Free State Business 2022

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2022 EDITION

FREE STATE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN FREE STATE PROVINCE

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Supporting the Free State’s fight against COVID-19 Sasol donated World Health Organisationapproved equipment to the Free State Department of Health to support the rollout of COVID-19 vaccines as a further effort to fight the COVID-19 pandemic. “In order to deliver on our community health focus area, and solidify our social partner status, we recognise the need to support the provincial government’s vaccination rollout strategy by donating essential equipment and resources,” said Charlotte Mokoena, Sasol Executive Vice President: Human Resources and Stakeholder Relations. The equipment include a Ford Ranger custom built mobile clinic, a Toyota Hi-Ace 14-seater minibus, five -40oC World Health Organisation-approved vaccine cold storage freezers, 25 vaccine carriers, 25 temperature loggers and 20 laptops. Information pamphlets and posters were also included in the donation. Since the start of the COVID-19 pandemic in 2020, Sasol contributed vastly to the fight against the coronavirus. It produced and distributed more than 1,6 million litres

of alcohol-based sanitiser to frontline workers in hospitals, clinics, communities, as well as local and national government. More than 12 000 masks, 36 000 pairs of gloves and 5 000 safety suits and overalls were donated towards responses in fenceline communities. Mobile science laboratories, usually used for school education programmes were converted into COVID -19 screening and testing units. The company last year also fast-tracked the manufacturing of its own handsanitisers for use at its own operations and immediate fence line communities in the Free State and Mpumalanga. Sasol furthermore donated a million litres of jet fuel to the Department of International Affairs for the repatriation of South Africans stranded abroad. “Our COVID-19 response has been multilayered, consultative and collaborative to support efforts to flatten the curve with particular focus on our fence line communities within Free State, Mpumalanga, Gauteng and KwaZuluNatal,” Mokoena said.

The Free State MEC for Health, Montseng Tsiu (right) received the equipment from Sasol’s Senior Vice President Sasolburg and Ekandustria Operations, Rightwell Laxa (middle) to assist in the fight against the COVID-19 pandemic. The acting HOD for Health, Godfrey Mahlatsi in on the left.


Programme achieves +25% water saving Through an extensive partnership between Sasol, the Metsimaholo Local Municipality, Rand Water and a German development agency (GIZ) a 30% water saving was achieved in the greater Sasolburg area of the Free State. This was achieved through a water demand managment programme that started in 2016, promoting water conservation and addressing water losses. Interventions followed a baseline study done by WRP engineers that focused on resources engineering, water conservation and water demand management, including lost revenues from water that could otherwise have been sold.

Interventions included installation of meters and loggers, repairing of leaks on the main reticulation system, reconfiguration of the Harry Gwala reservoir and advanced pressure management. The baseline assessment further indicated that water leaks at hostels, schools and households should also be addressed. Aquatrips were installed at 28 township schools and permanent loggers, supported by a ZNet monitoring system, now ensures continuous monitoring. All this is supported by an extensive education and awareness programme in local communities that also make use of techniques such as virtual industrial theatre and puppet shows to enhance the learning experience. Basic leak repairs and retrofitting at 10 000 homes in Metsimaholo are done by local plumbers and water warriors – youth who received basic plumbing training. They focus on basic leak repairs such as in piping, taps and cisterns.


CONTENTS

CONTENTS Free State Business 2022 Edition

Introduction Regional overview

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Both the Botshabelo Industrial Park and the Maluti-A-Phofung Special Economic Zone (MAP SEZ) are attracting investors to the country’s most centrally-located province. Covid-19 hit the tourism sector hard, but the province’s miners are enjoying good commodity prices and the Virginia Gas Project is steaming ahead.

Economic sectors Agriculture 28 Transnet Freight Rail aims to double grain volumes.

Mining 30 Mining activity is picking up in some sectors.

Oil and gas

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Manufacturing

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The Virginia Gas Project will join a small global elite in 2022. A steel smelter is under construction.

Tourism 43 The Vredefort Dome is to be marketed internationally.

Education and training

Skills development programmes are expanding.

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References Key sector contents

FREE STATE BUSINESS

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2022 EDITION

Overviews of the main economic sectors of the Free State.

THE GUIDE TO BUSINESS AND INVESTMENT IN FREE STATE PROVINCE

ABOUT THE COVER: From top left: Sasol One; Golden Gate; industrial parks at Phuthaditjhaba and Botshabelo are managed by the Free State Development Corporation; new factories are being built; a shaft at a Harmony mine; wheat grows widely in the Free State, Melissa Askew on Unsplash. JOIN US ONLINE

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FOREWORD

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

Credits Publishing director: Chris Whales Editor: John Young Business development manager: Shiko Diala Managing director: Clive During Online editor: Christoff Scholtz Designer: Tyra Martin Production: Aneeqah Solomon Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Administration & accounts: Charlene Steynberg Kathy Wootton Distribution and circulation manager: Edward MacDonald Printing: FA Print

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he 2022 edition of Free State Business is the 12th issue of this successful publication that, since its launch in 2008, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities in a wide range of sectors. Special features on investment incentives and starting a business are included in this edition. Significant investments are being attracted into the newly-established MalutiA-Phofung Special Economic Zone (MAP SEZ) in the northern part of the province and a steel mill is under construction at the Botshabelo Industrial Park east of Bloemfontein. The MAP SEZ is strategically located on South Africa’s busiest road, the N3 highway that links the economic heartland of South Africa to the coast. Good progress is being made on the Virginia Gas Project and arrangements are being made for offtake agreements with companies in the logistics sector (for powering truck fleets) and manufacturing companies. A distribution network is being rolled out in conjunction with a company that already runs petrol stations around the country. In addition, overviews on each of the key economic sectors provide upto-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.freestatebusiness. co.za. Updated information on the Free State is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the new addition to our list of publications, African Business, which was launched in 2020. ■

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

DISTRIBUTION

Free State Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies. Member of the Audit Bureau of Circulations COPYRIGHT | Free State Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Department of Trade, Industry and Competition, Francesco Bandarin/UNESCO, Free State Development Corporation, Harmony Gold, Renergen, SASKO, Sasol, SA Tourism, Sebedisan Group/ CUT, Emil Widlund on Unsplash, VKB.

PUBLISHED BY Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za ISSN 1993-0119 DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in the Free State 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.


MESSAGE

MESSAGE

Domestic international Investing and in the Free investors are invited to State Province Investing in the The Free State invest in South Africa’s most Free State Province welcomeslocated investors centrally province

MESSAGE

MESSAGE

Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the Free State’s Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the unique selling propositions. MEC for Economic, Small Business Development, Tourism Environmental Affairs, Free State’s unique selling propositions. MEC for Economic, Small Business Development, Tourism andand Environmental Affairs, the Honourable MP Mohale, relates how the province has supported business in the the Honourable MP Mohale, outlines how human capital formation is at the heart of the Covid-19 and how investment spark further development. creation of crisis a conducive environment forcan investment in the Free State Province. ree State Province is situated in the heart of South Africa and heborders Free State Province situated in theprovinces. heart of South Africa shares with Lesothois and six other It provides and shares borders with Lesotho and six other provinces. response the effects of Covid-19 the London subsequent accesstoto the main ports of as Durban, East and t nis easy with pleasure and gratitude that we, theand department charged It provides easy access the enterprises main ports were of Durban, lockdown of theinvestment economy, Freeto State invitedEast to Port Elizabeth. with promoting into the Free State Province, introduce London and Port Elizabeth. apply for economic recovery incentives. Incentives and support TheState Free State is an attractive business and investmentpublication’s destination. Free Business 2020. We welcome this well-known The Free were Stateforisbusinesses an attractive business and investment programmes the formal anddominant informal sectors The province is at the centre SouthinAfrica and the sectors regular description of the of economic environment of our province destination. The province is at the centre of South Africa and the and were focussed on saving existing jobs and creating new ones. are agriculture, mining, manufacturing and the tertiary sectors, making anddominant are pleased to contribute toare its agriculture, pages. economic sectors mining, manufacturing an to improve uptake of climate opportunities by it ideal foreffort transport logistics and agro-processing. AInbrief overview of thethe investment in ourpresented province is and the tertiary sectors, making it business ideal for transport logistics and government, working with different chambers in the Free Companies to Free State not only enjoy the opportunity to provided on thelocating facing page. agro-processing. State, the department has assisted businesses to meetfrom the minimum source inputs at competitive but also benefit domestic, OurThe department also published a dedicated investment prospectus. Department has prices, developed a to Value Chains compliance requirements, like business, tax and otherEconomic licence regional and of international markets for their products and services. The purpose the Free State Investment Opportunities Prospectus Transformation Approach, which aims to place the economy onis a registration. We would not like to see anybody left behind. Because South Africa has been engaging with our economically large to provide pertinent information about large-scale investment path of reconstruction, recovery and development post the Covid-19 It is with pleasure and gratitude that we, as the department trading partners, accessavailable to international markets is facilitated through opportunities currently in various sectors. These initiatives pandemic. relationships private sector charged withMaintaining promoting sound investment into thewith Freethe State Province, various trade preferences and free-trade agreements. represent the Free State’s response to President Ramaphosa’s clarion ensures that government’s economic transformation agenda 2022. We welcome this well-known introduce Free State Business 2021. As far asonlong-term investment isisconcerned, there are industrial call for increased long-term investment necessary inclusive growth remains track. The department engagingfor with sectors such publication’s regular description of the economic environment of ouras parks and a Special Economic Zone (SEZ) that are supported by the and job creation. property developers on issues such as bulk services and the approval province and are pleased to contribute to its pages. Department Trade, and Competition. parks of plans. A ofdevelopment made up Industrial of government, • Free State Development While investment is has anIndustry essential ingredient to economic growth, it Our department alsocommittee published a dedicated investment are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu. • an idyllic climate developers, financing institution and municipalities will soon Corporation (FDC) support should be pointed out that at the centre of the Free State government’s prospectus, the Free State Investment Opportunities Prospectus. These be established. services forand priority sectors Maluti-A-Phofung SEZ situated Tshiame. • recreational lifestyle for Economic, Small Economic, Small economic development strategy human capital formation and de- MEC initiatives represent theisFree State’sisinresponse to President Ramaphosa’s Companies relocating to Free State not only enjoy the such as agro-processing and Business Development, Tourism The Free State’s strengths for inward investment are boosted by: facilities. Business Development, Tourism velopment through universities and colleges, and various institutions clarion call for increased long-term investment necessary for inclusive opportunity source inputs at foreign competitive prices, but also ato andmanufacturing Environmental Affairs •growth openness toto business, trade and investment Environmental Affairsthe the pursuing innovation and offering proof-of-concept services, to name and job creation. from domestic, regional and international markets their Honourable • a large labour pool Honourable MP • benefit abundance natural Select investment opportunities MPMohale Mohale. few. Indeed, theof Free Stateisresources isan poised to become a laboratory forfor excelWhile investment essential ingredient to economic products andrentals services. • diverse cultures •growth, low lence in factory education outcomes, research andatinnovation, in include: it should be pointed out that the centreparticularly of the Free There are industrial parks and a Special Economic Zone (SEZ) competitiveand landagroand building •State Africa’s telecommunications network the fields ofleading health, agriculture, agro-processing, manufacturing, water government’s economic development strategy, as well as the • • Agriculture that are supported by the developed Department of Trade, Industry and costs. •Value incentive packages uniquely fordevelopment. Special Zones processing Chains Economic Transformation Approach, isEconomic human capital management, ICT, pharmaceuticals and rural Competition. Industrial parks are situated in Maluti-A-Phofung, S e l e and c t property investment •formation incentives associated with the revitalised industrial parks and development through universities and colleges, Domestic and potential investors from around the world are • Tourism Botshabelo and Thaba Nchu. The Maluti-A-Phofung SEZ is situated opportunities •and Free State Development Corporation (FDC) support forin developmentinclude: various institutions pursuing innovation and offering proof-ofwelcome to contact the DESTEA Head of Department at: services Tshiame, Harrismith. Agriculture agriprocessing concept services, to name a few. The Free State is poised to become • • Medical priority sectors such as agro-processing and manufacturing andand pharmaceutical HoD_office@destea.gov.za. The Free State’s inward investment boostedand by: • production t o u r i s m and a n ddistribution proper ty for excellence in for education outcomes,are research •a laboratory a large labour poolstrengths • openness to business, trade and foreign investment development particularly in the fields of health, agriculture, agro- • Manufacturing •innovation, diverse cultures • abundance of natural resources medical and pharmaceutical manufacturing, water management, ICT, pharmaceuticals • • Renewable •processing, competitive land and building cost and clean energy • low factory rentals production and distribution rural development. •andworld-class transport and telecommunications infrastructure • Medical tourism. • Africa’s leading • manufacturing Domestic andtelecommunications potential investors network from around the world are • incentive packages uniquely developed for Special Economic Zones • renewable and clean energy welcome to contact the DESTEA Head of Department at: andSTATE industrial parks 2020 and medical tourism. ■ FREE BUSINESS 6 HoD_office@destea.gov.za. FREE STATE BUSINESS 2020 7

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FREE STATE BUSINESS 2021

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FREE STATE BUSINESS 2021 FREE STATE BUSINESS 2022


should be pointed outState that at the centreOpportunities of the Free State government’s prospectus, the Free Investment Prospectus. These Economic,Small Small economic development strategy human capital formation and de- MEC for Economic, initiatives represent the Free State’sis response to President Ramaphosa’s Business Development, Development,Tourism Tourism velopment universities andinvestment colleges, and various for institutions clarion call through for increased long-term necessary inclusive Business Environmental Affairs Affairsthe the pursuing innovation and offering proof-of-concept services, to name a and Environmental FOCUSand growth job creation. Honourable MP MPMohale Mohale. few. While Indeed,investment the Free Stateisisan poised to become a laboratory for excel- Honourable essential ingredient to economic lence in education research andatinnovation, in growth, it shouldoutcomes, be pointed out that the centreparticularly of the Free the fields of health, agriculture, manufacturing, water State government’s economicagro-processing, development strategy, as well as the Value Chains Economic Transformation Approach, is human capital management, ICT, pharmaceuticals and rural development. formation through universities andworld colleges, Domesticand anddevelopment potential investors from around the are and various institutions pursuing innovation and offering welcome to contact the DESTEA Head of Department at: proof-ofconcept services, to name a few. The Free State is poised to become HoD_office@destea.gov.za. a laboratory for excellence in education outcomes, research and The YES4Youth Programme is creating thousands of work experiences. innovation, particularly in the fields of health, agriculture, agroprocessing, manufacturing, water management, ICT, pharmaceuticals and rural development. he and YES4Youth Programme an the world to be part Domestic potential investors from isaround are of skills development among young Empowerment Initiative. welcome to contact the DESTEA Head of Launched Department at: individuals, while in turn ensuring that they in BUSINESS 2018, the2020 programme has awarded 6 gain BBBEE levels and points. FREE STATE HoD_office@destea.gov.za. numerous young individuals an • Focuses on the employability of the youth for opportunity to gain on-the-job training while economic prosperity. building their professional profile and at the same timeSTATE eliminating unemployment in the country. 6 Roles and responsibilities FREE BUSINESS 2021 YES is fully focused on collaborating with DESTEA business to create quality work experiences • Liaison between SMEs and Standard Bank. for youth. Recruitment of youth into the work • Monitor performance and progress of employees. experiences that YES and its corporate clients • Support SMEs. create is handled by YES-affiliated implementation • Report back on SME and employee progress. partners and employers. The goal is to create thousands of work experiences for youth and to Standard Bank equip youth with a toolkit to make a life and be • Project management of initiative. someone they have the potential to be. • Registrations of Youth with YES. The partnership between DESTEA and Standard • Management administration. Bank continues to run with the aforementioned • Pay stipends. vision by supporting both SMEs and their respective employees as agreed upon, while ensuring the SMEs growth and progress of all participants. • Provide meaningful quality workplace experience. A total of 58 employees from the Free State have • Provide learning opportunities. been placed in various companies where they continue • Manage day-to-day tasks and activities. to carry out their daily tasks and responsibilities resulting • Provide feedback to employees. in the acquisition of quality work experience. • Monthly submissions and documentation The youth are provided with a minimum salary management. of R3 500 per month paid by Standard Bank. The unemployment rate in South Africa has The purpose of DESTEA and Standard Bank risen to alarming levels. This shows the relevance and need for initiatives such as the YES For Youth • Work hand-in-hand in the continued fight Programme and the strong partnership with against the unemployment rate among young DESTEA and Standard Bank aimed at confronting individuals in the Free State. the unfavourable aspects of youth unemployment. • Encourage corporates to contribute to empow Not only does the programme place young erment in areas of national priority, addressing people in spheres of work but it also ensures that youth unemployment and up-skilling young the young employees receive real-time quality people through job placement. experiences coupled with a boosted professional • Relieve host employers of stipend payments profile, thus ensuring the youth’s employability (Standard Bank). upon completion of the 12-month placement. ■ • Extend the opportunity to SMEs, allowing them

Empowering young people to work

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FREE STATE BUSINESS 2022

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MESSAGE MESSAGE

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

Free State’s unique selling propositions.

FT

ree State Province is situated in the heart of South Africa and heborders Free State Province situated in theprovinces. heart of South Africa shares with Lesothois and six other It provides and shares borders with Lesotho and six other provinces. easy access to the main ports of Durban, East London and It provides easy access to the main ports of Durban, East Port Elizabeth. London and Port Elizabeth. The Free State is an attractive business and investment destination. The Free State is an attractive business and investment The province is at the centre of South Africa and the dominant sectors destination. The province is at the centre of South Africa and the are agriculture, mining, manufacturing and the tertiary sectors, making dominant economic sectors are agriculture, mining, manufacturing it ideal for transport logistics and agro-processing. and the tertiary sectors, making it ideal for transport logistics and Companies locating to Free State not only enjoy the opportunity to agro-processing. sourceThe inputs at competitive but also benefit from domestic, Department has prices, developed a to Value Chains Economic regional and international for their products and services. Transformation Approach,markets which aims to place the economy on a Because Africa has recovery been engaging with our economically large path ofSouth reconstruction, and development post the Covid-19 trading partners, access tosound international marketswith is facilitated through pandemic. Maintaining relationships the private sector various trade preferences and free-trade agreements. ensures that government’s economic transformation agenda As far asonlong-term theresectors are industrial remains track. Theinvestment departmentisisconcerned, engaging with such as parks and adevelopers Special Economic that are supported by the property on issuesZone such (SEZ) as bulk services and the approval Department Trade, Industry and Competition. parks of plans. A ofdevelopment committee made up Industrial of government, aredevelopers, situated infinancing Maluti-A-Phofung, and Thaba institutionBotshabelo and municipalities willNchu. soon be established. SEZ is situated in Tshiame. Maluti-A-Phofung Companies Free investment State not are only enjoyby: the The Free State’s relocating strengths fortoinward boosted source trade inputs at foreign competitive prices, but also to • opportunity openness toto business, and investment from of domestic, regional and international markets for their • benefit abundance natural resources andrentals services. • products low factory Thereleading are industrial parks and a Special • Africa’s telecommunications networkEconomic Zone (SEZ) are supported by the developed Department of Trade, Industry and • that incentive packages uniquely for Special Economic Zones Industrial parks are situated in Maluti-A-Phofung, • Competition. incentives associated with the revitalised industrial parks Thaba Nchu. The Maluti-A-Phofung SEZ services is situatedforin • Botshabelo Free State and Development Corporation (FDC) support Tshiame, Harrismith. priority sectors such as agro-processing and manufacturing The Free State’s • a large labour poolstrengths for inward investment are boosted by: • openness to business, trade and foreign investment • diverse cultures • abundance of natural resources • competitive land and building cost • low factory rentals • world-class transport and telecommunications infrastructure • Africa’s leading telecommunications network • incentive packages uniquely developed for Special Economic Zones and industrial parks 7

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• Free State Development • an idyllic climate Corporation (FDC) support services forand priority sectors • recreational lifestyle such as agro-processing and facilities. manufacturing • a large labour pool Select investment opportunities • diverse cultures include: competitiveand landagroand building • • Agriculture costs. processing S e l e and c t property investment • Tourism opportunities developmentinclude: Agriculture agriprocessing • • Medical andand pharmaceutical • production t o u r i s m and a n ddistribution proper ty development • Manufacturing • medical and pharmaceutical • Renewable and clean energy production and distribution • Medical tourism. • manufacturing • renewable and clean energy and medical tourism. ■ FREE STATE BUSINESS 2020 FREE STATE BUSINESS 2021 FREE STATE BUSINESS 2022


PROFILE

Free State Development Corporation (FDC) Driving enterprise development and investment in South Africa’s most central province, the Free State.

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.

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. 2021 FREE STATE BUSINESS 2022

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PROFILE

INDUSTRIAL PROPERTY TO RENT IN HARRISMITH FDC is renting out 18 850 sqm standalone factory including Furniture

I N DManufacturing U S T R I A L Machinery, P R O P E REquipment, T Y T O and REN T I N for H ABusiness RRISMITH Furniture Operation..

FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on

Operation.. main arterial routes and Quick access onto N3 Freeway.

This factory offers the following:

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.

main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors Security offers Guard House This factory the following: Well fenced and secured

Sprinkler System.

Export-related services Investor services 4 Roller Doors The FDC services to exporters include the The FDC offers a range of services to investors and Security Guard House businesses looking to trade in the Free State. These Export Promotion Programme, which aims to Well fenced and secured grow demand for Free State products in global include the following: markets through capacity-building workshops, • Project appraisal and packaging. Ample parking the dissemination of trade leads, networking • Promotion and facilitation of investment projects 3 phase power with 100 amps Occupation available immediately. Please contact Mr Tefo Matla for more opportunities with inbound trade missions, and facilitation of access to finance. 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with information or to view: • Providing access to business and government product promotion through participation in shower outbound group www.fdc.co.za missions and on national and networks and assistance with business retention Tel: 051 4000 800 Email: tefo@fdc.co.za international exhibitions, access to national exportand expansion. market access information • Information on statutor y requirements, Occupation available immediately. Please contactprogrammes, Mr Tefo Matla for FDC IS ZERO TOLERANCE TO FRAUD ANDincentive CORRUPTION.PLEASE REPORT FRAUD ANDmore and technical advice investment advice and assistance with investment CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 on 154 exporting procedures. ■ information or to view: incentive applications and business permits. • Assisting withTel:the of local 051development 4000 800 Email: tefo@fdc.co.za Contact details www.fdc.co.za and international markets and facilitating Free State Development Corporation joint ventures/equity partnerships through FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND Tel: +27 51 4000 800 identification of local partners. CORRUPTION INCIDENTS TO THEEmails: FRAUD HOTLINE 0800 212 154 wecare@fdc.co.za | invest@fdc.co.za Website: www.fdc.co.za Ample parking

3 phase power with 100 amps

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower

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FREESTATE STATEBUSINESS BUSINESS 2022 2021 FREE


A REGIONAL OVERVIEW OF

FREE STATE Both the Botshabelo Industrial Park and the Maluti-A-Phofung Special Economic Zone (MAP SEZ) are attracting investors to the country’s most centrally-located province. Covid-19 hit the tourism sector hard, but the province’s miners are enjoying good commodity prices and the Virginia Gas Project is steaming ahead. By John Young

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Other good news came in the form of news that the Maluti-A-Phofung Special Economic Zone (MAP SEZ), the strategically located area on the N3 highway, is attracting new investment to the Free State Province. Sectors prioritised at the MAP SEZ include logistics, ICT, automotive, pharmaceuticals, manufacturing and agro-processing. The 1 000ha site has four zones: agro-processing, light industrial, heavy industrial and a container terminal. Control of the project now rests with the provincial Department of Small Business Development, Tourism and Environmental Affairs (DESTEA).

he announcement in 2021 by Renergen, the owners of the Virginia Gas Project, that it had signed an agreement with Consol, one of the country’s leading glass manufacturers, gave new impetus to the country’s only onshore gas project. Having previously targeted the logistics sector for offtake agreements, and successfully concluded several agreements together with a joint venture to roll out gas supplies to filling stations across the country with TotalEnergies, the Consol pact marked a significant new customer for the gas explorers and potentially opens up a new market. Renergen said in 2021 that their findings continued to confirm early reports of substantial reserves. One of the key facts to emerge is that the gas contains helium of up to 12%, a good percentage. FREE STATE BUSINESS 2022

Infrastructure Other areas that are being upgraded to provide infrastructure to encourage manufacturing are the Phuthaditjhaba Industrial Park and the Botshabelo Industrial Park, where a foreign firm has started

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SPECIAL FEATURE province which is also well served by rail and air links. The Bram Fischer International Airport serves the provincial capital. Links to the west (Kimberley and on to Namibia) and east (to Lesotho) underpin the planning behind the N8 Corridor concept which covers Bloemfontein, 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. Provincial assets International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its many products. Mining is reduced in importance but remains a significant employer. Harmony Gold has several assets in the province and Sibanye-Stillwater has undertaken a feasibility study on a property adjacent to its existing Beatrix mine. In agriculture, the Free State is looking forward to the implementation of the African Continental Free Trade Area (AfCFTA), the free trade agreement that was stalled by the Covid-19 pandemic. The Free State’s agricultural export basket is well suited to trading with African states and strategies are being considered to promote apples, asparagus, cherries, cut flowers, sorghum, venison and wine. The Free State produces significant proportions of South Africa’s wheat (30%), sunflowers (45%) and maize (45%) and is ranked third in contribution to national GDP in agriculture. The Free State shares borders with six other provinces, in addition to the Mountain Kingdom of Lesotho. A summer-rainfall region with a mean

Sasol’s complex at Sasolburg. Credit: Sasol

construction of a new steel mill (which is covered in the Manufacturing Overview). Telecoms company Vodacom is investing heavily in its infrastructure in the Free State. Several new base stations have been established in villages such as Clocolan, Fauresmith and Fouriesburg, greatly improving coverage in rural areas. The Rural Coverage Acceleration Programme allocated R207-million to the region in 2020/21. Bloemfontein is the site of one of Vodacom’s new solar-powered facilities, helping in the company’s drive to reduce its carbon emissions. Vodacom saved 11 971MW in 2020 through its energy management programme. The N3 is South Africa’s busiest road and the Highway Junction truckstop at the entrance to Harrismith claims to be Africa’s biggest. More than 1 500 vehicles pass through every day and three forecourts cater to three fuel brands. Refuelling, storage and handling take place here, highlighting the province’s strengths in logistics as the country’s most central province. The country’s two great highways pass through the province. The N3 links the ports of Richards Bay and Durban with the industrial heartland and the N1 provides north-south connectivity. The provincial capital, Bloemfontein, is another logistics hub. Three other national highways intersect the

Commercial agriculture is a key element of the Free State economy, with companies like VKB farming and storing vast quantities of grain. Credit: VKB

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FREE STATE BUSINESS 2022


SPECIAL FEATURE and the headquarters of Grain SA. Welkom is the major urban centre in the district. The area has tourist assets such as a holiday resort on the Allemanskraal Dam, the Goldfields Wine Cellar in Theunissen and the Willem Pretorius Game Reserve.

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 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.

Fezile Dabi District Municipality Towns: Sasolburg, Parys, Kroonstad, Frankfort, Heilbron, Viljoenskroon The chemical complex at Sasolburg is the economic driver in the district, which shares a border with Gauteng province along the Vaal River. Kroonstad is the district’s second-largest town and has a number of engineering works and a railway junction. A good proportion of South Africa’s grain crop is sourced from this district and when the vast fields of sunflowers and cosmos flowers are in bloom, a marvellous vista is created. The Vaal River presents opportunities for yachting, rafting and resort-based enterprises. Parys is a charming town and Vredefort is home to a World Heritage Site – the Vredefort Dome where a meteor crashed to earth. Fezile Dabi District Municipality is the biggest contributor towards the provincial GDP, accounting for approximately 35%. The Fezile Dabi area is mostly dominated by the industrial power of Sasol, with the manufacturing of refined petroleum, coke and chemical products adding largely to its GDP.

Municipalities in the Free State The Free State has one metropolitan municipality (Mangaung), four district municipalities and 19 local municipalities. Mangaung Metropolitan Municipality Mangaung Metropolitan Municipality is a Category A municipality which governs Bloemfontein, Botshabelo and Thaba Nchu. The sixth-largest city in the country, the Mangaung municipal area covers more than 6 263km² and has a population of about 850 000 people. Bloemfontein is responsible for about 25% of provincial GDP. Xhariep District Municipality Towns: Trompsberg, Zastron, Philipollis, Smithfield, Wepener The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam. The dam is also the site of small hydro-power and aquaculture projects. The nearby Tussen die Riviere Nature Reserve and the Mynhardt Game Reserve are popular. Crops are produced in the northern parts of the district and sheep farming is the biggest activity in the south. Diamonds, gravel and clay are mined at Koffiefontein. Jagersfontein is one of the first places where diamonds were found.

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

Lejweleputswa District Municipality Towns: Welkom, Virginia, Boshof, Christiana, Bultfontein, Bothaville Mining is the most important economic activity in this area, also known as the Free State Goldfields, but it is also the most important maize-growing area in South Africa. A large natural gas field has been discovered on what used to be gold turf. Bothaville hosts the annual NAMPO maize festival FREE STATE BUSINESS 2022

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SPECIAL FEATURE

Free State Gambling, Liquor and Tourism Authority Driving economic transformation in the Free State.

Free State Province Center yourself in the heart of South Africa

Vision A transformed economy and a prosperous society with an effective, well-regulated gambling and liquor industry and a vibrant tourism sector. Mission To be a leading developmental institution that drives economic transformation, regulation and adaptation to the ever-changing industry dynamics to benefit the Free State.

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

T

he Free State Gambling, Liquor and Tourism Authorit y (FSGLTA) is one of the two entities of the Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA). The FSGLTA was established by the FSGLTA Amendment Act 4 of 2017, which was amended to incorporate the former Free State Tourism Authority and Free State Gambling and Liquor to form the new entity which is known as FSGLTA. FREE STATE STATE BUSINESS BUSINESS 2021 2022 FREE

Mandate The thethe Free State Gambling, LiquorLiquor and Tourism Themandate mandateofof Free State Gambling, and Tourism Authorityisistotoregulate regulatethe thegambling gambling and liquor industries within Authority and liquor industries within the province provinceand andtotomarket marketand andpromote promote tourism province. the tourism in in thethe province. Authority’s purpose purpose isis to to promote promote legally legally compliant, compliant, responsible, responsible, The Authority’s sustainableand andtransformed transformedgaming gamingand andliquor liquorindustries industriesthrough through sustainable effectivelicensing, licensing,regulating regulating reporting on activities the activities effective andand reporting on the of of the industries, industries,and andtotoposition position the Free State Province a tourist the the Free State Province as aastourist destinationofofchoice. choice. destination The gambling industry • Invite applications for licences (gambling) • Consider, grant or refuse applications • Cancel, suspend, vary, renew or revoke a licence or registration approved • Implementation of norms and standards in the gambling industry as determined by the National Gambling Act • Ensure that gambling activities are effectively regulated, licensed and controlled • Ensure compliance to the act, rules and regulations The liquor industry • Receive applications for registrations (liquor) • Reduce the socio-economic and other costs of alcohol • Promote the development of a responsible and sustainable liquor industry in relation to gambling • Generate revenue for the Free State Province

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SPECIAL FEATURE

Image: iStock The tourism industry It is important that the FSGLTA intensifies its efforts to ensure effective marketing of the province in order to attract domestic tourists as well as international tourists. The province continues to enhance tourism infrastructure, up-skill the sector, inculcate the culture of service excellence and enhance the provision of world-class visitor experiences. The Authority has partnered with event organisers and tour operators to market and promote the Free State as a tourist destination. These are achieved through the following: • Forging strategic partnerships with the public and private sectors to leverage from each the capability and capacity to improve the industry • Streamlining the impact of events through partnerships and sponsorships • Improving on Meetings, Incentives, Conferencing and Events (MICE) as a focused growth area of the market • Continuous review of the marketing plans to stay on par with the industry trends. ■

GAMBLING AND LIQUOR CONTACT DETAILS • Mangaung Metro Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272 • Thabo Mofutsanyana Peter Moleko molekop@fsglta.gov.za | 078 309 4178 • Lejweleputswa Thabo Tlake tlaket@fsglta.gov.za | 057 492 0001 | 072 533 6681 • Fezile Dabi Bongakele Nzunga nzungab@fsglta.co.za | 056 492 0001 | 082 256 5926 • Gariep Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272 TOURISM ROUTE CONTACT DETAILS • Cheetah Route Nthabiseng Methola cheetah@freestatetourism.org | 073 125 1614 • Eagle Route Bonolo Molefe eagle@freestatetourism.org | 072 056 6090 • Flamingo Route Dineka Lephowane flamingo@freestatetourism.org | 073 796 8577 • Lion Route Keakabetse Ramokonopi lion@freestatetourism.org | 084 951 1564 • Springbok Route Kefiloe Molefe molefek@fsglta.gov.za | 079 496 2999

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FREE STATE BUSINESS 2021 FREE STATE BUSINESS 2022


FOCUS

FOCUS

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

E

nvironmental sustainability within the Free State Province is conducted within the prescripts of promoting Section 24 of the South African Constitution, recognising and promoting environmental rights as contained in the Bill of Rights. We also recognise our responsibility to promote a pristine environment that facilitates a transformative economic agenda to create jobs and a just society. The main focus areas are: • Environmental Quality and Protection: environmental education and awareness; waste and air quality management; environmental impacts and assessments; EPWP. Also promoting the circular economy with a particular focus on waste and recycling. • Biodiversity Conservation and Research: m a i n te n a n c e o f re s o r t s a n d re s e r ve s ; protected areas maintenance and expansion; biodiversity research; game culling and auc tions including the transfor mation and promotion of Biodiversity Economy ; transformative entrepreneurship; development and promotion of the wildlife economy. Current considerations • Ensuring sustainable environmental management. • Improve national and provincial state of environmental reporting. • Integration of environmental objectives in national, provincial and instruments and tools. • Implementation of Chapter 4 of NEMA provisions in relation to fair decision-making and conflict management (conciliation, arbitration and investigations). Responding to EIA complaints and appeals without compromising on economic transformation, job creation and the promotion of spatial integration.

FREE STATE BUSINESS 2022

Conservation priorities The Free State is 128 000km² in extent, or 12.8-million hectares. This means that it is the third-largest province in South Africa. Located in the centre of the country, with ideal soils and climate, the province is an extremely important food producer and the environmental health of the province is therefore vital to the food security of the country. The province boasts a strong conservation mindset, not only from within the DESTEA but also from land owners generally.

Prior to the adoption of the Free State Protected Area Expansion Strategy there were already 240 formally declared Nature Reserves in the province. Since the inception of the Biodiversity Stewardship programme an additional 53 000 hectares of private land have been declared and added to the conservation estate. Priority focus is now on extending these conservation areas into the remaining natural areas of the province thereby conserving wetlands, rivers, terrestrial ecosystems and species for future generations. In addition to the formal conservation areas, there are over 300 000 hectares of game and mixed-species ranches. The province generates over R600-million per annum from the local hunting industry, which maintains many huntingsupport businesses such as taxidermists, curio producers, etc. ■

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FREE STATE BUSINESS 2021


State Province FOCUS

FOCUS

Growing the tourism sector

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

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

FD

ree State Province is situated in the heart of South Africa and ESTEA’swith Tourism Unit’s is to shares borders Lesotho andobjective six other provinces. It provides grow to thethe tourism easy access main sector’s ports ofcontribution Durban, East London and to the Free State economy. In achieving Port Elizabeth. this, isvarious activities and functions are The Free State an attractive business and investment destination. Theperformed, province iswhich at the include: centre of South Africa and the dominant sectors Creating a mining, conducive environmentand forthe tourism to sectors, making are•agriculture, manufacturing tertiary thrive it ideal for transport logistics and agro-processing. • Formulating and implementing a Provincial Companies locating to Free State not only enjoy the opportunity to Tourism Sector Strategy to guide tourism activities source inputs at competitive prices, but also to benefit from domestic, in the province regional and international markets for their products and services. • Providing market access opportunities both Because South Africa has been engaging with our economically large locally and internationally to provincial tourism • Promotion of tourism safety through among others, trading partners, access to international markets is facilitated through programmes such as the Provincial Joint enterprises various preferences and free-trade agreements. Operational and Intelligence Structure (Provjoints), • Rolltrade out programmes to enhance visitor services As farexperience as long-term investment is concerned, there are industrial with law enforcement agencies, and also through and parks and a Special Economictourism Zone (SEZ) that areand supported by the the Tourism Monitors Programme. implementing • Facilitate and promote education Department of Trade,forIndustry and sector Competition. Industrial parks capacity-building the tourism are• Promote situated in Botshabelo and Thaba Nchu. • anExcellence idyllic climate Journey to Service theMaluti-A-Phofung, culture of tourism and service Maluti-A-Phofung SEZ is situated in Tshiame. • recreational and lifestyle The J2SE will focus on nominating a small town excellence Free State’s strengths of forthe inward investment are boosted by: tourism facilities. in the rural nodes and assisting the •The Promote transformation tourism sector for • openness business, trade and foreign investment town to develop a service excellence-orientated inclusive to tourism economy, as well as providing • abundance natural Select investment opportunities culture in their organisations and different support to of youth andresources women in tourism • •low factory rentals strong media attention and focus Facilitating events tourism to reduce seasonality structures with include: • Africa’s leadinggeographic telecommunications • Agriculture during the activation. A townand willagrobe identified and enhance spread network • •incentive developed for seek SpecialtoEconomic Zones and the principlesprocessing of Service Excellence will be Facilitatepackages fundinguniquely for initiatives that communicated •to all organisations. A criterion has develop and grow tourism in the province • incentives associated with the revitalised industrial parks Tourism and property beenfor developed for the nomination which • Free State Development Corporation (FDC) support services development has been shared and discussed with relevant priority sectors such as agro-processing and manufacturing • Medical and pharmaceutical stakeholders. production A number of will be • a large labour pool andactivities distribution implemented in anticipation of the big media • diverse cultures • Manufacturing event to launch J2SE Town.and clean energy • competitive land and building cost • Renewable At its core, the J2SE aims to bring together • world-class transport and telecommunications infrastructure • Medical tourism. the entire town including restaurants, accommodation facilities, tourist attractions, police, banks and petrol attendants, among FREEtrained STATE and BUSINESS 2020 7 others, to be informed, exposed to the four components of the SANS 1197:2012. A secondary objective of this programme is to establish a local Tourism Service Excellence structure or to link with existing structures to build a sustainable service culture. ■ FREE STATE BUSINESS 2021

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FREE STATE BUSINESS 2022


PROFILE

Maluti-A-Phofung SEZ investment opportunities The SEZ is booming with investment to the tune of R1.1-billon for 2020. of the traffic to different locations in South Africa and neighbouring countries such as Lesotho and Swaziland. Through its cross-docking precinct and its logistics and warehousing sectors the MAP SEZ presents itself as a solution to lighten the traffic pressure on the N3. This Special Economic Zone (SEZ) is part of 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: • Ignite the economy of the region through industrialisation. • Attract foreign and direct investment. • Create access to export and import markets. • Integrate Free State industrial strategy activities into the corridor. • Create job opportunities and grow the economy within the region. MAP SEZ CEO Mpho Mgemane

M

aluti-A-Phofung Special Economic Zone (MAP SEZ) has been established in terms of the Special Economic Zones Act No 16 of 2014. The programme is intended to deepen industrial development and improve manufacturing competitiveness in the MalutiA-Phofung region. Since the Durban port is the busiest in the southern hemisphere, it therefore means that the N3 carries the majority

FREE STATE BUSINESS 2021 2022

Objectives As part of its mandate, the MAP SEZ is intended to establish manufacturing opportunities and create a regional and international trade environment with added value-chain benefits. It has also been established to simulate social and economic benefits and regional development and to create a prosperous trade city and functional trade ecosystem. Fi n a l l y, to e n c o u r a g e beneficiation activities that promote value-added benefits and help to create a prosperous trade city and functional trade ecosystem.

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PROFILE

Priority sectors Some of the many MAP SEZ priority sectors are: • Automotive • Agro-processing • Logistics • General processing • ICT • Pharmaceuticals.

From this pipeline MAP SEZ is proud to pronounce that it has secured investments from five investors to the value of R1.1-billion in various sectors. The operations of these investors were established in June, September and November 2020. These investors are a source of great pride 137 jobs since the start of their for the MAP SEZ as they have created 103 operations and are projected to create 466 jobs collectively, once they are fully operational. The MAP SEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline of approximately R3.2-billion, is project-ed to create R2.6-billion inwhich the next five years, which will 12 000an work opportunities. ■ create estimated 22 130 permanent and temporary jobs. ■

Investor benefits Some of the many investor benefits that can be derived from locating within MAP SEZ include but are not limited to the following: • 15% corporate tax instead of 28% corporate tax. • Building allowance tax. • Employment incentive tax. • 12i tax allowance. MAP SEZ milestones Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade, Industry and Competition after cabinet approval. MAP SEZ was gazetted as a Special Economic Zone on 2 June 2017 and its tax incentives were gazetted on 6 July 2018. SEZ project pipeline Since inception the MAP SEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R2.3-billion.

Contact details Any investor interested in establishing their business within the SEZ can contact: Ms M Setai, Manager in the Office of the Chief Executive Officer A Maluti-a-Phofung Special Economic Zone Tel: +27 51 4000 800 | Cell: +27 73 210 0935 Email: maphoika@mapsez.co.za | Website: www.mapsez.co.za

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FREE FREESTATE STATEBUSINESS BUSINESS 2022 2021


SPECIAL SPECIALFEATURE FEATURE

Establishing a business in South Africa South Africa has eased the barriers to doing business for locals as well as international companies and individuals. new legislation, no new Close Corporations can be created but CCs can convert to companies. Registration of company The company must be registered with the Companies and I ntellec tual Proper ties Commission, (CPIC) in Pretoria within 21 days of the company being started. There are a range of administrative procedures that need to be fulfilled. Bank account A business bank account must be opened in the company’s name with a bank in South Africa.

S

outh Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straightforward process with assistance being offered by organisations such as the Department of Trade, Industry and Competition and provincial investment agencies like the Free State Development Corporation (FDC). South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country. The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, the FDC can offer specific advice about the business environment in the province. Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under

FREE FREESTATE STATEBUSINESS BUSINESS2022 2021

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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).


SPECIAL FEATURE or she has tried to find a suitably qualified local • Obtaining approval for building plans employee prior to hiring a foreigner? • Applying for industry and export incentives INDUSTRIAL PROPERTY TO RENT IN HARRISMITH • Is the prospective employee appropriately • Applying for import permits and verifying import INDUSTRIAL PROPERTY TO RENT IN HARRISMITH qualified and do they have the relevant duties payable experience? • Registering as an exporter if relevant and applying for an export permit. Business permits Foreign nationals who wish to establish their own Business entities business or a partnership in South Africa must, There are a variety of forms which businesses can apart from having sufficient funds to support take, including private and public companies, themselves and their family, be able to invest at personal liability companies, non-profit companies, least R2.5-million in the business. state-owned companies and even branches of The funds must originate overseas, be foreign companies (or external companies). transferable to South Africa and belong to the Branches of foreign companies fall under applicant (ie emanate from the applicant’s own Section 23 of the Companies Act of 2008 and are bank account). The business must also create required to register as “external companies” with jobs for South African citizens. After six months the CIPC. An external company is not required to a year, proof will have to be submitted that the to appoint a local board of directors but must business is employing South African citizens or appoint a person resident in South Africa who permanent residents, excluding family members is authorised to accept services of process and of the employer. any notices served on the company. It must also Applications for work permits for selfappoint a registered local auditor and establish a employment can only be lodged at the South registered office in South Africa. African Consulate or Embassy in the applicant’s country of origin. The processing fee is US$186. The Patents, trademarks and copyrights applicant would also have to lodge a repatriation Trademarks (including service marks) are valid for guarantee with the consulate/embassy equivalent an initial period of 10 years and are renewable to the price of a one-way flight from South Africa indefinitely for further 10-year periods. Patents are back to his or her country of origin. granted for 20 years, normally without an option This guarantee is refundable once the to renew. The holder of a patent or trademark applicant has either left South Africa permanently must pay an annual fee in order to preserve its or obtained permanent residence. Any application validity. Patents and trademarks may be licensed for an extension of a business permit may be but where this involves the payment of royalties lodged locally. The processing fee per passport to non-resident licensors, prior approval of the holder is R425. Some countries also need to pay licensing agreement must be obtained from R108 per return visa. the dtic. South Africa is a signatory to the Berne A list of countries to which this applies is Copyright Convention. available from the Department of Home Affairs. The FDC assists investors in applying for the Permits for foreign nationals relevant work permits to conduct their business. Work permits In considering whether or not to grant a work What can the FDC do for you? permit, the Department of Home Affairs will first The FDC will help new businesses by assisting in evaluate the validity of the offer of employment project appraisal and packaging, putting investors by conducting a number of checks to confirm the in touch with relevant agencies and government following: departments, alerting investors to investment • Has the Department of Labour been contacted? incentives and setting up joint ventures where • Has the position been widely advertised? required. ■ • Is the prospective employer able to prove that he FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business Operation..

FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on

Operation..

main arterial routes and Quick access onto N3 Freeway.

This factory offers the following:

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.

main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors

Security offers Guard House This factory the following: Well fenced and secured

Sprinkler System.

Ample parking

4 Roller Doors

3 phase power with 100 amps

Security Guard House

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with

Well fenced and secured shower

Ample parking

Occupation available immediately. Please contact Mr Tefo Matla for more

3 phase power with 100 amps

information or to view:

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower

Tel: 051 4000 800

Email: tefo@fdc.co.za

www.fdc.co.za

Occupation available immediately. Please contact Mr Tefo Matla FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUDfor ANDmore CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154

information or to view:

Tel: 051 4000 800

Email: tefo@fdc.co.za

www.fdc.co.za

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154

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FREE FREE STATE STATE BUSINESS BUSINESS 2021 2022


SPECIAL FEATURE

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

S

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, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and develop-

FREE FREESTATE STATEBUSINESS BUSINESS2022 2021

22 24

ment (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP).


SPECIAL FEATURE

Manufacturing INDUSTRIAL PROPERTY TO RENT IN HARRISMITH

Key components of the incenINDUSTRIAL PROPERTY TO RENT IN HARRISMITH tive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was launched in 2016. The grants are Incentives for SMMEs not handouts as the funding covers a maximum of 50% of the cost of the investment, with the A lot of emphasis is placed on the potential remainder to be sourced elsewhere. role of small, medium and micro enterprises in The Enterprise Investment Programme (EIP) job creation and a number of incentives are makes targeted grants to stimulate and promote designed to promote the growth of these investment, BEE and employment creation in the businesses. These include: manufacturing and tourism sectors. • Small Medium Enterprise Development ProgAimed at smaller companies, the maximum ramme (SMEDP) Programme (SMEDP) grant is R30-million. Specific tax deductions are • Isivande Women’s Fund permissible for larger companies investing in the • Seda Technology Programme (Stp). manufacturing sector under Section 12i of the • Seda is the Small Enterprise Development Agency, Income Tax Act. an agency of the Department of Small Business Development that exists to promote SMMEs. FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business Operation..

FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on

Operation..

main arterial routes and Quick access onto N3 Freeway.

This factory offers the following:

The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.

main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors

Security offers Guard House This factory the following: Well fenced and secured

Sprinkler System.

Ample parking

4 Roller Doors

3 phase power with 100 amps

Security Guard House

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with

Well fenced and secured shower

Ample parking

Occupation available immediately. Please contact Mr Tefo Matla for more

3 phase power with 100 amps

information or to view:

8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower

Tel: 051 4000 800

Email: tefo@fdc.co.za

www.fdc.co.za

Occupation available immediately. Please contact Mr Tefo Matla FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUDfor ANDmore CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 information or to view: Tel: 051 4000 800

Email: tefo@fdc.co.za

www.fdc.co.za

FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154

Other incentives

Other incentives that are available to investors as well as existing businesses in more than one sector include the following: • Technology and Human Resources for Industry Programme (THRIP) • 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 • 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.

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. ■

Online Resources Department of Trade, Industry and Competition: www.thedtic.gov.za Free State Development Corporation: www.fdc.co.za Industrial Development Corporation: www.idc.co.za Official South African government incentive schemes: www.investmentincentives.co.za

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FREESTATE STATEBUSINESS BUSINESS2021 2022 FREE


PROFILE

Lesotho National Development Corporation Profiling the endowments of Lesotho in the Free State neighbourhood. To fulfil its mandate, LNDC offers four core services: investment and trade promotion, investment and trade facilitation, aftercare and development financing services. These core services are offered to foreign and indigenous investors primarily through serviced industrial and commercial sites and buildings. In addition to serviced sites, LNDC offers an array of financing solutions. Organisational structure In terms of its establishment Act, the strategic leadership of the Lesotho National Development Corporation is vested in the 11-member Board of Directors appointed by the Minister of Trade and Industry. The Board provides direction and oversight over the affairs of the Corporation. The operations of LNDC are managed by the Chief Executive Officer, supported by the Executive Management Team. The CEO’s office comprises the Internal Audit and Risk Management Division, Corporate Governance Division and Public Relations Section. The Executive Management Team comprises four General Managers who head four strategic business units: • Development finance institution (semi-autonomous) • Property development and management (semi-autonomous) • Investment and trade promotion • Corporate services.

Ha Belo Industrial Estate Construction Site.

L

esotho National Development Corporation (LNDC) is a corporate body mandated by the Government of Lesotho to “initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho”. LNDC also promotes Lesotho as an attractive investment location for both foreign and indigenous investors. The Government of Lesotho is the sole shareholder in the Corporation and the Ministry of Trade and Industry is responsible for providing overall policy direction on investment and industrialisation. The Corporation is charged with the implementation of the country’s industrial development policies and investment strategy. The vision of the Corporation is to be “A catalyst for a diversified, globally competitive economy, underpinned by manufacturing and high-tech agroprocessing industries”. Its mission states that “Our aim is to deliver excellent and speedy services to our clientele as we partner to achieve inclusive and sustainable economic growth”.

FREE STATE BUSINESS 2022

Investment and Trade Promotion (ITP) Strategic Unit ITP is responsible for initiating, promoting and facilitating investments from foreign and indigenous investors, promoting and facilitating trade and

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PROFILE

exports, facilitating implementation of new and expansion investments, securing international buyers, providing technical assistance to new and existing investors, business expansion and retention (aftercare services), policy advocacy and investment climate reforms and Lesotho nation branding and marketing. ITP is divided into six sub-functions: investment promotion, trade promotion, investment climate reforms, nation branding and marketing, and aftercare services. Investment and trade promotion relates primarily to promotional activities and campaigns aimed at either potential investors or generally promoting trade and development for Lesotho, generating leads, and developing prospects until they are ready for commitment and implementation. Aftercare services includes investment facilitation, business expansion and retention. These are meant to elevate and manage Lesotho’s reputation as a strategic investment and trading location and to continuously pursue improvements in efficiencies for service delivery to investors, hence positioning Lesotho as the best in Ease of Doing Business in the region. Development Finance (DF) Strategic Business Unit The LNDC Strategic Plan of 2018-23 instituted the creation of the Development Finance (DF) Strategic Business Unit with the mandate to “develop a portfolio of financing solutions to support private sector led industrial development and economic diversification”. The unit currently offers four financing instruments: • Partial credit guarantee (PCG) – fully operational • Equity finance • Quasi-equity finance • Project preparation facility. This unit manages LNDC’s equity portfolio of 10 companies. These companies operate in different sectors ranging from agriculture, construction, wholesale, retail and services. The role of DF is extracted from the LNDC Act No. 20 of 1967 to raise, lend or borrow money; make advances to any company, form or person; lend and advance money to companies, firms or persons owning or engaging in any business

similar to or related to that of the Corporation; guarantee payment of cash or performance of contracts by any such company, firm or person on any terms as maybe agreed upon and to issue debentures, bills of exchange and other negotiable or transferrable instruments. It also can direct expenditure on or towards the implementation of the project or undertaking or any of the objectives of the project or undertaking; make loans or grants for the purposes of the project or undertaking; invest any moneys belonging to the Corporation in any project, undertaking or enterprise; provide technical, advisory or managerial assistance and services; provide plant or machinery for the purposes of any project, undertaking or enterprise. Property Development Management (PDM) Strategic Business Unit The PDM unit is one of the main cogs that drive the Corporation, as without property there is no established investment. Investment prospects look for globally competitive locations for investment. The PDM division is responsible for acquiring and developing LNDC properties in an effort to create work space for industrialists and other commercial entities. PDM is primarily responsible for the management of all LNDC property which include: • Acquiring and developing LNDC properties • Managing leases • Marketing commercial properties • Providing maintenance support to tenants. Corporate Services (CS) Strategic Business Unit LNDC’s Corporate Services division contains the shared support functions of the organisation. These services include Human Resources and Administration, Legal Services, IT, Planning and Research and Finance. The unit is the membrane that allows the Corporation’s operational processes to run as smoothly as possible. ■

CONTACT DETAILS Lesotho National Development Corporation Email: info@lndc.org.ls Email: moremoholo@lndc.org.ls Website: www.lndc.org.ls

FREE STATE BUSINESS 2022



KEY SECTORS Overviews of the main economic sectors of the Free State Agriculture Mining Oil and gas Manufacturing Tourism Education and training

A lake near Clarens in the Eastern Free State. Credit: SA Tourism

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OVERVIEW

Agriculture Transnet Freight Rail aims to double grain volumes.

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leven mill workers in Bethlehem shared a celebration with their place of work in 2021 – all of them started at the SASKO Bethlehem Mill (pictured) when it opened in 1991. The mill has a total of 96 employees and mills 144 000 tons of wheat every year. Three production lines are responsible for cake flour and whitebread flour and a blending facility makes brown-bread meal and complete mixes. Bethlehem was chosen because of its proximity to excellent wheat-producing areas and for its strategic location in terms of logistics: the busy N3 freeway is just 90km away. Engineering News reported in June 2021 that Transnet Freight Rail (TFR) plans to double volumes of grain transported out of its Bethlehem facility. VKB Agriculture is one of the companies that will benefit if TFR can increase its capacity to 550 000 tons for the season, as it plans. Veld fires caused serious damage in 2020 in parts of the Lejweleputswa District. More than 100 farms and 100 000ha were affected. When these fires were followed by flooding, a disaster was declared by the Provincial Government of the Free State in order to facilitate emergency aid.

SASKO’s Bethlehem Mill is celebrating three decades of milling. a tractor and implements to participants. Key to the growth of these small-scale operations is access to finance and the Industrial Development Corporation (IDC) is a key role-player in the Free State. The launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) has created another platform to boost the agro-processing and agro-logistics sectors.

Company news

Provincial initiatives Initiatives of the Provincial Government of the Free State to improve access to the sector for previously excluded people include: • The Chicky Piggy piggery in the Xhariep District, which has been constructed and is operational. The facility has a bio-security facility, office block, laundry, a reservoir, a tractor and a splitter tanker. • The Free State Poultry Hub Investment Plan which is targeting Virginia, Parys, Frankfort and Reitz. Five agri-parks are being constructed in each of the Free State’s district municipalities. The concept brings together farmers, traders and agro-processors at convenient sites. Support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market. As part of the agri-parks programme a warehouse is under construction at Springfontein and the Thaba Nchu abattoir is being upgraded. In Sediba, Farmer Production Support Units supplied FREE STATE BUSINESS 2022

SECTOR INSIGHT

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The Agriculture RSA division of chemical group Omnia has bought Oro Agri Opportunities, a producer of agriculture biologicals, for a reported $100-million. The purchase of a 21% stake in BKB by VKB has given the latter company extended g e o gr a p h i c a l re a c h a n d opportunities in new markets. While VKB is strongest in the Free State and Limpopo with a grain focus, BKB is wellestablished in the Eastern Cape, deals mainly in wool and mohair and runs many auctions. VKB is already a diverse group, with the capacity to


OVERVIEW

Credit: SASKO produce soybean meal and soybean cake and flour from its plants, mills and factories. Grain Field Chickens, a large abattoir in Reitz, is one of the company’s biggest facilities in the province. The Industrial Development Corporation (IDC), which has a 23% stake in the project, aims to help develop the Free State as the poultry hub of South Africa. VKB has six agro-processing companies including VKB Flour Mills and Free State Oil and is active in auctioning, storage, packaging and fuel sales, among other activities. VKB’s headquarters are in Reitz in the eastern part of the province and the group is one of the province’s largest employers. The Imbani Homsek Group is an integrated dairy-products producer with one of the biggest Ayrshire herds in the world. The head office of Country Bird Holdings is in Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird Logistics controls 45 chilled and frozen vans. 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

ONLINE RESOURCES Agricultural Research Council: www.arc.agri.za Bothaville: www.bothaville.info Free State Department of Agriculture and Rural Development: www.ard.fs.gov.za Grain SA: www.grainsa.co.za

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milk powder is also made) a n d i n H e i l b r o n ( w h e y, buttermilk, condensed milk and packaging). When lockdown restrictions are not in place, Bothaville hosts the country’s largest agricultural festival, NAMPO Harvest Day. In 2019, Grain SA’s big day had 775 exhibitors catering to 81 345 visitors. Bothaville is on the western edge of the Free State and the town falls under the North West in the organisational chart of giant agricultural company Senwes, which has its headquarters in Klerksdorp. The rest of the Free State is divided into three regions by Senwes, which deals with about 20% of the country’s oilseeds and grain through its 68 silos. The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), potatoes (33%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). Red meat and dairy are other important products. Game hunting is a significant sector, and several large Free State farms have been converted from stock to game farms. Crop production represents about two-thirds of the province’s gross agricultural income. The main crops are maize and wheat. Sunflowers, sunflower seeds, sorghum and soy beans are other major crops. The Mangaung Fresh Produce Market plays a vital role in the sector, catering as it does to householders, bulk buyers, informal traders, agents and farmers. ■ FREE STATE BUSINESS 2022


OVERVIEW

Mining Mining activity is picking up in some sectors.

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he Lejweleputswa District Municipality in the northwest of the province is the site of considerable activity in the mining of industrial minerals, with six companies currently active. Matsopa Minerals, for example, runs a bentonite mine at Koppies between Heilbron and Vredefort. Sandstone and sand-mining operations are underway in Qwaqwa, Fouriesburg, Senekal, Sasolburg and Zastron. Limestone and calcrete occur in the western Free State where salt is also panned. Production is concentrated around the Florisbad salt pan, north-west of Bloemfontein. Historically, the north-west part of the province was famous for gold, with Harmony Gold’s Bambanani mine forming an essential part of Welkom’s economy for many years. Bambanani is in the final stages of its life-of-mine but there are other areas where Harmony Gold is still extracting gold and investigating possible expansion programmes. The company is conducting an exploration programme to confirm the geological model of Target North and further define a potential block of wellmineralised Ventersdorp Contact Reef. Tshepong contributed 19% of the group’s gold production in FY20, even though production was somewhat down (7 293kg vs 7 967kg in FY19). Various challenges, not least of which was the Covid-19 pandemic, caused the reduced volume but this was outweighed by an increase in the recovered grade. Harmony Gold has announced that it will build a 30MW solar plant to help power its operations. AngloGold Ashanti sold most of its assets to Harmony Gold, two of which, Great Noligwa and Kopanang, are in the Free State. The complex includes one uranium plant, four gold plants and one sulphuric acid plant. These assets increased Harmony’s underground resource base in South Africa by nearly 40%. The mines include Tshipong and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at Welkom. The plant at Joel was closed in 2019 and ore mined there is now processed at Harmony One. Phakisa has mineral reserves of just over five-million ounces of gold and Harmony has invested heavily in the project. Sibanye-Stillwater is also investigating a possible new project next to its existing Beatrix mine. Gold prices rose appreciably during the Covid-19 pandemic. The company’s Beatrix mine, with a life-of-mine FREE STATE BUSINESS 2021/22

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SECTOR INSIGHT Harmony Gold is investing in solar power.

Credit: Harmony Gold

projected to 2025, produced 196 698 ounces of gold in 2019. Beatrix also holds 26.97-million pounds of uranium resources. Mining rights to the Southern Free State project adjacent to Beatrix have been approved and a feasibility study on part of it, the Bloemhoek decline, has been completed. The company reported that the Southern Free State property had surface and underground gold reserves of 2.1-million oz and mineral resources of 8.2-million oz. The mining sector makes


OVERVIEW

Harmony Gold is exploring new possibilities. Credit: Harmony Gold up 11% of provincial GDP. A minerals beneficiation strategy has been developed because this is a key area for potential growth. 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. Petra Diamonds’ Koffiefontein mine is on the western edge of the province, about 80km from Kimberley. The mine is regarded as a low-grade deposit, but the diamonds produced are of high value. White stones of excellent quality are produced, and fancy pink diamonds are sometimes found. The Voorspoed mine of De Beers Consolidated Mines closed in 2018. De Beers, the South African government and the South African diamond-cutting industry have launched a project to encourage diamond beneficiators. Among the first companies involved are Thoko’s Diamonds, African Diamonds, Nungu Diamonds and Kwame Diamonds. Coal is mostly found in the northern part of the Free State. The Sigma-Mookraal mine is run by Sasol Mining and has the capacity to supply Sasol Infrachem in Sasolburg with two-million tons of

ONLINE RESOURCES Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za South African Mining Development Association: www.samda.co.za

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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 p ro d u c t i o n : Ve re e n i gi n g, 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. The Free State Provincial Government announced in February 2020 the creation of a company that will manufacture mining equipment, to be called Newco. Small mining companies have been promised technical support and with health and safety and access to beneficiation opportunities. ■ FREE STATE BUSINESS 2021/22


INTERVIEW

Ensuring sustainability and a positive legacy PJ Jordaan, Closure Manager of De Beers Voorspoed Mine, gives an overview of the complex and detailed procedures that have to be followed in closing a mine. What stage in the mine closure process has been reached? The mine officially closed in December 2018 and has entered the decommissioning and rehabilitation phase. The overall rehabilitation goal is to manage the mine site and continue with rehabilitation in order to meet the end land use of agricultural and grazing for stock after final closure. A decision was taken at the end of 2019 to defer certain closure activities for two to three years, as further work is required to improve the closure cost estimate to an acceptable level and to address uncertainty regarding post-closure monitoring requirements.

Petrus Jordaan, Closure Manager, De Beers Group, Voorspoed Mine

BIOGRAPHY PJ Jordaan is a geologist with more than 25 years of experience in gold and diamond mining with Anglo American and De Beers. He has a passion for the diamond industry with a strong interest in all aspects of diamond mining and mine closure. In 2018 he took on the role of Closure Manager, where he leads the Voorspoed closure team by managing all closure activities, focused on reimagining asset retirement deliverables to improve communities in the company’s zone of influence. FREE STATE BUSINESS 2022

What are the remaining timelines? A three-year period of active closure and rehabilitation is planned to start in January 2023, provided an environmental authorisation (EA) has been issued by the DMRE. The intent of the closure and rehabilitation programme will be to remediate the site to the approved final closure plan standards. Follow‐up monitoring will continue beyond the rehabilitation phase, ie until 2031, as required by the various regulatory authorities. What are some considerations in a mine closure process? The key consideration of the mine closure process is to ensure sustainability beyond mine closure and to leave a positive legacy behind. Successful closure can further be defined as meeting the guidelines established by internal corporate requirements with regard to mine closure (Anglo American Mine Closure Performance Standard and associated Mine Closure Toolbox), as well as the statutory requirements in terms of the Mineral and Petroleum Resources Development Act, 2002. What are the key environmental standards that have to be met, and how is Voorspoed executing these requirements? The overarching framework governing South Africa is the Constitution of the Republic of South Africa (Act 108 of 1996). Various rights are entrenched in the Constitution, including the right to an environment that is not harmful to the health or wellbeing of the population, otherwise called the environmental right. The mining industry is further regulated by mining,

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INTERVIEW

Have you been working with the Moqhaka and Ngwathe Municipalities in terms of their Local Economic Development plans? Certainly. Delivering lasting positive socioeconomic change in our mine communities is fundamental. Thus, we have managed to maintain a long-standing relationship with our local municipalities. We have worked and continue working collaboratively to contribute towards the effective delivery of their Local Economic Development plan needs, including infrastructure, healthcare, education and Enterprise Development. That’s why one of the three global pillars of our Sustainable Mining Plan is Thriving Communities. We are reimagining mine closure to improve people’s lives.

environmental, human health and safety legislation. The interaction between various acts of parliament that deal with the environment is varied and complex, as is the range of environmental issues that are regulated. Some of the applicable legislation includes the Mineral and Petroleum Resources Development Act 28 of 2002 (MPRDA), and the National Environmental Management Act 107 of 1998 (NEMA). The Voorspoed closure plan has been prepared to give effect to the various legal and corporate requirements that govern the process and requirements for the closure of Voorspoed Mine.

Has Voorspoed been involved in training mine workers for work in other sectors? The mine introduced a dedicated, fully funded re-skilling programme from 2017 until closure (or as agreed), which provided employees with a range of portable skills allowing them to meaningfully compete for opportunities post closure. The programme focussed on nonmining-related training, entrepreneurial and other programmes in line with the Workplace Skills Plan. ■

Is Voorspoed expected to rehabilitate the area? Yes. The MPRDA is the main source of rehabilitation obligations. It requires rights holders to “as far as reasonably practicable” rehabilitate the land affected by the operation “to its natural or predetermined state”, or to a land use which conforms to the generally accepted principle of sustainable development. Concurrent rehabilitation commenced in 2014 when the mine was still in operation and the mine has already successfully rehabilitated the Waste Rock Dump (WRD) as per the agreed commitments in the approved EMPR and closure plan.

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FREE STATE BUSINESS 2022


FOCUS

Rethink, Restrategise, Reconnect Focus on SMMEs at Youth Empowerment Week.

From left: Jade Wheelock, Trio-Plus, Lebogang Mphaka, De Beers Group

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of our local SMMEs has enabled the GODISA programme to “Make Life Brilliant” in our communities, especially in addressing the impact of Covid-19 on small businesses. Over 40 local SMMEs are enrolled for the GODISA programme for the 2021 period, as part of long-term business sustainability plans beyond Voorspoed’s life-of-mine. Chief Director Denis Ackulay, from My Arts International, emphasised that, “The Mangaung Youth Empowerment Week remains a shining example of what can be achieved when a group of young professionals are serious enough about their futures.” ■

e Beers Voorspoed Mine, in partnership with My Arts International, held the 12th Mangaung Youth Empowerment Week in April 2021. Free State SMMEs were invited to the event in order to gain a better understanding of their challenges within the business world as well as for them to connect with other SMMEs. The theme for the event was to Rethink, Restrategise and Reconnect. Through the De Beers Voorspoed Mine’s GODISA Programme, facilitated by Trio-plus Development, entrepreneurs were introduced to the programme and its benefits at the Youth Empowerment week held earlier in 2021. GODISA, which stands for Growth, Opportunities, Decision-making, Innovation, System and Accountability/Action, coaches, mentors and trains with the aim of creating selfsufficient businesses. During the event, one of the De Beers Zimele entrepreneurs, S’busisiwe Sithebe, the owner of Buska Foods, was provided an opportunity to showcase her products and share her personal growth journey as well as some of the challenges she has encountered during this journey. Our commitment and desire to actively encourage the development

FREE STATE BUSINESS 2022

Busi Sithebe Buska Foods and Lebogang Mphaka, De Beers Group

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FOCUS

De Beers Voorspoed Mine hands over water-testing laboratory Cleaner and safer water for Parys.

From left: Temba Malunga, Director Technical Support, Ngwathe Local Municipality; Petrus Jordaan, Closure Manager, Voorspoed Mine; Cllr Philemon Ndayi, Chief Whip and MMC for Infrastructure; CIIr Joey Mochela, Exclusive Mayor; Kalipa Kewuti, Regional Manager, Department of Mineral Resources and Energy; Lebogang Mphaka, Corporate Affairs Manager, De Beers Voorspoed Mine; Sellwane Mok, Director SLP, Department of Mineral Resources and Energy.

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A local small, medium and micro-enterprise, Ramokgwera Trading & Projects (Pty) Ltd, was selected as the main contractor for the laboratory renovations. In contributing to local short-term employment, eight temporary job opportunities were offered to community members, who were able to gain experience and training for future opportunities on other projects. Voorspoed Mine’s Corporate Affairs Manager, Lebogang Mphaka, said, “Water is essential, even more so during the present pandemic. As De Beers Group, we recognise how essential it is to collaborate with our communities and commit to creating a lasting legacy through sustainable projects like this.” In delivering a speech during the ceremony, Department of Mineral Resources and Energy’s Regional Manager, Kalipa Kewuti, emphasised the importance of mining companies complying in terms of achieving their Social and Labour Plan objectives to benefit the host communities sustainably, from a regulatory perspective. “We applaud Voorspoed Mine for being compliant,” she said. ■

e Beers Voorspoed Mine, in partnership with Ngwathe Local Municipality and the Department of Mineral Resources and Energy, unveiled a R2.2-million newly renovated and furnished water-testing laboratory on 22 September 2021. The handover of the laboratory is part of the mine’s efforts through the Social and Labour Plan to support the municipality with its Integrated Development Plan (IDP) projects and will play a vital role in water-quality testing to ensure safer and cleaner water for the community of Parys. During the handover, Ngwathe Local Municipality’s Executive Mayor, Councillor Joey Mochela, said that one of the common denominators of service delivery protests was water and sanitation. She further indicated that, to date, Parys and Tumahole both have 98 JoJo tanks, four pump stations, four reservoirs, one water treatment and a borehole. “This water-testing laboratory will help us find lasting solutions to water purification and shortage challenges in our areas,” she said.

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FREE STATE BUSINESS 2022


FOCUS

Harmony builds strong community relationships Covid-19 has highlighted the need for collective action. is the principal mechanism through which Harmony manages and addresses a wide range of expectations and perceptions. Through proactive engagement, we are able to identify, prioritise and better manage any potential material socio-economic risks and opportunities. “The Covid-19 pandemic has highlighted the need for collective action, which revealed our interdependencies and also strengthened our relationships with one another. The quality of the relationships with stakeholders and how well these are managed affect our ability to deliver on our strategy. “Improving the quality of these relationships protects our social licence to operate, supports the success of our business strategy and creates shared value for all our stakeholders,” Mashego concludes.

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nvironmental, Social and (Corporate) Governance, or ESG, has come to be one of the most important indicators which big firms and groups must factor into business decisions in every part of the globe. In both South Africa and Papua New Guinea where Harmony is active, stakeholder relations assume the utmost importance. Stakeholders can include a diverse set of groups and entities, including: • host communities • suppliers and business partners • national and local governments • investors and shareholders • industry peers • local and international media.

Community forums The issues and concerns raised by communities are addressed through the established community forums. The forums are in constant engagement with Harmony’s dedicated stakeholder engagement managers and corporate affairs team. These community forums consist of representatives from municipalities, traditional authorities and local business forums. Their purpose is to share information with communities on progress being made on project implementation, to establish their needs and expectations, and to try to manage their perceptions of what Harmony can deliver. “This initiative has had a largely positive impact on our community stakeholder engagement,” reports Mashego.

Harmony’s Executive Director for Corporate Affairs, Mashego Mashego, describes the importance of these relationships. “Harmony believes it is crucial to build trust and maintain positive relationships with all its stakeholders,” says Mashego. The company ’s approach is aimed at partnering with stakeholders, creating a win-win situation. Says Mashego, “Stakeholder engagement FREE STATE BUSINESS 2022

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FOCUS

Programmes H a r m o ny h a s l a u n c h e d a n i n c u b a t i o n programme for businesses in host communities in South Africa, specifically targeting 100% black- owned, women- owned and youthowned businesses for the supply of products or services. There were106 applications, 34 ultimately being approved for the full threeyear incubation programme. Harmony’s health department also supports the broader company’s strategy for targeted enterprise supplier development (ESD) by providing opportunities for companies that are from the host communities to participate economically in the operations.

Creating sustainable shared value Mashego reflects on the concept of shared value: “We understand that the dynamics and the needs of communities are ever-evolving and so any meaningful and sustainable socioeconomic development we pioneer and implement requires far more than a onedimensional approach. “Our approach to socio-economic development is multi-faceted and our projects implemented include: • Infrastruc ture, education and skills development, job creation and entrepreneurial development • Enhancing broad-based local and community economic empowerment and enterprise development initiatives • Facilitating socio-economic development in

local communities by means of our social and labour plans, and our corporate social responsibility programmes support arts, culture and sports and recreation, and Building relationships based on trust with our host communities, the basis of which must be transparent dialogue and the delivery of mutually agreed promises.

Community projects Harmony showed compassion and care with the outbreak of Covid-19 in 2020. Mashego remembers, “ The health and safety of our people took precedence and as such, we made decisions that ensured the continued viability of our company and its stakeholders, further demonstrating that Harmony has a positive impact.” Harmony was at the forefront of delivering food parcels, washable face masks and care kits to all host communities in Gauteng, Free State and North West. In addition, nine local historically disadvantaged suppliers were empowered through the procurement of these essential items. Community Trust The Community Trust owns 5% of Tswelopele Beneficiation Operation (TBO), which is also known as Phoenix, a mine dump retreatment operation in the Free State, and has some 4 400 000 Harmony preference shares The Community Trust is involved in similar projects to those mentioned above and was formed to properly govern funds allocated to projects. TBO pays out dividends twice a year. The preference shares pay R8.8-million each year for 10 years, starting in 2019. Thereafter, the preference shares will convert into ordinary Harmony shares. ■


OVERVIEW

Oil and gas The Virginia Gas Project will join a small global elite in 2022.

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n 2021 there were 15 places in the world in just seven countries that produce helium. In 2022 those numbers will increase to 16 and eight when Renergen’s Virginia Gas Project (pictured) comes on stream. The SpaceX rocket that launched in 2021 used 11 tons of helium to propel itself off the ground. Every computer microchip in the world is produced in the presence of helium and the world uses 85 tons of it every day. Although it’s a very useful element, it’s also a very difficult element. The result of that is that Renergen, the owner of the Tetra4 company that holds the first and only onshore petroleum production right issued by the Department of Mineral Resources and Energy (DMRE), has had to import much of its equipment and many of the skilled personnel it needs to commercialise the gas field. The field covers 187 000ha in the region of Virginia, Theunissen and Welkom. Hiring has increased rapidly since 2019 as the project ramps up from the first phase in which a pilot compressed natural gas (CNG) plant was constructed in 2016. The second phase encompasses liquid natural gas (LNG) and helium. Production of helium is expected to grow from 350kg per day to five tons in the second phase. The first sector to respond to the potential of this gas find was the logistics sector. Bulk Hauliers International Transport (BHIT) has signed an agreement to take LNG to fuel 50 of its trucks, which should lead to lower operating and maintenance costs. South African Breweries is another client. Renergen has signed an agreement with TotalEnergies for distribution and sales. Renergen intends equipping filling stations with LNG at strategic locations across South Africa to cater for the logistics industry. The first two such stations will be Total stations in Johannesburg and Durban that will be rebranded in green. One station is planned for Harrismith on the busy N3 highway which links these two cities. The potential of a second market was revealed in 2021 when Renergen agreed to sell LNG to glass manufacturer Consol. Bespoke depots will be developed to cater to industrial clients such as Consol. Tetra4 has a R218-million loan from the Industrial Development Corporation to build a 107km pipeline network from Virginia and the Overseas Private Investment Corporation (OPIC), an agency of the US government, will lend Renergen $40-million (more than

FREE STATE BUSINESS 2022

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SECTOR INSIGHT A national gas distribution network is being established.

R600-million) over 12 years to build a gas plant in the Free State. The area around Virginia has proven reserves of 25-billion cubic feet. The chemical complex at Sasolburg is the economic driver of the oil and gas sector for the province. One of the Sasol companies at Sasolburg, Sasol New Energy, is moving the group away from reliance on fossil fuels. In 2020 Sasol called for bidders construct an embedded 10MW solar PV facility at Sasolburg. The company’s larger goal across all its sites is eventually to procure 600MW of renewable energy and achieve a 10% greenhouse-gas (GHG) emission reduction by 2030. Sasolburg Operations is one of the five operating hubs that forms part of the Southern African Operations and is a 100%-owned facility. Sasolburg Operations includes all operations on the Sasol One and the Sasol Midland sites. The integrated manufacturing facility is responsible for the production of base and performance chemicals. It also produces electricity and other


OVERVIEW

utilities and provides site-support services to enable the manufacturing processes taking place on site. Sasol has been running a Research and Technology facility at the Sasol One Site in Sasolburg for a decade. Comprising 14 laboratories, analytical equipment, pilot plants, offices and maintenance workshops, the facility is run by Sasol Technology and offers the group’s scientists and engineers space to work on new technologies and efficiencies. Sasol’s technology expertise includes coal and gas-processing technologies, Fischer-Tropsch catalysis and engineering research, refinery and fuels technologies, chemical technologies, environmental sciences and engineering, and alternative energy and advanced analytical solutions. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-

ONLINE RESOURCES Petroleum Agency SA: www.petroleumagencysa.com South African Oil and Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za

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methane-gas exploration rights in KwaZulu-Natal and natural gas exploration permits in the Free State. Early surveys suggest that the Free State has 23-billion cubic feet of gas underground. If this is confirmed, then four new power stations could be built in the province. Tests have begun in the Karoo in search of shale gas. The Natref fuel refinery is one of only four in South Africa, and the country’s only inland refinery. The 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. ■ FREE STATE BUSINESS 2022


FOCUS

Gas will put South Africa on the path to zero emissions Dr Phindile Masangane, the CEO of Petroleum Agency South Africa, notes that recent gas discoveries could support the country’s economic recovery and its transition to a clean energy future.

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insignificant, and as a responsible global citizen SA must take steps to reduce its carbon footprint. The UN Framework Convention on Climate Change was established in 1992 to coordinate the global response to mitigate the threat of climate change, and specifically to get countries to commit to policies and plans that will ensure that the average global temperature rise is kept less than 1.5°C above pre-industrial levels. The International Energy Agency (IEA) proposes that to achieve this goal the world’s energy sector must reach net zero emissions by 2050. In its global energy net zero 2050 pathway the IEA acknowledges that there is no single pathway to this goal, as developed and developing countries face different socioeconomic challenges and have contributed disproportionately to greenhouse gas emissions to date. What a number of environmental interest groups seem to be ignoring in the IEA “Net Zero by 2050” report is the acknowledgment that there will be a differentiated approach to a clean energy future, taking into consideration the cost of the new clean energy technologies and the economic consequences of transitioning for each country. The IEA emphasises that each country must develop its own pathway to a net zero emission future. South Africa’s economy has been predominantly powered by coal, Renergen is currently the only onshore petroleum production rights which is also a significant contributor holder in South Africa. The company’s Virginia Gas Project in the Free to the country’s economy in terms State is ramping up to phase two, based on one of the richest helium of GDP as well as employment. Of all concentrations in the world. Credit: Renergen primary energy resources coal is the

oday the biggest threat to humanity is climate change, and the biggest threat to SA’s social stability is the high unemployment rate. As the global economy recovers from the devastating effects of Covid-19, demand for oil and gas has gone up significantly. If there was ever a need for proof that oil and gas still drive the global economy, recent statistics demonstrate the trend. T h e w o r l d ’s d e v e l o p e d e c o n o m i e s industrialised on the back of oil and gas production and use. Now, just as Africa is on the cusp of being a significant gas producer and is making plans to use such gas for power generation, industrialisation and economic growth, the negative effects of greenhouse gas emissions on the environment have become undeniable. The urgency for action to mitigate the risk of climate change is no longer debatable. Between 1990 and 2018 the top five emitters have produced more than 50% of greenhouse gas emissions. During the same period SA has contributed 1% to global emissions. This is by no measure

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Locality

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most carbon-intensive and fine particulate matter affects people’s respiratory systems. In addition to coal, South Africa imports oil, gas and petroleum products for its energy needs as the upstream petroleum industry is still at a nascent stage. The two recent world-class offshore gas discoveries in the Outeniqua basin are the biggest petroleum discoveries made in South Africa. The development of these discoveries has the potential to replace more than 2 300MW of dieselfired electricity generation, thereby reducing the carbon emissions by more than 50% while eliminating sulphur oxide and nitrogen oxide emissions. Gas is therefore an obvious bridge to a lower carbon future. The Petroleum Agency SA awaits the licensee of these gas discoveries submitting its production right and environmental authorisation applications when the exploration right expires, or earlier. The agency expects the licensee to use world-class technologies and standards to minimise the effects of the gas and gas condensate production on the environment, while maximising the in-country benefit or local content from this development to support SA’s economic recovery. These discoveries could indeed support both the country’s economic recovery and its transition to a clean energy future. Onshore exploration opportunities are represented by unconventional resources such as shale gas in the south-central Karoo, coalbed methane in the coalfields of the east and northern sectors of the country and biogenic gas in the Virginia and Evander regions. However, geological analysis is showing that there may well be significant potential for conventional oil and gas resources onshore.

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Figure 32. Distribution of coal fields in the Karoo-aged basins in South Africa (digital geological data sourced from Council for Geoscience)

Gas and coal-based methane are found in many parts of South Africa’s interior. Credit: PASA, with digital geological data sourced from Council for Geoscience. The draft bill provides greater policy certainty and a stable environment for investment in the South African oil and gas sector. It provides security of tenure by combining the rights for the exploration, development and production phase under one permit. As far as the issuing of exploration rights over the last 18 months is concerned, a total of 21 exploration rights for both onshore and offshore were issued during this period, including renewals and new exploration rights. As of December 2020, there is no longer a moratorium on applications for rights onshore, other than those for shale gas in a specified area covering the central Karoo. Other onshore applications continue to be received and processed in terms of the MPRDA. The moratorium for shale gas rights and new offshore applications remains in place and is expected to be lifted with the enactment of the hydraulic fracturing regulations (for environmental management and water use) for the shale gas extraction technologies. ■

Conducive investment environment South Africa has a history of political stability and the new UPRD bill (Upstream Petroleum Resources Development Bill) will assist the Agency in expediting exploration through close management of acreage allocation and work programmes. These positive factors create a conducive environment for PASA to pursue its mandate of attracting investment into the upstream petroleum industry.

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OVERVIEW

Manufacturing A steel smelter is under construction.

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national programme to revitalise industrial parks, led by the National Department of Trade, Industry and Competition (dtic), is paying off about 45km east of Bloemfontein. Among the biggest new investors in the Botshabelo Industrial Park is Hangda Trading which has started erecting a R200-million steel smelter which will employ more than 1 500 people. A dtic official and a Hangda executive are pictured on a site inspection. At the end of the first phase of revitalisation, 25 investors had invested R201-million and 1 360 jobs have been created. A Digital Hub in the park will provide training to small and medium enterprises focusing on ICT products. Further north, the strategically located Maluti-A-Phofung Special Economic Zone (MAP SEZ) has attracted R1-billion from investors. Kevali Chemicals became the first beneficiary of the dtic’s Black Industrialists Scheme (BIS). A grant of R35-million allowed the company to acquire machinery and equipment to start a new line of manufacturing in the MAP SEZ. Business hubs in Ficksburg and Koffiefontein are designed to support SMMEs. The Contractor Development Programme has signed contracts with 71 small businesses to do road maintenance in the province. A 172ha business park in Sasolburg which incubates black industrialists is a joint venture between the dtic and Sasol. There are five buildings on the site, training is provided, and companies have access to Sasol’s diverse supply chains. Sasolburg in the northern Free State is a key asset in South Africa’s chemicals industry. Sasol has the biggest presence but companies such as Omnia and AECI are other major companies which give the Free State the lead in this sector which relies on advanced technology. Manufacturing makes up 9% of Free State gross domestic product, and this comprises 4% of South Africa’s total. The Free State Regional Industrialisation Policy is under review to ensure integration of infrastructure, bulk service provision, industrial sites and export and tax incentives to attract investment. The existing manufacturing sector covers chemicals, agroprocessing, textiles, carpets, engineering, packaging, furniture and

ONLINE RESOURCES Chemical and Allied Industries’ Association: www.caia.co.za Free State Development Corporation: www.fdc.co.za South African Textile Federation: www.texfed.co.za

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SECTOR INSIGHT The Malutia-A-Phofung Special Economic Zone is attracting investment.

Credit: dtic jewellery. About 20% of the Free State’s manufacturing sites are devoted to food and beverages, with soft drink giant CocaCola Fortune operating a large bottling plant in Mangaung. Landzicht Wine Cellar distributes 2.4-million litres of wine every year from Jacobsdal. Harrismith is home to Nouwens Carpets and Boxmore Plastics. Boxmore Packaging’s new PET beer bottles are the first PET bottles specifically designed for beer on the SA market. Empire Gloves makes industrial gloves. Kroonstad-based 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. ■


OVERVIEW

Tourism The Vredefort Dome is to be marketed internationally. SECTOR INSIGHT Tourism venues were used as quarantine sites during the pandemic.

Vredefort Dome is the oldest astrobleme ever found. Credit: Francesco Bandarin/UNESCO

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bout 2 000-million years ago a meteorite landed in what is now the Free State. The town of Vredefort is approximately in the middle of the circular area that has been identified as the dome of that meteorite; its diameter is 300km and extends from Johannesburg in the north to Welkom in the south. The core zone is 120km south of Johannesburg on the banks of the Vaal River, and this is the smaller area that has UNESCO World Heritage Site status. The site’s boundaries, which has a radius of 190km, are roughly defined by the roads that link Vredefort, Parys and Potchefstroom. A meteorite impact structure is called an astrobleme and this is the oldest, largest and most deeply eroded such structure ever found. A joint effort to improve and market the area nationally and internationally is underway, involving the Free State tourism authorities, the North West Province, Fezile Dabi District Municipality and the National Department of Environmental Affairs, Forestry and Fisheries. Other sites with potential that are the subject of upgrades include the Thaba Nchu Airfield and the Phakisa Raceway in Welkom. The global pandemic closed down the tourism sector and it will take some time to recover. The provincial government provided some relief by earmarking tourism venues as sites for quarantine. Heritage is a sector with growth potential. A Heroes’ Park is to be constructed at Thaba Nchu and Tumahole with statues of Oliver Tambo and Fidel Castro. A museum and statue at

ONLINE RESOURCES Bloemfontein Tourism: www.bloemfonteintourism.co.za Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs: www.destea.gov.za Free State Gambling, Liquor and Tourism Authority: www.gla.fs.gov.za

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Brandfort to commemorate Winnie Madikizela-Mandela is planned. In 2019 the 88-room Splendid Inn Bloemfontein was opened by Premier Hotels & Resorts. Protea Hotels has four properties in the Free State, two in Bloemfontein, one in Harrismith and the Protea Hotel Clarens. The Tsogo Group’s properties include the four-star Southern Sun Bloemfontein and the Goldfields Casino in Welkom. The City Lodge Bloemfontein has 151 rooms, and there is a Road Lodge at the airport. The Rantsoareng Group operates exclusively in the Free State and has three properties, the biggest of which is the President Hotel in Bloemfontein. Sun International runs the Lesotho Sun and the Maseru Sun in neighbouring Lesotho. In Bloemfontein, the Windmill Casino and Enter tainment Centre offers slot machines and gaming tables, plus conference facilities. The four-star Willow Lodge has 80 rooms. The Naledi Sun Hotel and Casino is about 65km from Bloemfontein. The Golden Gate Highlands National Park in the Maluti Mountains is one of South Africa’s great parks. ■ FREE STATE BUSINESS 2022


OVERVIEW

Education and training Skills development programmes are expanding. SECTOR INSIGHT UFS researchers are doing advanced work on protein structure prediction.

The CUT Hotel School has a new roof. Credit: CUT/Sebedisan Group

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n extensive Skills Development Programme is giving young people skills and work experience in a variety of fields. The Provincial Government of the Free State spent about R120-million training 3 367 people in 2020/21 on various skills programmes. These were supported by placements with government departments and with private businesses: 120 unemployed graduates were specifically supported by the province on stints at companies. Sector Education and Training Authorities (SETAs) are involved in the programmes which include graduate internships, learnerships, short-skills programmes and workintegrated learning methods. The province’s road-building unit will link up with T VET college graduates to provide specific work training. A national policy of promoting training in critical trades has been adopted. Two of the three campuses of Flavius Mareka TVET College are designated Centres of Specialisation, for electrical work at Sasolburg and plumbing at Kroonstad. The Mphohadi campus of the college is also in Kroonstad. The Free State has about 14 000 students at four Technical and Vocational Education and Training (TVET) colleges, taught by 400 lecturers. All of the colleges have multiple sites. Maluti TVET College in Phuthaditjhaba, for example, offers classes at eight sites. Motheo TVET College operates in Bloemfontein and Thaba Nchu, while Goldfields TVET College is headquartered in Welkom with some classes offered in Thabong and a satellite campus at Virginia (Meloding).

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The University of the Free State has 158 researchers rated by the National Research Foundation (NRF), two A-rated scientists and five tier-one SARChi research chairs. The university has 18 international research partnerships and produces an average of 240 postgraduate research degrees every year. A team of undergraduates from the UFS Department of Animal Sciences won the 2021 national quiz held at the 52nd congress of the South African Society for Animal Science (SASAS). At the same event, Andries van der Merwe, a postgraduate student, received the SASAS Student Postgraduate Merit Award for exceptional academic achievement. Dr Sinobongo Mdyogolo, a PhD student, was presented with the SASAS Bronze Medal in respect of her PhD achievements in the research and technology transfer categories. A group of academics from the Depar tment of Microbiology and Biochemistry has been involved in an exciting international collaboration of researchers which solved a difficult and intricate problem in science,


FOCUS

De Beers and Moqhaka Municipality “Changing Lives” Learning new skills gives young people employment opportunities.

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n efforts to contribute to local skills development, local employment and advancing the social and economic role of our host communities, De Beers Voorspoed Mine partnered with Moqhaka Local Municipality and the Department of Employment and Labour to place trainees in fields of plumbing, welding and water treatment for a 12-month work-integrated learning programme. The programme intends to provide an opportunity for the youth of Moqhaka to acquire extra skills in plumbing, welding and water treatment. The programme will enable the trainees to develop skills with on-the-job and core training at Moqhaka Municipality. Despite the low levels of economic activity in our province, there are job opportunities in the welding industry and the need for skills is massive. The youth will be empowered to maximise their potential along with a tailored plan to provide them with a future to make a difference. As they progress through their learnership programme, we will help them discover their real capability and develop their skills as artisans. At De Beers Group, we are driven by our purpose to Make Life Brilliant for our people, our customers and those living in the communities where we operate. We are working to define a new world where brilliance is achieved every day. It is for this reason that we placed talented individuals to participate in our Learnership Programme for the benefit of our communities. The remarkable contribution that diamonds continue to make even after life-of-mine towards skills development in Fezile Dabi district, owes a great deal to the effectiveness of the partnerships we have forged with local governments and our empowerment partners. The framework for these principles is defined in terms of our social licence to operate.

Young people in the Fezile Dabi District Municipality are learning new skills in plumbing, welding and water treatment through a joint programme of De Beers Group and the Department of Employment and Labour.

About De Beers Group De Beers Group is a member of the Anglo American plc group. Established in 1888, De Beers Group is the world’s leading diamond company with expertise in the exploration, mining and marketing of diamonds. Together with its joint venture partners, De Beers Group employs more than 20 000 people across the diamond pipeline and is the world’s largest diamond producer by value, with mining operations in Botswana, Canada, Namibia and South Africa. As part of the company’s operating philosophy, the people of De Beers Group are committed to “Building Forever” by making a lasting contribution to the communities in which they live and work and transforming natural resources into shared national wealth. ■ For further information about De Beers Group, visit www.debeersgroup.com.

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FREE STATE BUSINESS 2021/22


Credit: Unsplash accurate protein structure prediction. Their results, which were reached by using machine-learning, were published in the scientific journal, Science. The findings could change the way many things are done, including in molecular replacement and managing diseases. Having insight into the dimensional structure of a protein has the potential to enable more advanced drug discovery. The Central University of Technology (CUT) has four faculties: Engineering, Built Environment and Information and Technology, Health and Environmental Sciences, Humanities and Management Sciences. Researchers at units such as the Centre for Community, Environmental and Industrial Development tackle important regional issues. The CUT has started training programmes in artificial intelligence, 3D cloud computing and data screening. The first phase of a major upgrade of the Hotel School of the CUT is complete. The new glass roof in the school’s courtyard was designed by Hennie Lambrechts Architects of Bloemfontein. Upgrades were also completed to the boardroom and other facilities. Future phases will see the main kitchen and training

ONLINE RESOURCES Central University of Technology: www.cut.ac.za Flavius Mareka TVET College: www.flaviusmareka.net Free State Department of Education: www.education.fs.gov.za University of the Free State: www.ufs.ac.za

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facilities upgraded and the conversion of the lounge ser vice area as a satellite kitchen for a new solarium as café venue. There are 11 new schools under construction in the province in all districts. The Free State has 39 farm schools but the aim is to increase this number to make it possible for children from rural areas to have a better chance of getting good education. Air Traffic and Navigation Services (ATNS) handed over its 16th sponsored ICT and Science laboratory in 2020 to Akademia High School, Brandfort. The donation forms part of a five-year “Back to School” CSI initiative which has seen ATNS sponsor laboratories across the country to schools from impoverished communities. ■


FOCUS

Voorspoed hands over an old-age facility The community of Ngwathe Local Municipality benefits from Building Forever strategy.

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e Beers Group’s Voorspoed Mine has handed over a R5-million old-age facility, in partnership with Ngwathe Local Municipality, to Ratang Maqheku Centre for the Aged in Parys. The project forms part of Voorspoed Mine’s Social and Labour Plan, specifically its Community Development Programme, which aims to uplift communities of the Free State Province and develop working partnerships to enhance and influence economic and social factors. Through its Building Forever strategy, De Beers Group is helping communities to access opportunities and thrive with the aim of leaving a positive and lasting legacy for mining communities to enjoy sustainable livelihoods beyond the life of its operations. Ratang Maqheku Centre previously operated from three rented backyard rooms in Tumahole, Parys. The Centre caters for 30 elderly people daily, and provides food, primary healthcare services and exercise, as well as access to the local library to improve their literacy and writing skills. The new 470m² facility, which was built by local black female-owned company Tshepo ya Rona, comprises two bedrooms, sickbay, workshop area, rest area, consultation room, three offices, dining area, kitchen with a pantry and laundry room, two ablution facilities as well as a reception and waiting area. Ratang Maqheku also received a brand-new 22-seater vehicle to transport the elderly to and from the centre. Speaking at the handover ceremony, Josephine Pieters, De Beers Social Impact Manager, said, “We are living in unprecedented times whereby we have to create a safe haven for our senior citizens to shield them from a society that should be protecting them. We are very grateful to Ratang Maqheku’s management team. We acknowledge their strength, commitment and perseverance – it is through their determination that this project

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Exec. Mayor Joey Mochela, DMRE Regional Manager, Kalipa Kewuti and the Senior Impact Manager Josephine Pieters at the launch of the Old age Day Care

is what it is today. Coming together and fighting against the social ills that our elders face on a daily basis and creating a refuge for them, is really commendable. As De Beers Group, we are proud to be part of creating a future that is safer, fairer and healthier for our elderly.” Executive Mayor Councillor Joey Mochela thanked Voorspoed Mine for being a valuable stakeholder in the municipality. “We were sad to hear that Voorspoed Mine was closing down because we had built such a remarkable and strong partnership with them. However, we have been pleasantly surprised by how they have continued to support us, and this has brought hope to us and the people of Ngwathe,” said Cllr Mochela. Department of Mineral Resources and Energy Regional Manager, Kapila Kewuti, thanked Voorspoed Mine for fulfilling its Social Labour Plans during its Care and Maintenance stage. “As the regulator, it is beautiful to witness the support that De Beers continues to provide to our communities. We are proud of the work they have been able to do alongside our municipalities, community leaders and various partners in providing necessary support to the vulnerable members of our society,” said Kewuti. ■

FREE STATE BUSINESS 2022


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

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AFCOC’s main objective is to promote, unite and encourage the development of small business in South Africa in general and black entrepreneurs in particular, thereby drawing the majority from the peripheries of the consumption-based economy to the frontlines of production-based economic activity and decision making processes. NAFCOC Free State responded in a special way to address the distress faced by members during lockdown. In 2020, the chapter: • Lobbied for localised provincial funding during the lockdown.

• Campaigned for the regulation of township businesses (trading permits and adherence to bylaws). • Assisted small and informal businesses in applying for Covid-relief funding. • Worked with government on a programme to assist people living with disability to gain access to markets and procurement opportunities. • Encouraged youth to be more involved in agriculture and try to find solutions to the lack of access to funding. • Worked with Standard Bank to assist small enterprises to open business accounts.

Vision To be the leading voice of business in South Africa. Mission To develop and promote economic growth among existing and new businesses.

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

NAFCOC members applying for permits.

Chairperson: Tshepo Matsaba Tel: 083 485 7883 Email: matsabat@nafcocfs.org.za National website: www.nafcoc.org.za

BUSINESS CHAMBERS IN THE FREE STATE Free State Black Business Chamber Contact: Mr Lucky Motsamai

Cell: 066 204 5295

Free State Youth Chamber of Business and Commerce Contact: Mr Sam Motlogeloa Cell: 081 442 8928

Email: info@fsbbc.co.za Email: yccifs@gmail.com

Mangaung Chamber of Commerce and Industry Contact: The President Tel: +27 51 522 1710 Email: President@bcci.co.za Phenomenal Women Contact: Ms Thato Mokhothu

Cell: 071 383 4183

Vredefort Tourism Association Contact: Ms Renee de Jong

Cell: 071 448 4332

Email: vredefortinfo@gmail.com


LISTING

Free State Provincial Government A guide to Free State’s provincial government departments. Visit: www.freestateonline.fs.gov.za Office of the Premier Premier: Mrs Sefora Ntombela 4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9300 Tel: +27 51 405 5496 | Fax: +27 51 405 4803 Website: www.freestateonline.fs.gov.za

Department of Human Settlements MEC: Ms Motshidise Agnes Koloi 7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets, Bloemfontein 9300 Tel: +27 51 405 3379 | Fax: +27 51 403 3699 Website: www.humansettlements.fs.gov.za

Department of Agriculture and Rural Development MEC: Mr Skully Nxangisa Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360 Tel: +27 51 861 8509 | Fax: +27 51 861 8452 Website: www.ard.fs.gov.za

Department of Police, Roads and Transport MEC: Mr Kwekwe Bulwane 4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301 Tel: +27 51 409 8849 | Fax: +27 51 409 8864 Website: www.policeroadstransport.fs.gov.za Department of Public Works and Infrastructure MEC: Ms Motshidise Agnes Koloi Office 310, OR Tambo House, Cnr Markgraaf and St Andrews Streets, Bloemfontein 9301 Tel: +27 51 405 3909 | Fax: +27 51 405 4490 Website: www.publicworks.fs.gov.za

Department of Cooperative Governance and Traditional Affairs MEC: Mr Mxolisi Dukwana 7th Floor, OR Tambo House, Cnr St Andrews and Markgraaf Streets, Bloemfontein 9301 Tel: +27 51 405 5719 Website: www.cogta.fs.gov.za

Department of Social Development MEC: Ms Mamiki Qabathe Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 409 0555 | Fax: +27 51 409 0618 Website: www.socdev.fs.gov.za

Dept of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Mr Makalo Mohale Bojanala Building, 113 St Andrews Street, Bloemfontein 9301 Tel: +27 51 404 9600 | Fax: +27 51 400 4732 Website: www.destea.gov.za

Department of Sports, Arts, Culture and Recreation MEC: Ms Limakatso Mahase Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 407 3520 | Fax: +27 51 407 3541 Website: www.fssacr.gov.za

Department of Education MEC: Mr Pule Makgoe Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 404 8430 | Fax: +27 51 404 8269 Website: www.education.fs.gov.za

Provincial Treasury MEC: Ms Gadija Brown Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 405 4229 | Fax: +27 51 405 4152 Website: www.treasury.fs.gov.za

Department of Health MEC: Ms Montseng Ts’lu Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300 Tel: +27 51 408 1108 | Fax: +27 51 408 1950 Website: www.health.fs.gov.za

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Tel: 051 400 0800 Email: wecare@fdc.co.za | invest@fdc.co.za Web: www.fdc.co.za