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2017/18 EDITION

LIMPOPO BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN LIMPOPO PROVINCE

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Musina

Alldays Great North Transport Blouberg

Musin

Vhe Makhado

M N1

N11

G

reat North Transport (GNT) operates across members who otherwise would not generate revenue the length and breadth of Limpopo and on the contracted parking space. the eastern part of Mpumalanga. With its head office in Polokwane and 11 depots Enterprise development based in the five districts of the province and one in Enterprise development is at the heart of socioMolemole Bohlabele, Mpumalanga, the company transported economic development polices and strategies of the Mogalakwena 22-million passengers and commuters during the national, provincial and local government. Through its procurement spending, GNT advances the sustainable BOTSWAN 2016/17 financial year. development of emerging enterprises. Over the years Strategy Lephalale the company has continued to procure its supplies with preference given to GNT is a business offering primarily services. The ser- from emerging enterprisesCapricorn Gre vice mix is standardised (scheduled services) with companies based in Limpopo. The company has also subcontracted some routes some level of customisation (in certain cases new Polokwane Waterberg routes require customisation). The business model to emerging bus companies and provided mentorship to ensure they become sustainable beyond the critical is directed towards standardisation and replication. GNT’s offering is both broad and deep and the years of inception. Lepele-Nkum focus is regional but the reach is international. GNT has both a business-to-consumer focus (scheduled Youth development services) and a business-to-business focus (contract The company partners with private and public sector companies to organise business seminars focusing on services, hiring, advisory services). young people. The annual seminar provides a platform Fetakgo Human resource development Lim 368 for engagements between institutions that provide Thaba Annually, Great North Transport recruits students for financial and non-financial products and services to learnership and internship programmes as part of ensure that aspirant youth entrepreneurs are afforded human resource development for the country, and an opportunity to kick-start their business ideas. Makhuduthamaga Limpopo Province in particular. In the current year, 10 learners were recruited and absorbed into various Great North Transport owns and operates buses at disciplines ranging from HR Management, Marketing the following locations: Ephraim and Business Development to Finance, Internal Audit, Bela-Bela Mogale IT and Operations. • Bapedi (Burgersfort) • Marble Hall • Bushbuckridge • Motetema Community development (Bohlabela) • Mokopane The company signs contracts with members of comNorth W • Phalaborwa munities for overnight parking for its buses in the • Giyani • Seshego different villages across the province. This is seen by • Hoedspruit Greater Groblersdal the company as empowering to those community • Makhado • Tzaneen

ephalale

mbi

R81

Mokopane N1

Mookgophong

Bele-Bela

Modimolle

Gauteng

N11

POLOKWA


ZIM

Services • • • •

NA

Musina

Musina

Tshipise Private hire Alldays Vhembe Commuter services Th Makhado Inter-towns services N1 N11 Cross-border partial services

Lephalale

Greater Letaba

Molemole Mogalakwena

R81

Lephalale

Tzaneen

Capricorn Waterberg

Th

Makhado

Blouberg

Mokopane

Greater Tzaneen

POLOKWANE

Polokwane

B

Lepele-Nkumpi

N1

Thabazimbi

azimbi

West

Mookgophong Lim 368

Fetakgomo-Greater Tubatse

N11

Vision

Modimolle Sekhukhune Makhuduthamaga To be Southern Africa's preferred transport services provider supporting economic Bele-Bela growth and development in the region. Mission

Bela-Bela

Ephraim Mogale

To invest in world-class operating systems that will ensure sustainable, safe, consistent and dependable transport services for the benefit of our stakeholders. Greater Groblersdal

Tel: +27 15 291 2641 | Fax: +27 15 291 2648 Gauteng Email: info@gntpassenger.co.za | Website: www.gntpassenger.co.za 22 Hans Van Rensburg Street, Polokwane, 0700, Limpopo, South Africa

Mpum


CONTENTS

CONTENTS Limpopo Business 2017/18 Edition

Introduction Foreword6 A unique guide to business and investment in Limpopo Limpopo welcomes investors to the “gateway� province A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha.

8

A springboard for regional integration Limpopo Economic Development Agency Managing Director Benjamin Mphahlele.

10

Special features Regional overview of Limpopo  Special economic zones are set to boost the manufacturing sector.

14

Limpopo Development Plan Improving lives, and creating a conducive environment for investment.

20

Special Economic Zones Investor-friendly measures are attracting investors to designated growth zones in Limpopo.

22

Sector contents Agriculture40 The strong agri-processing sector still has massive potential to grow in Limpopo. Mining44 Special economic zones open up possibilities for investors in processing. LIMPOPO BUSINESS 2017/18

4


UIF SAVING JOBS

THROUGH SOCIALLY RESPONSIBLE INVESTMENTS

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

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

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

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

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

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

For more information: Call: 0800 843 843 or visit: www.labour.gov.za


CREDITS Energy60 An energy complex is planned for Lephalale. Water61 Major bulk water projects are under way. Transport and logistics Limpopo’s location makes it ideal for logistics operations.

62

Information and telecommunications technology Limpopo is getting better connected.

68

Banking and financial services The provincial government is creating an insurance company.

76

Development finance and SMME support A new strategy for the economies of townships and villages will boost SMMEs.

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Education and training Relevant training for employment is a provincial priority.

84

Tourism86 Cultural tourism is growing fast in Limpopo.

Government Limpopo Provincial Government A guide to Limpopo’s provincial departments and their MECs.

91

Limpopo Local Government A guide to district and local municipalities in Limpopo Province.

92

References 38

ZIMBABWE

MUNICIPALITIES IN LIMPOPO PROVINCE

Local Municipality

Tshipise

Alldays

Waterberg

District Municipality

Vhembe

Lephalale

Thulamela Thohoyandou

Makhado

Blouberg

Index96

Musina

Musina Metropolitan/District Municipality Boundary Local Municipality Boundary

Makhado

Greater Letaba

Molemole Mogalakwena

Map

R81

Lephalale

Tzaneen

Capricorn Waterberg

Mokopane

Greater Tzaneen

POLOKWANE

Polokwane

Lepele-Nkumpi

21 93

Thabazimbi

Thabazimbi

Mookgophong Lim 368 Bele-Bela

Modimolle

Bela-Bela

Sekhukhune

Bohlabela (Cross-border Municipality) Kruger National Park District Management Area

Bushbuckridge

Ephraim Mogale

Greater Groblersdal

Gauteng

6

Makhuduthamaga

Phalaborwa

Maruleng

Fetakgomo-Greater Tubatse

N11

Mopani

Ba-Phalaborwa

R40

N1

North West

LIMPOPO BUSINESS 2017/18

Kruger National Park

Greater Giyani

Lephalale

Limpopo locator map. Limpopo municipalities map.

Kruger National Park District Management Area

R81

N1

N11

BOTSWANA

MOZAMBIQUE

Sector contents Overview of the main economic sectors of Limpopo.

Mpumalanga


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three smart meetings and events rooms, and a spacious Live-Inn Room Restaurant and Bar, all with free wireless Internet. Each of the 160 rooms and suites boasts contemporary designs with a vibrant colour pallet, comfortable beds, mood lighting, room amenities and Dove signature amenities. The Live-Inn Room Restaurant and Bar has an abundance of natural lighting and serene views of the garden. Enjoy a delicious Park Inn Breakfast Buffet, light lunch or indulge your palate with the various options on the à la carte menu. The open-plan bar allows you access to the Terrace and outdoor pool where guests can unwind with refreshing cocktails.

The smart meeting and events rooms provide a fresh and creative approach to meeting and events. Seating up to 100 guests with direct key card access, ample parking, free Wi-Fi for all delegates and cutting-edge audio visual equipment, your event will be anything but ordinary. Whether you are on business or exploring the greenery of the local surroundings, Park Inn by Radisson Polokwane focuses on the “Adding Colour to Life” service concept which resonates well with today’s modern travellers. For more information contact: info.polokwane@rezidorparkinn.com or call (0) 15 495 0969


FOREWORD

Limpopo Business

CREDITS

A unique guide to business and investment in Limpopo.

Publisher: Chris Whales

L

Publishing director: Robert Arendse

impopo Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2007, established itself as the premier business and investment guide to the Limpopo Province. This edition of Limpopo Business is officially endorsed by the Office of the Premier of Limpopo. This book contains detailed insights into the plans of the Limpopo Economic Development Agency (LEDA) and the recently launched bus rapid transport system for the provincial capital, Leeto la Polokwane, together with a comprehensive register of all provincial government and municipal contact details. Investment news related to mining, telecommunications and tourism is carried in overviews of all the main economic sectors. To complement the extensive distribution of the print edition of the magazine, the publication is also available online at www.limpopobusiness. co.za. Updated information and news is dissemenated through our monthly e-newsletter, which you can subscribe to at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

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

Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Business development manager: Shiko Diala Ad sales: Sydwell Adonis, Nigel Williams, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During

Administration & accounts: Charlene Steynberg and

ABOUT THE COVER

Natalie Koopman

De Beers is currently undertaking a major project to convert Venetia Mine from an open-pit operation to an underground mine. Open pit mining is expected to continue until 2021 and production in the underground mine is scheduled to commence in 2022 and will continue to 2043.

Distribution & circulation manager: Edward MacDonald

DISTRIBUTION

PUBLISHED BY

Limpopo Business is distributed internationally on outgoing and incoming trade missions; to foreign offices in South Africa’s main trading partners; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, provincial government departments, municipalities, airport lounges and companies.

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

Member of the Audit Bureau of Circulations

ISSN 1993-0119

COPYRIGHT | Limpopo Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Pictures supplied by: Chris Kirchoff, Wikimedia, Flickr, Anglo American, ANB Investments, Du Roi Nursery, South African Tourism, MediaclubSA, Ridgeway College, Malan Koetze, Marthinus Duckitt, Brand South Africa and Skycraper City.

LIMPOPO BUSINESS 2017/18

Printing: FA Print

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Limpopo Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.

8


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MESSAGE

Limpopo welcomes investors to the “gateway” province A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha.

Trade in the mining and agricultural products of Limpopo is supported by an excellent transport and logistics sector which recently received an additional boost with the approval by the South African national government of a new Special Economic Zone in the province. The Musina-Makhado Special Economic Zone will leverage the existing advantages in mining and logistics of the northern part of Limpopo and special tax and customs regimes will be attractive to investors. A mining-focussed SEZ at Tubatse is also under consideration and we expect to attract about R44-billion in investments into these two zones. The rich soils of Limpopo produce great quantities of high-quality minerals and fruit and vegetables. Investors with the ability to beneficiate minerals or add value to agricultural produce through processing can take advantage of the favourable terms offered by Special Economic Zone legislation. Power generation, steel and coking plants and plasma waste gasifiChupu Stanley Mathabatha, cation are among the possibilities for the Musina SEZ, while the focus Premier of Limpopo at Tubatse will be platinum group metals beneficiation and also the manufacturing of goods that are used in the mining industry. Working together with the private sector, our provincial government has identified 10 major projects with a combined value of R46-billion. This will go a long way towards helping us to expand the productive capacity of our economy. We invite other investors to explore with us the possibilities for further projects that will support our effort to put It gives me great pleasure to Limpopo on a higher trajectory of economic growth and development. welcome the readers of Limpopo Our Limpopo Development Plan symbolises our dedication to the Business to the heartland of improvement of our provincial economy. The plan is our contribution to Southern Africa. Limpopo is also the nation’s development and it details how we in Limpopo share the known as the “gateway” province same vision and imperatives regarding poverty reduction, elimination because of our strategic loca- of social inequality and the creation of sustainable jobs. tion on the Great North Road to We are pleased that Limpopo has recorded the second-highest Zimbabwe, our links to the Port of employment gains in 2016. In the fourth quarter, Limpopo managed Maputo in Mozambique via the to create 64 000 new jobs. Jobs gained were mainly in the areas of Phalaborwa Spatial Development construction, mining and agriculture. Initiative and the Maputo Corridor We are committed to improving infrastructure in the province, and our close proximity to the both to improve the quality of life of our citizens and as a way of Republic of Botswana and three enabling investment. Limpopo Connexion, a subsidiary of the Limpopo Economic South African provinces, Gauteng, Development Agency, has begun in earnest with the rollout of North West and Mpumalanga. LIMPOPO BUSINESS 2017/18

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MESSAGE

Two Limpopo festivals are already proving the rich potential of cultural events. The Mapungubwe Festival a signature event in the country’s entertainment calendar. During the last Mapungubwe Festival, a number of crafters generated substantial income. Another striking event on the province’s social calendar is the annual Marula Festival. The festival regularly attracts about 30 000 people including hundreds of visitors from neighbouring countries such as Mozambique, Zimbabwe and Zambia. This year’s guest list includes people from as far as South America. The economic spinoffs of this infrastructure for the broadband telecommunica- festival are unrivalled. More than 13 cooperatives tion programme in Limpopo. under Mukumbi Industries brews 12 000 litres of The programme implementation is in two phases, marula beverages for the public throughout the with the first phase commencing in quarter two of festival. Apart from marula beverages, local enthe 2017/18 financial year. This phase rolls out the trepreneurs also sell other by-products of marula, broadband infrastructure in Polokwane, including such as jam, cooking oil, soap, hand and body the identified key provincial growth points. The sec- lotions and nuts. ond phase of the programme will cover over 80% Tourism remains one of the key competitive of the provincial population, as per the provincial advantages for Limpopo. The Kruger National Park spatial development framework. is South Africa’s number-one tourist attraction. A A Provincial Infrastructure Hub has recently been number of private concessions have been granted created, with 68 professionals already appointed. along the public park’s edge and there are sevThis body will help to coordinate the delivery of eral private game reserves scattered throughout strategic social-economic infrastructure across the the province’s diverse landscapes. Golf tourism is another growth sector with proximity to the province. Heritage and culture are increasingly being rec- country’s major point of entry at Johannesburg’s ognised as potential economic drivers. A provincial OR Tambo International Airport a big selling point. performance theatre is to be built in Polokwane at Whether you are a tourist, a business person or the corner of Oost and Grobler streets. This project an investor, Limpopo is a province that is rich in opwill among other things help ignite the cultural portunities. We look forward to welcoming you. industry, promote our rich and diverse cultures and www.limpopo.gov.za create job opportunities.

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LIMPOPO BUSINESS 2017/18


MESSAGE

A springboard for regional integration and commerce Mr Benjamin Mphahlele, Managing Director of the Limpopo Economic Development Agency. the continent’s largest economies, and bordering as it does Botswana, Zimbabwe and Mozambique, Limpopo Province enjoys a perfectly natural geographical advantage to enhance regional integration towards the manifestation of African Agenda 2063, with the ideal of “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.”

Benjamin Mphahlele

The African continent and African economies present massive investment opportunities in terms of large infrastructure projects, innovative and renewable energy sources, as well as large markets that encompass retail, commodities, ICT, manufacturing, arts and culture, travel and tourism, transportation and logistics, and other sectors. As a province in one of LIMPOPO BUSINESS 2017/18

LIMPOPO PROVINCE HAS A PERFECTLY NATURAL GEOGRAPHICAL ADVANTAGE TO ENHANCE REGIONAL INTEGRATION TOWARDS THE MANIFESTATION OF AFRICAN AGENDA 2063 WITH THE IDEAL OF “AN INTEGRATED, PROSPEROUS AND PEACEFUL AFRICA, DRIVEN BY ITS OWN CITIZENS AND REPRESENTING A DYNAMIC FORCE IN THE GLOBAL ARENA.” As a lead economic development agency for Limpopo, the Limpopo Economic Development Agency (LEDA) is best positioned to articulate and drive the following: • Working with its shareholder, the Limpopo Provincial Government, to implement provincial economic strategy in the context of the National Development Plan and the cluster-based Limpopo Development Plan • Establishing the industrial cluster fora necessary to create and accumulate the required social capital, thus creating a common

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MESSAGE

THE SPECIAL ECONOMIC ZONES, MUSINA-MAKHADO AND TUBATSE, ARE INTEGRAL TO REALISING THE ECONOMIC GROWTH OF THE PROVINCE

vision for each respective industrial cluster within an identified geographical space and develop cluster action plans Coordinating key stakeholders within each cluster or project and facilitating the pace of implementation through an agreed-upon programme of action Creating investment opportunities in the factorendowed yet rural province and providing infrastructure requisite for the industrialisation of the province. Such infrastructure includes the building and revitalisation of industrial parks, and the building of the ICT, green economy and energy sectors to enhance sustainable global competitiveness. The Special Economic Zones, MusinaMakhado and Tubatse, are integral to realising the economic growth of the province. Limpopo is rich in mineral resources, and 17 new mines were established in the greater Tubatse/ Burgersfort/ Steelport area between 2001 and 2016, with a further 22 new mines planned. Beneficiation of platinum group metals (PGM), magnetite, vanadium and chrome provides opportunities that include catalytic converters, platinum jewellery, hydrogen fuel cells and solar energy component manufacturing. The Zones provide to investors a package of tax-based incentives and provision of infrastructure necessary to build globally competitive firms Building the Sub-Tropical Fruit Industrial Cluster by expanding primary production capacity, thus creating demand and growth of the upstream agricultural inputs production as well expanding

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the provincial presence in the fruit export markets and the downstream food processing businesses Securing Foreign Direct Investment through international finance and partnerships, while scanning the global markets for critical skills requisite for developing the Limpopo economy Developing Tourism Destination Assets: the Limpopo Tourism Agency markets the province from a tourism perspective, where key heritage attractions include Mapungubwe and its artefacts, Makapan’s Cave (a sister project to the Cradle of Humankind) and the hot springs at Bela-Bela. But it remains LEDA's mandate to match the province's natural and professional services assets/industries to global business value chains, cross-industry corporate transactions, as well the hosting and capacitation of diplomatic missions at home and abroad. Integral to this objective is the provision of up-to-date market intelligence about the province's economy and providing marketing and public relations tools to sell Limpopo as an attractive and competitive investment destination.

KEY STRATEGIC INTERVENTIONS • Facilitate business-to-business linkages • Delivery of large-scale catalytic projects • Create investment oppor tunities in rural Limpopo • Drive investor education and secure Foreign Direct Investment • Stimulate large-scale farming and agro-processing • Encourage creation of urban city regions • Drive destination marketing

CONTACT INFO Head office: Enterprise Development Finance House, Main Road, Lebowakgomo, Polokwane 0699 Tel: +27 15 633 4700 | Fax: +27 15 633 4854 Website: www.lieda.co.za

LIMPOPO BUSINESS 2017/18


MESSAGE

Efficient, reliable, secure public transport A message from the Executive Mayor of Polokwane Local Municipality, Councillor Thembisile Nkadimeng.

Thembisile Nkadimeng, Executive Mayor

 T

he Municipality of Polokwane welcomes the introduction of Leeto la Polokwane which is set to provide our residents with much improved public transport and stimulate the local economy. LIMPOPO BUSINESS 2017/18

Leeto la Polokwane, which means “Our journey”, will provide an efficient, reliable, secure, cost-effective public transport service that reduces congestion on public roads, protects the environment and connects people to daily life. It will also spur economic growth through sustainable job creation and the facilitation of seamless trade and business. Investment in transport infrastructure leads to job creation and skills transfer while reducing travel times for people to acquire goods and services. Moreover, the project also provides valuable public health benefits by reducing road fatalities, crashes and injuries; reducing personal exposure to harmful air pollutants and increasing physical activity for users. Such improvements will have a positive impact in promoting local businesses and stimulating investments within Polokwane. The service is initially slated to run from the Central Business District, past Seshego and into Moletjie. Already, 2.5km of Dedicated Lanes towards Seshego township have been completed, with a further 1.5km under construction. This will culminate in 50km of road construction for trunk and feeder routes. Moreover, there have also been trunk extension rehabilitation and upgrades – 13.8km completed with 32.6km in the CBD. To date, 12.8km of roads falling under the national Department of Transport have been completed, with 24.8km from partnerships with other grant providers. They cater for pedestrians and cyclists though the provision of sidewalks, cross walks, paths and cycle lanes. Special needs facilities including tactile paving for the blind, boarding bridges to ensure level boarding between the stops, stations and buses and easy-to-use pedestrian and passenger information signage have been put in place. The target for having the first buses rolling is 2018. We are reaching out to the community to make them aware of Leeto la Polokwane. We are engaging in a number of stakeholder engagement sessions, community outreach events, media events and door-to-door interactions to share progress with the communities we serve and to receive feedback. We are also active on the various social media platforms.

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MESSAGE

City of Polokwane set to grow Message from the Municipal Manager of Polokwane Municipality, Dikgape Makobe.

Polokwane is an obvious destination for logistics operations. With a well-established rail network and Polokwane International Airport, there are good connections to neighbouring provinces and countries such as North West, Mpumalanga and the Republic of Botswana. The large national logistics company, Value Group, only has four big depots in South Africa: one of them is in Polokwane. Polokwane is the biggest manufacturing centre in the province, with several agri-processing firms. Enterprise Foods has a large canning and emulsion processing plant in the city, Sasko runs a mill and other big manufacturers include SAB, Tiger Brands and Unilever. Charcoal is also manufactured in the city. Polokwane has a well-established financial sector that can assist with the financing of new infrastructure. Preparing the way Council has successfully put in place measures to tackle ageing infrastructure, water and sanitation backlog, rural electrification and to develop a solid maintenance programme for its infrastructure. Progress is under way to improve the total road network in the city. The city is hard at work to ensure that smart connectivity in the city is created to have access to broadband and WiFi. The municipality will continuously implement the Smart City Concept in other service delivery fields to create an encouraging environment for investment he Municipality of Polokwane growth. We have achieved consensus with the business community is ready to achieve its ob- to find ways to unlock job opportunities and we aim to find smart jectives for development ways to unlock economic growth using the land that the city owns. and service delivery and There is a great potential for investment in central city property welcomes investors who want management and the entertainment sector. The arts theatre project to take advantage of the many also brings with it massive investment opportunities in the entertainopportunities that we offer. ment sector. The city centre is ripe for revitalisation and remodelling. The City of Polokwane is one of A list of investment opportunities in Polokwane appears in the Local the fastest-growing urban areas Government section. Polokwane is also looking for private partners to in the north and it is the centre for assist in rolling out these important catalytic projects: regional economic development • Smart Metering Solutions in the area. The city has many eco- • 90MW Solar Plant nomic and business opportuni- • Waste Water Treatment Plant (Dalmada and Polokwane) ties for the astute investor. • Replacement of Asbestos Pipes Strategically located on the • Construction of Polokwane International Convention Centre Great North Road linking South • Student Accommodation Africa’s economic heartland • Broadband Fibre Network of Gauteng with Zimbabwe, • Science and Technology Park

Dikgape Makobe

 T

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LIMPOPO BUSINESS 2017/18


A REGIONAL OVERVIEW OF

LIMPOPO

The Limpopo Development Plan outlines concrete steps to industrialisation, infrastructure development, promotion of SMMEs and expanding the knowledge economy. By John Young

L

impopo’s location gives it a strategic importance that enhances the province’s strengths in mining and agriculture. Neighbouring countries Botswana, Zimbabwe and Mozambique all provide economic opportunities and the province’s proximity to the powerhouse of Gauteng ensures a ready market for goods and services.

Existing manufacturing in the province is centred on mining areas (smelters and refineries), agricultural estates (juices and concentrates) and Polokwane (food and beverages). Agri-processing is strong, with Pioneer Foods, McCain, Granor Passi, Kanhym, Westfalia and Enterprise Foods prominent, but this sector still has potential to grow.


SPECIAL FEATURE The Great Nor th Road passes through Limpopo from the south to the border town of Musina and on to Zimbabwe and its neighbours in the Southern African Development Community. The busy N11 highway links the province to Botswana to the west and Mpumalanga Province to the east. Most of South Africa's logistics operators have a presence in the provincial capital city of Polokwane and freight logistics hubs have been established at that city and at Musina. Limpopo covers about 10% of South Africa's land mass and is home to about 10% of the country's population (5.4-million). The main languages of the people of Limpopo are Sesotho, Xitsonga and Tshivenda but English is widely used in business and government. Transport within the city of Polokwane is being transformed by the introduction of a bus rapid transport system, Leeto la Polokwane. In the province as a whole, 22.6% of households in Limpopo use bus transport and 45.8% use taxis. Great Nor th Transpor t falls under the Limpopo Economic Development Agency. The company has more than 500 buses, covers about 36 -million kilometres eve ry year on 279 routes, employs more than 1 200 people and transpor ts 37.6-million passengers. The Polokwane International Airport (PIA) is wholly owned by the provincial government and run by the Gateway Airport Authority Ltd (GAAL), an agency of the Department of Roads and Transport. It has the potential to be an important regional cargo airport. SA Airlink offers 21 flights to Johannesburg six days a week. The airline also provides links bet ween Phalabor wa and Johannesburg, and between Hoedspruit and Johannesburg and Cape Town. LIMPOPO BUSINESS 2017/18

The province also has a sophisticated rail network which Transnet Freight Rail aims to further expand, primarily to haul the province’s vast reserves of coal away to the coast at Richards Bay.

Special Economic Zones One of the ways in which Limpopo is leveraging its strategic location is through the establishment of the Musina-Makhado Special Economic Zone. Recently promulgated by national government, the SEZ will have among its core functions the clustering of logistics operations. Located in the Vhembe District in the far north, this SEZ is near the border of Zimbabwe and on the Great North Road, thus linking with the broader Trans-Limpopo Spatial Development Initiative. Other focus sectors are agri-processing, energy and mineral beneficiation. Exxaro and De Beers have large mining operations nearby. A consortium of Chinese investors, Sino, has agreed to put R40-billion into the Musina-Makhado SEZ to run the mineral beneficiation operations. A second application for an SEZ has been made within the province’s platinum belt in the east of the province. The Tubatse SEZ, in the Sekhukhune District Municipality, will focus on the beneficiation of platinum group metals (PGMs) and mining-related manufacturing.

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SPECIAL FEATURE The following areas have been identified as priority zones for the province’s industrialisation strategy: Polokwane, Lephalale, Tubatse, Tzaneen and the Makhado-Musina corridor.

and the commodities cycle has recently been very volatile, but the world will always need minerals. Limpopo assets include the largest diamond mine in South Africa, the biggest copper mine in South Africa, the biggest open-pit platinum mine in the country and the biggest vermiculite mine in the world. The province has 41% of South Africa’s platinum group metals (PGMs), 90% of South Africa’s red-granite resources and approximately 50% of the country’s coal reserves. Antimony, a highly strategic mineral found in large quantities in China, is another of Limpopo’s major assets. Two of the largest engineering projects in the history of South Africa have recently been undertaken in Limpopo. Both the Medupi power station (at Lephalale in the far west) and the De Hoop Dam (in the south-east) have the potential to give the region's economy a massive boost. The combined land area of Limpopo's wnational, provincial and private game and nature reserves is 3.6-million hectares. According to the Premier’s office, the tourism sector employs about 22 400 people. The Kruger National Park is one of the world’s most famous conservation areas, and a major attraction for the region. Limpopo has two World Heritage Sites: the Mapungubwe National Park (the

Economic strengths When it comes to exports Limpopo punches above its weight because of the abundance of mineral wealth under the ground, and the superb fruit and vegetables that the province's farmers cultivate. Potatoes are grown, together with 75% of South Africa’s mangoes and tomatoes; papayas (65%); tea (36%); citrus, bananas and litchis (25%) and 60% of the country's avocadoes. The best performing subsector of South African exports over the last five years is fruit and nuts (www. worldstopexports.com). Limpopo has been a major contributor to the country’s excellent export record: avocadoes, mangoes and macadamia nuts from the province's eastern regions are hugely popular in international markets and Limpopo's commercial farmers are extremely efficient. The province has huge reserves of coal, platinum, chromium, uranium clay, nickel, cobalt, vanadium, limestone and tin. Demand will always fluctuate,

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LIMPOPO BUSINESS 2017/18


SPECIAL FEATURE site of a 12th-century iron-age civilisation) and the Makapans Valley (Ndebele history and palaeontological exhibits).

local small, medium and micro-enterprises (SMMEs) engaged with and supplying to the mining sector is a goal of the provincial authorities. A Limpopo Mining Forum has been proposed and the provincial government would like to see 30% of every contract issued on capital, consumables and services stay in the province, subject to their being a supplier who is able to fulfil the contract.

Industrialisation The official approval of Special Economic Zone status for Musina-Makhado in 2016 was closely followed by the decision of the Limpopo Provincial Government to apply for SEZ status for Tubatse. This marks a determined shift in economic policy towards promoting industrialisation and manufacturing through beneficiation. Heavy industries that have been identified as possible tenants for the Musina-Makhado SEZ include several that are dependent on the mining industry to supply feedstock – possible processing facilities that have been suggested to investors include plants for coking, ferrochrome and ferrosilicon production, pig-iron metallurgy, steel, stainless steel and lime. A proposed petrochemical zone in the SEZ might include a coal-to-liquids plant and a synthetic bitumen plant. A Chinese company has signed an agreement to manage the Energy and Metallurgical Cluster within the Musina-Makhado SEZ. Shenzhen Holmor Resources Holdings will invest about R40-billion to create the infrastructure for a range of private investors to come in and produce steel, ferrochrome, pig iron and the like. The Tubatse Platinum SEZ is even more closely related to the mining industry, as its name implies. According to the Limpopo Economic Development Agency (LEDA), 17 new mines were established in the greater Tubatse/Burgersfort/Steelport area between 2001 and 2016, and a further 22 new mines are planned. The completion of the large new De Hoop Dam makes these plans possible. The focus at Tubatse will be on the beneficiation of platinum group metals (PGM), magnetite, vanadium and chrome. Some of the products suggested are: catalytic converters, platinum jewellery, hydrogen fuel cells and solar energy component manufacturing (wind turbines and PV modules). A Mining Supply Park is envisaged which will be a big boost for local businesses and suppliers. Getting LIMPOPO BUSINESS 2017/18

Regions Limpopo’s dry, cattle-rearing, western areas contrast with the subtropical regions of the east where forestry thrives and the central regions where vast plantations produce 60% of the country’s tomatoes. The area north of the Soutpansberg Mountains is semi-arid. The Waterberg mountains stretch over 5 000km² through the northern reaches of the province. Limpopo has five district municipalities: Capricorn District Capricorn is the economic centre of Limpopo, with the provincial capital Polokwane contributing 13% of the provincial GDP. The cultivation of citrus, potatoes and tomatoes is done on a large scale in the district. Polokwane is the province's main centre for industry, commerce, education and medical services. The city is close to big concentrations of mineral deposits and to fertile agricultural lands; its industries reflect this diversity. Large industrial concerns such as Silicon Smelters (one of the biggest of its kind in the world) and a big brewery run alongside at least 600 industrial enterprises of a smaller scale. Polokwane has good hotel and conferencing facilities. Park Inn by Radisson Polokwane is the newest hotel to open in the city. Nearby Moria attracts up to a million people every year, when the Zion Christian Church celebrates Easter. Greater Sekhukhune District Government is the largest employer in this southern district, followed by agriculture and hunting. The vast majority of households are rural (94%) and Groblersdal is the district capital. The region’s fertile lands produce maize, tobacco, peanuts,

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SPECIAL FEATURE ZIMBABWE

Limpopo LIMPOPO NAMIBIA North West

Mpumalanga Gauteng SWAZILAND

Free State Northern Cape

KwaZuluNatal

LESOTHO

Eastern Cape Western Cape

vegetables, sunflower seeds and cotton on a large scale. Agriculture makes up 25% of the economy. Burgersfort is an important town because of platinum mining.

Thohoyandou. Vhembe’s vast bushveld supports commercial and game farming and the district has considerable cultural and historical assets. Game farming is a growing subsector, as is eco-tourism. De Beers’ Venetia Mine, situated just west of Musina, is South Africa’s largest diamond producer. Thohoyandou is the administrative centre of Thulamela Local Municipality, Vhembe District Municipality and the University of Venda. The Ivory Route passes through the district. Other attractions include an ancient baobab tree, the Dzata Ruins, the Museum of the Drum, the mystical Lake Fundudzi and Nwanedi Provincial Park.

Mopani District Giyani is the administrative capital of the district and is key to the local economy. The public sector is one of the largest employers and the key sectors are agriculture and mining. Mopani has an established food manufacturing industry, in canned, preserved and dried-fruit production and vegetable juices. Phalaborwa is the gateway to the Kruger National Park. It has a good airport and is a tourism hub. Palaborwa Mining Company (Palamin) is the major economic driving force in the area. State-owned phosphate and phosphoric acid producer Foskor is another major employer. Sasol Nitro Phalaborwa produces phosphoric acid and deflourinated acid. The Marula Festival is held in Phalaborwa every year. A subtropical climate and fertile soils combine to make greater Tzaneen very productive in terms of fruit and vegetables. Limpopo’s second most populous city has a population of 80 000. The Letaba Valley produces a large proportion of South Africa’s mangoes, avocadoes and tomatoes. Forty sawmills operate in the area, drawing on the heavily forested hills around the city.

Waterberg District The mining sector is the largest contributor to regional GDP, while agriculture is also significant. Several towns in the district are located in the mineral-rich Bushveld Igneous Complex. The district also features the riches of the Waterberg Coal Fields, iron ore (at Thabazimbi) and tin and platinum at Mookgophong. The town of Lephalale is at the heart of the region’s coal-mining and power-generation sectors. The area around Mokopane is one of the richest agricultural zones in South Africa, producing wheat, tobacco, cotton, beef, maize and peanuts. The bubbling hot springs of Bela-Bela mark it as a popular tourism destination, and the district has many luxury golf estates.

Vhembe District The Vhembe District borders Zimbabwe and Botswana. The district’s administrative capital is

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LIMPOPO BUSINESS 2017/18

MOZAMBIQUE

BOTSWANA


SPECIAL FEATURE

Limpopo Development Plan Improving lives, and creating a conducive environment for investment.

I

mproving the lives of the citizens of Limpopo is the overarching aim of the Limpopo Development Plan. The economic levers that can bring that improvement about present investment opportunities, particularly in the sectors that have been identified as key drivers of growth: mining, tourism and agriculture. The Limpopo Development Plan (LDP) is targeting three broad areas for improvement and development: socio-economic, infrastructural and institutional. Every department of the Limpopo Provincial Government has targets within the LDP which are translated into actionable programmes to be implemented within time-frames. Development is defined as broad-based improvements in the standard and quality of life for the people living throughout the province, to which all institutions (including government, business, labour and citizens) contribute. Increased job creation, higher incomes, better access to good public services and sound environmental management are the measures of the development plan. The plan, currently in its implementation phase, is further supported by a spatial investment framework in public and private sector LIMPOPO BUSINESS 2017/18

infrastructure, an integrated public transport policy and land policies. This article focusses on the economic aspects and the potential of the LDP for private investors to participate. Key elements of the Limpopo Development Plan are: industrialisation (beneficiation of mining and agricultural products and produce); mining (local suppliers, improved training and access to sector for entrepreneurs); infrastructure development; agri-processing; SMME promotion; and ICT and the knowledge economy (establish a WAN footprint). Mining is currently the most important part of the provincial economy, contributing nearly 30% to GDPR. Many platinum mining developments on the eastern limb of the Bushveld Complex have spurred growth in that region. One of the goals of the LDP is to see more beneficiation from the mining sector, which will support the goal of further industrialising the province’s economy. Related to this is an emphasis on the manufacturing sector. In response, the two Special Economic Zones (SEZs) at Musina and Tubatse promote manufacturing. Specific manufacturing value-chains are identified for each area, based on the base mineral being

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SPECIAL FEATURE mined. The LDP notes that it is also important for planners to “promote diversification and multi-skilling of the workforce, in order to mitigate the risks of shocks associated with commodity price dips and mine closures”. The following areas have been identified as priority zones for the industrialisation strategy: Polokwane, Lephalale, Tubatse, Tzaneen and the Makhado-Musina corridor.

in support of agriculture and tourism clusters; solar photovoltaic electricity generation; information and communication technology; infrastructure at Polokwane International Airport; nodal infrastructure for the priority growth points; and adequate maintenance for all existing infrastructure. Each of these infrastructure improvements will make life better for local residents, and they will also create a more conducive environment for investors. The Limpopo Department of Economic Development, Environment and Tourism (LEDET) is coordinating the province’s strategy to attract investors. Key to the plan is public investment into priority growth points in selected economic sectors. These cluster priorities underpin the economic part of the plan: • Coal: Petrochemical and Energy Cluster in Lephalale (Green City urban development, Growth Point) • Platinum Cluster in Mokopane and Tubatse (Mining Supplier Park) • Musina-Makhado Corridor Mining Cluster • Phalaborwa Mining Cluster (Copper, Phosphate and Magnetite) • Polokwane and Musina Logistical Hubs • Various Agricultural Clusters, based on Agri-parks • Various Tourism Clusters, in every district. Existing tourism assets include two UNESCO World Heritage Sites (Mapungubwe National Park and the Makapan Valley) and the iconic Kruger National Park. There is enormous potential for growth in cultural tourism where small villages could offer experiences based on traditional practices, unique arts and crafts and local cuisine. Cluster Value-Chain Development Strategies, including beneficiation opportunities, have been developed for each of these clusters by the LEDET. International relations is the responsibility of national government, but the LDP has flagged a number of potential areas for regional integration that would be mutually beneficial: relationships with Botswana and Zimbabwe relating to the Coal and Energy Cluster in Lephalale and the Mining Cluster in the Musina-Makhado Corridor; an agreement with Zimbabwe to improve the efficiency of the Beit Bridge Border Post, as part of the Logistics Cluster; and an agreement with Mozambique relating to tourism and nature conservation.

Strategic infrastructure In as much as the Limpopo Development Plan is aligned with the broader National Development Plan, there are several national Strategic Infrastructure Projects (SIPs) which affect Limpopo. Three in particular will make a big impact, namely SIP 1 (Unlocking the Northern Mineral Belt with Waterberg as the Catalyst), SIP 6 (Integrated Municipal Infrastructure Project) and SIP 7 (Integrated Urban Space and Public Transport Programme). The last two influence developments in the provincial municipalities of Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe and Polokwane. Other national SIPs of relevance relate to green energy, agri-logistics and rural infrastructure, regional integration and water and sanitation infrastructure. Within Limpopo, the Premier’s Infrastructure Coordinating Committee (PICC) is a vital component in the rollout of new infrastructure. There are several locally driven projects boosting the provincial economy and are being promoted within the context of this Limpopo Development Plan: construction of Nwamitwa Dam; raising of Tzaneen Dam wall; integrated Mooihoek Water Scheme; reticulation from De Hoop and Nandoni Dams; purified water supply to Bela-Bela, Modimolle and Mookgopong local municipalities; rural access roads

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LIMPOPO BUSINESS 2017/18


Special Economic Zones Investor-friendly measures are attracting investors to designated growth zones in Limpopo.

S

pecial Economic Zones are created in terms of the Special Economic Zones Act of 2014 (Act 16 of 2014). The act defines an SEZ as “geographically designated areas of the country that are set aside for specifically targeted economic activities, and supported through special arrangements and systems that are often different from those that apply to the rest of the country”. Lower corporate tax rates and duty-free imports are among the advantages that accrue to investors. Infrastructure at a Special Economic Zone (SEZ) supports the specific industry and attracts foreign investors with a strong focus on beneficiation of local produce or materials. SEZs are designed to attract investment, create jobs and boost exports. Skills transfer is another stated aim behind the SEZ programme. The National Department of Trade and Industry (dti) is the lead agent in the creation of Special LIMPOPO BUSINESS 2017/18

Economic Zones, which are part of the national Industrial Policy Action Plan (IPAP). Several incentives are available to investors in SEZs. These include tax breaks from the South African Revenue Service (SARS), subsidised interest rates from the Industrial Development Corporation (IDC), subsidies for employees earning below a certain level and subsidies for the training of the workforce, incentives and grants from the dti, and incentives from national electricity utility Eskom. Other benefits might include a building allowance, employment incentives and the fact that an SEZ is a customs-controlled area. Within the dti’s Manufacturing Competitiveness Enhancement Programme, there is a Green Energy Efficiency Fund, all of which are designed to make investment in the zones more attractive, and to bolster the country’s manufacturing sector.

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SPECIAL FEATURE company’s most recent life-of-mine expansion project will result in the mine producing until the 2040s. Soon after the announcement of the designation of the SEZ, the dti said that a consortium of Chinese investors, Sino, has agreed to put R40-billion into the Musina-Makhado SEZ where they will operate the mineral beneficiation operations. The first phase of this is to build a power plant. The dti estimates that the completed SEZ could create more than 20 000 jobs. Provision in being made in the planning phase for light, medium and heavy industry at the SEZ. A petrochemical zone is envisaged which could contain any or all of the following facililties: • coal-to-liquids plant • coking coal plant and power generation • methanol plant • synthetic bitumen plant • plasma waste gasification plant • water treatment plant.

Tubatse SEZ A second application for an SEZ at Tubatse is pending. Tubatse is in the Sekhukhune District Municipality and hosts a number of mining operations. The SEZ in Tubatse will focus on the beneficiation of platinum group metals (PGM) and mining-related manufacturing. The province of Bashkortostan in Russia has also expressed an interest in the SEZs of Limpopo. Phase one of the SEZ project would see a 280ha site developed to accommodate: • a mining suppliers park • light manufacturing • heavy manufacturing • logistics • a solar energy cluster • a PGM beneficiation cluster. Among the products that might be produced at the SEZ are catalytic converters, hydrogen fuel cells, chemotherapeutic agents, wind turbine blades, platinum jewellery and photo-voltaic solar modules. Metal processing that holds potential includes the conversion of magnetite to pig iron and steel, magnetite to vanadium pentoxide and waste to titanium.

Musina-Makhado SEZ In July 2016 the national cabinet approved the Musina-Makhado Special Economic Zone (SEZ). Located in the far north of Limpopo in the Vhembe region, Musina-Makhado is strategically located near the border of Zimbabwe and on the Great North Road which links South Africa to the broader Southern African region. The location of the Musina-Makhado SEZ, with links to Zimbabwe, Botswana and Mozambique, promotes the Trans-Limpopo Spatial Development Initiative. Logistics will be one of the key focus areas of the SEZ. Other sectors to be concentrated on include agri-processing (Foskor has a plant in nearby Phalaborwa), energy and mineral beneficiation. Exxaro has coal- mining operations in the north and De Beers’ giant Venetia diamond mine is nearby. The

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LIMPOPO BUSINESS 2017/18


FOCUS

LEDA: Enterprise Development and Finance Division Enabling business to grow while reducing risk.

 T

he Enterprise Development and Finance Division (EDFD) within the Limpopo Economic Development Agency (LEDA) provides financial products in support of businesses which are starting out or which need funds to tackle a project. Funding is available in a wide range of sectors, including manufacturing, agri-business (agri-processing), construction, mining and mining beneficiation, tourism, business support services, retail, professional services, transport services and ICT. Projects in the following sectors do not qualify for LEDA products: primary agriculture; infrastructure development; residential and commercial property; explorations; product development and licensing; non-profit organisations(NPOs) and Trusts. Among the most important criteria which the Enterprise Development and Finance Division uses to assess the desirability of a business or project are the possible developmental impact in terms of new jobs being created or a facility being built, proof that there is a viable market for the product or service about to be offered and profitability.

Core funding products Asset / equipment finance Procurement / bridging finance • Working capital finance • Start-up finance • Franchise finance Although LEDA is active in each of these product divisions, the most popular in recent years has been procurement/bridging finance option. This financial product requires no collateral and is linked to the business owner having a government contract. This reduces risk for all parties. “There are three parties involved,” says Loan Proposals and Origination Manager Chavani Khosa. “There is the employer government department that issues the contract for work, the client (or business undertaking the work) and LEDA. All three parties sign the agreement which states that the whole amount must be paid to LEDA when the client has completed the job.”

TEN IMPORTANT STEPS TO SECURE LEDA FUNDING: 1. Safety of the facility 2. Background of the client 3. Financial position of the client 4. Needs of the client 5. Security / collateral 6. Desirability and developmental impact 7. Demonstrate the market 8. Profitability 9. Cash flow available for debt service 10. Source of loan repayment

• •

LIMPOPO BUSINESS 2017/18

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The client needs to show LEDA that he or she has a purchase order from a government department. That will unlock funding to allow work to begin on the project and the client will then submit regular progress reports to LEDA. Once the job is done and the full payment paid to LEDA, the loan amount and interest is subtracted by LEDA and the balance paid out to the client or contractor. In the case of an application being received for a working


FOCUS capital finance product, the client must prove that they have a market for the product or service. In addition, says Khosa, “LEDA will go and verify that this is a legitimate business with an on-site inspection.” Then money can be released to buy stock or building materials. LEDA has Business Origination Officers who take clients through the qualification criteria required when an application is made. Any one of these types of business ownership models can apply: sole trader; close corporation; private company; co-operative.

Partnerships, policies and profit LEDA has entered into several partnerships as it extends and diversifies its funding portfolio. These include large companies

such as Foskor, the Dwarsriver mine near Steelport, provincial government departments, various municipalities, ABSA bank and the Industrial Development Corporation (IDC). The credit policy and the Credit Procedure Manual are under consideration by the approval authority. During the previous financial year, LEDA had a return on investment in the Enterprise Development and Finance division of R4-million.

Criteria for funding • •

• •

The business must be registered Tax clearance certificate from the relevant authorities is required Non-refundable application fee. (R500 - R5 000) Management must comply with the business statues of South Africa Viable business plan or company profile:

NEW BUSINESS

EXISTING BUSINESS

Projected cash flow statement – 12 months

Cash flow projections – 12 months

Projected financial statements – 3 years

Financial statements - 3 years Projected financial statements 3 years

Interim financial statements

Interim financial statements

Current budget

Current budget

Bank statement

Bank statements (3 months)

BUSINESS AND TECHNICAL TRAINING OFFERED BY LEDA EDFD • Public service supply chain procedure and related processes • Development of business plan • Business customer relations • Business marketing • Understanding income tax • Project management • Financial management • Business cost determination and pricing • Automotive • Construction and building related vocation skills including, bricklaying, plastering, carpentry, plumbing, electrical and welding • Hospitality • Farming and agricultural training

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BUSINESS SUPPORT OFFERED BY LEDA EDFD • Co-operative development • Business incubation • Business advisory services • Business registration and statutory compliance • Development of business plans and profiles • Business linkages • Mentoring and counselling

LIMPOPO BUSINESS 2017/18


FOCUS

Risima Housing and Finance Corporation Providing access to housing and unlocking value in rural areas.

 T

he Risima Housing and Finance Corporation, a subsidiary of Limpopo Economic Development Agency (LEDA), exists to provide housing finance for citizens of Limpopo. The word Risima is derived from the Tsonga word for “value”. The CEO of the organisation, Dr Shima Nokaneng, says that the particular target market is the lower-income group, who “sometimes have challenges getting approvals from commercial banks”. A primary focus for Risima is the “gap” market. This refers to prospective home owners who earn too much to qualify for state assistance (for example, RDP housing) but not enough to qualify for mortgage loans. Typically, this covers incomes ranging from about R3 500 to R15 000 per month.

Partnerships Two important programmes are run by Risima in conjunction with national and provincial government departments. Government Employees Housing Scheme (GEHS): Together with the National Department of Public Service and Administration, Risima LIMPOPO BUSINESS 2017/18

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arranges for a non-mortgaged financial product to assist government employees get a foot on the property ladder. Dr Nokaneng reports that a default rate of less than 2% proves the value of such a scheme: “Our advantage is that we target government employees which helps to reduce risk. Applicants have to be employed with a good credit risk and then we check affordability and match that with documentation such as payslips.” Finance Linked Individual Subsidy Programme (FLISP): In partnership with the Limpopo Department of Cooperative


FOCUS Affairs, Human Settlements and Traditional Affairs (COGHSTA), Risima distributes grants to applicants who qualify for money to make up the shortfall between an asking price and what the applicant can afford or if a deposit is needed but the applicant can’t fund it. The gap market is the target market for FLISP. The subsidy is being rolled out in the Polokwane suburb of Bendor, Lephalale and other regions of the province. This comprises threebedroomed houses and semidetached townhouses. Mining houses: A new area of cooperation is imminent in that Risima and a number of mining houses such as Exxaro, Amplats and Northam (at Thabazimbi) have been in discussion about working together to deliver housing. Preparatory work has been done and concrete steps should be seen in the fourth quarter of 2017.

Expansion Risima’s mandate extends across each of the five regions of the province of Limpopo and it currently has four offices. As of October 2017, the company head office will be in the provincial capital, Polokwane, on the corner of Rabie and Van Rensburg streets. “Our new offices will be bigger,” says Dr Nokaneng, “and we will be more accessible to customers and stakeholders.” New offices are also to be established in areas such as Makhado (Louis Trichardt), Lephalale, Musina and Modimolle to further widen the company’s footprint.

This geographic expansion is proof that demand is on the rise and that Risima’s more aggressive approach is paying off. The large coal mine and new power station at Lephalale mean that a further project comprising 2 700 units is in the works in that area.

LOANS GRANTED Region

Loans granted

Capricorn Mopani Sekhukhune Vhembe Waterberg Total

61 653 927 10 587 032 9 174 632 14 998 829 14 439 211 110 853 631

GOALS 2016/17 Risima 2016/17 Home loans Loan approvals Contribution to LEDA income 29

Target

Achieved

190 191 R78.9-million R110.8-million 5.7% 7.5% LIMPOPO BUSINESS 2017/18


FOCUS The company has loans to the value of R432.4-million as at 31 March 2017. “Because of the expansion of our footprint we are in the process of raising more capital,” reports Dr Nokaneng. The CEO stresses the point that Risima is self-sustaining, with no grant paid by the Provincial Treasury. A clean audit was also achieved in the most recent financial reporting period. “Our profit for the most recent financial year was R32-million.”

want to. The Risima scheme will be limited to government employees, thus reducing risk to the lender.

Risima financial products

Innovation

An innovative approach to unlocking the value of land in traditional areas may be on the cards if the National Home Builders Registration Council (NHBRC) approves a plan related to the conversion of Permissions to Occupy (PTO). Where there are no title deeds it is difficult to establish value, get loans or use land as collateral for buying anything else. Risima sees potential in converting PTOs to title deeds and is looking at deep rural areas such as Vhembe and Sekhukhune. Even people who might work in cities don’t want to give up their ties to traditional land, but they also want to get certainty of ownership and the right to leverage that ownership if they

RISIMA HOUSING FINANCE CORPORATION Risima Housing Finance Corporation (Pty) Ltd was originally known as Gazankulu Finance Company (Pty) Ltd, established in April 2000. Risima is a wholly owned subsidiary of LEDA; it falls under Schedule 3D of the Public Finance Management Act 1 of 1999 (PFMA) as a provincial public entity, established by Limpopo Department of Economic Development, Environment and Tourism in terms of the Limpopo Development Corporation Act 5 of 1994 (LDCA). Risima was established for the purpose of giving effect to Section 3 (1) of the LDCA which requires LEDA, among others, to provide housing in Limpopo. Risima has been created to respond to the need to create access to home loan finance to all residents of Limpopo, irrespective of where they live, in so doing: assist LEDA to achieve its objective of job creation and empowerment in Limpopo through housing construction, in support of the Provincial Employment, Growth and Development Plan. Key focus areas are to: • To provide access to home loan finance and property develop ment finance to residents of the province in both rural and urban areas • To create shareholder value and facilitate employment creation and economic growth • Ensure the economic, social and environmental sustainability of Risima.

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• • •

• •

Residential building construction: for clients to build a house Purchasing of existing residential houses: clients buy existing houses Purchasing of sites: clients purchase vacant sites Extensions and renovations: clients improving their houses Sw i tch b o n ds: m ov ing a bond from another financial institution to Risima Installation of solar water heating systems Additional loan: clients with equity on their properties can apply for additional loans Access bond: available to clients who pay more than the required instalment on their home loans. Clients can apply for the funds when they need them.

CONTACT INFO Lebowakgomo (head office) Tel: +27 15 633 4732 or +27 15 633 4700 Polokwane (regional office) Tel: +27 15 295 5120 Ritavi (regional office) Tel: +27 15 303 1731 Thohoyandou (regional office) Tel: +27 15 962 4900


FOCUS

Limpopo Connexion Transitioning from a resource-based economy to a knowledge economy.

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impopo Province is taking active steps to develop its information and communications technology (ICT) sector to the point where it can take the provincial economy to a higher level and improve the delivery of government services. The agency charged with achieving these aims is Limpopo Connexion. Baldwin Ramosobane, Acting CEO: Limpopo Connexion, gives the broad aims of the agency in these terms: “A key measure is to say how would Limpopo Connexion transform Limpopo from a resource-based province to a knowledge-based province.” The Knowledge Economy refers to the use of knowledge to produce economic benefits through tangible and intangible assets. The concept refers to the manner in which various high-technology businesses, especially computer software, telecommunications and virtual services, as well as educational and research institutions, could contribute to a country's economy. Creating a strong and innovative ICT sector is a vital step on the way to establishing a knowledge-based economy. World leaders are increasingly adapting to the fact that a Fourth Industrial Revolution is under way. The first was powered by

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water and steam, the second used electricity and introduced mass production and the third revolution in the global economy related to automation, electronics and computers. Now a Fourth Industrial Revolution is combining a range of scientific breakthroughs at great speed: central to the concept is connectivity and access to data. This new economy is creating new jobs and creating the potential for jobs in the future in sectors that don’t yet exist. Only by having a strong and adaptable communications and data network can a regional economy take advantage of these changes as they occur. LIMPOPO BUSINESS 2017/18


FOCUS Ramosobane cites aspects such as digitalisation, robotics, 3D printing, green solutions and big data as elements of the new economy that are driven through ICT. As a consequence, one of the key objectives of Limpopo Connexion is the development of broadband telecommunication infrastructure for the province. Planners are looking beyond the ICT sector in isolation. As Ramosobane notes, “There have to be ways of using technology in different sectors of the economy, because ICT is all pervasive. Whether it’s finance, whether it’s roads, or it's construction or mining, ICT and technology will be used in those sectors.” With Limpopo’s great strength as a resource-based economy, what are the ways that ICT can further develop the mining and agricultural sectors? Miners can cut costs enormously if they use up-to-date data- collection methods rather than traditional methods. Data-driven research can help to make sure that communities benefit to a greater degree when beneficiation of minerals or agricultural produce takes place. And Ramosobane believes that there is great potential beyond the resource economy: “When you talk about tourism, how do we sell Limpopo globally without actually going there, but using innovation systems and technology?”

Strategic objectives Open access broadband telecommunications network infrastructure: Government, business, rural communities, students and citizens at large should all be able to access affordable broadband infrastructure services. This initiative should empower community members to participate in the mainstream economy. Says Ramosobane, "Any person in the province, be it plumbers, be it students at the universities, learners and educators at high schools, ordinary people, households; they should all be able to have access to the affordable broadband infrastructure services and cheaper technologies." A science and technology park (STP): An STP is a space, physical or cyberspatial, managed by a specialised professional team that provides value-added services, whose aim is to increase the competitiveness of its region or territory of influence by stimulating a culture of quality and innovation among its associated businesses and knowledge-based institutions, organising the transfer of knowledge and technology from its sources to companies and to the marketplace, and by actively fostering the creation of new and sustainable innovation-based companies through incubation and spin-off processes. It must attract international ICT companies to the province where they can interact and partner with academic institutions and local businesses. The international companies can originate (and pay for) research projects that are directly relevant to the work they are doing, rather than doing research for research’s sake. Provide direct links between the private sector, government and universities. LIMPOPO BUSINESS 2017/18

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Free and open source software (FOSS): Providing free and open source software to the citizens of Limpopo cuts the cost of ICT, thus enabling small businesses to gain access to the advantages of the Knowledge Economy without having to pay high prices for licensed software packages. A provincial FOSS strategy has been adopted and several pilot programmes rolled out. These programms include systems such as a Wildlife Trade Permit System, Tourism Guide Registration Systems, a Consumer Affairs System, a Farmer’s Portal and Mobile Application, and an eHeritage Database and Portal among others. Limpopo Connexion, in partnership with Tirelo Bosha-Public Service Improvement Facility, a bilateral programme between Belgium and South Africa facilitated by the Department of Public Service and Administration (DPSA), has implemented an open source-based offline content project in 15 schools previously without Internet connectivity. With feedback from the Limpopo Department of Education and principals from schools, the project will be expanded by a further grant from the Belgium government to 45 more schools in the Province. There was significant improvement in the matric results due to the introduction of the system. Training in FOSS is being undertaken in partnership with SUSE, a large international open source software company.


FOCUS I C T S k i l l s a n d SM M E Development to promote small, medium and micro-enterprises (SMMEs): The objective is to ensure that small enterprise owners and entrepreneurs are able to create and grow their businesses. With access to broadband and to free and open source software, SMME owners can be “part of the global village”, according to Ramosobane. Not only can ICT empower SMMEs and entrepreneurs to improve their businesses in terms of marketing, ordering and stock-taking, but there are myriad opportunities for SMMEs where ICT is central to the business itself: web design, e-commerce and online multi-media are some examples. A study has shown that 75% of ICT SMMEs are in the Capricorn and Waterberg districts. Better access for other areas is one of the goals of Limpopo Connexion. To incubate, support and accelerate start-up companies, Limpopo Connexion wants to ensure that the core location between the major corporation and the research institution and government will support the commercial research items. From within the Science and Technology Park there will be opportunities for mentorship and access to a range of information for SMME operators.

Broadband for all Rolling out broadband within Limpopo is a key responsibility of Limpopo Connexion. A priority goal of the Limpopo Provincial Government is to establish a se-

cure, shared, open access and affordable broadband Wide Area Network (WAN) within Limpopo. Broadband infrastructure also forms part of the strategic objectives identified in the Department of Communication Strategic Plan, the National Information Society and Development Plan, the Green Paper on the National Integrated ICT Policy, and e-Government initiatives. Both the Limpopo Development Plan (LDP) and the Provincial Inclusive Information Society Strategy outline specific ICT objectives. Several investment opportunities for the private sector are associated with the rollout of broadband in Limpopo. “Limpopo Province will be a key opportunity for entrepreneurs and investors,” reports Ramosobane. There are the opportunities for both large and small companies, “The major companies will do the construction of the big fibre infrastructure and then the small companies will actually connect households through last mile connectivity.” Phase one of the rollout will see the city of Polokwane, the Capricorn District and provincial key points connected. This phase of the project will kick in during the third quarter of 2017. Phase two will see broadband connectivity expanded to cover the whole province of Limpopo. Given the geographic and economic footprint of the province, a large number of companies, government departments and businesses will actually be covered by phase one. At this stage, phase one is envisaged to last for a period of three years, but Ramosobane says that the active involvement of the private sector may hasten progress: "As government, we want to work with the private sector. We want to say, the private sector must understand what is the vision of the Limpopo Connexion and Limpopo Province in terms of broadband. If they continue working with us, we believe that with the private sector we can achieve the goal of connecting all of Limpopo quicker than we thought."

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LIMPOPO BUSINESS 2017/18


ADVERTORIAL

Making it easier to do business with Nedbank Whole-view Business Banking™ Loderick Lubisi, Nedbank Provincial General Manager for Retail and Business Banking for Mpumalanga and Limpopo, explains how Nedbank can help business owners in the region.

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

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

We recognise that farmers today face many challenges and that to remain competitive they continually have to improve and adopt best practices and new technologies. ‘We encourage you to see money differently with Whole-view Business Banking™’, says Lubisi. ‘We are also involved in a number of initiatives with the public sector, ensuring that such partnerships support provincial government goals in respect of job creation and growing the economy,’ Lubisi concludes. Should you be interested in taking your business to the next level, please call Loderick Lubisi on +27 (0)13 759 4910, send an email to loderickl@nedbank.co.za or visit www.nedbank.co.za.


ADVERTORIAL

Nedbank Business Bundle is a game changer with savings and personalised services for small enterprises The new Business Bundle from Nedbank is a game changer for small enterprises in Mpumalanga and Limpopo, offering the best value for money when compared to rival offerings. With the country’s challenging economic environment, the Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees – contributing directly to the bottomline at a time when every cent counts. In line with Nedbank’s new brand proposition to see money differently, the Business Bundle resonates with the bank’s commitment to do good by promoting small enterprises. ‘As a bank for small businesses we are committed to partnering with entrepreneurs to help grow their businesses. As such, Nedbank is always looking at ways in which we can help unlock the value of our clients’ businesses. We support their business growth journeys by providing practical tools to help them run their businesses,’ says Loderick Lubisi, Nedbank Provincial General Manager, Retail and Business Banking for Mpumalanga and Limpopo. ‘Small businesses are the lifeblood of our economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the smallbusiness sector.’

Trust us to protect your business against everyday risk

Stella Tedeschi, Regional Manager of Broker Channels for Mpumalanga and Limpopo, says Nedbank Insurance is not a one-size-fits-all business. Nedbank Insurance has evolved into a business that provides integrated insurance to individual and business clients. Our offering comprises comprehensive short-term insurance solutions, life insurance solutions and investments. Nedbank Insurance provides a comprehensive offering of short-term products on behalf of blue-chip insurers. Should you be interested in expert advice on the type of cover that is exactly right for your business needs, look no further. Nedbank has a team of specialists ready to provide you with information necessary to allow you to make an informed decision. For more information call Stella Tedeschi on +27 (0)12 436 7659, send an email to stellat@nedbankinsurance.co.za, or visit www.nedbank.co.za.

To see how Nedbank can help your small business reach its goals call Loderick Lubisi on +27 (0)13 759 4910, send an email to loderickl@nedbank.co.za or visit www.nedbank.co.za/business.

Nedbank Ltd Reg No 1951/000009/06 Nedbank Ltd Reg No 1951/000009/06. Authorised financial Authorised financial and registered credit provider (NCRCP16). servicesservices and registered credit provider (NCRCP16).


OLD MUTUAL ENABLING POSITIVE FUTURES IN LIMPOPO

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

MEET LAWRENCE GABELA

Limpopo Provincial Management Board, Chairperson

“Plans remain ideas until they are executed.� Limpopo is a growing region with lots of business investment opportunities such as the Waterberg and Musina districts. As PMB CHAIRPERSON I undertake to: n Commit to serve the Board according to the mandate and the vision of the Board constitution and take the province to a higher level. n Work together as the unit for IFS strategy. n Defend and grow our current market share (which is currently at 22%) by taking advantage of our wide branch network and other business units like Masisizane that make an impactful and uplifting difference to our wonderful province and the communities in which we operate. n Remain driven by our PMB principles and its values and continue to strive to do great things for our business and our customers and our country.

ombds 4.17.10479.02

GET IN TOUCH: email LimpopoPMB@oldmutual.com

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OUR BEST ADVICE TO YOU IS: ADVICE MATTERS As custodians of the savings and investments of millions of South Africans, we know that ADVICE MATTERS when making financial decisions. How to choose the right financial adviser A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™. 1. Ask to see the adviser’s training credentials and FAIS accreditation. 2. Choose a financial adviser who represents a respected financial institution. 3. Look for a financial adviser who has access to a range of specialist support services.

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Small business development and entrepreneurship Youth unemployment through skills training Strategic education initiatives Caring for vulnerable communities

In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In Limpopo the Old Mutual Foundation invested a total of R2 864 500 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In 2016, 136 organisations have received a total of R2 692 500 as a result of staff volunteering efforts.

ombds 6.2017 L10479.6

INVESTMENTS I SAVINGS I PROTECTION

Old Mutual is a Licensed Financial Services Provider


OLD MUTUAL FOUNDATION CASE STUDY IN LIMPOPO Old Mutual encourages and supports staff to get engaged in community projects by volunteering their personal time or contributing financial support. Through the Staff Payroll Giving programme, employees can support social causes through monthly donations from their salaries. Their donations are further matched rand-for-rand by the Old Mutual Foundation and then distributed to deserving organisations, such as the Elim Hlanganani Care for the Aged in Limpopo. Funding of R500 000 was recently provided towards the holistic care of the frail and aged in the area. One of the ways assistance is given is through the training of home-based caregivers to attend to the needs of the elderly. As Director Florence Khosa says, “We ensure that no-one in our community is left alone without help.�

The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. The Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs. In Limpopo Masisizane disbursed funds of R14 013 840 across four clients creating 68 new jobs.

MASISIZANE CASE STUDY IN LIMPOPO Sasesikani Co-operative Sasesikani Co-op is situated in Mahonisi Village in the Vhembe District Municipality. The co-op was established in 2004 and is managed by a board of directors of the co-op that consists of nine members who are all contributing actively in the business. The co-op has created eight jobs for the people around the village (excluding themselves). Most of the members are from the village and not very literate. However, there have been changes in management since the previous General Manager, Mr Khoza was involved. There are now more clearly defined roles in the business as there is a treasurer,

an administrator and a production manager. The other members are supervising transport, cleaning of chicken houses and the process as a whole. The co-op members have gone for training in egg production, marketing and business management. Despite all of this there is still a need for further training in business management and administration to effectively run this business. Masisizane Fund Loan

R2.16 m

Number of jobs

17 jobs facilitated

WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programme promotes financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector. In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes. In Limpopo 7 687 individuals were trained in our Old Mutual On the Money programmes. For more information, contact Lawrence Gabela at LimpopoPMB@oldmutual.com


SPECIAL FEATURE

KEY SECTORS Overviews of the main economic sectors of Limpopo Agriculture

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Mining 44 Energy 60 Water 61 Transport and logistics

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ICT 68 Banking and financial services

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Development finance and SMME support

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Education and training

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Tourism 86 IMAGE COURTESY OF DE BEERS VENETIA MINE

LIMPOPO BUSINESS 2017/18

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LISTING

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OVERVIEW

Agriculture The strong agri-processing sector still has massive potential to grow in Limpopo.

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griculture has been identified as a key driver of the regional economy by the Provincial Government of Limpopo. Agriprocessing in particular is being targeted as a means of increasing the levels of manufacturing in the province. The percentage contribution of Limpopo agriculture to national agriculture is 7.6% although its contribution to provincial GDP is just 2.3%. Agri-processing has enormous potential to expand in every sub-sector. The establishment of agri-parks and co-operatives and support for youth in taking to farming are among the key initiatives that provincial government is implementing in support of these goals. The agricultural riches of the province are well known and its fruits and vegetables form an important part of South Africa’s export basket. Companies like ZZ2 are major contributors to the country’s annual production of 120 000 tons of avocadoes. Of the current crop, LIMPOPO BUSINESS 2017/18

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SECTOR INSIGHT Thousands of hectares are being planted with avocadoes and macadamias. • Agri-parks will help emerging farmers. • T h e Industrial Development Corporation (IDC) is investing in citrus farming. about half is currently produced in two Limpopo regions, Letaba and Tzaneen. Exports to the US


OVERVIEW and Europe, which constitute almost all of South Africa’s foreign market for avocadoes, are rising exponentially. In response to this demand, and the potential of the Chinese market, almost 1 000ha per year of new land is being planted with avocadoes in South Africa. The same amount of new macadamia planting is under way every year, according to the Southern African Macadamia Growers’ Association (SAMAC), adding to the existing 19 000ha. The other two really big sellers are mangoes and tomatoes. Limpopo grows three-quarters of South Africa’s mangoes and twothirds of its tomatoes. The Waterberg District produces large quantities of red meat, Capricorn has potatoes in abundance, Vhembe in the north specialises in citrus and subtropical fruits, Mopani has those fruits too – and the Mopani worm. The Sekhukhune region in the south-east is a grain-producing area. One of the best-known products of the region is Amarula cream liqueur.

Initiatives Five Agri-parks will be established in Limpopo, as part of the R2-billion plan of the national Department of Rural Development and Land Reform to roll out services that will help farmers get better access to market and storage facilities. Support in terms of equipment hire and information will be available. Markets where farmers

can sell their produce and processing plants such as abattoirs will form part of the parks and farmers will gain access to market information and bigger markets through the Rural Urban Marketing Centre. Training will also be on offer at the parks and the aim is to get local farmers owning 70% of the facility. The University of Venda and the University of Limpopo are working on research into crop and seed improvements, particularly related to climate change adaptation. The provincial government gave support to 3 000 households to produce their own food in their backyard gardens during the 2016/17 financial year and hopes to increase this number to over 5 000 households. The Ilima/Letsema conditional grant, which strives to improve productivity of emerging farmers in Limpopo, disbursed funds to 47 projects benefiting a total of 2 333 beneficiaries. A total of 680 farmers were assisted in gaining access to markets. In the 2017/18 financial year, the Ilima/Letsema grant total of R67-million will support 90 projects, 15 538 emerging farmers: 2 718 smallholder farmers, 12 791 subsistence farmers and 29 black commercial farmers. Other programmes were badly affected by drought conditions, the Fetsa Tlala programme, for example, having to be scaled back to work only with farming areas with enough irrigation water. Having come through the long-term drought in the early months of 2017, Limpopo and several other northern provinces then had to deal with the effects of the Fall Army Worm. It was detected early and strong measures were taken to mitigate its effect. The Phethwane Integrated Aquaculture Project stalled after a bright start in 2011, but a Fishery Imbizo held at the Tompi Seleka College of Agriculture in Marble Hall aimed to resuscitate the project. The national Deputy Minister of Agriculture visited the project in late 2015 and encouraged local fishers to aim to supply 500 tons of fish. Iran was mentioned as a potential market for the fish. The Tompi Seleka College is itself in the spotlight, having been reopened in 2015. Together with Madzivhandila College (in the ThulaThula Municipality in Vhembe District), enrolment has increased from 140 in 2015 to 222 in 2016. Limpopo is trying to grow its own farmers.

Location Limpopo’s location gives it a strategic advantage in terms of providing fresh produce to Gauteng, the densely urbanised economic centre of South Africa. Within Limpopo, the Mooketsi Market has used its central position to boost trade in farming produce. The market is at the crossroads of two busy routes: Polokwane to Giyani (R81) and Tzaneen to Louis Trichardt (R36-N1).

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LIMPOPO BUSINESS 2017/18


OVERVIEW The market is owned by ZZ2, FGX (which facilitates transactions between buyers and sellers) and the RSA Group, which is the market agent and has about 30% of market share of fresh produce markets in South Africa. The Vhembe District in the far north and the Letaba Valley in the eastern Mopani District are major contributors to the Johannesburg Fresh Produce Market, with Limpopo growers as a group contributing about 45% of the produce sold at Johannesburg Fresh Produce Market, Africa’s biggest market. ZZ2 is the major brand of Bertie van Zyl (Pty) Ltd, which produces 160 000 tons of tomatoes per year. The company also specialises in onions, both of which appear in different forms under 12 brand names. The company has large farms in four areas of the province: Mooketsi, Politsi, Polokwane and Musina; it also operates in the Western and Eastern Cape. The company has 8 000 full-time employees and is increasing its production of avocadoes and litchis. Westfalia is another huge enterprise, part of the Hans Merensky Group, and it is world’s largest avocado grower. It also produces significant quantities of mango, litchi, citrus and macadamia and has three agri-processing plants in the province. Avocado oil is processed in Tzaneen, juice and avocado purée is made at Politsi and dried mangoes are produced at Hoedspruit. Westfalia has large farms in the Letaba River Valley (Constantia Estate), the Hoedspruit district (Marieskop Estate) and in the Mooketsi Valley (Goedgelegen Estate). Organic avocados are also farmed in KwaZuluNatal Province. The Westfalia Nursery produces more than 130 000 trees every year. Westfalia Technological Services has six teams researching areas such as pathology, horticulture and genetic resources. Relatively new entries into commercial farming are former cooperatives, and they have proved successful. The two most active in Limpopo are NTKLA (with its headquarters in Modimolle) and Afgri, South Africa’s biggest agricultural company, which has its headquarters in Centurion (Gauteng). NTKLA is a shareholder in Venda Roller Mills in Thohoyandou and operates 10 grain silos, 23 retail outlets, 28 flour depots and one coldstorage facility.

Crops The Levubu Valley in the north is particularly fertile with guavas and macadamia nuts among the crops that thrive there. Valley Farms is a successful enterprise that grows fruits such as mangoes and guavas, and produces concentrates, purées and dried fruits. Afgri’s soya plant at Mokopane (Nedan) has increased annual production to 195 000 tons of soya beans and 60 000 tons LIMPOPO BUSINESS 2017/18

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of sunflower, the result of a capital injection of R180-million in 2011. Greenway Farms supplies about 45% of the fresh-market carrots consumed in Southern Africa under the Rugani brand. A R6-million carrot combineharvester is the only one of its kind in South Africa. Letaba Citrus Processors is a part of the African Realty Trust, which also owns two large farms: Letaba Estates and Richmond Estates. The Rhodes Food Group has a canned vegetable facility near Louis Trichardt. Cotton is grown at Loskop, North and South Flats, Wiepe and Dwaalboom/Thabazimbi. There are 2 855ha under irrigation and a further 326ha of dry land operations. Limpopo provides about 32% of the national harvest.

Citrus Most of South Africa’s citrus and subtropical fruit comes from the eastern part of Limpopo. Soft and time-sensitive fruits, like avocados, are exported out of the Port of Cape Town and transported to that city by truck. Citrus is taken to the ports of Durban or Maputo. The Industrial Development Corporation (IDC) is getting behind citrus farming in Limpopo. Falling under the IDC’s AgroIndustries Strategic Business Unit, a funding agreement has been signed with Naranja Packers which will see new farms established, established farms converted to different cultivars and the packing house expanded. The brands Clemengold and Sweet C


OVERVIEW are marketed under Indigo Fruit Farming, which is wholly owned by ANB Investments. The packing house in Burgersfort processes up to 600 large crates of fruit a day in season, with each crate containing about 350kg of fruit – or slightly more than 2 000 tons. Citrus exports to the EU have grown steadily. In volume, exports to the EU in 2015 accounted for 40% of total citrus exports (30% oranges, 66% mandarins, 24% lemons), up from 36% in the prior season. A new entrant to the export market is the GOGO Group, located in the Loskop Valley, where intensive citrus cultivation takes place. Exports will be sent to the United States of America through parent company EKM Exports. The Zebediela Citrus Estate has been bought by the Bjatlhadi community with the support of the Limpopo Local Economic Development Programme, and the focus has shifted from bulk supply to producing smaller, consumer-friendly quantities.

Livestock Government planning at provincial level includes the promotion of red and white meat “clusters” along all the development corridors identified in the province. This includes the promotion of hygienic practices, the establishment of small-scale abattoirs and assistance in marketing of products. The province has about onemillion beef cattle, about 7.5% of the national herd. A new

indigenous breed of cattle has been developed called the Pinz²yl, from breeding Pinzgauer and Nguni stock. This is an initiative of the same farming group that grows the ZZ2 tomato, with the name derived from the famous European breed and the name of the farmer who started it all, Mr Bertie van Zyl. International demand for venison is in the region of 50 000 tons per year and South Africa only supplies about 2 000 tons of it – a clear opportunity for Limpopo entrepreneurs to grow their share of the market.

ONLINE RESOURCES Agro-Food Technology Station, Limpopo University: www.ul.ac.za ARC Institute for Tropical and Subtropical Crops: www.arc.agric.co.za Citrus Growers Association: www.cga.co.za Deciduous Fruit Producers Trust: www.dfpt.co.za Limpopo Department of Agriculture: www.lda.gov.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za South African Fruit Farms: www.safruitfarms.com South African Macadamia Growers’ Association: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net South African Sugar Association: www.org.za

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OVERVIEW

Mining

IMAGE COURTESY OF DE BEERS VENETIA MINE

Special economic zones open up possibilities for investors in processing.

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iamonds in the north, platinum and chrome in the west and east and coal just about everywhere – Limpopo Province has extraordinary mineral wealth. The mining sector routinely contributes up to 30% of regional GDP but this has fallen back somewhat with reduced platinum operations in response to a weak global market for the commodity. Although there are efforts under way to try to diversify the Limpopo economy to reduce the dependence on the mineral sector, there is a parallel effort to use the underground riches of the province to stimulate the growth of the manufacturing sector. A series of measures have been developed by the Limpopo Economic Development Agency (LEDA) to create the circumstances where processing plants and products can add value to the minerals. A large part of strategy centres around Special Economic Zones (SEZs), a nationally certified geographic area where special concessions and tax breaks apply, intended to encourage inward investment. The Provincial Government of Limpopo wants to see the supply chain of mines heavily weighted in favour of local businesses and particularly small, medium and micro-enterprises (SMMEs). The government has committed to upgrading informal settlements around mining towns. Major investments in Limpopo include an ongoing project by De Beers in Musina to convert its Venetia mine from an open-pit mine to LIMPOPO BUSINESS 2017/18

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SECTOR INSIGHT Carbon-neutral mining is the goal for researchers at De Beers’ Venetia mine. • Impala’s refinery is to be powered by fuel cells. • Ex xaro has launched its vision for mining sustainably. • Ivanplats’ new Platreef mine may become the biggest PGM mine in the world. a vertical shaft mine and a multibillion new platinum mine project led by a Canadian firm (in partnership with Japanese companies). Silicon Smelters (the largest charcoal producer in Africa) and Anglo Platinum’s smelting facility,


OVERVIEW one of three run by the company, are both located in Polokwane. Northam Platinum’s metallurgical complex at its Zondereinde mine processes Merensky and UG2 ores separately.

Platinum With a depressed platinum price, platinum miners are hoping that demand from the fuel cell industry will replace the decline in demand for catalytic converters. Impala Platinum (Implats) has an interest in two big operations on the eastern limb of the Bushveld Igneous Complex. Marula (in which Implats is a 73% shareholder) is in Limpopo province, about 50km north of Burgersfort. South of the same town, in Mpumalanga, Implats (49%) is in a joint venture with African Rainbow Minerals (ARM) at the Two Rivers mine. The mine has a concentrator plant and has a life-of-mine offtake agreement with Impala Refining Services. Impala announced in early 2017 that it intends to take the refinery (in Springs) off the Eskom grid, and power the refinery using fuel cell technology. Power will come from an 8MW Doosan Fuel Cell. Even though the Twickenham mine of Anglo American Platinum (Amplats) has been put on care and maintenance, lots of work is going on there. Amplats is testing trackless mechanised mining in that hope that automation will bring down costs sufficiently to make it economical to mine again.

Despite uncertainty on the global market, Northam Platinum has continued to buy assets. In 2015 it bought Everest South from Aquarius, a move that will allow it to consolidate operations with its adjacent property, Booysendal South. Northam, which also has assets in the North West province, aims to produce 850Â 000oz of PMGs from 2022. A court ruling in February 2017 has opened the way for Ivanhoe to build its Platreef Project on the northern limb of the Bushveld Igneous Complex. Local communities objected to the proposed multi-billion project because it was said the mine would cause ancestral graves to be moved. R70-million has been commited to the first phase. In July, Ivanhoe released a feasibility study that was positive about prospects for mining for platinum group elements, nickel, copper and gold. Ivanplats, the subsidiary of the Canadian company, will run the mine in the Waterberg District Municipality near Mokopane south-west of Polokwane. Ivanhoe has a 64% stake in Ivanplats with 10% owned by a group of Japanese companies including ITOCHU Corporation and Japan Gas Corporation. If the mine achieves the projected production rate of 12 Mtpa with 1.2-million ounces of PGM, it will rank as the biggest mine in the world. Engineering companies engaged in the project include FLSmidth (winding equipment), Aveng (shaft one) and Murray & Roberts (shaft two).

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OVERVIEW Coal Limpopo contributes 4% of coal mining in South Africa, according to the National Department of Mineral Resources, but it seems likely that within the next three decades, the province will be supplying about half of South Africa’s coal. Limpopo’s Waterberg coal field is estimated to contain about 75-billion tons of coal. Supplying coal to power-producer Eskom has for many years been part of the bread-and-butter income for coal mining operators. In 2015, Exxaro supplied Eskom with nearly 30% of the coal it needed to run its power stations, about 33-million tons of coal. Exxaro spent several billion rand expanding its Grootgeluk mine (which has 3 200 employees) in the expectation that it would supply coal to Eskom’s Medupi power station. However, construction of the giant power station has been severely delayed, with the result that Exxaro is now having to look to export its coal. The plan was for the mine to supply Medupi with 14.6-million tons of coal every year for 40 years. Exxaro is exploring new technologies at Lephalale, working on the possibilities of Underground Coal Gasification (UCG). The diversified resources company recently launched the New Exxaro Tomorrow (NXXT) programme, which is part of the company’s 2030 vision that has a strong focus on sustainability. Sibanye Gold has acquired a 51% stake in Waterberg Coal, further evidence that it intends looking after its own power supply, at least to some extent. Coal of Africa is active in Limpopo, with the Vele colliery (coking and thermal) in the far north of the province and the Greater Soutpansberg Project /MbeuYashu, which includes CoAL’s Makhado Project (coking and thermal coal).

Diamonds Anglo American is investing R2-billion to expand production at its diamond mine near the town of Musina. Venetia Mine is by far

ONLINE RESOURCES Chamber of Mines of South Africa: www.bullion.org.za Geological Society of South Africa: www.gssa.org.za Mining Qualifications Authority (MQA): www.mqa.org.za National Department of Mineral Resources: www.dme.gov.za South African Institute of Mining and Metallurgy: www.saimm.co.za

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the most important part of De Beers’ South African operation, accounting for 3.1-million of the 5.4-million carats recovered by the company from its six operations. Good progress is being made to convert the mine from an open-pit mine to an underground operation, a project that will extend the life of the mine to the middle of the 2040s. The project will employ more than 2 000 people at its peak period. The first diamonds to come from the new mine are expected in 2021 with the underground mine becoming the only source of diamonds in 2023. The Venetia mine is also the site of some ground-breaking research that the De Beers group is putting in to finding ways to store carbon by mineralising kimberlite tailings. It is thought that kimberlite has the potential to be carbonised and thus able to store carbon. The goal is carbonneutral mining.


INTERVIEW

Localisation brings business opportunities Benford Mokoatle, Venetia Mine General Manager, details how new policies are creating jobs in the Musina area.

Benford Mokoatle

Will the underground mine project affect production levels? When you go underground you reduce waste but the ore mined will remain constant, if not marginally improve. The carats will marginally improve from the current production profile. What plans do you have to transition your workforce to the underground environment?

The skills required for the underground operation will be completely different from the current skill levels and requirements. We can accommodate those who have an aspiration of going underground by retraining them. Does the investment in Venetia underground mine signify investor confidence?

BIOGRAPHY Benford Mokoatle has 21 years of mining experience. He began his professional career in the Wits Basin and spent time in West Wits (Western Deep Levels and East Mine), the Free State (Tshepong Mine) and Vaal Reefs before joining De Beers. He has worked at Kimberley Mines, Oaks Mine, Voorspoed Mine and Venetia Mine. At Venetia Mine, Benford is responsible for leading and directing Venetia Mine and its leadership team.

I have no doubt about that. This is a project of a minimum of US$2-billion. This shows that the investors have confidence first and foremost in the country, and secondly in the project itself. It also says that there is still a market in diamond sales. Does the mine impact on socio-economic development?

In our region, for every employee that is employed there’s indirectly 10 people that benefit. We are on a drive to localise businesses and suppliers that we do business with. We will continue to create partnerships and invest in the local economy. Are local companies benefitting?

When we started with the BEE drive we needed to be doing business with empowered or black-owned suppliers. Now that we are at 88% or 90% BEE credentials, we need to localise and do business with entities that originate from our labour-sending area. So far we have rolled out about 35 local business opportunities, 50 to 60% of those are sourced from our labour-sending areas such as Musina and Blouberg.

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INTERVIEW

New shaft sinking method prioritises safety Head of De Beers Venetia Underground Project, Christoff Kühn, reports on progress in one of Limpopo’s biggest projects.

Christoff Kühn

What is the scope of De Beers’ investment into the Venetia Underground Project?

We committed US$2-billion in replacing the open mine with a new underground mine. This will approximately double the life of the mine to the middle of the 2040s.

BIOGRAPHY Christoffel Kühn has Master's degrees in mechanical engineering and project management from the universities of Potchefstroom and Pretoria which he has put into practice in Southern Africa, South America and Australia. Starting as an engineer on a gold mine, he has since delivered several capital projects in the mining industry. His experience includes engineering and project management, project development and techno-economic evaluation. Kühn’s previous post was head of the project management support and review department at Anglo American. LIMPOPO BUSINESS 2017/18

When do you expect to start producing diamonds? We start intersecting the kimberlite orebodies in the 2020s. The first significant production will be in 2021, on a smaller component of the mine. The open pit will halt all operation in 2023 and from then on, the underground will become the main source. The open pit is currently mining three distinct kimberlite pipes. The underground mine will mine two of those. How many jobs have been created? We have about 750 people on the project. At our peak, the numbers will increase to about 2 000 to 2 500 people – these will decrease as the project execution comes to an end. The underground mine will not significantly change the number of De Beers’ employees on the mine, although there might be different contractors that are required on the underground operation from those we used on the open pit because of the changed nature of the mining. We forecast that we will stay at similar employment levels as before. We currently have approximately 1 350 employees, excluding contractors. The situation with contractors is very dynamic, and changes as workload alters. It is not consistent work over the life of the mine. Are local businesses involved? Some portions of the project are unique, and require established experienced contractors to deliver. We have gone on a campaign to try to build to establish as many local SMMEs as possible. There are a few success stories, such as our partnership with a company

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IMAGES COURTESY OF DE BEERS VENETIA MINE

INTERVIEW

called Renuna for accommodation. Smaller local building contractors are also helping us to develop structures on site. How long is the tunnel from the surface to the mine?

competing with a project in Mongolia and one in Zambia. Obtaining the correct skills set within the SA environment is tricky, including the skills set that we require for the operational phase of the underground mine.

We are developing three access points. The decline is Are there any new techniques being used 2.5km and the vertical depth is about 400m. The de- on the project? cline assists with developing the top of the mine. The The shaft sinking methodology we are employing decline will be completed this month and we have through Murry & Roberts is the first of its kind in started with lateral development towards ore bod- South Africa. We awarded it to Murray & Roberts ies. The two vertical shafts, which are about 550m based on the safety associated with its method. below the surface, will eventually be 1km in depth. The old method did concrete lining concurrently with development. We do everything in line, makAt what speed are the vertical shafts ing sure we don’t expose people to people workbeing developed? ing on top of them. This affects the advance rate, We are currently achieving approximately 40-45m but it is a significantly safer method. per month. From a safety record perspective, we are doing well compared to other similar projects in SA. What are some of the key challenges you Shaft sinking is typically associated with severe face in this project? accidents. While we have not yet achieved our goal Some of the key challenges we have is obtaining of zero harm, we have progressed significantly on specialist skills required for shaft sinking. We are our journey.

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FOCUS

De Beers Venetia Mine Community Development A partner in poverty alleviation and job creation.

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enetia Mine lies approximately 80km west of Musina and 36km north-east of Alldays in the Limpopo Province. The mine is located in the Musina Local Municipality of the Vhembe District, off the R521 road between Alldays and Pondrift, approximately 540km north of Johannesburg. The majority of the mine employees are from the Blouberg and Musina municipalities, which are therefore its primary labour sending areas. A total of 40% of the workforce comes from Musina while 21% of the workers come from Blouberg, with a further 15% coming from other parts of Limpopo and the balance from further afield. The Mine Community Development Programme for Venetia Mine is based on De Beers Consolidated Mine’s Community Development strategy and the Venetia Mine Socio-Economic Assessment, which focused on the possible impacts that Venetia Mine would have on the communities of Vhembe and Capricorn District Municipalities, and more specifically the two host municipal areas, Blouberg and Musina.

The programme is integrated with the Integrated Development Plans (IDPs) of the Blouberg and Musina municipalities and demonstrates a commitment to the sustainable upliftment of these communities. The legacy of Venetia Mine will stretch over and above the direct economic benefits that the mine will bring to the region. Venetia Mine aims to become fully integrated within the local communities and to be a partner in poverty alleviation and job creation.

PROJECT NAME

AREA

BUDGET

ACTUAL

STATUS

Limpopo Rural Schools Programme

Blouberg

R3 000 000

R5 488 432

Completed

Student Financial Aid Scheme

Musina and Blouberg

R300 000

R245 723

Completed

Maths and Science Programme

Musina and Blouberg

R300 000

R257 700

Completed

Enterprise Development Zimele

Musina and Blouberg

R400 000

R1 058 827.13

Completed

Teacher Subvention

Musina

R1 800 000

R3 028 478

Completed

Building Materials Project

Musina

R600 000

R222 300

Completed

Ventilation Pipes Project

Blouberg

R600 000

R159 600

Completed

R 9 000 000

R 10 461 060.13

TOTAL

VENETIA MINE COMMUNITY DEVELOPMENT PROJECTS (2016) NB: OVER AND ABOVE THE PROJECTS LISTED IN THE TABLE ABOVE, DE BEERS VENETIA MINE ALSO ASSISTED BLOUBERG MUNICIPALITY WITH THE GRADING OF COMMUNITY ROADS IN THE TAAIBOSCHGROET AREA AT A TOTAL COST OF R32 429.

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FOCUS

Limpopo Rural Schools Programme De Beers Venetia Mine has entered into a ground-breaking partnership with the Limpopo Department of Education, through the Limpopo Education Trust, to provide infrastructure to needy schools within the Venetia Mine labour sending areas. Both partners contributed R3-million each towards schools that were jointly identified. Since its inception in 2006, this partnership has resulted in 13 schools around Musina and Blouberg areas being supported. The latest project under this partnership was the construction of Mphengwa Secondary School in Eldorado Village in Blouberg. The project started in March 2016 and was completed in December 2016. The scope of this project included the building of 12 new classrooms, an administration block, provision of water and fencing at the school. Prior to this intervention, the situation at the school was dire, with infrastructure that was dilapidated and on the verge of collapse.

located in Venetia Mine’s labour sending communities of Blouberg or Musina, they must be academically deserving and/or be dependants of Venetia Mine employees that are in the bargaining unit category. A learner must be registered with a public tertiary institution.

Maths and Science Programme Venetia Mine introduced a Mathematics and Science Programme to support learners in the Musina and Blouberg areas. In 2016, the focus of this programme was on Grade 12 learners from 10 high schools to help them improve their pass rate in these subjects. In 2016, De Beers Venetia Mine partnered with the University of Venda (UNIVEN). A total of 282 learners benefitted from this insightful programme. The partnership with UNIVEN started in 2016, and has seen the Maths and Physical Science Grade 12 results in the Bahananwa Circuit improve by 3% in 2016.

Enterprise Development Zimele The Blouberg and Musina Local Municipalities have agreed to support all their future entrepreneurial projects through the De Beers Zimele Venetia Mine Business Hub. The hub aims to create sustainable jobs by providing low-interest business loans paired with significant mentorship, coaching and skills development for small to medium-sized enterprises (SMMEs). Since its establishment it has created over 495 jobs in the community.

Teacher Subvention The primary objective for this programme is to provide local schools in the Musina area with funding for them to employ additional educators and administration personnel. Schools currently benefitting are Musina High School, Eric Louw High School and Messina Primary School. Many of Venetia Mine employees’ children are enrolled at these schools.

Student Financial Aid Scheme This scheme provides learners with educational grants of up to a maximum of R15 000 per student, per annum, towards their tuition fees. This amount is paid directly into the tertiary institution’s account. For learners to qualify for this grant they must come from a financially destitute family

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FOCUS

De Beers Venetia Mine Economic Development and Procurement At the heart of building local businesses.

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e Beers Venetia Mine is adopting a multi-faceted approach to supporting and incubating local businesses. From partnerships with agencies and business development training programmes and joint ventures, the mining company is working to ensure that economic development and job creation become a reality for the wider community of businesses and entrepreneurs in which the mine operates. The company’s goal is to incubate 50 local businesses in 2017 and to continue on that trajectory into 2018 and 2019. A partnership with the Small Enterprise Development Agency (Seda) has already paid off in the sense that detailed training sessions are empowering local business people. One such participant, Buto Tabengwa from Musinabased B-Graphics and IT Solutions, reported, “The training has been mind-blowing. This group has certainly been empowered through the knowledge they have downloaded – well done to De Beers for putting local business on the map.” Topics dealt with in training included costing and pricing, access to funding and banking as well as joint ventures and cash-flow management. Gregory Petersen, De Beers Consolidated Mines Supplier and Enterprise Development Manager, explains the rationale, “By collaborating with industry leaders such as Seda we maximise the impacts of our Enterprise Development Programme and deliver smart, meaningful services to local companies which, LIMPOPO BUSINESS 2017/18

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with coaching and support, could become suppliers to Venetia Mine in the future.” Addressing a Business Breakfast at the Diamond Club in March 2017, Venetia Mine Assistant General Manager, Hendrick Matjila, discussed local procurement as well as supplier and enterprise development strategies. “Business cannot exist in isolation,” he said. “At Venetia Mine we are cognisant of the fact that we cannot sustain our operation without ploughing back in our communities. We know that if we are to achieve our goal of leaving a lasting legacy beyond the life of Venetia Mine, it starts with supporting local enterprises and developing our entrepreneurs and small businesses.”


FOCUS Guests, who included members of the Musina Business Chamber and Musina Local Municipality, representatives of the Beitbridge and Zoutpansburg Chambers of Commerce and the Musina Youth in Business Forum, discussed collective ways to turn Musina around together.

Strategy Venetia Mine’s procurement team has successfully completed the following initiatives in recent months: De Beers community fair: Crowds of local business people and entrepreneurs visited the Supplier Development and Zimele exhibits, giving them an opportunity to understand the requirements for doing business with Venetia. Community SMS database: The Community Fair creates the opportunity to build a database of over 100 potential suppliers in Musina and Blouberg who the mine can now communicate with directly regarding business opportunities. Opportunities specifically targeting local business: HDSAowned entities are sought which can provide products and services such as supplying kitchen consumables, electric fencing, rodent and pest control, manpower required during shutdowns and emergency repairs and ad hoc work in the treatment plant, repairs on tyre protection chains, cleaning services and alien plant control. Community-focussed marketing strategy: A comprehensive

campaign has been launched on local radio stations Mohodi FM and Musina FM, local newspapers such as the Polokwane Observer and the Northern Gazette and on posters at local municipalities, tribal offices as well as public areas such as post offices.

Supplier Development Programme At the end of the second quarter of 2017, a total of 226 local businesses had expressed their interest in being involved through the mine’s Local Procurement Drive. Of these, 58 companies were shortlisted and fifteen local companies were awarded contracts, with another seven to follow shortly afterwards. Thirty-seven of the targeted 50 opportunities had already been launched by July, and a further seven were due to be rolled out in the third quarter. The focus for these vendor opportunities is in: • road maintenance and construction • repairs to bund walls • cleaning at the Venetia Primary Crusher • Venetia Mine takeaway canteen • supply of LDV tyres, batteries and rims • small civil works at Venetia Underground Project • construction of the HTTS building at Venetia Underground Project. Six local companies have an established relationship with the Venetia Mine and they are already enrolled in the Supplier Development Programme. As companies win contracts, they are added to the programme. Entrepreneurs or companies who have been unsuccessful in application or in tendering are encouraged to participate in the De Beers Incubator or other initiatives. The Seda programme is an example of such a support programme.

Bussing Empowerment Deal The Venetia Mine and VM Diamond Transport have called for locally owned businesses in the Musina area to put their names forward to be 40% shareholders in bus companies covering the Musina and Blouberg areas. An empowerment initiative aimed at Historically Disadvantaged South Africans (HDSA), the plan is for an eight-year contract to transport workers to the mine at the centre of a share purchase agreement. Technical training will be provided by VM Diamond Transport as part of a two-year business development programme and the local partners are expected to become majority shareholders within a five-year period. Similar opportunities in the broader transport sector include a partnership with Bridgestone, Global Wheel and Willard to establish a locally owned distribution centre for tyres, rims and batteries that will service Venetia Mine and the wider community.

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PROFILE

Unlocking opportunity Ivanplats brings a new dawn to Mokopane.

Ivanplats is developing a world-class underground platinum-group elements, nickel, copper and gold mine in Mokopane, Limpopo. The company plans to use highly mechanised methods to mine the deposit.

Platreef social and labour plan from 2014 to 2019. The approved plan includes R67.2-million for the development of job skills among local residents and R87.7-million for local economic development projects.

Ivanplats’ Managing Director, Dr Patricia Makhesha, says: “We are proud to have shared our almost 20 years of exploration and development achievements at Platreef with supportive stakeholders. These stakeholders, including more than 150 000 local Mokopane area residents, see international investment and professionally managed development of natural resources as keys to unlock widely shared opportunities and prosperity.”

“In establishing our social and labour plan, Ivanplats has been mindful of the South African government’s National Development Plan and its priority of securing undertakings that create jobs and advance socio-economic development to alleviate poverty and unemployment,” says Dr Makhesha. “The social and labour plan programmes that we are currently implementing demonstrate Ivanplats’ commitment to ensuring that people in our host communities benefit from our operations, directly and indirectly, in ways that contribute to improving their quality of life and expanding their opportunities.”

The Platreef mine is projected to require a workforce of approximately 2 200 within four years of the start of production operations and Ivanplats will have invested a total of R160-million in the

The year 2017 was tagged by Ivanplats as “The Year of the Youth” and the company focused on bringing information and connectivity to the people in its host communities. The project, called Maru a Mokopane (Sepedi for the Clouds of Mokopane), saw the installation of eight free Wi-Fi hotspots in Ivanplats’ host communities, the development of an online communication portal and the creation of 17 micro digital enterprises that are responsible for training people in how to use this free system. One of the digital trainers, Pitso Oupa Zono, is training a resident at Tshamahansi Wi-Fi hotspot on how to use Maru a Mokopane.

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Mrs Lizzie Seema from Sekgoboko was one of the participants in a non-core training programme Ivanplats initiated. She completed the electrical training module sponsored by Ivanplats and started an electrical business focusing on tubing and wiring of houses with the support of her trainer.


Developing a world-class highly mechanised, underground platinum-group elements, nickel, copper and gold mine in Mokopane. Bringing socio-economic development to Mogalakwena Municipality, Limpopo and beyond.


FOCUS

Efficient mining at Lephalale Grootegeluk mine: A world leader in more than one way.

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 xxaro Resources Limited is one of the largest South Africa-based diversified resources groups with interests in the coal, titanium dioxide, ferrous and energy markets. It is the second-largest coal producer in South Africa, with current production of close to 44-million tonnes per annum, and is listed on the JSE Limited, where it is a constituent of the Socially Responsible Investment indices. Exxaro’s flagship mine, Grootegeluk, is situated in Lephalale, Limpopo province. It is among the most efficient mining operations in the world, and operates the world’s largest coal beneficiation complex from a single pit with mineable reserves of more than 30 years. Products include thermal, metallurgical and semi-soft coking coal. More than 80% of the coal produced is distributed to the nearby Matimba and Medupi power stations.

LIMPOPO BUSINESS 2017/18

Grootegeluk is committed to ensuring a safe and healthy workplace through Exxaro’s sustainability vision of Zero Harm and has seen a decline in all incident frequencies over the past five years and the emergence of world-class safety statistics. Grootegeluk has maintained its ISO and OHSAS certification for the past 10 years and has not experienced a fatality since 2012. On the environmental front, Grootegeluk is in possession of all required authorisations to operate and strives to fully implement the conditions relating to these licences. Operating in a water-scarce area like the Limpopo province also poses some challenges and Grootegeluk is continuously striving to actively and innovatively reuse the water inside the mine’s reticulation system, thereby contributing to the conservation and demand management of the water in the Mokolo catchment.

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At Exxaro, we know that if our goal is significant growth, it means achieving that goal through operational excellence. If one objective is to grow to become a significant company and generate returns above the cost of capital, it also means implementing a well developed strategy. If leveraging innovation and technologies is part of our vision, it means making a valuable economic contribution for the benefit of all our stakeholders. For us the power of good business means leadership, and the possibilities in leadership mean good business. We look at both sides of the coin.

EXX_20170222

IT’S ALL ABOUT DOING WELL AND GOOD.


FOCUS

Maximising benefits for local communities Marula is one of the first operations to have been developed on the relatively under-exploited eastern limb of the Bushveld Complex in South Africa. The mine is located in the Limpopo province, some 50 kilometres north of Burgersfort.

Marula’s partners together own 27% of the company. Each of the following parties hold a 9% stake in the business: • The Marula Community Trust, ensuring sustainable benefit flows to the local community; • Tubatse Platinum, a broad-based HDSA empowerment consortium from local business; and • Mmakau Mining, an established mining entity. Implats, as the largest stakeholder, brings technical, managerial, financial and operational expertise to the mine. The pursuit of sustainable development and zero harm are seen as imperatives. Marula focuses on addressing those social, economic and environmental issues that are seen as having a material impact on the business, the sustainability of the economy, the environment and the communities in which it operates. Marula is determined to maximise the benefits of the mine for its local communities and the social investment strategy focuses on addressing the urgent needs identified in these areas. Preference is given to local contractors and suppliers of goods and services. In

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addition, Makgoma Chrome, a joint venture that assists local communities with the extraction and marketing of chrome from tailings, has realised substantial financial and other benefits for these communities.

CONTACT INFO Group Corporate Relations Manager: Alice Lourens, Tel: +27 11 731 9033 E-mail: alice.lourens@ implats.co.za


OVERVIEW

Energy An energy complex is planned for Lephalale.

O

ne of South Africa’s biggest engineering projects is under way in the western part of Limpopo, the building of the Medupi power station. The facility is being built near the existing Matimba power station and the giant Exxaro coal mine at Grootgeluk. Unit 5 of Medupi Power Station has achieved commercial operation status, joining Unit 6 in supplying 800MW to the national grid. When the Medupi power plant is completed, the Lephalale area will become a petrochemical hub and energy complex. An Integrated Energy Centre (IEC) has been launched in the Fetakgomo-Greater Tubatse Municipality. Energy company Shell SA has invested R18-million in the community centre, which has created 16 jobs. IECs, an initiative of the national Department of Energy (DoE), are one-stop energy shops that assists local residents in getting access to energy and providing information on energy resources. The national Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been very successful so far. Three photovoltaic solar projects located in Limpopo will generate 118MW at full capacity. Most approved projects have been solar and wind. Now planners want to promote projects using biogas, landfill gas and small-scale hydro-electric. The provincial government’s Green Economy Plan has identified solar and biomass as the main kinds of renewable energy for Limpopo. Energy generation is not the only component of the plan: with huge silicon reserves in the province, there is potential to produce solar panels and solar charges for cellphones.

ONLINE RESOURCES National Department of Energy: www.energy.gov.za South African Photovoltaic Industry Association: www.sapvia.co.za South African Wind Energy Association: www.sawea.org.za Southern African Biofuels Association: www.saba.za.org Sustainable Energy Africa: www.sustainable.org.za

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SECTOR INSIGHT Solar and biomass hold great potential in Limpopo. Nine biogas digesters have been installed in the Vhembe District to be controlled by young entrepreneurs trained by the University of Venda. A group of 31 students is studying Energy Management Systems as part of the provincial plan. The mining and agricultural sectors are the two biggest and most important sectors of the Limpopo provincial economy. They are big consumers of energy and they hold the key to advancing alternate technologies. Implats recently negotiated the supply of natural gas supply to its refinery in Springs. Phase one of the project will see 20 Doosan fuel cells generating 8MW of power. The long-term goal is to generate 22-30MW. Anglo Platinum has launched an underground mining locomotive powered by a fuel cell. Platinum coating greatly enhances the hydrogen absorption capacity of fuel cells. Mining group Exxaro is sponsoring the rollout of alternative energy near its remote Tshikondeni mine east of Musina.


OVERVIEW

Water Major bulk water projects are under way.

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everal major projects are currently being carried out in Limpopo, including bulk water schemes at Mooihoek/ Tubatse, Sekhukhune and Moutse. The completion of the De Hoop Dam has made possible the provision of water to many communities in the eastern part of Limpopo. The building of the dam is part of the greater Olifants River Water Resources Development Project. Five other water projects and 65 associated schemes in the Sekhukhune District are delivering other water infrastructure, including pipes to get water to Moutse from the Loskop Dam. In the 2017/18 financial year, the provincial government has committed to providing 210 more schools with potable drinking water and 185 more schools with decent sanitation facilities. The mining and agriculture sectors are heavily dependent on a steady and sustainable supply of water. Several Limpopo towns have struggled to supply clean water to residents, and this has led to tension between residents and municipal officials. In response, the national Minister of Public Works has put together a technical team to support the municipalities. Limpopo has very different rainfall patterns in its three main geographical regions: the escarpment (sub-humid with annual rainfall of more than 700mm); semi-arid middle veld and Highveld; and the arid and semi-arid Lowveld. The long drought that affected many parts of South Africa had a big impact in Limpopo. The provincial government declared a disaster in November 2015 and released funds to supply feed for livestock. By early 2017 the drought was broken in northern areas such as Limpopo.

ONLINE RESOURCES Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Department of Water and Sanitation: www.dwa.gov.za Olifants River Forum: www.orf.co.za South African Association of Water Utilities: www.saawu.co.za Water Institute of South Africa: www.wisa.org.za

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SECTOR INSIGHT Potable water will be delivered to 210 schools. The province’s rivers are under threat from the damaging effects of the mining industry, power stations, chemicals used in agriculture and from sewage treatment in catchment areas. Opportunities exist in this sector for innovative solutions. The Water and Sanitation Services branch of Polokwane Municipality operates five waterpurification plants and three sewage-purification plants. As part of its Regional Water Scheme programme, Polokwane provides water to the residents of the rural areas of Mothapo, Mothiba and Makotopong. A reservoir has been built and new pipes laid. The Capricorn Distric t Municipality funds a water-testing laboratory on the campus of the University of Limpopo. Mocha Lab has been operating in Polokwane since 2008, and has the capability to provide services to the mining and engineering sector, as well as to water authorities.

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OVERVIEW

Transport and logistics Limpopo’s location makes it ideal for logistics operations.

SECTOR INSIGHT Polokwane is investing in a bus rapid transport system. • The N1 and N11 highways link South Africa to its neighbours.

 T

he N1 highway, “The Road to the North” is an extremely busy road and growing mining operations are putting pressure on secondary routes in the province. In this context, Transnet Freight Rail’s stated aim of getting larger quantities of freight moved from road back to rail is good news for everyone. A similar theme is behind the bus rapid transport system being introduced in the provincial capital, Polokwane, except here the goal is to get commuters into public busses. The scheme is called Leeto la Polokwane. Within the province more broadly, 22.6% of households in Limpopo use bus transport and 45.8% use taxis (2013 Household Travel Survey). Increasing rail volumes out of the coal-rich Waterberg area is something that has been on the cards for some time but this project may have to wait until commodity prices recover. Transnet Freight Rail (TFR) is conducting a feasibility study. An extension of 464km would cost about R37-billion, so TFR may look for private partners. If more coal mines are developed, then capacity could be ramped up in stages. All of this would be delivered to Richards Bay via the line through Mpumalanga and KwaZulu-Natal. Eskom’s huge new power station in western Limpopo (Medupi) will need lots of coal but is experiencing long delays in construction. Logistics is a vital feature of the Limpopo economy for two reasons – the province has huge volumes of raw produce to be transported to LIMPOPO BUSINESS 2017/18

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markets elsewhere, and the province is strategically positioned. In addition to the N1 highway, the N11 is a primary road corridor and there are nine provincial road corridors. Freight volumes on the N11 (to Botswana and Mpumalanga) have increased markedly since 2006, whereas the R33 has carried less traffic. South Africa’s major logistics companies have facilities in Polokwane, and some have warehouses and forwarding facilities in other parts of the province. RTT has offices in Makhado. Limpopo’s biggest exports (minerals and fruit and vegetables) require dramatically different levels of handling. Minerals are poured in great volumes into the freight trucks of TFR and taken onward to Richards Bay Coal Terminal, whereas some of the province’s fruits like avocadoes have to be handled with extreme care. They must be delivered to ports as quickly as possible as they are delicate and the


OVERVIEW deadlines for getting fruit to market in Europe are tight. Companies such as Freezerlines, Fast ‘n Fresh and Cold Chain have developed specialist techniques in getting these fruits to market and to port undamaged. Grindrod has a Perishable Cargo division which specialises in transporting cargo by air. The large national logistics company Value Group has only four major regional depots outside of Gauteng: in Cape Town, Durban, Nelspruit – and Polokwane. This illustrates the importance of the Limpopo Province and its capital city in the national logistics chain. Imperial Logistics Southern Africa has 70 companies in its group structure, including Kobus Minaar Transport, a concern that began in Tzaneen transporting fruit and vegetables. Other active companies in Limpopo include Dawn Wing Logistics, Kargo, F&R Logistics and Aramex SA. Outside of Polokwane, the towns of Tzaneen, Lephalale, Burgersfort and Musina (a border post with Zimbabwe) are all important in the field of logistics. Roads Agency Limpopo (RAL), of which the provincial government is the sole shareholder, accounts for about a third of the budget of the Limpopo Department of Public Works, Roads and Infrastructure. The provincial government has a scheme whereby pupils in rural areas up to 10km away from schools are provided with bicycles. The province’s scholar transport network will be expanded in the course of 2017 to 255 schools.

Great North Transport falls under the Limpopo Economic Development Agency. The company has more than 500 buses, covers about 37.6-million kilometres every year on 279 routes, employs more than 1 200 people and transports 37.6-million passengers.

Air The Polokwane International Airport (PIA) is wholly owned by the provincial government and run by the Gateway Airport Authority Ltd (GAAL), an agency of the Limpopo Department of Roads and Transport. It has the potential to be an important regional cargo airport. SA Airlink caters mainly to the business market and offers 21 flights to Johannesburg six days a week. The airline also provides links between Phalaborwa and Johannesburg, and between Hoedspruit and Johannesburg and Cape Town. Many game reserves have airstrips, and regional airports in the eastern part of the province provide easy access to the Kruger National Park. Hoedspruit Airport is situated within an airforce base and has the second-longest runway in South Africa, long enough to serve as an emergency landing area for space shuttles. The airport is served by SA Express. Phalaborwa’s airport is notable for its African-themed terminal which includes a zebra-patterned floor. Musina, near the border with Zimbabwe in the north, hosts the province’s other regional airport.

ONLINE RESOURCES Gateway Airport Authority Limpopo: www.gaal.co.za Hoedspruit Airport: www.eastgateairport.co.za Limpopo Department of Transport: www.ldot.gov.za Limpopo Economic Development Agency (LEDA): www.lieda.co.za Railroad Association of South Africa: www.rra.co.za Roads Agency Limpopo: www.ral.co.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net

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PROFILE

Leeto: Our journey to seamless mobility Building a better city. By Musa Ndlangamandla

Seamless, smart and sustainable urban mobility that ensures the quick and free movement of people, goods and services while reducing pollution, traffic and accidents. This has become a major priority for the future growth of cities around the world. For the City of Polokwane, an efficient and costeffective public transport system which connects people to jobs, education, recreational facilities and public services is a fundamental part of human development. That is why Polokwane Local Municipality has pulled out all the stops and is making great progress in the implementation of the ground-breaking Leeto la Polokwane project, which will provide its citizens with a safer, faster, affordable, efficient and environmentally friendly public transport service. The name, which means the Journey of Polokwane, derives from the SePedi language and is symbolic of the collective journey of the people of Polokwane.

Polokwane Municipality Executive, Mayor Cllr Thembi Nkadimeng on the occassion of Leeto la Polokwane system name launch.

to Polokwane Local Municipality’s efforts towards creating a city where people and community come first. Polokwane is among 13 cities identified by government to introduce an Integrated Rapid Public Transport System (IRPTS). This is aligned with the objectives of the National Transport Action Plan, incorporating South Africa’s Public Transport Strategy, which was approved by Cabinet in 2007.

Leeto la Polokwane is making a positive impact on the city’s socio-economic development, through upgrades in public physical infrastructure within a well-planned spatial context. The project has also ensured sustainable job creation while ushering in a clean, green, safe and healthy city. Such improvements have a positive impact in promoting local businesses and stimulating investments.

Leeto la Polokwane is funded in tranches through the Public Transport Network Grant (PTNG) and integrates Bus Rapid Transit (BRT) with non-motorised transport, progressive land use approaches, and car-restriction interventions. It is implemented in phases and operates on fully or partly dedicated roads and feeder routes that connect with existing networks of minibus taxis, buses, walkways and cycling lanes. Over the past 10 years, National Treasury has contributed R167-billion towards infrastructure and operations subsidies, with an average annual

Historical Background A brief historical background would help unpack the milestones of this project which have been realised over the last five years and give context LIMPOPO BUSINESS 2017/18

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PROFILE growth of 18%. Due to economic challenges which have had a negative impact on funding, the operational plan for Phases One and Two of Leeto la Polokwane was revised to deliver on quality, while reducing the financial deficit to Polokwane Local Municipality.

business district (CBD) routes. To that end, 32.6km has been completed. Such milestones are a confidence booster and will bring about far-reaching benefits for public transport users and all residents and visitors.

Non-Motorised Transport and Universal Accessibility Facilities

The interim phase is to be operated by the Vehicle Operating Company inclusive of the four affected taxi associations (Seshego-Polokwane, Moletjie, Westenburg and Flora Park).

The City of Polokwane is encouraging residents and visitors to walk, cycle or use public transport rather than private vehicles to get around the city. Through Leeto la Polokwane the City is promoting alternative modes of transportation, including non-motorised and public transport. Leeto la Polokwane will also ensure there is an accessible public transport system for people living with disability, the elderly and people with special needs.

Go-Live targets As the clock ticks towards the Go-Live phase of the project, the Polokwane Transportation Directorate has come a long way in meeting the standards and requirements outlined by the national Department of Transport (DoT).

In terms of non-motorised transport, 12.8km of such facilities has been completed utilising resources allocated to Leeto la Polokwane, with 24.8km from partnerships with other grants. These facilities have lanes that cater for pedestrians and cyclists such as sidewalks, cross walks, paths and cycle lanes aimed at ensuring harmony and a working balance between non-motorised transportation modes and motorised transport.

Construction work on the initial stage of Leeto la Polokwane is progressing well and the project will ultimately include about 50 kilometres of road construction and improvements. This entails trunk and feeder routes. Presently, 2.5km of dedicated lanes have been completed, with 1.5km under way. Trunk extension rehabilitation and upgrades are also progressing well with 13.8km having been completed. There has also been tangible progress in the rehabilitation of the central

Moreover, in line with the specification of the DoT, the fleet required comprises universally accessible buses. The project accommodates all people with special needs, be it people in wheelchairs, those with hearing and visual impairments, the elderly and children. Special needs facilities including tactile paving for the blind, boarding bridges to ensure level boarding between the stops, stations and buses and easy-to-use pedestrian and passenger information signage which are part of the project.

Intelligent Transport System Leeto la Polokwane is using the latest technology advancements to ensure an intelligent transport system to provide long term, high-quality service to all users. One area is that of an Automated Fare Collection (AFC) system and entails a flat fare for

Ms Anza Ligege, Young Professional in Transportation.

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PROFILE the trunk route regardless of distance travelled, a tap-in system and fare gates on trunk stations. There will also be fare verification devices on board the buses and a number of roaming inspectors to ensure all passengers using the Leeto system have paid the required fares. An Automated Public Transport Management System (APTMS) will be implemented in a revised form and referred to as “APTMS Lite� concept. This includes Vehicle Tracking (AVL), realtime map display, kilometres travelled report (productive vs unproductive), incident and exception reports, driver panic button and two CCTV cameras on board. Leeto la Polokwane has also invested considerable resources in investigating the existing Urban Traffic Control System and lasting solutions to prevent and deal with congestion areas have been identified.

The Control Centre will contain a number of equipment elements such as a video wall; workstations, communications, database, applications and Internet servers; back-up systems; vehicle tracking applications; driver communications systems; and systems engineering/integration components. For improved safety and comfort of users a number of stations will be established along the route. To date, 50 stops and bus laybys have been constructed. All stations will have cashier services (selling AFC cards and transit products); Leeto information (routes, timetables transit products, hours of operation and general assistance).

Bus Procurement In order to comply with National Treasury regulations for IRPTS a new, specialised vehicle fleet will be procured for the Leeto system. This fleet must have particular specifications including universal accessibility, and environmental friendliness.

Depot, Control Centre and Stations A depot and layover facility to house the fleet of buses will be built in Seshego. A 2km access road has been constructed. A scalable Control Centre is being constructed at the Old Peter Mokaba Stadium.

Mr Jan Baloyi (48) Bloodriver using Leeto la Polokwane NMT infrastructure to cycle to work.

LIMPOPO BUSINESS 2017/18

An old lady using universally accessible NonMotorised Transport infrastructure.

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PROFILE

Limpopo Premier Mr Chuphu Mathabatha and Executive Mayor of Polokwane Cllr. Thembi Nkadimeng unveiling Leeto la Polokwane.

Vehicle Operating Company, Industry Corporate Identity Leeto la Polokwane prides itself in working with Transition the people of Polokwane throughout all the stages Polokwane Local Municipality is determined to adhere to the statutory requirement that no taxi or bus operator should be rendered worse off as a result of the implementation of Leeto la Polokwane. There are ongoing negotiations with industry players to ensure that they become and remain part of the system. Four directly affected taxi operators, the Greater North Transport and industry players and the Transportation Directorate have signed a Memorandum of Agreement (MoA). This instrument is based on the Integrated Public Transport System Model. The model is divided into three phases as depicted below: • Pre-interim Phase (Period Until GoLive) • Interim Phase (2018-2021) • 12 Year Contract Phase (2021-2033)

of the project, particularly in coming up with the official name. This fosters a sense of pride and ownership among the community of the project. The buses will be visible and recognisable with Leeto la Polokwane branding. Drivers and station staff will undergo training in Leeto customer service standards. A customer service feedback facility has been put in place. Moreover, a second round of Stakeholder Engagement sessions is ongoing; a corporate identity (CI Manual) has been finalised and a website registered and is live.

About Polokwane Polokwane (“Place of Safety” in Sotho) falls under the Limpopo province and is also often referred to by its former official name, Pietersburg. Polokwane is strategically located near to the economic heartland of South Africa (Johannesburg is 300km away). The population of Polokwane grew from 271 911 in 2001 to 628 999 currently. It has 178 001 households.

Moreover, market surveys and Operation License (OL) verification processes have been completed. There is a good working relationship and positive contribution from all parties involved.

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OVERVIEW

Information and communications technology (ICT) Limpopo is getting better connected.

SECTOR INSIGHT Limpopo Connexion is rolling out broadband infrastructure. • 949 community members received ICT skills training in the past year.

W

hen leaders and policy-makers met in the fourth quarter of 2016 at the Limpopo Economic Summit, one of the six pillars identified as pivotal to the province’s progress was ICT and the knowledge economy. A wide area network (WAN) for the province was listed as a key objective and it was decided that a combination of fibre and wireless technology should be used to reduce cost. A science and technology master plan is also to be developed. The body responsible for rolling out the infrastructure is Limpopo Connexion, a subsidiary of the Limpopo Economic Development Agency (LEDA). The first phase began in 2017 with broadband infrastructure in Polokwane as the focus. The second phase will cover more than 80% of the provincial population, as per the provincial spatial development framework. In the 2016/17 financial year, 949 community members received ICT skills training in a programme run by the Limpopo Department of Economic LIMPOPO BUSINESS 2017/18

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Development, Environment and Tourism (LEDET). One way of achieving higher connectivity in rural areas is to focus on schools and libraries. The Universal Service and Access Agency of South Africa (USAASA) provides ICT services to public and private schools, hospital and training colleges. Limpopo is one of five provinces that USAASA concentrates on with respect to school connectivity: more than R25-million has been spent since 2010 on this project and more than 400 smart devices distributed. Private telecommunications companies also have community responsibilities in terms of the National Development Plan. They must help connect under-serviced areas to the telecommunications and Internet networks.


OVERVIEW A National Library of South Africa (NLSA) project, supported by Vodacom, will connect about 300 community libraries via VSAT and Vodacom ADSL services. The project covers South Africa’s three most rural provinces – North West, Limpopo and Mpumalanga. When national libraries starting using an open source system known as Library Information Management System (LIMS), it was a good opportunity to upgrade the more remote libraries. Meso ICT Solutions was the company used by Vodacom and the NLSA to roll out the project, which will also give community members in those areas (including teachers and students) better access to the Internet. Each library has 14 work stations and Vodacom can carry both fixed-line and satellite connectivity. The state is a big factor in the ICT sector, both in terms of its regulatory role, the incentives offered to companies and in terms of its own purchasing power through national departments and agencies. The State Information Technology Agency (SITA) supports a wide range of national and provincial departments and municipalities across the province, and is working on establishing a comprehensive provincial network. SITA played a role in the NLSA/LIMS project. Sita has a client base of more than 5 000 offices, and offers services in WAN support, support of the provincial mainframe, ICT training and website development, among others. A SITA initiative to help South Africa’s teachers obtain laptops will have an impact on the sector.

South African Vanguard of Technology (Savant) is a Department of Trade and Industry (dti) programme. It is the marketing and awareness programme for the South African ICT and electronics sector. The aim is to develop South African exports and to attract foreign investment. The National Department of Communications is responsible for the Independent Communications Authority of South Africa (ICASA, the regulator of communications, broadcasting and postal services), the SA Broadcasting Corporation (SABC) and three other agencies. The Telkom Foundation began supporting ICT at Manyangan High School and several others like it a decade ago. Schools in rural areas were given a wireless networked e-Learning Resource Centre consisting of 20 computers, a server, a printer, all Microsoft supplied software, insurance and a three-year maintenance plan. Internet access was included, powered by Vsat satellite technology. Ten schools have been identified by the ICT Internet Connectivity Project and the National Department of Education to pilot the Offline Content Solution. Tirelo Bosha will pay R1.4-million towards this project. Tirelo Bosha is a public service improvement grant administered by the National Department of Public Service and Administration. The Technology and Human Resources for Industry Programme (THRIP) is a programme of the National Research Foundation and supports an average of 235 projects per year. THRIP supports initiatives that use science to bring benefits to wider society. This can relate to boosting distant rural computer literacy or for scientists working at the University of Venda who have received THRIP funding for soil research. Intermediate computer-literacy classes are given at some Limpopo schools by the Internet Service Providers’ Association (ISPA), and the CoZa Cares project of Uniforum SA. The Maths Centre has received funding from the Citigroup Foundation to help it expand the Anglo American project for maths and science using specially developed software. ISPA and Uniforum SA run a Super Teacher of the Year award for the educator who has best imparted their newly acquired IT knowledge to pupils and members of their community when they return from training courses.

ONLINE RESOURCES Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za Limpopo Economic Development Agency (LEDA): www.lieda.co.za Seda Technology Programme: www.seda.org.za South African Vanguard of Technology: www.savant.co.za State Information Technology Agency: www.sita.co.za Support Programme for Industrial Innovation: www.spii.co.za Technology Innovation Agency: www.tia.org.za

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Long-term investments are paying off for Vodacom Limpopo Customers are reaping the benefits of improved connectivity.

Vodacom Limpopo's major investments in infrastructure are paying dividends for customers who now benefit from converged services that go well beyond the popular baseline of voice and data. This has resulted in an improved user experience and wider access to services, including customers in deep rural areas.

investments. "To achieve this, we secured funding to continue the investment into the network which is the platform that underpins everything we provide." Chris adds: "We are fully aligned to the provincial government plans to invest in key economic zones, again highlighting the link between communications and an improved standard of living."

The enhanced infrastructure means not only better performance for existing services, but has also brought with it a growing customer base wanting access to an expanded rollout of digital services such as video and music streaming, and the Internet of Things (IoT).

The investment in the region in 2017 amounted to R217-million, which mostly went into the network expansion on LTE (long term evolution), 3G cellular network expansion, new towers and, importantly, into the migration and introduction of the more recent transmission network infrastructure. The expansion of these programmes enables customers to access higher data speeds.

Vodacom Limpopo prides itself on delivering innovative solutions while at the same time improving customer care and driving down costs for customers. In particular, businesses and government departments are seeing tangible benefit and this has contributed to solid growth in the region’s Enterprise Business Unit. Public sector departments, large enterprises and small businesses are attracted to a range of products and services that are scalable, reliable and fully customised to fit specific requirements. Our dedicated back-end support and customer obsession gives Vodacom Limpopo an edge as a partner of choice. Managing Executive for the Limpopo region, Chris Lazarus, has witnessed first-hand the direct correlation with an increase in access to communications and an improvement in living standards. "Vodacom is about changing lives," he says, and illustrates this with reference to the company's significant LIMPOPO BUSINESS 2017/18

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PROFILE

The Vodacom Limpopo team: from left to right: Ishmael Mathinya, Executive Head of Division Operations Limpopo; Busi Dlamini, Senior Manager EBU Limpopo; Chris Lazarus, Managing Executive Limpopo Region; and Qiniso Nyathi, Executive Head of Division CBU Limpopo.

In 2016 alone the region upgraded more than 250 3G towers, and also doubled its 4G footprint, in one year to 72% of the population. In the 2018 financial year, the region will upgrade more than 200 3G towers leading to a guaranteed increase in data connectivity of at least 2Mbps per user. As part of Vodacom’s commitment to accelerating investment in deep rural areas, 38 sites have been earmarked to be upgraded at a cost of more than R23-million. Polokwane city as well as other towns and informal areas now enjoy 4G connectivity.

uplift to "our robust and agile business offerings and – most importantly – our value proposition to our customers and partners". Overall, Chris notes that, "Data has exploded in Limpopo with places like Lephalale counting among the top data towns in SA while at the same time managing to grow demand for voice. Our investment in Fibre has continued in various parts of the province and we remain the first Vodacom region to have deployed Fibre using an overhang methodology. Given that we own these poles, we this year started to use them to advertise subject to municipal approvals.

These technical rollouts have had a direct impact on the business environment in Limpopo. Senior Manager Enterprise Business Unit Limpopo, Busi Dlamini explains how business owners benefit from partnerships with Vodacom: "Our satisfied customers, especially within the SMME sector, bear testament to significant growth in their business and that this is directly attributed to reduced communications costs and tailored business solutions that have aided them to function optimally."

"Growth in voice usage can be attributed to our Just4You proposition, which provides customers with relevant, personalised prices. In fact, Limpopo is the number-one region in this space. There is no doubt that Limpopo’s above-median growth in market share.” Another critical contributor to this success is the determination of employees. Says Chris: "An ethos that stands true with many of us at Vodacom Limpopo is to ensure that our province does not come second

The EBU itself has recorded good growth and the unit's products and solutions are gaining momentum within the region. Busi attributes this positive

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in terms of access to technologies that are found in other provinces."

further notes that the unit is training an additional five engineering interns, all from Limpopo province, four of whom are female. This is linked to Vodacom's investment and commitment to the upliftment of communities through its contribution towards education.

Broader investment Ishmael Mathinya, Executive Head of Operations, says the investment narrative goes beyond the capital poured into infrastructure development. "The region has received investments in excess of R577million over the past three years, with the majority of the investment going to upgrading and integrating the radio, core and transmission infrastructure. Over and above the annual investment, the Group CEO has made a commitment through an investment of R23-million specifically to deep rural areas," according to Ishmael.

Consumer Business Unit

Qiniso Nyathi, Executive Head Consumer Business Unit, says our unique rates and a superb value proposition have grown voice and data usage at a rapid rate. Just4You has proven to be very popular with voice customers. Investment in Fibre by Vodacom has enabled and supported this growth, with improved speeds and an increased distribution footprint. The province is attracting an increase in shopping mall developments allowing us to broaden the reach we have to our customers, but also an opportunity to localise the ownership of stores.

Following the network investment we are seeing an increase in adoption of smartphones on the Limpopo network with a 66% increase in data traffic; however, Limpopo continues to dominate the number of 2G devices on the network.

Enterprise Business Unit (EBU)

The Enterprise Business Unit provides solutions to corporates, the public sector as well as small and medium enterprises. Our EBU customers have grown in the province due to the network investments made by Vodacom.

Structure Vodacom Limpopo has three core units to serve the province of Limpopo: • The Consumer Business Unit, focused on retail customers • The Enterprise Business Unit focused on businesses and the public sector • The Technology division, focused on building, operating and maintaining the network. The executive in Limpopo is empowered to make decisions, backed with requisite resources and believes strongly in local economic development.

Solutions range from basic communications to complex big data to sensing technologies. As Enterprise Business Unit Head Busi Dlamini explains, "Our

Within the Technology division, "at least 70% of the staff members are originally from Limpopo province", an important contribution towards local economic development and utilisation of local talent, says Ishmael. He LIMPOPO BUSINESS 2017/18

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PROFILE Technology

offerings are end-to-end technology-based solutions that help customers' transition into the digital world. The objective is to streamline business operations while performing at optimal levels while reducing total cost of ownership.

The prime responsibility of the Technology team is to provide a mobile and fixed network to the people of Limpopo region. As Ishmael Mathinya, the Executive Head, Operations, puts it, "The network is the underlying platform to everything we provide."

"The EBU is a product and solution leader in various segments and always strives to be first in the market with technology innovations, thus giving us the traction in gaining a sizeable market share."

The provision of the fibre medium serves as an enabler to allow our customers to seamlessly access the Internet and applications of their choice. Through its consistent and intensive investment programme over many years, Vodacom Limpopo has expanded its network footprint to cover the provincial population with 99.9% 2G, 98.9% 3G and 76% 4G. New transmission network infrastructure, new towers and migration allow for constantly improved service and provide the framework for future upgrades. The expansion programmes allow customers to have access to higher data speeds.

Busi says that the new One Net Business product is ideal for smaller enterprises, with Vodacom hosting everything in the cloud and freeing a business from having to install a full Private Automatic Branch Exchange (PABX) system. "If a sales representative is not in the office, calls are automatically routed to the correct person," says Busi. "It gives you total enterprise mobility. There’s no connection cost, it’s a free call."

Looking further ahead, Vodacom is planning for the Internet of Things (IoT), which will require a network that can handle increased demand for data analytics, agility and security. This explains why Vodacom has been at the forefront of increasing its readiness to effortlessly embrace this technology evolution. What cloud and IoT will bring to Vodacom

Chris adds the national perspective: "While Limpopo cannot boast the same number of large enterprises as other provinces, what we do have is a large number of SMEs. In this category we have superseded larger provinces using smaller yet scalable technologies."

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customers is convenience, easy accessibility to information, improved transportation, safety, etc.

In 2016, Vodacom launched the NXT LVL proposition to youth under the age of 25. Limpopo province has the highest number of youth customers using this proposition. As part of the launch, youth nationally were encouraged to sign up to the soccer academy programme. Of the 24 youth chosen, 12 were from Limpopo.

Social investment The focus of Corporate Social Investment for Vodacom is education and the region has done exactly that. The education portal marketed to learners and teachers has the highest registration of users nationally. The sign-up and use of the portal is free. In the Limpopo province continue to invest and support eight ICT centres across the province where the main purpose is to train teachers in mathematics and science and this way help to integrate ICT in the school curriculum. In the Vhembe District we have partnered with CISCO to equip unemployed youth with relevant ICT skills to assist with the installation of IT equipment as well as provide instruction in high-end computer skills. In addition to this, the region adopted the Ntetele day-care facility in Bloodriver by refurbishing the centre as well as the drilling of a borehole. We must thank our partners, Gift of the Givers and MM Telecoms, who provided much support.

NXT LVL proposition is aimed at youth under the age of 25.

Children at Madiphatlakgomo school with their Mandela Day food packs.

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Vodacom, in partnership with Sapa Yopa bikers, dug a borehole for a charity organisation.

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OVERVIEW

Banking and financial services The provincial government is creating an insurance company.

SECTOR INSIGHT New banks will improve access for rural residents • NTK and VKB provide financial ser vices to farmers.

 T

hree new banks are set to make their debuts on the South African market. In addition, the Limpopo Provincial Government, through the Limpopo Economic Development Agency, intends to establish a local life insurance company which it expects to start operating in 2017. All of the banks are state-owned entities. The intention behind this (and the provincial insurance) initiative is to make banking more accessible for rural communities and to make finance more readily available to small and micro-sized businesses. Trying to integrate small business into the mainstream economy is a major goal of national and provincial governments in South Africa. Life insurer MMI Holdings is also entering a partnership with African Bank to enable it to start taking deposits and loaning money. It intends to establish a R10-billion loan book. All the new banks come from state enterprises: Ithala, Postbank and Human Settlements Development Bank. The Ithala Development Finance Corporation is an enterprise funder in KwaZulu-Natal that has applied for a banking licence. In 2016, Postbank (part of the South African Post Office, SAPO) received a first-level licence. Once a board of directors has been LIMPOPO BUSINESS 2017/18

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appointed and a company formed, the Reserve Bank is likely to grant the full licence. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7billion loan to enable it to open its own loan book. Three state entities are merging to create the new Human Settlements Development Bank: the National Housing Finance Corporation, the Housing Loan Fund and the National Urban Reconstruction and Housing Agency. The focus will be on financing housing for poorer households and for large statefunded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. Private sector investment will be sought. Limpopo has its own bank, VBS Mutual Bank, which grew out of the Venda Building Society and operates mainly in the northern parts of the province. The Public


OVERVIEW

Investment Corporation holds 34% of equity. The corporate office is in Johannesburg (which also hosts a branch) and there are four branches in Limpopo, including Thohoyandou. Ubank is owned by a trust that is managed by the Chamber of Mines and the National Union of Mineworkers (NUM). It has about 100 branches and a strong presence in Limpopo because of its focus on the mining sector. Ubank has about half-a-million clients. The two most active agricultural companies in Limpopo are both registered to participate in the financial sector. NTK, a subsidiary of the Free State-based VKB, has access to lending for farmers and insurance products. Afgri offers the same services under the brand Unigro, and it has another service called Gro Capital Financial Services which offers more sophisticated products such as trade finance, foreign exchange and currency and interest rate hedging. For many decades, South Africa had a retail banking Big

Four – Standard Bank, Nedbank, Absa/Barclays and First National Bank. All of them have continue to be well represented in the province, but Capitec Bank has now also become a major player in the retail market. Banks are working hard to offer products to the previously unbanked. Nedbank has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas and also on all days of the week such as public holidays and Sundays. Nedbank also has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected, as are certain spazas. The insurance market has become more varied over time, with a greater variety of products now available to more market segments, including middle-income earners. A typical example of a specific product that is responding to new realities is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what a medical aid scheme is willing to pay and what the hospital or doctor is charging.

ONLINE RESOURCES Insurance South Africa: www.insurance.za.org National Credit Regulator: www.ncr.org.za Office of the Auditor-General of South Africa: www.agsa.co.za Post Bank: www.postbank.co.za Public Investment Corporation: www.pic.gov.za South African Institute for Chartered Accountants: www.saica.co.za

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OVERVIEW

Development finance and SMME support A new strategy for the economies of townships and villages will boost SMMEs.

SECTOR INSIGHT Shanduka Black Umbrellas has 20 client businesses in Lephalale. • A co-operative is to be established to do bulk buying for SMEs and co-operatives. retail shopping malls crowding out local traders • lack of bargaining power of smaller retailers. LEDA is to establish a bulkbuying co-operative. The plan is to enlist more than 200 members whose collective buying power will give them an advantage in purchasing stock. An infrastructure project that will assist SMMEs and co-operatives is under way near Polokwane at the Seshego Industrial Park. The National Department of Trade and Industry has committed R21-million to revitalising the park which will provide trading and storage space for businesses of all sizes. The construction by the provincial government of market stalls is aimed at supporting small-scale farmers and traders. Market stalls have been erected at Mopani District and will be put up in Elias Motsoaledi Local •

A

concerted strategy to strengthen and develop the economies of the townships and villages of Limpopo has been launched. Spearheaded by the Limpopo Economic Development Agency (LEDA), a unit of the Limpopo Department of Economic Development, Environment and Tourism (LEDET), the plan has eight focus areas which include making licences and permits easier to obtain, that government departments buy from small, medium and micro-enterprises (SMMEs), indigenous products are supported and protected, and encouraging small businesses to support one another through the clustering approach. LEDET has signed memorandums of understanding with the South African Bureau of Standards (SABS) and with Productivity South Africa. These agreements aim to help SMMEs within the province become more competitive. Gaining access to markets is crucial for SMMEs and the programme aims to assist in that regard. Ten SMMEs and 10 co-operatives are currently being assisted in getting access to the mainstream market. Agricultural entrepreneurs will benefit from the Agri-park scheme. A series of meetings around the province began in June 2017, organised by LEDET. The aim was to hear from owners of small businesses such as plumbers, panel-beaters, mini-bus taxis, street vendors and taverns. Among the problems identified are: • financial products that do not address the needs of entrepreneurs • dominance of ownership by foreign entrepreneurs LIMPOPO BUSINESS 2017/18

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OVERVIEW Municipality in the Sekhukhune District and Molemole Local Municipality in the Capricorn District. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a cost-sharing grant to promote competitiveness • The Co-operative Incentive Scheme, a 100% grant. T h e Small Enter p r is e Development Agency (Seda) is a subsidiary of the DSDB and is one of the most active agencies in supporting entrepreneurs. Seda is not a financial agency, focussing rather on training and administrative support, although the agency will help SMMEs get in touch with financial bodies. The Seda Limpopo Jewellery Incubator (SLJI) develops entrepreneurship among jewellers in Limpopo. In the south-east of the province the Biofuels Incubator promotes skills in that important sector. Seda has initiated a national programme designed to make co-operatives and jointly owned enterprises stronger. As part of the Cooperatives and Community Public Private Partnership (CPPP) programme, Seda is supporting a project in Tarentaal. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support SMEs with growth potential across priority sectors aligned with the National Development

Plan and Seda’s SMME strategy. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. The Industrial Development Corporation (IDC) disburses about R400million annually in Limpopo. Projects include an Nguni cattle breeding scheme, a new hospital in Lebowakgomo, the development of a ferrochrome smelter and a facility for making coking coal briquettes. The Development Bank of Southern Africa (DBSA) is another major funder of public projects.

Private sector One of the best ways of supporting SMMEs in Limpopo is through the supply chain for the province’s mines. The provincial Premier has challenged mines to achieve a 20% SMME procurement target. A private initiative that has used the supply chain to create employment is Anglo American’s Zimele, which has established 29 small business hubs in areas such as Mokopane and Burgersfort. More than 20 small businesses are registered as clients with the Shanduka Black Umbrella incubator in Lephalale. The sectors in which these companies operate range from plant hire and construction to training and marketing. Individual mentors for these enterprises are drawn from the local TVET college, the Limpopo Economic Development Agency and private businesses. The major banks all have SMME offerings. Standard Bank runs a Community Investment Fund and Nedbank offers an enterprise development product for businesses with turnovers up to R35-million. Agri-business and agri-processing are among the three sectors that are targeted by the Masisizane Fund for loan financing. The others are franchising/commercial and supply chain/manufacturing. Over and above loans that are available, training is offered through a Business Accelerator Programme.

ONLINE RESOURCES Development Bank of Southern Africa: www.dbsa.org Gazelles: www.nationalgazelles.org.za Industrial Development Corporation: www.idc.co.za Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Department of Small Business Development: www.dsbd.gov.za Shanduka Black Umbrellas: www.shandukablackumbrellas.org Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.co.za

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MASISIZANE FUND 2017 marks the tenth anniversary of the Masisizane Fund. Established as an initiative of Old Mutual South Africa in 2007 following the closure of the Unclaimed Shares Trust, the Masisizane Fund has made good inroads toward fulfilling their mandate to contribute meaningfully to employment creation, poverty eradication, the reduction of inequality, economic growth and attraction of investments. In 2016, loans to the value of R18.4 million were approved for the Limpopo region, R14 million was dispersed, four enterprises were funded and 68 jobs were facilitated . The Masisizane Fund offers tailored, integrated and flexible financial and non-financial solutions including financial education, capacity development and mentoring support. "We take time to fully understand each enterprise’s needs, challenges and characteristics. The partnerships this understanding creates with small business owners adds value and offers innovative enterprise finance models aimed at ensuring long-term enterprise growth, sustainability and development impact", says Maphala Mosomane, Provincial Manager, Limpopo and Mpumalanga.

Maphala Mosomane, Provincial Manager Limpopo and Mpumalanga

Old Mutual is a Licensed Financial Services Provider

A Masisizane Client Competition was launched in the second half of 2016 to celebrate our clients’ outstanding achievements. This competition comprises five provincial events followed by a national event in July 2017 when we celebrate our 10th anniversary and announce the national winner. The Limpopo event held in December 2016 saw the Mashashane Filling Station (Pty) Ltd win the Best Youth Owned Business of the Year award. Alongside Trading & Projects CC won the Entrepreneur of the Year award and Mathosim Trimming & Upholstery CC received two awards, namely Best Female Owned Business and Best Business of the Year. Mashashane Filling Station (Pty) Ltd is a legacy business established by the late Mr GM Ledwaba. The business ceased its operation in 2003. The Ledwaba family retained ownership but rented the business to someone else until early 2012 when it was inherited by Lucas Ledwaba who worked to formalise the operations and register it as a private company. Since then the Mashashane Filling Station (MFS) has only improved and grown under Lucas’ leadership. Lucas is a self-made man who, in spite of not having a formal tertiary education, has natural business acumen, understands the nature of his business, has experience and is a formidable entrepreneur. Making full use of the three underground tanks for petrol with a total capacity of 41000 litres for ULP 95, ULP 93 and LRP 93, a disciplined


Lucas managed to increase the fuel sales from 3 000 litres to approximately 62 000 litres per month. He then went on to improving the business by building a convenience store, fencing off the property and buying a business vehicle.

employs 6 petrol attendants and 3 cashiers. They started operating 24 hours a day, seven days a week as of December 2015. MSF is even prepared with a standby generator in case of load shedding, though at the moment, it is not a major problem in the area.

In 2015 Masisizane provided Lucas with a loan which he used to acquire two more overland diesel tanks, each with a capacity of 9 000 litres. He also had the foresight of having an awning constructed that would provide much-needed shade to his customers and employees in this extremely warm part of South Africa with its harsh climatic conditions. The Mashashane Filling Station under Lucas’ direction now uses a tag system in the forecourt,

As a well-respected and concerned member of the Mashashane community, Lucas Ledwaba recognised the deficit caused by a lack of internet access in the area.

Lucas with some of his employees at MFS.

To redress this he provided an office on the MFS premises to a young unemployed youth from the area who now successfully operates the only Internet CafĂŠ in the area, providing services ranging from faxing to internet access.

Lucas receiving the award for the Best Youth Owned Business in Limpopo from management of the Masisizane Fund.

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PROFILE

Polokwane Chamber of Business The Chamber seeks to support and develop local businesses and encourage investment in the city.

Vision To be the home that advocates the voice of business.

Mission

• To create value for members. • To unlock business opportunities for members.

• To facilitate a platform for best business practice.

• To promote sound governance principles by maintaining high Polokwane Chamber of Business 2016 Exco. business ethics. • To encourage socially responsible corporate citizens in business. • Reposition the Chamber as a respected con• To provide a platform for dialogue and tributor to the Limpopo economy through active partnership within business and public sector. engagement of key stakeholders for the promotion of Chamber interests and benefits for its members. • Enhance value-add to its members through The policy of the chamber is to, without reference effective networking opportunities. • Engage on pertinent business issues within the to colour of skin, race, gender, culture or religious province. conviction: • Attend to the interests of its members as an • Enhance closer working relations between the apolitical, non-racial organisation Chamber and its members and stakeholders. • Effect, maintain and promote an optimum-free market system in a predominantly capitalist CONTACT INFO system • Promote and protect free enterprise and protect Physical address: No 47, 19th Industria the interests of its members as business persons Street, Polokwane and to act as a representative for its members Tel: +27 15 297 8057

Policy

Fax: 086 513 2644 / +27 15 297 8058 Email: admin@pcob.co.za Website: www.pcob.co.za

Strategy The overall strategy for 2016 is to: LIMPOPO BUSINESS 2017/18

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FOCUS

The Black Management Forum Limpopo Advancing socio-economic transformation.

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he Black Management Forum (the BMF) is the foremost organisation in the development of managerial leadership and advancement of socio-economic transformation in South Africa. Our focus in Limpopo is to ensure that we support and develop those already in managerial positions. We also support those who aspire to be managers. The newly-elected leadership lead by Dr John Mudau as the provincial Chairperson has recommitted assisting past and current members to hold the highest ethical standards. The current programmes include: • Engagement with district mayors. This programme is aimed at ensuring that municipalities at all levels are assisted to get out of the difficulties they find themselves in, particularly related to audit opinions. It is the view of this leadership that the BMF should provide technical support and, in some cases, competent human capital that will assist municipalities. It is unacceptable to the BMF that two decades after independence the province still struggles to get competent people. We think BMF should encourage its members to make their skills available to municipalities. We are equally happy with the support we are getting from both district and local mayors in this regard. • Support for women in business. It is the considered view of the BMF in Limpopo that if the economy of the province is to be rejuvenated and the province’s contribution to national GDP is to increase, BMF must do the right thing. This means supporting women in business. BMF has reached an agreement with IDC. The agreement requires BMF to submit a list of women-owned agri-processing companies to the IDC. The Chief Executive Officer of the IDC had committed that the corporation will fund these companies. This is the right thing to do and will assist the province greatly. • The development of young entrepreneurs. The provincial leadership is embarking on a youth entrepreneurship programme through the BMF Young Professional wing. The idea is to encourage young professionals to start their own businesses which they will manage on their own. This will help to truly transform the economy of the province.

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Dr John Mudau, Black Management Forum Limpopo Provincial Chairperson

CONTACT INFO Physical address: 73 Biccard Street, Maneo House PWC, Polokwane 0700 Acting Provincial Administrator (Limpopo) Black Management Forum (BMF): David S Maatsie Tel: +2715 297 0780 Mobile: +27 076 267 1849 E-mail: BMFL@bmfonline. co.za Website: www.bmfonline.co.za

LIMPOPO BUSINESS 2017/18


OVERVIEW

Education and training Relevant training for employment is a provincial priority.

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he Limpopo Provincial Government is running a national pilot project in training for Tool, Dye and Mould-Making. There is a plan to establish a Manufacturing Support Centre to make sure that the right skills are being taught to support industry. Participants include the Limpopo Tooling Initiative Advisory Board, the Technology Information Agency and universities. During the 2016/17 financial year, the provincial government employed 134 graduates. A further 120 trainee field rangers were recruited through the Jobs Fund. Deployment to work in game and nature reserves began in April 2016 and continued through 2017, in consultation with traditional authorities around the province. Another 6 362 young people were trained in business and technical skills and 3 907 were employed in either the public and private sector. A further 8 300 will be absorbed in the 2017/18 financial year as part of the same programme. In a specialist programme to develop skills in the green economy, 31 young people are studying energy management systems. Other training achievements include: • 31 being certified as energy managers • 6 fully accredited as artisans • 949 community members receiving ICT skills training. The Medupi Power Station Joint Venture (Grinaker-LTA, Murray & Roberts and Concor) has a training facility where about 1 300 local people have been trained to qualify for jobs on this complex building site. De Beers has established a Skills Development Centre, linked to its Venetia Mine. The centre caters not only to mine employees, but also

EDUCATION STATISTICS, 2017 Scholar transport schools

255

NSNP beneficiaries*

3 854

No-fee school pupils

1.7-million

Primary Schools offering Grade R

2 339

Classrooms built 2015/16

354

New schools built 2015/16

5

Teachers given extra training:2013-2016

1 400

* National Schools Nutrition Programme SOURCE: LIMPOPO PREMIER’S STATE OF PROVINCE SPEECH, 2017

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SECTOR INSIGHT Trainee field rangers have been recruited through the Jobs Fund.

for local school pupils and adults from the community of Alldays. Impala Platinum, with Limpopo subsidiary Marula Platinum, has a partnership with the National Department of Mineral Resources and the Da Vinci Institute for Technology Management, which focuses on the training of black women in the mining industry. Anglo Platinum (Amplats) has a new Mining Training Centre (Eastern Limb) at its Twickenham mine which will also deliver training and assessment to staff of other operations. There are seven Technical and Vocational Education and Training (T VET) colleges in Limpopo: Capricorn College, Lephalale College, Mopani East College, Mopani South College, Sekhukhune College, Vhembe College and Waterberg College. Capricorn College has three campuses, each of which has a slightly different focus. The city campus in Polokwane offers business studies, engineering and


OVERVIEW National Curriculum Vocation (NCV) subjects. Seshego (near Polokwane) has an engineering focus while Senwabarwana is situated in a rural area and concentrates on teaching hospitality and hairdressing. At Lephalale TVET College students can study Business Studies, Hospitality, Engineering Studies, Nature Management and Computer Science. The college has a satellite campus at Modimolle. Murray & Roberts is training hundreds of artisans at the Tlhahlong training centre in partnership with the college and merSETA. Waterberg College operates as five business training centres across two municipalities, namely Lepelle-Nkumbi and Mogalakwena.

Tertiary Sixty students proudly enrolled in January 2016 at the School of Medicine at Turfloop. This forms part of the reconstituted Faculty of Health Sciences of the University of Limpopo. Polokwane Municipality has made the land available for the construction of the Limpopo Academic Hospital and the national Ministry of Finance has announced that it will be working towards the realisation of plans for both the Limpopo Academic Hospital and the new Medical School in Limpopo. The curriculum for the undergraduate programme has been approved by the Health Professions Council

The Sumbandila Scholarship Trust supports poor pupils in the Vhembe District at Ridgeway College.

of South Africa (HPCSA) and the Council for Higher Education accrediting committee. The Nedbank Chair of Accounting was an important part of the University of Limpopo’s strategy to get national accreditation for its accounting classes, which has been achieved. The University of Venda for Science and Technology (Univen) is situated in Thohoyandou in the far north-eastern part of the province. Univen has eight schools, with Environmental Sciences, Agriculture and Rural Development and Forestry illustrating the practical emphasis of the institution. The School of Environmental Sciences is planning to establish a mining-engineering programme. The University of South Africa (Unisa), which mostly has correspondence students, has a regional support centre in Polokwane and agencies at Makhado and Giyani. The Turfloop Graduate School of Leadership is based in Edupark, Polokwane, and offers three master’s degrees. These are the Master of Business Administration (MBA), the Master of Public Administration (MPA) and the Master of Development (MDev).

ONLINE RESOURCES Council of Higher Education: www.che.ac.za Mining Qualifications Authority: www.mqa.org.za Sumbandila Scholarship Trust: www.sumbandila.org Turfloof Graduate School of Leadership: www.ul.ac.za University of Limpopo: www.ul.ac.za University of South Africa: www.unisa.ac.za University of Venda for Science and Technology: www.univen.ac.za Waterberg College: www.waterbergcollege.co.za

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OVERVIEW

Tourism Cultural tourism is growing fast in Limpopo.

SECTOR INSIGHT Rural villagers have been encouraged to host tourists. • 80% of game hunting happens in Limpopo. • Park Inn by Radisson Polokwane has opened.

L

impopo Province has very varied tourism assets that include the bare bushveld of the north, misty mountains in the central highlands, hot springs, a unique cycad forest, great golf courses and the northern part of the Kruger National Park. There are numerous private game reserves and many provincial game and nature reserves. Limpopo’s national parks are run by South African National Parks (SANParks). These are Kruger, Mapungubwe and Marakele national parks. There are more than 50 provincial nature reserves managed by the Limpopo Department of Economic Development, Environment and Tourism (LEDET). They serve to promote tourism, develop the local economies and promote ecological conservation. Many of these reserves are communally owned but jointly managed by the province and communities. The provincial government has committed to enhancing the value of Limpopo’s two UNESCO World Heritage Sites, Mapungubwe Heritage Site and Makapans Valley. This is also a priority programme in the National Tourism Sector Strategy. The Waterberg Biosphere Reserve is a UNESCO protected site. Limpopo in 2016/17 attracted 405 734 visitors to the province, generating an amount of R1.8-billion for the provincial economy. A new drive to promote home-stays is under way in the northern LIMPOPO BUSINESS 2017/18

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part of the province. Promoting local culture and small enterprises is in keeping with the designation of the year 2017 by the United Nations as the International Year of Sustainable Tourism. Getting tourists to eat mopani worms and learn about local traditions and cultural practices would help to generate income for villages and hamlets otherwise outside the mainstream economy. In support of the arts and culture sector, a potential area of growth for tourism in Limpopo, a performance theatre is to be built in Polokwane. The Mapungubwe Festival is growing in stature every year. In addition to the popular musical performances, crafters have an opportunity to display their crafts and generate good income during the festivities. The Marula Festival has been even more of a success. The event regularly attracts 30 000 festival-


OVERVIEW goers. Several neighbouring countries are well represented in the crowds and 13 co-operatives operating under the Mukumbi Industries brand normally brew about 12 000 litres of marula beverages for the thirsty crowds. Other marula products are also sold such as nuts, body lotions, jam, cooking oil and soap. The South African Golf Tourism Association says that up to 10% of visitors to the country are attracted by its golf courses, and Limpopo’s offering has been extended and improved in recent years. At the high-end of the luxury offering are the Zebula Golf Estate and Spa (west of Bela-Bela) and the Legend Golf and Safari Resort which has the single most dramatic golf hole in the world: a par-three where golfers tee off the top of a mountain and take aim at an Africa-shaped green way down at the bottom of the hill. Adventurous visitors can choose from off-road biking, hunting, elephant rides and tough 4x4 trails. A vast array of different cultures extend from the Rain Queen and her people in the central districts, to the myth-inspired art of the Venda in the north, to the bright geometric house designs of the Ndabele people in the Sekhukhune District. Although most of the province’s resorts and lodges are in private hands, the province has three national parks, and the provincial government runs 54 nature reserves of different types. The combined land area of Limpopo’s national, provincial and private game and nature reserves is 3.6-million hectares.

According to the Limpopo Premier’s office, the tourism sector employs about 22 414 people. The Limpopo Tourism Agency is pursuing a multi-national tourism strategy, with the Limpopo-Zambezi brand initiative one example of new approaches to marketing the province.

Hotels and casinos A new 160-room Park Inn by Radisson Polokwane has opened in the provincial capital. Located near the golf course and the Peter Mokaba Stadium, the hotel also has conference and event facilities. Tsogo Sun runs the Garden Court Polokwane, which has 180 rooms ranging from executive suites to family rooms. The Protea Hotel group has three hotels in the province. In the capital city of Polokwane, the Protea Hotel Landmark has 80 rooms and six conference venues. Just outside the city is the Protea Hotel Ranch Resort where guests can walk with lions. The hotel is on a 1 000hectare nature conservancy and specialises in catering for weddings. In Mokopane near the Waterberg mountains, the Protea Hotel The Park has 125 rooms and can cater for up to 400 conference delegates. The three-star hotel recently added 25 self-catering units. The Fusion Boutique Hotel in the provincial capital offers five-star quality in 30 en-suite rooms and two exclusive suites. Sun International runs the Meropa Casino and Entertainment World near Polokwane. In the province’s northern regions at Thohoyandou, there is the Khoroni Hotel, Casino and Convention Resort. This is a Peermont venture and there is a three-star Peermont Metcourt Hotel in the complex. The Limpopo Gambling Board regulates the industry and grants licences. The Mopani District was recently granted two new bingo licences. The most recent casino licence was awarded to Peermont Global Resorts for the official launch and operation of the Thaba Moshate Casino, Hotel and Conference Centre in the Greater Tubatse Local Municipality. During construction 751 people were employed and a further 180 permanent jobs are expected when the casino is fully operational. There are now 237 limited pay-out gambling machines in the province, and licences of one sort or another generated R50-million for the provincial government in 2015.

Nature The National Department of Tourism is facilitating the upgrade of a lodge in the Vhembe District. Wisani Lodge is about 20 minutes drive from the Punda Maria gate of the Kruger National Park and is in an area particularly rich in birdlife. This community-owned project needs a

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OVERVIEW private investor with about R10-million to invest in upgrading the lodge’s six chalets and adding another 14. A master plan and environmental impact assessment report already exists. Several resorts in a variety of climatic regions fall under the control of the provincial body, Limpopo Wildlife Resorts. Fourteen of the province’s resorts have been targeted for refurbishment, creating 320 temporary and 120 permanent jobs. Annual revenue of R10-million is expected to be gained from these revamped resorts, which include these facilities in the Waterberg: • Nylsvley Birding Lodge, a registered RAMSAR wetland area • D’nyala Game Lodge • Mokolo Dam • Nwanedi Resort (Vhembe Region) • Modjadji Nature Resort (Mopani Region) • Blouberg Nature Reserve (Capricorn Region) • Tambotie River Lodge (Sekhukhune Region)

Private game reserves, resorts and lodges The area adjacent to the Kruger National Park is rich in private game reserves, some of which are regarded as among the finest luxury tourist offerings in the world. The Sabi Sands Game Reserve has several accommodation options within its 65 000 hectares, ranging from the luxurious to the ultra-luxurious. Like the Manyaleti Game Reserve to its north, Sabi Sands effectively forms the western boundary of the Kruger Park, with animals free to roam in and out of the private reserves. Legend Lodges, Hotels and Resorts has three properties in Limpopo. Both Entabeni Safari Lodges and the Legend Golf & Safari Resort are located within the Entabeni Safari Conservancy in the Waterberg District. The exclusive Jackalberry Lodge (16 guests at a time) lies to the east within the Thornybush Game Reserve which is a reserve of 10 500ha of pristine bush just outside the Kruger National Park. Forever Resorts encompasses the warm water springs of the southern Waterberg (Warmbaths at Bela-Bela), the exotic baobab trees of the north (Tshipise Resort), the adventurous offerings of the Blyde River Canyon (Swadini Resort) and the true bushveld experience on the edge of the Kruger National Park (Phalaborwa Safari Park at Phalaborwa Gate). All but the latter of these resorts have conference facilities ranging from 130 to 700 delegates.

Tourism routes and clusters The Bush to Beach Tourism Route covers sites and sights between Phalaborwa and the east coast of Mozambique, an example of Limpopo’s successful partnership with a neighbouring country. A grant of more LIMPOPO BUSINESS 2017/18

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than R600 000 from the Limpopo Local Economic Development programme aims to link the poorer rural communities along the route with the more mainstream economic nodes. Open Africa is the lead agent in developing community tourism. From game reserves in Limpopo (including the Kruger National Park) to the beaches of Xai-Xai in Mozambique, the route has been supported by private operators and investors and therefore is able to offer excellent products and services to complement the natural scenery. The Bush to Beach Tourism Route is one of several such routes in the province, including: • Kruger to Canyon, linking Phalaborwa to the Blyde River Canyon through the Kruger National Park • Seraki Blouberg, in the Blouberg mountain range, including two nature reserves and encompassing the land of the 160 000 people living in 117 traditional settlements • Land of Legends, in the land of the VhaVenda (northern Limpopo). Thohoyandou is the hub for exploring the area around the Soutpansberg mountain range that contains more than 500 species of trees. Features include the sacred sites of Lake Fundudzi, the Thathe Vondo Forest and the Phiphidi Waterfall. A 3 000-year-old baobab, 43 metres around, is found near Sagole Spa. Other tourism routes in the province include: the African Ivory Route, the Golf Route,


INTERVIEW

Park Inn by Radisson Polokwane Mr Mofasi Lekota, owner of Polokwane’s latest new hotel, outlines his vision.

Why have you invested in Polokwane?

Mofasi Lekota

I am originally from Polokwane so I have ties with the province and the city. I spend quite a lot of time here, and I’m also involved in the Limpopo Economic Development Agency (LEDA) as non-executive Chairman. I’ve been in other parts of the country and spent some time overseas. I have invested in a variety of businesses including cement manufacturing. My interest in hospitality started a few years ago with a B&B in Midrand, followed by a lodge in Makhado and a 70-room hotel in Mbombela. The investment decision was influenced to some extent by the fact that I come from here, I understand the community and there is an embedded wish to invest back in the community I come from. What is the target market?

BIOGRAPHY Mofasi Lekota gained his first degree from the University of Limpopo which was followed by an MBA from Rutgers University (USA) and he is currently studying for a doctorate in Business Management. He has Board Leadership Development qualifications from American and South African schools of business. He has been on the boards of JSE-listed companies like Adcorp Holdings and is currently the executive chairman of Amazin Hotels and the non-executive Chairman of the Limpopo Economic Development Agency.

Globally the Park Inn brand targets both business and leisure travellers who attach importance to quality of service and value for money. A clean, comfortable hotel that provides best-in-class service. As a relatively new entrant in the hospitality market mainstream, it was important to match the project to a clear gap. I wanted to address an existing need and Polokwane came to mind. Why Radisson?

I looked at almost all the major international hotel operators in my thorough research. The first thing I liked about Radisson was the principle that they don’t own, but operate hotels, so there is no potential for conflict of interest. The second thing was their vision for Africa. They are one of the fastest growing brands on the African continent. I liked the energy and the support that their management give, especially the technical support during the development phase. The choice was very deliberate. How important will the events/conferences side of the business be?

It is important to us. We have large enough facilities, to cater for select groups and the latest conferencing technology. We offer some of the best in the province.

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OVERVIEW the Limpopo Valley Route, the Mapungubwe Route, the Ribolla Open Africa Route, the Soutpansberg-Limpopo Birding Route, the Valley of the Olifant Route and the Waterberg Biosphere Experience.

Outdoor pursuits National parks: The Kruger National Park covers nearly 20 000 square kilometres and attracts more than a million visitors annually. It has six ecosystems, 1 982 species of plants, 517 species of birds and 147 species of mammals – including each of the “Big Five”: lion, leopard, African elephant, African buffalo and rhinoceros. The Marakele National Park is situated on the Waterberg escarpment in the south-west of the province, relatively near to Gauteng. The Sterkstroom River runs through it and it is home to elephant, rhino and rare vultures. Adventure tourism: The mountains of the Waterberg, the Soutpansberg and the northern reaches of the Drakensberg offer opportunities for abseiling, caving, kloofing and rock-climbing. White-water rafting and tubing are other popular activities, especially in the Limpopo Valley and in the Olifants and Blyde canyons in the east of the province. Mountain biking is a favourite activity in the Magoebaskloof area, while quadbiking can be found in parts of the province. Hunting: The centre of hunting is the north-western town of Lephalale, with other northern towns like Alldays, Vivo, Musina LIMPOPO BUSINESS 2017/18

and Dendron near to private game farms on which hunting is undertaken. This lucrative activity is strictly controlled by the Professional Hunters’ Association (PHA), with certain restrictions in place to protect the long-term future of the environment. The PHA estimated the value of the industry in 2010 at R7.6-billion. About 80% of the hunting that takes place in South Africa occurs in Limpopo on approximately 4 500 farms. Wildlife auctions are popular events in Limpopo. Wild Life Rancher website gives regular updates on the latest auctions. Some examples of prices achieved at auctions in 2017 include R3.6-million for a Nyala bull, R24.8-million for three buffalo cows (Piet du Toit auctions) and a combined turnover at an auction held by Dries Visser Pure Bred Game of R44.7-million. These figures give an indication of the potential of this market. Birding: The Blouberg Nature Reserve is an excellent site for Cape Vultures, containing as it does one of the largest breeding colonies. Four birding routes criss-cross the province, illustrating the diversity of birds found in the province’s varied terrain. More than 600 bird species have been recorded.

ANNUAL EVENTS Limpopo Marula Festival, Phalaborwa (February) Polokwane Show and Music Festival (March) Kiwifruit Festival, Magoebaskloof (April) Zion Christian Church gathering, Moria (Easter) Thabazimbi Tourism & Game Expo. Potato Festival, Vivo (May) Ellisras Bushveld Festival. Polokwane Arts Festival (June) Musina Show (July) Oppikoppi, music festival, Northam. Trout Festival, Haenertsburg (August) Magoebaskloof Spring Festival (September) Biltong Festival, Mokopane (October) Mapungubwe Arts and Cultural Festival, Polokwane (December)

ONLINE RESOURCES Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za Limpopo Department of Sport, Arts and Culture: www.sac.limpopo.gov.za Marula Festival: www.limpopomarulafest.co.za Polokwane Show: www.polokwaneshow.co.za South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net

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LISTING

Limpopo Provincial Government A guide to Limpopo’s provincial government departments. Visit: www.limpopo.gov.za Office of the Premier Premier: Mr Chupu Stanley Mathabatha

Department of Public Works, Roads and Infrastructure MEC: Mr Jeremiah Ndou

Mowaneng Building, 40 Hans van Rensburg Street, Polokwane 0700 Tel: +27 15 287 6515 | Fax: +27 15 291 3911 Website: www.limpopo.gov.za

43 Church Street, Polokwane 0699 Tel: +27 15 284 7000 Website: www.dpw.limpopo.gov.za

Department of Agriculture MEC: Mr Seaparo Charles Sekoati (Acting)

Department of Security, Safety and Liaison MEC: Ms Nandi Ndalane

Temo Towers, 69 Biccard Street, Polokwane 0699 Tel: +27 15 294 3147 | Fax: +27 15 294 4506 Website: www.lda.gov.za

32 Schoeman Street, Polokwane 0699 Tel: +27 15 290 7600 | Fax: +27 15 295 8979 Website: www.dssl.limpopo.gov.za

Department of Co-operative Governance, Human Settlements and Traditional Affairs MEC: Ms Makoma Makhurupetje

Department of Social Development MEC: Ms Joyce Mashamba

20 Rabie Street, Hensa Building, Polokwane 0700 Tel: +27 15 284 5060 | Fax: +27 15 291 3988/086 576 4784 Website: www.limpopo.coghsta.gov.za

18 College Street, Polokwane 0700 Tel: +27 15 293 6027/04 | Fax: +27 15 293 6170/50 Website: www.dsd.limpopo.gov.za

Department of Economic Development, Environment and Tourism MEC: Mr Charles Seaparo Sekoah

Department of Sport, Arts and Culture MEC: Ms Oniccah Moloi Olympic Towers, 21 Biccard Street, Polokwane 0700 Tel: +27 15 284 4009/8 | Fax: +27 15 284 4500 Website: www.sac.limpopo.gov.za

Evridiki Towers, 20 Hans van Rensburg Street, Polokwane 0699 Tel: +27 15 290 7600 | Fax: +27 15 297 0885 Website: www.ledet.gov.za

Department of Transport MEC: Ms Nandi Ndalane

Department of Education MEC: Mr Ishmael Kgetjepe

Pomoko Towers, cnr Bodenstein and Church Streets, Polokwane Tel: +27 15 295 1000 | Fax: +27 15 295 1163 Website: www.ldot.limpopo.gov.za

Department of Education Building, cnr Biccard and Excelsior Streets, Polokwane 0700 Tel: +27 15 290 9301 | Fax: +27 15 297 0885/086 531 0539 Website: www.edu.limpopo.gov.za

Provincial Treasury MEC: Mr Rob Tooley

Department of Health MEC: Dr Phophi Ramathuba

Ismini Towers, 46 Hans van Rensburg Street, Polokwane 0699 Postal address: Private Bag X9486, Polokwane 0700 Tel: +27 15 298 536 Fax: +27 15 295 8873/7010 Website: www.limtreasury.gov.za

18 College Street, Polokwane 0699 Tel: +27 15 293 6000 | Fax: +27 15 293 2836 Website: www.doh.limpopo.gov.za

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Limpopo Local Government A guide to the district and local municipalities in Limpopo. CAPRICORN DISTRICT MUNICIPALITY Physical address: 41 Biccard Street, Polokwane 0699 Postal address: PO Box 4100, Polokwane 0700 Tel: +27 15 294 1000 Fax: +27 15 294 1292 Website: www.cdm.org.za

Greater Letaba Local Municipality Tel: +27 15 309 9246 Fax: +27 15 309 9419 Website: www.greaterletaba.gov.za Greater Tzaneen Local Municipality Tel: +27 15 307 8000 Fax: +27 15 307 8049/48 Website: www.tzaneen.gov.za

Blouberg Local Municipality Tel: +27 15 505 7100 | Fax: +27 15 505 0296 Website: www.blouberg.gov.za

SEKHUKHUNE DISTRICT MUNICIPALITY Physical address: 3 Wes Street, Groblersdal 0470 Postal address: Private Bag X8611, Groblersdal 0470 Tel: +27 13 262 7300 Fax: +27 13 262 5849 Website: www.sekhukhune.gov.za

Lepelle-Nkumpi Local Municipality Tel: +27 15 633 4500 | Fax: +27 15 633 6896 Website: www.lepelle-nkumpi.gov.za Molemole Local Municipality Tel: +27 15 501 0243 | Fax: +27 15 501 0419 Website: www.molemole.gov.za

Elias Motsoaledi Local Municipality Tel: +27 13 262 3056 | Fax: +27 13 262 2547/4530 Website: www.eliasmotsoaledi.gov.za

Polokwane Local Municipality Tel: +27 15 290 2100 | Fax: +27 15 290 2106 or 086 608 0290 (SA only) Website: www.polokwane.gov.za

Ephraim Mogale Local Municipality Tel: +27 13 261 8400 | Fax: +27 13 261 2985 Website: www.ephraimmogalelm.gov.za

MOPANI DISTRICT MUNICIPALITY Physical address: Government Building, Main Road, Giyani 0826 Postal address: Private Bag X9687, Giyani 0826 Tel: +27 15 811 6300 Fax: +27 15 812 4301 Website: www.mopani.gov.za

Fetakgomo-Greater Tubatse Local Municipality Tel: +27 15 622 8000 | Fax: +27 15 622 8026 Website: www.fetakgomo.gov.za Makhuduthamaga Local Municipality Tel: +27 13 265 8600 | Fax: +27 13 265 1975/1076 Website: www.makhuduthamaga.gov.za

Ba-Phalaborwa Local Municipality

Tel: +27 15 780 6300 Fax: +27 15 781 0726 Website: www.ba-phalaborwa.gov.za

VHEMBE DISTRICT MUNICIPALITY Physical address: Old Parliament, Government Complex, Tusk Venda Street, Thohoyandou 0950 Postal address: Private Bag X5006, Thohoyandou 0950 Tel: +27 15 960 2000/2008 | Fax: +27 15 962 0904 Website: www.vhembe.gov.za

Greater Giyani Local Municipality Tel: +27 15 811 5500 Fax: +27 15 812 2068/1683 Website: www.greatergiyani.gov.za

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LISTING Makhado Local Municipality Tel: +27 15 519 300 | Fax: +27 15 516 1195 Website: www.makhado.gov.za

Bela-Bela Local Municipality

Musina Local Municipality Tel: +27 15 534 6100 | Fax: +27 15 534 2513 Website: www.musina.gov.za

Lephalale Local Municipality Tel: +27 14 763 2193 Fax: +27 14 763 5662/086 534 3440 Website: www.lephalale.com

Tel: +27 14 736 8000 | Fax: +27 14 736 3288 Website: www.belabela.gov.za

Mutale Local Municipality Tel: +27 15 967 9600 | Fax: +27 15 967 9677/9654 Website: www.mutale.gov.za

Lim 368 Local Municipality Tel: +27 14 718 2000 | Fax: +27 14 717 4077 Website: www.modimolle.gov.za

Thulamela Local Municipality Tel: +27 15 962 7500 | Fax: +27 15 962 4020 Website: www.thulamela.gov.za

Mogalakwena Local Municipality Tel: +27 15 491 9630 Fax: +27 15 491 9755 Website: www.mogalakwena.gov.za

WATERBERG DISTRICT MUNICIPALITY Physical address: Harry Gwala Street, Modimolle 0510 Postal address: Private Bag X1018, Modimolle 0510 Tel: +27 14 718 3300 Fax: +27 14 717 2931 Website: www.waterberg.gov.za

Thabazimbi Municipality Tel: +27 14 777 1525 Fax: +27 14 777 1531 Website: www.thabazimbi.gov.za ZIMBABWE

MUNICIPALITIES IN LIMPOPO PROVINCE

Musina

Musina

Local Municipality

Tshipise

Alldays

Waterberg

District Municipality

Vhembe

Lephalale

Thulamela Thohoyandou

Makhado

Blouberg

Makhado

Kruger National Park District Management Area

Kruger National Park

R81

N1

N11

BOTSWANA

Greater Giyani

Lephalale

Greater Letaba

Molemole Mogalakwena

R81

Lephalale

Tzaneen

Capricorn Waterberg

Greater Tzaneen

POLOKWANE

Mokopane

Mookgophong Lim 368 Bele-Bela

Modimolle

Makhuduthamaga

Kruger National Park District Management Area

Sekhukhune

Bushbuckridge

Ephraim Mogale

Bela-Bela

North West

Bohlabela (Cross-border Municipality)

Maruleng

Fetakgomo-Greater Tubatse

N11

Phalaborwa

R40

N1

Thabazimbi

Mopani

Ba-Phalaborwa

Polokwane

Lepele-Nkumpi

Thabazimbi

MOZAMBIQUE

Metropolitan/District Municipality Boundary Local Municipality Boundary

Greater Groblersdal

Mpumalanga

Gauteng

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PROFILE

City of Polokwane Business opportunities on offer in multiple sectors.

Polokwane is the capital of the Limpopo Province and the seat of the Provincial Legislature and Premier. It is centrally located in the Capricorn District and is the biggest urban centre in the province. Polokwane contributes 13% of the provincial GDP and is the province’s main centre for industry, commerce, education and medical services. It covers an area of 3 766km².  The city lies on the N1 highway leading from Johannesburg to Zimbabwe, the Great North Road, and consequently logistics is a thriving sector. Polokwane International Airport handles an average of 3 700 aircraft, carrying 60 000 arriving and departing passengers a year.

tomato farmers who plant on a large scale in the district. The strong retail sector was strengthened even more with the opening of the Mall of the North. This major project cost approximately R1.2-billion to complete. Covering more than 70 000 square metres, the mall offers a more convenient alternative to shoppers used to doing their monthly shopping in Johannesburg.

Polokwane is the most densely populated part of the Limpopo Province and the population of close to 800 000 provides a ready market for goods and services. The biggest economic sectors of the city currently are community and government services (32%), finance (23%) and wholesale and retail trade. Other significant sectors include transport and logistics, manufacturing and mining.

Polokwane has good hotel and conferencing facilities, and is well situated as a starting point for tourism trips into the province and beyond. The newly opened 160-room Park Inn by Radisson Polokwane is an indication of investor confidence in the city. Garden Court Polokwane is an example of a hotel that forms part of a national group, in this case, Tsogo Sun.

The city is close to big concentrations of mineral deposits and to fertile agricultural lands; its industries reflect this diversity. Large industrial concerns such as Silicon Smelters (one of the biggest of its kind in the world) and a big brewery run alongside at least 600 industrial enterprises of a smaller scale. The range is broad, thus helping to protect Polokwane from downturns in the economic cycle: soft drink and fruit juice manufacture; confectionery; bricks; clothing; meat processing; packaging; jewellery.

Nearby Moria attracts up to a million people every year, when the Zion Christian Church celebrates Easter. Polokwane has a number of impressive art galleries and historical buildings. The city has its own game reserve and the Peter Mokaba Stadium – a 2010 Soccer World Cup venue – regularly hosts big football matches and events. Polokwane falls in a summer rainfall area. The average temperature is 17°C and the average annual rainfall is 598mm

Nearby agricultural citrus estates send their products to Polokwane for processing, as do the potato and LIMPOPO BUSINESS 2017/18

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PROFILE

Identified investment opportunities Pre-feasibility studies and partners are sought for a range of investment opportunities across several sectors.

• Retirement village housing • Retirement village business complex • Private fragile care centre • Special needs care units

Manufacturing

Education

To address complete backward and forward linkages from farmers to the consumers, the following facilities are required: • Collection Centres • Logistics Support Facilities • Terminal Market Centre • Other Support Facilities The Polokwane International Airport could also be used to transport high-value produce internationally.

Polokwane has a much better educated adult population in 2015 than that of Capricorn and Limpopo. Some 19.34% of Polokwane’s population had Grade 12, a certificate, or diploma, compared to Capricorn’s 15.5% and Limpopo’s 13.76%. In addition, 10.54% of Polokwane’s population had higher education compared to Capricorn’s 7.6% and Limpopo’s 5.1%. • Private schools • Special needs schools • Student housing

Logistics

Tourism

Agri-Logistics Hub: will manage the logistics of agricultural produce and agri-processed products in and near the Agri-Processing Park. It will include road, air and rail options, which will provide further opportunity to develop air cargo facilities at Polokwane International Airport. Truck Stop and Filling Station: a dedicated truck stop should include a full range of services focussed on truck maintenance and driver support. Air cargo: four blocks of hangars with four hangars in each block could be converted to cargo storage facilities. There are currently no storage facilities at the airport. Each hangar offers approximately 540m² of floor space. Air cargo facilities will open new international trade markets for products from the city of Polokwane, Capricorn District and Limpopo Province. This may allow the local trade market to diversify.

Medical tourism packages: with hospital and medical staff who specialise in the medical requirements of the aged, physically and mentally handicapped, Polokwane can develop medical tourism with specific focus on these areas. This in turn will increase transport to and from Polokwane, including increased air passenger demand at Polokwane International Airport and accommodation for these persons in places such as hotels, frail care and recovery centres. The School of Medicine is a relatively newly established school within the Faculty of Health Sciences of the University of Limpopo, located just outside Polokwane. Additional tourism investment opportunities include: • Hotel • Wedding venue development

Retirement precinct

The Retirement Village Housing will provide housing for a large number of retirees who will require many services. In addition, it will provide housing to those who are physically and mentally handicapped within special care units.

CONTACT INFO Postal address: Polokwane Municipality, PO Box 111, Polokwane Civic Centre Tel: +27 15 290 2495 | Fax: +27 15 290 2009 Email: economist@polokwane.gov.za Website: www.polokwane.gov.za

This will have to be supported by a business complex where doctors, specialists and other medical personnel can operate and a retail area where residents of the retirement village can purchase groceries and other goods.

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LISTING

INDEX Black Management Forum������������������������������������������������������������������������������������������������������������������������������������ 83 De Beers Group of Companies – Venetia Mine����������������������������������������������������������������������������� 47 - 53 Exxaro Resources Limited....................................................................................................................................... 56 Great North Transport.............................................................................................................................................I F C Implats�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 58 IvanPlats���������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 54 LEDA Enterprise Development and Finance Division�������������������������������������������������������������������������� 24 Leeto la Polokwane�����������������������������������������������������������������������������������������������������������������������������������12, 64 - 67 Limpopo Connexion�������������������������������������������������������������������������������������������������������������������������������������� 26 - 28 Limpopo Economic Development Agency (LEDA)������������������������������������������������������������������������������� 10 Limpopo Office of the Premier������������������������������������������������������������������������������������������������������������������������������ 8 Masisizane Fund����������������������������������������������������������������������������������������������������������������������������������������������������������� 80 Nedbank...........................................................................................................................................................7, 32 , OBC Old Mutual������������������������������������������������������������������������������������������������������������������������������������������������������������ 34 - 37 Park Inn by Radisson Polokwane ............................................................................................................... 5, 89 Polokwane Chamber of Business ..................................................................................................................... 82 Polokwane Municipality .................................................................................................................................. 13, 94 Risima Housing Finance Company���������������������������������������������������������������������������������������������������������29 - 31 Unemployment Insurance Fund (UIF)��������������������������������������������������������������������������������������������������������������� 3 Vodacom.........................................................................................................................................................70 - 75, IBC

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Limpopo Business 2017/18  

The 2017 edition of Limpopo Business is the eighth edition of this highly successful publication that since its launch in 2007 has establish...