIFA World Cup in South Africa, Aggreko supplied 253 generators to stadiums and broadcast centres.

Oil The Natref fuel refinery is one of only four in South Africa, and the country’s only inland refinery. It is strategically placed at Sasolburg near to the industrial hub of southern Gauteng. The petrochemical complex at Sasolburg is a major national asset. Among the many chemical, oil and gas companies operating out of Sasolburg are several companies within the Sasol group. One of these, Sasol New Energy, has been working on moving the group away from reliance on fossil fuels. The resulting savings will improve Sasol’s profit margins, reduce carbon dioxide emissions and take pressure off the national electricity grid. The Natref refinery is a joint venture between Sasol Oil (63.6%) and Total SA (36.3%). It is a technologically advanced facility, which refines heavy crude oil into petrol, diesel, commercial propane, jet fuel and bitumen. The capacity is 92 000 barrels per day. Between 60% and 70% of petroleum is distributed by pipeline, 20% to 25% by road and 5% by rail. The products sold by Sasol Oil include both lead replacement and unleaded petrol, Sasol turbodiesel™, a range of lubricants, industrial fuel oils, illuminating paraffin and liquid petroleum gas, in addition to marine diesel oil and bitumen.

CONTACT INFO Department of Economic, Small Business Development, Tourism and Environmental Affairs Physical address: Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300 Tel: 086 110 2185 | Fax: +27 51 400 9593 Website:

ONLINE RESOURCES Liquefied Petroleum Gas Association of Southern Africa: National Department of Energy: National Energy Regulator of South Africa: Petroleum Agency SA: South African Oil and Gas Alliance: Transnet Pipelines:



Sasol supports access to health care in the Free State

Blood pressure testing formed part of the range of tests done during Phase 2 of the Sasol HIV/Aids and TB support programme. Community members also had access to HIV, TB, STI and blood glucose testing.

Sasol recognises that we have an important role to play in socio-economic development, particularly in the communities in which we operate. Our social investment programmes focus on Education and Skills Development, mainly Science, Technology, Engineering and Mathematics education and vocational skills development. Entrepreneurship training aimed at youth, Small Business Development and Environment is also a focus area. In addition we concentrate on Community Development which comprises mainly programmes to enable access to healthcare and well-being, collaborating to improve the delivery of municipal services. As it is a key focus to bring healthcare closer to our communities, we invest in

preventative and corrective programmes to enhance the well-being of the members of our communities. In partnership with the Free State Department of Health we upgraded and expanded three clinics in Zamdela and provided four fully equipped mobile clinics. These support the Department of Health’s ‘back to care’ strategy of providing homebased care services to rural areas that are far from local community clinics. The four mobile clinics treat more than 35 000 patients per year. In addition, Sasol recently built the new Sasolburg Clinic that will contribute immensely towards four strategic outcomes in respect of the right of access to healthcare articulated by the Free State

The new Sasolburg Clinic built by Sasol opened its doors in April 2017 to serve more than 16 000 people in Metsimaholo.

Premier during the 2017 SOPA. The new Sasolburg Clinic serves a catchment area of over 16 000 people. Sasol also successfully conducted the second phase of the Sasol HIV/Aids and TB Support Programme in cooperation with the Free State Department of Health and a local NGO during 2017. The programme, aligned with the new National Strategic Plan on HIV, TB and STIs, placed testing villages in the Fezile Dabi District. Towns such as Zamdela, Deneysville, Oranjeville, Parys, Tumahole, Koppies, Villiers, Frankfort, Tweeling, Kroonstad and Viljoenskroon were visited. More than 200 community health workers conducted testing and screening at the villages, while also going from door-to-door in the community. During both phases more than 73 000 people were tested.

Over 3 800 of the people tested were referred for TB treatment while about 4 000 of the patients were referred for HIV treatment. Testing for sexually transmitted infections (STIs) was introduced for the first time during Phase 2. As part of the service, patients also had access to blood pressure and blood glucose testing while also distributing 830 300 condoms in the communities.


Tourism The game industry is set to boost the wider tourism sector.

SECTOR INSIGHT The Phillip Saunders Resort in Bloemfontein is to become a hotel school. • A biodiversity corridor will bring benefits to a Qwaqwa community.


ourism is one of the Free State’s fastest-growing economic sectors, with leisure and business tourism enjoying the best growth within the industry. The Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs believes that the R7.7-billion game industry sector could grow even further across three subsectors, namely: • auctions and translocations • game ranching and eco-tourism (including hiking trails, bird watching, photographic safaris, 4x4 trails, canoeing, abseiling, lodges and conferences) • a combination of lodges, game breeding, eco-tourism and hunting. In support of this trend, new protected areas are being proclaimed in areas where tourism can bring employment and economic growth. There are ambitious plans to create a biodiversity corridor between the Golden Gate Highlands National Park, the Royal Natal National Park and the Sterkfontein Nature Reserve which will involve the Qwaqwa community living at the base of the Drakensberg mountains. Near Memel, the Sneeuwberg Protected Environment, a multi-owner private initiative, has added 17 500ha to the province’s protected asset base. When the Ingula Nature Reserve is declared in 2017, another 8 000ha will be added. Existing special schools within the province are to become designated vocational schools, with at least one of these schools specialising in hospitality. The Phillip Saunders Resort in Bloemfontein is to become a hotel school. The annual National Tourism Careers Expo is held in FREE STATE BUSINESS 2018


Mangaung and attracts 10 000 participants over three days. The Free State is putting a focus on culture. A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole with statues of Oliver Tambo and Fidel Castro. The Mangaung African Cultural Festival (Macufe) has become a national and international event. Offerings range from music and craft stalls to poetry, film and theatre, a soccer tournament and boxing matches. South Africa’s largest hotel groups have several brands that cater to different markets. In the Free State, Protea Hotels has five properties: Protea Hotel Bloemfontein by Marriott and Protea Hotel Willow Lake (both four-star), Protea Hotel Bloemfontein Central (threestar), Protea Hotel Montrose (Harrismith) and Protea Hotel Clarens. The four-star Southern Sun Bloemfontein, part of the Tsogo Sun group, has 147 rooms, and the Goldfields Casino in Welkom is

OVERVIEW another Tsogo Sun property. The City Lodge Bloemfontein boasts 151 rooms, and there is a Road Lodge at the airport. The Rantsoareng Group operates exclusively in the Free State and has three properties, the biggest of which is the President Hotel in Bloemfontein. Sun International runs the Lesotho Sun and the Maseru Sun in neighbouring Lesotho. In Bloemfontein, the Windmill Casino and Entertainment Centre offers slot machines and gaming tables, plus the ability to host conferences for up to 250 delegates. The four-star Willow Lodge has 80 rooms. The Naledi Sun Hotel and Casino is about 65km from Bloemfontein. Forever Resorts has a popular resort with chalet accommodation and a caravan park on the banks of the Gariep Dam. Overlooking the dam is the 43-room de Stijl Gariep Hotel which has wedding and conference facilities.

Routes Each of the province’s district municipalities has its own tourism brand or route: Cheetah Route (Mangaung M e tro a n d su r ro u n d s): Bloemfontein has a host of historical and cultural sites, including the Naval Hill Precinct (home to the Digital Planetarium), the Anglo-Boer War Museum, the National Museum (which has the Florisbad skull), the Choet Visser Rugby Museum, the SA Armour Museum and the Fire

Station Museum. Nearby Thaba Nchu is where the great statesman Moshoeshoe held court in the second half of the 19th century, and created a nation against the odds. Springbok Route (Xhariep District): Travellers can start their journey at a diamond mine, visit a wine farm and finish on the top of the Gariep Dam. Several Anglo-Boer War battles sites and superb San rock engravings can be found dotted around the district. Flamingo Route (Lejweleputswa District): One of the biggest agricultural expos in the world takes place at Bothaville. Phakisa race track in Welkom attracts large crowds and it has so far hosted six World Motorcycle Grand Prix events, providing a big boost to the regional economy. The district has several game farms, game reserves and resorts. Lion Route (Fezile Dabi District): The banks of the Vaal River provide for boating, yachting and camping. Parys is a popular destination and Deneysville has a crocodile farm. Cape wines can be tasted on the Riemland Wine Route. The Vredefort Dome, site of a meteorite strike in the distant past, is a World Heritage Site. Eagle Route (Thabo Mofutsanyane District): This route encompasses the Golden Gate Highlands National Park and Resort. Ficksburg has claims to be the world’s Cherry Capital and nearby Clarens is very popular with weekenders looking for art in a rustic village atmosphere. Bethlehem hosts an annual Bethlehem Air Show and the Maize Fair in October. Phuthaditjhaba is a good starting point for the Basotho Cultural Village and access to the Vulture Restaurant and Witsieshoek Mountain Resort.

CONTACT INFO Department of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Dr Benny Malakoane Physical address: Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300 Postal address: Private Bag X20801, Bloemfontein 9300 Tel: 086 110 2185 | Fax: +27 51 400 9593 Website:

ONLINE RESOURCES Free State Gambling and Liquor Authority: Free State Tourism: South African National Parks: South African Tourism: South African Tourism Services Association:




Education and training Free State students are learning advanced skills in China and Turkey.


he Free State Provincial Government is implementing South Africa’s largest global skills development programme in support of implementation of the National Development Plan (NDP). The Free State Premier, Dr Ace Magashule, strongly supports the free overseas training programme, with about 905 students studying in leading universities in China, India, Germany, Portugal, Russia, Turkey and Belarus. Fields of study range from all kinds of engineering, to computer science, medicine and pharmacy. India is hosting 32 students in the health sciences sector. Germany is hosting 68 students in sustainable mining and remediation, computer engineering, international trade economics, electrical and chemical engineering, molecular biology and genetics, and civil engineering. Belarus has 17 students in the field of informatics, applied chemistry and radio electronics. Turkey hosts 206 students. Russia is hosting 230 students in the fields of medicine, agri-processing, veterinary medicine, agronomy and agriculture. Portugal is hosting 119 students in tourism and hospitality management, civil engineering, medicine, veterinary science, agronomy and aeronautics, and 17 students are doing internships in information technology at Acin IT in Portugal. Upon completion, these Free State graduates will be part of shaping the future of the Free State and South Africa. Domestically, there are 8 232 students at tertiary institutions on provincial bursaries. A new focus on very young children has seen 846 educators given advanced training in Early Childhood Development. A total of 47 200 children were on ECD programmes in 2017/18. Grade R access is also being improved, with an additional 80 public schools due

ONLINE RESOURCES Central University of Technology: National Department of Higher Education and Training: Free State Department of Education: University of the Free State:



SECTOR INSIGHT There are 8 000 provincial government bursaries. to receive this class in 2017/18. A Science, Technology, Engineering and Mathematics Academy (STEM Academy) is a joint undertaking of the Free State Department of Education and the Central University of Technology. A pilot project at Qelo School, Botshabelo, is testing the idea of specialist skills schools. Matriculants from these schools will be better prepared to attend one the province’s four Technical and Vocational Education and Training (TVET) Colleges. The Free State has just over 14 000 students at four TVET colleges, taught by 400 lecturers. The colleges have multiple sites. Maluti TVET College in Phuthaditjhaba, for example, offers classes at seven sites. Flavius Mareka TVET College has Kroonstad and Sasolburg venues. Motheo TVET College operates in Bloemfontein and Thaba Nchu, while Goldfields TVET College is in Welkom. High-quality research is conducted at the University of the Free State (UFS) and the Central University of Technology (CUT). UFS caters for 17 500 students at two sites and a further 3 000 who study by correspondence.


Banking and financial services Many agricultural companies are active in financial services.


outh Africa will soon have several new banks. Companies in the agricultural sector are also increasing their stake in finance. No fewer than three new banks are set to make their debuts on the South African market. Life insurer MMI Holdings is also entering a partnership with African Bank to enable it to start taking deposits and loaning money. Agricultural company Afgri, which has a strong presence in the Free State, has bought the South African Bank of Athens from the National Bank of Greece Group. The deal is subject to regulatory approval. With its own banking licence, Afgri will not have to continue to rely on a partnership with the Land Bank to offer loans and insurance through Unigro. Afgri’s GroCapital Financial Service offers futures trading contracts and the two divisions collectively manage a R12-billion debtors book. All of the planned new banks come from state enterprises: Ithala, Postbank and a Human Settlements Development Bank. The Ithala Development Finance Corporation is an enterprise funder in KwaZuluNatal that has applied for a banking licence. In 2016 Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book.

CONTACT INFO Provincial Treasury MEC: Ms Elzabe Rockman Physical address: 55 Elizabeth Street, Fidel Castro Building, Bloemfontein 9300 Tel: +27 51 403 4141 | Fax: +27 51 403 3244 Website:

ONLINE RESOURCES Auditor-General South Africa: Financial Services Board: Insurance South Africa: Post Bank: South African Insurance Association:


SECTOR INSIGHT Afgri has bought the Bank of Athens (South Africa). Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large state-funded housing projects. For many decades, South Africa had a retail banking Big Four – Standard Bank, Nedbank, Absa/ Barclays and First National Bank. In recent years Capitec Bank has joined them as a major player in the retail market. The big banks all have agricultural specialists in the province and dedicated units such as Nedbank Agribusiness. Senwes is another big agricultural company active in the province, although its headquarters are in Klerksdorp, North West. In 2017 Senwes and its holding company Senwesbel became the first new stocks to be listed on the country’s new stock exchange, the ZAR X. CertiSure is a joint venture between NWK and Senwes that offers shortterm insurance, crop insurance, financial planning, medical funds and funeral policies. Reitz-based VKB offers loans and insurance products. FREE STATE BUSINESS 2018


Development finance and SMME support A business park in Sasolburg is supporting black industrialists.


172ha business park in Sasolburg designed to incubate black industrialists is a joint venture between the National Department of Trade and Industry (dti) and Sasol. There are five buildings on the site, training is provided and companies have access to the supply chains of Sasol’s many companies. The dti’s Enterprise Investment Programme (EIP) is successfully supporting Extractive Technologies, a company in the electro-technical sector. This is a focus area of national policy and the targeted company used its grant to create additional employment for youth in the Sasolburg area. The Free State Provincial Government spent R1.2-billion on SMMEs through its state procurement programme in the 2016/17 financial year up to the end of December 2016. The Department of Economic, Small Business Development, Tourism and Environmental Affairs is prioritising support to SMMEs. Programmes include: giving assets to manufacturing micro-enterprises that show the potential to employ five or more people; assisting with the rent payments of 35 SMMEs at the container park in Bloemfontein; rolling out the Mangaung SMME hub; offering accredited skills training for six months in three main sectors, automotive, manufacturing, and agri-processing sectors. Mospak Trading and Projects Primary Co-Operative is a recent national winner of the manufacturing category of the Eskom Business Investment Competition (BIC). The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include:

CONTACT INFO Department of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Dr Benny Malakoane Physical address: Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300 Postal address: Private Bag X20801, Bloemfontein 9300 Tel: 086 110 2185 | Fax: +27 51 400 9593 Website:



SECTOR INSIGHT A Phuthaditjhaba co-operative is a national winner. The Black Business Supplier Development Programme, a cost-sharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. T h e Small Enter p r is e Development Agency (Seda) is a subsidiary of the DSDB and supports entrepreneurs. Seda focusses on training and administrative support, although the agency will help SMMEs get in touch with financial bodies. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support SMMEs with growth potential across priority sectors aligned with the National Development Plan. The major banks all have SMME offerings. Standard Bank runs a Community Investment Fund and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million. Agribusiness and agriprocessing are among the sectors targeted by the Masisizane Fund for loan financing. •


Bringing services to the people The Free State Development Corporation is bringing services closer to the people through its strategic partnership programme.

CIPC Commissioner Adv Rory Voller (left) and FDC CEO Ikhraam Osman (right) at the SST official launch at Rent-A-Desk.


he strategic partnership between FDC (Free State Development Corporation) and CIPC (Companies & Intellectual Property Commission) brings relief to SMMEs (small, medium and micro-enterprises) by bringing services to their doorstep. The CEO of FDC, Ikhraam Osman, and CIPC Commissioner, advocate Rory Voller, launched an Electronic Self Service Terminal (SST) at Rent-A-Desk on 2 June 2017. This initiative assists aspirant Free State entrepreneurs and SMMEs as they are now able to register their companies with CIPC at a minimal cost of R175. In addition to cutting the transport cost of having to travel to Pretoria for registering their business, they receive their registration certificate within two days after registering. According to CIPC, the facility is a government response to meet the needs of emerging businesspeople by bringing services at low cost to their doorstep. FDC CEO Ikhraam Osman indicated that Rent-A-Desk is a co-working space of affordable shared services that provides SMMEs and other businesses an opportunity for collaboration and networking, secure parking facilities, boardroom, full reception services and high-speed Internet. Other advantages include housekeeping services, access to a fully equipped kitchen, printing and email facilities.

Botshabelo Industrial Area In November 2017, the Free State Premier, Ace Magashule, and his delegation conducted site visits to Botshabelo Industrial Area to assess the state of development of manufacturing en-


trepreneurs. Companies visited included CMT operators, tyre manufacturers, roofsheet manufacturing, LSF frames, trusses and hall panel manufacturers, PVC ceiling manufacturers and suppliers, household electric goods manufacturers and broiler producers. The purpose of the visit was to assess for himself the state of the development of manufacturing entrepreneurs and the conditions under which they operate. This was intended to ensure that government enterprise development support programmes respond to specific needs of manufacturers such as ensuring that provincial government and municipalities source from local manufacturers to help to sustain their business and generate much-needed jobs. The FDC and DESTEA (Department of Economics, Small Business, Tourism and Environmental Affairs) were directed by the Premier to implement targeted market access and product development interventions to enable the Botshabelo SMMEs to grow their business and facilitate access for them to the incentives that are available for their business expansion projects. FREE STATE BUSINESS 2018


The Black Management Forum Free State Kaiser Khoza, Provincial Chairperson of Free State BMF, outlines the goals of the organisation.

Please outline the main objectives of the Black Management Forum.

Kaiser Khoza

The BMF advocates for excellence in Managerial Leadership. It is a champion for socio-economic transformation as an enabler for equity. The BBBEE Act must be implemented by government and corporate SA. What is your current focus?

Our focus is still on transformation. We have issued the Transformation Barometer and are now engaged in the Transformation Master Plan. We are looking at the regulatory environment and are teasing out aspects that have resulted in a slow pace of transformation. We are looking at strengthening Employment Equity as most companies do not comply. What are some of the most recent achievements of the Free State BMF?

BIOGRAPHY Kaiser Khoza has been an admitted attorney since 2001, having graduated from the University of Durban-Westville. He has worked as a state attorney, in the national Department of Higher Education, the Presidency and several Free State provincial government departments. He has served as secretary of the Black Lawyers Association, Free State, Deputy Chair of the State Litigation Management Forum, a member of the Information Officers Forum and is a member of SASREA Appeal Board and a trustee of the Lebone Trust. FREE STATE BUSINESS 2018

We partnered with the ILO on SME research and other programmes in the Free State. We have entered into MoUs with the UFS Business School and PwC for training and development. We have partnered with a number of corporates regarding placing graduates and community development programmes. Does the BMF work with other organisations? We work closely with all stakeholders; our role in the N3 De Beers Pass is a case in point, as it was a serious threat to economic stability of the Free State. The recently launched Maluti-A-Phofung SEZ was threatened by the De Beers Pass and our work with labour, government and civil society saw us achieving great milestones. What issues lie ahead? We remain concerned about the slow pace of transformation. Most black SMEs rely on government work to survive. We need to work with corporates on their enterprise development initiatives and ensure that the rand rotates around the Free State. We are part of the Buy Black Business Day Movement which encourages black people to buy from and amongst each other.



Mangaung Chamber of Commerce and Industry The voice of business in the Free State.

• To promote and support local businesses through

The Chamber seeks to be the voice of business in Mangaung and to assist in promoting economic development and investment in the province.

specific interventions like the “Member-supportMember” campaign. • To promote triple BEE by, among other initiatives, linking big and small businesses through the chamber’s network. • To do advocacy on behalf of our members so that we can influence and monitor relevant authorities and role-players. • To promote the development of the city and surrounds as a destination of choice for tourists. • To become a strategic vehicle for the participation of member businesses in social responsibility programmes. • To promote and support initiatives aimed at renewable and alternative energy sources.

In these endeavours the MCCI won the PMI Africa award for the organisation doing the most for business development as well as triple BEE in the province. The new Chamber of Commerce and Industry was constituted in 2003. In 2013 we reregistered as the Mangaung Chamber of Commerce and Industry in order to include the whole metropole. Although the MCCI is the oldest business chamber in the Free State, in 2017 we strongly believe that we have the progressive outlook befitting a chamber complying with the modern-day requirements of the business world. MMCI have won the Africa PMR Awards for the last 3 years.

Benefits for members

• Innovative networking events and opportunities • SMME development and support centre • Import and export support centre • Seminars, training, workshops and business



• Entrepreneurs are the engines of community-

• Advertising opportunities for our members • Lobbying municipalities, local and provincial

wide economic development. The MCCI is creating a sufficient number of entrepreneurs to transform this region’s economy. • We serve our members and the community with innovative approaches to establish a vibrant business network that will promote all levels and stages of businesses. • Signing and implementing MOU’s with stakeholders that can make a difference. • To give practical credibility to the term “Local Economic Development” not only in Mangaung, but in other areas in the Free State as well.


CONTACT INFO Mangaung Chamber of Commerce and Industry Tel: +27 51 522 1710 Email: Website:




Free State Provincial Government A guide to Free State’s provincial government departments. Visit:

Office of the Premier Premier: Mr Ace Magashule

Department of Health MEC: Mr Butana Komphela

4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9300 Tel: +27 51 405 5799 Fax: +27 51 405 4803 Website:

Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300 Tel: +27 51 408 1677 | Fax: +27 51 408 1107 Website:

Department of Agriculture and Rural Development MEC: Mr Motete Daniel Khoabane

7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets, Bloemfontein 9300 Tel: + 27 51 405 3883 | Fax: + 27 51 403 3699 Web:

Department of Human Settlements MEC: Mrs Sefora Ntombela

Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360 Tel: +27 51 861 8401 Fax: +27 51 861 8578 / 086 723 8206 Website:

Department of Police, Roads and Transport MEC: Mr Sam Mashinini

4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301 Tel: +27 51 409 8849 | Fax: +27 51 409 8864 Website:

Department of Cooperative Governance and Traditional Affairs MEC: Mrs Sefora Ntombela

Department of Public Works and Infrastructure MEC: Ms Dora Kotzee

7th Floor, Lebohang Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9301 Tel: +27 51 403 3224 Website:

Cnr Markgraaff and St Andrews Streets, Bloemfontein 9301 Tel: +27 51 405 4692 | Fax: +27 51 405 4490 Website:

Department of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Dr Benny Malakoane

Department of Social Development MEC: Ms Limakatso Mahasa

Civilia Building, 14 Elizabeth Street, Bloemfontein 9300 Tel: +27 51 409 0619 | Fax: +27 51 409 0618 Website:

Bojanala Building, 34 Markgraaff Street, Bloemfontein 9300 Tel: +27 86 110 2185 | Fax: +27 51 400 9593 Website: Department of Education MEC: Mr Pule Makgoe

Department of Sports, Arts, Culture and Recreation MEC: Mrs NS Leeto

Free State Provincial Government Building, 55 Elizabeth Street, Bloemfontein 9300 Tel: +27 51 404 8411 | Fax: +27 51 404 8269 Website:

4th Floor, Business Partners Building, Cnr Henry and Eastburger Streets, Bloemfontein 9300 Tel: +27 51 410 4727 | Fax: +27 51 410 4758 Website:



LISTING Provincial Treasury MEC: Ms Elzabe Rockman

55 Elizabeth Street, Fidel Castro Building, Bloemfontein 9300 Tel: +27 51 403 4141 Fax: +27 51 403 3244 Website:

Free State Local Government A guide to metropolitan, district and local municipalities in the Free State Province. LEJWELEPUTSWA DISTRICT MUNICIPALITY Physical address: cnr Jan Hofmeyer and Tempest Streets, Welkom 9460 Postal address: PO Box 2163, Welkom 9460 Tel: +27 57 353 3094 Fax: +27 57 353 3382 Website:

MANGAUNG METROPOLITAN MUNICIPALITY Physical address: Bram Fischer Building, cnr Nelson Mandela and Markgraaff Streets, Bloemfontein 9301 Postal address: PO Box 3704, Bloemfontein 9300 Tel: +27 51 405 8911 Fax: +27 51 405 8663 Website:

Masilonyana Local Municipality

Tel: +27 57 733 0105 Fax: +27 57 733 2217 Website:

FEZILE DABI DISTRICT MUNICIPALITY Physical address: John Vorster Road, Sasolburg 1947 Postal address: PO Box 10, Sasolburg 1947 Tel: +27 16 970 8600 Fax: +27 16 970 8747 Website:

Matjhabeng Local Municipality

Tel: +27 57 391 3359 Fax: +27 57 357 4393 Website:

Mafube Local Municipality

Nala Local Municipality

Tel: +27 58 813 1051 | Fax: +27 58 813 3072 Website: Metsimaholo Local Municipality

Tel: +27 56 514 9200 Fax: +27 56 515 3922 Website:

Tel: +27 16 973 8301 | Fax: +27 16 973 2191 Website:

Tokologo Local Municipality

Moqhaka Local Municipality

Tel: +27 53 541 0014 Fax: +27 53 541 0360 Website:

Tel: +27 56 216 9111 | Fax: +27 56 216 9122 Website:

Tswelopele Local Municipality

Ngwathe Local Municipality

Tel: +27 51 853 1111 Fax: +27 51 853 1332 Website:

Tel: +27 56 816 2700 | Fax: +27 56 817 6343 Website:



LISTING THABO MOFUTSANYANA DISTRICT MUNICIPALITY Physical address: Old Parliament Building, 1 Mamopi Street, Phuthaditjhaba 9870 Postal address: Private Bag X810, Witsieshoek 9870 Tel: +27 58 718 1000 Fax: +27 58 718 4090 Website:

Phumelela Local Municipality

Tel: +27 58 913 8300 | Fax: +27 58 913 2317 Website: Setsoto Local Municipality

Tel: +27 51 933 9300 | Fax: +27 51 933 9383 Website:

Tel: +27 58 303 5732 Fax: +27 58 303 4703 Website:

XHARIEP DISTRICT MUNICIPALITY Physical address: 20 Louw Street, Trompsburg 9913 Postal address: Private Bag X136, Trompsburg 9913 Tel: +27 51 713 9300 | Fax: +27 51 713 0461 Website:

Maluti-a-Phofung Local Municipality

Kopanong Local Municipality

Tel: +27 58 718 3700 | Fax: +27 58 718 3777 Website:

Tel: +27 51 713 9200 | Fax: +27 51 713 0292 Website:

Mantsopa Local Municipality

Letsemeng Local Municipality

Tel: +27 51 924 0654 | Fax: +27 51 924 0020 Website:

Tel: +27 53 330 0200 | Fax: +27 53 205 0144 Website:

Nketoana Local Municipality

Mohokare Local Municipality

Tel: +27 58 863 2811 | Fax: +27 58 863 2523 Website:

Tel: +27 51 673 9600 | Fax: +27 51 673 1550 Website:

Dihlabeng Local Municipality





North West

Fezile Dabi


Ngwathe Moqhaka


Nketoana Tswelopele

Northern Cape



Thabo Mofutsanyana





Setsoto Masilonyana

KwaZuluNatal Mantsopa







Metropolitan/District Municipality boundary


Local Municipality Boundary District Municipality Local Municipality

Eastern Cape



Xhariep Setsoto




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Free State Business 2018  

Free State Business 2018 is the seventh edition of this highly successful publication that has since its launch in 2008 established itself a...

Free State Business 2018  

Free State Business 2018 is the seventh edition of this highly successful publication that has since its launch in 2008 established itself a...