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2018/19 EDITION

LIMPOPO BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN LIMPOPO PROVINCE

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Roads Agency Limpopo

Together for better roads

ROADS AGENCY

LIMPOPO

The vision and core values of Roads Agency Limpopo: Vision Contributing to the socio-economic development by connecting the people of Limpopo Province. Mission To provide quality and sustainable provincial road infrastructure network for the economic development of Limpopo Province. Values The way we conduct ourselves and our business in pursuit of our vision and mission is underpinned and guided by the following corporate values:

Reliability We offer reliable, safe and economic road infrastructure Efficiency We will go the extra mile in serving our communities Accountability We remain accountable to all our stakeholders and the environment Transparency We are transparent in both our internal and external business processes Excellence We strive to exceed expectations Diversity

Commitment

We value and embrace diversity within the work context

We are committed to delivering quality road infrastructure in the province with pride

Teamwork We work together for better roads


Operational mandate The sole mandate of the Roads Agency Limpopo (RAL) is to act as the implementing agent of the Limpopo Provincial Government, under the auspices of the Limpopo Department of Public Works, Roads and Infrastructure. RAL main functions are • planning • designing • construction • maintenance and control of the provincial road network. It owns and manages all the provincial

roads, except municipal roads and national roads. The board is the custodian of corporate governance and is responsible for the strategic direction, control and stakeholder governance of RAL. The board ensures that the agency is a responsible corporate citizen and complies with relevant laws, rules, codes and standards. Revenue is received from the Limpopo Provincial Government in the form of the Provincial Roads Maintenance Grant and the equitable share. The extent of roads falling under the RAL is 19 997km, of which 6 179km is tarred and 13 818km has a gravel surface.

CONTACT DETAILS: Address: 26 Rabe Street, Polokwane | Postal address: Private Bag X9554, Polokwane 0700 Tel: 015 284 4600 / 015 291 4236 | Email: info@ral.co.za

@RoadsAgency

RoadsAgencyLimpopo

Website: ral.co.za


CONTENTS

CONTENTS Limpopo Business 2018/19 Edition

Introduction Foreword8 A unique guide to business and investment in Limpopo. New Special Economic Zone promises good returns for investors6 A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha. New skill focus to drive investment opportunities 9 A message from the CEO of the Limpopo Economic Development Agency, Ben Mphahlele.

Special features Regional overview of Limpopo  Corridors of development and Special Economic Zones are creating conducive conditions for investors.

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Limpopo Development Plan  Reducing poverty and creating sustainable jobs.

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Investing in Limpopo  20 Local and foreign investors are seeing good value in several industry sectors. Tourism in Limpopo 32 Increasing visitor numbers are driving investment into tourism infrastructure. Limpopo is a heavy lifter in transport and logistics  38 A strategically placed Special Economic Zone is set to further enhance the province’s profile in road and rail. 

Economic sectors Agriculture52 Tomato paste factory holds great potential. Mining54 Mineral beneficiation is in the spotlight. Construction and property 64 Mining and energy projects are creating demand for housing. LIMPOPO BUSINESS 2018/19

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CONTENTS Energy66 Solar manufacturing holds potential in Limpopo. Water67 Innovation is solving rural problems. Information, communication and technology (ICT) and telecommunications Libraries are the key to connection in Limpopo.

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Development finance and SMME support 76 The private and public sectors are backing small business. Education and training Short courses are popular among business leaders.

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Government Limpopo Provincial Government

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

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A guide to district and local municipalities in Limpopo.

References Key sector contents Overviews of the main economic sectors of Limpopo.

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Index96 Maps Limpopo locator map

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Limpopo municipalities map 

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ABOUT THE COVER: Credit: iStock by Getty Images. The baobab tree is synonymous with Limpopo Province. It appears in the logos of the Limpopo Provincial Government and the Limpopo Tourism Agency, conjures up images of nature in its purest form and lends itself to legend and myth. Sometimes known as the “upside down” tree because the gods supposedly planted it with its roots facing the sky, the baobab also provides sustenance and shelter for humans and animals. Some trees are several thousand years old.

LIMPOPO BUSINESS 2018/19

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MESSAGE

New Special Economic Zone promises good returns for investors A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha.

Chupu Stanley Mathabatha, Premier of Limpopo

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t gives me great pleasure to welcome the readers of Limpopo Business to South Africa’s “gateway” province, located as we are on the Great North Road to Zimbabwe and in close proximity to Botswana, Mozambique and the important markets of Johannesburg and the Gauteng Province. The provincial economy is predominantly driven by the mining and commodity services sectors that contribute 27.6% and 23.8%, reLIMPOPO BUSINESS 2018/19

spectively. They are followed by trade and finance that contribute 15.3% and 14.6%, respectively. The Provincial Government of Limpopo is pleased to report that both the Provincial Treasury and the Limpopo Gambling Board received clean audit opinions in the last audit cycle, which is good news for potential investors. This marks a considerable improvement. The Auditor-General had this to say: “The improvements in Limpopo can be attributed to the political leadership taking accountability and discharging oversight responsibility through robust discussions and interrogation of reports submitted by administrative leadership.” The South African national cabinet has positively considered Limpopo’s application for Musina-Makhado to be a Special Economic Zone (SEZ). A lot of work has gone into making the idea of an SEZ in Musina-Makhado a living entity, which will boost the economy and create jobs. We are in the process of finalising the appointment of the SEZ Board. This will be followed by the recruitment and appointment of technical staff to support and implement the SEZ projects. Currently, an amount of R147-million has been set aside to support the roll-out of basic infrastructure in the receiving SEZ municipalities of Musina and Makhado. We are basically at the tail-end of our planning phase of this mega initiative. 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 are already proving attractive to investors. In Beijing in May 2018, the Limpopo Economic Development Agency (LEDA) signed Memorandums of Understanding (MOUs) and Memorandums of Agreement (MOAs) with nine Chinese companies committed to investing more than US$10-billion in the Musina-Makhado SEZ. 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 Limpopo on a higher trajectory of economic growth and development. A mining-focussed SEZ at Tubatse is also under consideration and we expect to attract about R44-billion in investments into these two zones. Power generation, steel and coking plants and plasma waste gasification are among the possibilities for the Musina SEZ, while the focus at Tubatse will be platinum group metals beneficiation.

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MESSAGE 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. Driven by the desire for strengthening relations with the People’s Republic of China, the Limpopo Province has entered into Memorandums of Understanding with the Province of Henan. The focus of these MOUs is in the fields of mining, agriculture, tourism and human resource development. Similar arrangements in the Republic of Namibia are being conculuded with the four regions of Ohangwena, Oshana, Oshikoto and Omusati. This is in line with our commitment to strengthen regional integration within SADC. We aim to create more jobs by ensuring that agriculture, manufacturing, tourism and the construction sector contribute optimally to the provincial GDP. The Provincial Government is a strategic role-player in the economy of Limpopo Province. Government procurement should therefore assist in addressing the inherited triple challenges of unemployment, poverty and inequality. It is in this context that we are finalising the Limpopo Procurement Strategy. The main thrust of the Strategy is to stimulate Local Economic Development. The strategy will focus on the need to empower young people, women and people living with disabilities.

Infrastructure Last year we announced that Limpopo Connexion, which is a subsidiary of LEDA, was to begin a roll-out of broadband infrastructure across the province. In 2018, we can report that the first phase of the roll-out of the broadband telecommunication network infrastructure has commenced. The construction of the data centre, which is the provincial ICT nerve centre, has already been completed. The broadband technology will provide a unique opportunity for the people of Limpopo to become active participants in the knowledge economy. This programme will mostly benefit SMMEs, co-operatives, the youth, research institutions and the creative industry. It will further enhance productivity, both in the public and the private sectors, and provide investors with enhanced connectivity. Through the roll-out of a high-quality infrastructure programme we intend to grow the economy, attract investment, create access to markets and create much-needed jobs for our people. Our delivery of social infrastructure is focused on constructing new houses, healthcare, education and bulk-water facilities. We will also continue with the maintenance and renovation of our existing infrastructure. Road infrastructure plays a critical role in sectors of our economy such as tourism, agriculture, trade and commerce. We will continue with the programme of improving and expanding our road network in-

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frastructure, working in partnership with South African National Road Agency Limited (SANRAL).

Tourism The tourism sector continues to play a significant role in the growth and development of our provincial economy. Limpopo remains a leading province in the country with regard to domestic tourism, increasing from 5.6-million visits in 2015 to 8.3-million in 2016. This represents a massive increase of 2.7-million. One of the tourism offerings that adds great value to the industry is the annual Marula Festival. In 2017, this festival attracted over 20 000 people and injected well over R45million into the provincial economy. The Mapungubwe Festival is another signature event that brings in considerable revenue, especially for skilled crafters who have an opportunity to sell their handmade wares. The Kruger National Park is South Africa’s number one tourist attraction. A number of private concessions have been granted along the public park’s edge and there are several private game reserves scattered throughout the province’s diverse landscapes. Golf tourism is another growth sector with proximity to the country’s major point of entry at Johannesburg’s OR Tambo International Airport a big selling point. There are many opportunities for this sector to grow through new investments, whether it be in new lodges or new kinds of adventuretourism experiences. Whether you are a tourist, a business person or an investor, Limpopo is a province that is rich in opportunities. We look forward to welcoming you. LIMPOPO BUSINESS 2018/19


FOREWORD

Limpopo Business

CREDITS

A unique guide to business and investment in Limpopo.

Publisher: Chris Whales

T

he 2018/19 edition of Limpopo Business is the 10th issue of this highly successful publication that, since its launch in 2007, has established itself as the premier business and investment guide for the Limpopo Province. Limpopo has many investment and business opportunities. In addition to the regular articles providing insight into each of the key economic sectors of the province, there are special features on developments in the transport and logistics sector and a focus on tourism. Interviews with industry leaders in development finance from the Industrial Development Corporation and the Small Enterprise Development Agency share their insights into the state of the provincial economy. Investment news related to mining, telecommunications and development finance is carried in overviews of all the main economic sectors. The publication also has a comprehensive register of all provincial government and municipal contact details. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. limpopobusiness.co.za. Updated information on Limpopo is also available through our monthly e-newsletter, which you can subscribe to online 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: Tyra Martin Production: Lizel Olivier Business development manager: Shiko Diala Ad sales: Sydwell Adonis, Joseph Gumbo, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

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 | Des Jacobs for Implats, Forever Resorts, Haraeus, iStock by Getty Images, Legend Golf and Safari Resort, Limpopo Department of Roads and Transport, Mall of the North, Mark II/Flickr/SA Tourism, Polokwane Municipality, Tour de Limpopo, Vantage Capital, Venda University, Westfalia, ZZ2 Farming.

LIMPOPO BUSINESS 2018/19

Publishing director: Robert Arendse

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.

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MESSAGE

New skills focus to drive investment opportunities in growth sectors CEO of the Limpopo Economic Development Agency (LEDA), Ben Mphahlele, explains how a drive to improve skills related to investment packaging will boost local economic development.

The vastness of Limpopo Province, occupying just over 10% of South Africa’s total land surface, has enormous potential for economic growth. With immense mineral and agricultural resources residing in the soil of the province and other sectors such as tourism

expanding exponentially, there is scope for targeted investments which will boost socio-economic development across all five districts of the province. In order to enhance the prospects of successful investment, the Limpopo Economic Development Agency, LEDA, has identified the need to boost critical skills within the province, particularly with regard to the packaging of investment opportunities to domestic and foreign investors. Responding to these challenges, LEDA sent business advisers to Wits University for training on the Local Economic Development Programme. The qualified advisers will become specialists in the field of investment project packaging and risk analysis. Using their newly-acquired skills, the advisors will then be available to collaborate with municipalities throughout the province. This investment in skills development by LEDA is a flagship programme that will accelerate local economic development in all the districts of Limpopo. With well-packaged investment projects relevant to each district, investors will easily be able to choose the most relevant and attractive option from a suite of alternatives. Having revised and adopted its Annual Performance Plan (APP) for the financial year ahead, LEDA is ramping up its delivery imperatives across all its portfolios. These are linked directly to the economic growth trajectory of the province, giving expression to the Limpopo Development Plan – a blueprint for stimulating both traditional and emerging economic growth sectors. The main growth sectors are mining, tourism, agriculture, logistics and agri-processing. With offices situated in all five districts of Limpopo, LEDA is at the coalface of economic development through its myriad integrated business development products and services. Through its actions, LEDA is stimulating economic growth and job creation in Limpopo Province.

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LIMPOPO BUSINESS 2018/19


A REGIONAL OVERVIEW OF THE

LIMPOPO PROVINCE


Corridors of development and Special Economic Zones are creating conducive conditions for investors. By John Young

T

he Limpopo Province’s 125 754km² covers a remarkably diverse geographical and cultural landscape that is also rich in minerals and agricultural products. The Mapungubwe Cultural Landscape, a UNESCO World Heritage Site in the north of the province, illustrates a rich history of a sophisticated trading kingdom in the period between 900 and 1300AD. Archaeological finds in the Waterberg area point to Stone Age settlements. The Makapans Valley (Ndebele history and palaeontological exhibits) is linked to the Cradle of Humankind site in neighbouring Gauteng: both are important fossil sites.

The Waterberg Biosphere has been declared a UNESCO Biosphere Reserve. Most of the famous Kruger National Park falls in the Limpopo Province and the province is home to many private game lodges, nature reserves and golf estates. The province shares international borders with Botswana, Zimbabwe and Mozambique and its South African neighbours are the provinces of Mpumalanga, Gauteng and North West. Proximity to the large cities of Gauteng (including Johannesburg and Pretoria) make it easy for horticultural and other products to be sold in that large and prosperous market. The N1 highway (“Great North Road”) is a key


SPECIAL FEATURE

reason for the province’s important role in the nation’s logistics sector. It 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. The 2011 census recorded 5.4-million residents. The main languages of the people of Limpopo are Sesotho, Xitsonga and Tshivenda but English is widely used in business and government. The provincial government is run by the African National Congress, the same party that is power at national level. There are five district municipalities in Limpopo and the capital city is Polokwane (population 629 000). The Provincial Government of Limpopo has committed itself to the Limpopo Economic Growth and Development Plan (LEGDP), which aims to build a stronger, more industrialised economy and to create jobs and reduce social inequality. The Premier’s Employment Growth and Advisory Council has been created to coordinate the responses of government, the non-government sector and the private sector. Technical working groups, drawing from all three sectors, have been established to pursue the development plan in areas such as ICT, the green economy, enterprise development and relevant skills for the economy. LIMPOPO BUSINESS 2018/19

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Existing manufacturing in the province is centred on mining areas (smelters and refineries), agricultural estates (juices and concentrates) and Polokwane (which has a strong suit in 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. 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 North Transport falls under the Limpopo Economic Development Agency. The company has more than 500 buses, covers about 36-million kilometres every year on 279 routes, employs more than 1 200 people and transports 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 between Phalaborwa and Johannesburg, and between Hoedspruit and Johannesburg and Cape Town. 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,


SPECIAL FEATURE energy and mineral beneficiation. Exxaro and De Beers have large mining operations nearby. A consortium of Chinese investors has agreed to run the SEZ’s 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 (PGM) and mining-related manufacturing. Large platinum mining operations are located on the eastern limb of the Bushveld Complex such as the Marula Mine and the northern limb has been seeing a lot of recent activity, with Ivanhoe Mines investing in a new mine. A smelter expansion by Northam on the western limb confirms that the mining sector is still very active in Limpopo. 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 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 national, 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.

Economic strengths

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:

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% 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, and the commodities cycle has recently been very volatile, but the world will always need minerals. Limpopo’s 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

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Regions

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. The capital city of 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. LIMPOPO BUSINESS 2018/19


SPECIAL FEATURE 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.

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.

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, 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.

Waterberg District The mining sector is the largest contributor to regional GDP, while agriculture is also significant. Several towns in the district are 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 and is the site of Eskom’s huge new Medupi power plant which is under construction. 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 Warmbaths (Bela-Bela) is a popular tourism destination, and the district has many luxury golf estates. The Legend Golf & Safari Resort has the distinction of having had each of its 18 holes designed by a different famous golfer, and an extra hole which is very long (360m) but also very high: it requires a helicopter ride to get to the tee-off point 400m up the mountainside.

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 driedfruit 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 (PMC) is the major economic driving force in the area. State-owned phosphate and phosphoric acid producer Foskor is another major employer. 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. Vhembe District The Vhembe District borders Zimbabwe and Botswana. The district’s administrative capital is 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. LIMPOPO BUSINESS 2018/19

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SPECIAL FEATURE

Limpopo Development Plan Reducing poverty and creating sustainable jobs.

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ith the announcement of significant investment in the newly proclaimed Musina-Mukhado Special Economic Zone (SEZ), the Limpopo Development Plan takes on renewed significance as a guiding document for economic growth. Improving 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. When the Limpopo Development Plan was introduced, Premier Chupu Stanley Mathabatha said, “We are convinced that the Limpopo Development Plan reflects our shared vision and strategic imperatives towards poverty reduction, elimination of social inequality and the creation of sustainable jobs in our province.� The Limpopo Development Plan (LDP) targets 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. LIMPOPO BUSINESS 2018/19

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The plan is supported by strategies relating to a spatial investment framework in public and private sector infrastructure, an integrated public transport policy and policies on land development. This article focusses on the economic aspects and the potential of the LDP for private investors to participate. Key element s 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. Recent platinum mining developments on the eastern limb of the Bushveld Complex have increased this effect but global commodity prices have been uncertain in recent years. 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 that needs to grow. In response, the two Special Economic Zones (SEZs) at Musina


SPECIAL FEATURE and Tubatse will boost manufacturing. Specific manufacturing value chains are identified for each area, based on the base mineral being 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.

• •

• •

Musina-Makhado Corridor Mining Cluster Phalaborwa Mining Cluster (Copper, Phosphate and Magnetite) Polokwane and Musina Logistical Hubs Va r i o us Ag r i c u l t u r a l Clusters, based on Agriparks Various Tourism Clusters, in every district.

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 are expected to 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 will influence developments in the provincial municipalities of Lephalale, Mopani, Sekhukhune, Capricorn, Vhembe and Polokwane. Other national SIPs of relevance relate to green energy, agrilogistics 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 roll-out of new infrastructure. There are several locally driven projects that will boost the provincial economy and will be 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 in support of agriculture and tourism clusters; solar photovoltaic electricity generation; information and communication technology; 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)

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 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.

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De Beers Venetia Mine Youth Development Programmes Inspiring young people and creating opportunity

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undreds of young people from Venetia Mine’s labour-sending areas of Musina and Blouberg have already benefited from programmes aimed at supporting the youth. The De Beers Venetia Mine Youth Programmes kicked off on 21 June 2018, with a career guidance session and youth debate. The programmes aim to underpin the government’s National Agenda, which emphasises the part young people can play in building a prosperous future in South Africa. Central to the programmes is creating close communication channels between the mine and the young people in the communities, as well as supporting youth development initiatives.

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Focus Programmes focus on youth development, motivation and career guidance and helping young people to drive and acquire driver’s licences. All programmes are in line with our small enterprise development (SED) strategy of the mine that addresses issues of youth unemployment, procurement, and enterprise and supplier development. External stakeholders are being invited and engaged to take part, including union representatives, traditional authorities, universities, local authorities, business groups and chambers, youth structures and the Department of Education.

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FOCUS The mine has run two introductory one-day sessions in Musina and Blouberg to launch the youth programmes coinciding with Youth Day. Day one in Musina was supported by four high schools and day two saw 450 students from nine high schools attend in Blouberg.

Education Anglo American and De Beers in partnership with the Department of Basic Education launched the Anglo American South African Education Programme, an initiative of Anglo American’s sustainability strategy. This is a holistic approach to education from early childhood learning through to matric, the goal being to improve the educational outcomes of learners in our local communities of Musina and Blouberg. Kagiso Shanduka Trust (KST), appointed by Anglo American South Africa (AASA) to implement this programme, is seeking to employ unemployed youth for a

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period of one month to collect data from the schools selected for the programme.

Driver’s licence assessments De Beers Venetia Mine conducted open driver’s licence assessments for the youth from Musina and Blouberg in July 2018. The programme is targeted to benefit 200 young people from both the labour-sending areas of the mine. Assessments were carried out and the programme is going to adopt a phased approach. The programme will not only facilitate a process of those wanting to acquire a driver’s licence but will also support the local driving schools to provide the youth with legitimate licences through approaching our Expressions of Interest process.

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Investing in Limpopo Local and foreign investors are seeing good value in several sectors.

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he mining sector continues to attract significant investments into Limpopo Province while agri-processing, tourism and energy are the other key sectors where new assets are being developed. Limpopo in 2018 signed Memorandums of Understanding with the Chinese province of Henan. The focus of these MOUs is in the fields of mining, agriculture, tourism and human resource development. Similar agreements were signed with four Namibian regions. Northam Platinum and Haraeus Precious Metals collectively put R900-million into a large expansion of smelter capacity at the Zondereinde mine just south of Thabazimbi early in 2018. (The photograph shows the president of Haraeus Precious Metals, André Christl, and Paul Dunne, the CEO of Northam, in front of the smelter.) The Musina-Mukhado Special Economic Zone (SEZ) announced shortly after this that Chinese investors had committed to a range of investments into the zone, which is located near the border with Zimbabwe and near to several large mines. Mining-related activity will form an important component of the SEZ, as it will at the other planned SEZ, near Tubatse in the east, where the platinum mines of large miners like Implats are located and South Africa’s only copper producer, Palabora Mining Company, has a mine, a smelter and a refinery. In agri-processing, a tomato paste plant was relaunched near Tzaneen by Dursots-All Joy and many of the big producers continue to spend money rolling out new facilities. This is also a sector where the supply chain is used by large retailers to support the establishment of new local businesses. Polokwane has recently welcomed a new 160-room hotel, the Park Inn by Radisson Polokwane, and the Industrial Development Corporation is engaged with investors in Tzaneen and other parts of the province to roll out more accommodation options, including lodges. The massive new coal-fired power plant under construction at Lephalale will form the centre of an energy hub once it is complete, and coal miners will continue to invest in order to feed this, and other power stations. The renewable energy field is also attracting interest in Limpopo. The Limpopo Economic Development Agency (LEDA) is the key driver of the provincial government’s drive to boost the economy through investment. LEDA is an agency of the Limpopo Department of Economic Development, Environment and Tourism (DEDET), which in turn has a number of units which focus on specific aspects of the agency’s brief: LIMPOPO BUSINESS 2018/19

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Risima Housing and Finance Corporation: access to housing finance and adding value in rural areas Limpopo Connexion: promoting and developing the ICT sector to enable citizens to be connected and to make for smoother business operations Enterprise Development and Finance Division: financial and business support and training and mentoring offered to new businesses or businesses wanting to expand.

LEDA’s overall brief is to contribute to accelerated industrialisation in Limpopo by stimulating and diversifying the industrial base of the regional economy. The focus is on high-impact projects that will spark growth in a variety of sectors and create employment opportunities.


SPECIAL FEATURE Among the roles of LEDA are to assist investors and to encourage trade in and out of the province. Other key tasks are: • to do research • to identify and package development opportunities • to leverage partnerships • support priority sector • coordinate and manage the implementation of strategic infrastructure and economic interventions. In the last of these roles, LEDA has identified two two key strategic areas of focus, both of which have to do with land and land planning: • Special Economic Zones and Corridor Development: development within the province is being directed to specific areas where economies of scale and logistics can best be leveraged. • Land, property and infrastructure development: as these targeted areas grow, so the infrastructure and associated industries will act as a magnet for businesses and industries in the same sector, and businesses that exist to service that businesses and industrial enterprises. By the same token, care should be taken that areas chosen for future residential, industrial or commercial development must be suitable and fall in line with plans for the rolling out of infrastructure. The Provincial Government of Limpopo and its agencies, in partnerships with national government and some private companies, is putting resources into these key aspects of the province’s economic

infrastructure. There is an awareness that investment can only happen were water, energy and ICT can be relied on, and where the logistics exercise for getting supplies in and products out is efficient. The province has identified specific kinds of strategic economic infrastructure as key to attracting investors. These are: • water • energy • ICT • freight and logistics. As will be seen in the other pages in this book, there is work going on in rolling out broadband to remote parts of the province and serious discussions are taking place with big users of energy and water. Freight and logistics is very much in the spotlight with the SEZs, particularly the MusinaMukhado SEZ.

Areas identified for particular kinds of investment are: Economic cluster

Identified area

Agri-processing and horticulture

Molemole, Thohoyandou, Elias Motsoaledi, Ephraim Mogale, Modimolle

Horticulture and forestry

Makhado, Tzaneen, Greater Letaba, Maruleng

Logistics

Polokwane, Musina (SEZ)

Mining: diamonds

Musina (SEZ)

Mining: platinum

Mokopane, Thabazimbi, Tubatse (and chrome: SEZ)

Mining: coal

Makhado, Lephalale (and energy)

Mining: copper and magnetite

Ba-Phalaborwa

Tourism and meat production

All districts within Limpopo

SOURCE: LIMPOPO DEVELOPMENT PLAN SUMMARY DOCUMENT

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LEDA drives energy generation investment Manufacturing and downstream industries are being stimulated by foreign investment in a Special Economic Zone.

MEC Seaparo Sekoati with potential Chinese investors.

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he future of Limpopo Province looks bright,” says Limpopo Economic Development Agency CEO, Ben Mphahlele. He adds, “As we continue to position our integration with other provinces for efficient transit of goods and commodities, increase the quantity and quality of water resources to households and the industrial sector, the multiplier effect becomes enormous. “Our location as the province is strategic. The Maputo Corridor gives Limpopo Province a competitive edge over other provinces in terms of travelling time to Maputo for sea transportation. Export markets are time-bound which means that a fully developed Limpopo economy will gain more traction for international buyers in terms of both delivery times and competitive pricing derived from the short distance.” Since his arrival at LEDA two years ago, Mphahlele and his executive team have made it a priority to have the permit application for Limpopo’s first Special Economic Zone (SEZ) approved. Together with the National Department of Trade and Industry an enormous amount of work was done, with the result that the Musina-Makhado Special Economic Zone is now a reality. Located in the far north of the province, the Musina-Makhado SEZ is a very attractive investment proposition and it has the potential to transform the provincial and regional economy. The SEZ is surrounded LIMPOPO BUSINESS 2018/19

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by areas of great mineral wealth and lies along major transport routes such as the N1 that connects South Africa to Zimbabwe through the Beit Bridge. The SEZ has already attracted considerable investor interest, particularly from China. Ten Chinese companies recently signed Memoranda of Understanding (MoUs) with LEDA, followed by site visits, meetings and workshops. These developments point to increased connections between nations in the BRICS grouping. The first phase of investments into the SEZ will focus on the following areas: Establishment of a coke plant: Whereas South Africa generally has inadequate capacity in


FOCUS coke production, the Musina area has an abundance of coking coal, a component in the manufacture of steel and iron. The plant will produce coke and energy for consumption by adjacent industries. Downstream companies will expand production in response to the requirements of the coke plant. Logistics hub: A planned logistics hub is a critical component of the SEZ. It will house value-added manufacturing companies. The container terminal (which stores and refrigerates fast-moving consumer goods for export and import) is a key tenant. This will increase the range of products that can be manufactured in the SEZ, and package and process them for distribution to markets. It will also provide sophisticated and secure storage for incoming goods that will be sorted for distribution. Light and medium manufacturing industries: Manufacturing in Limpopo Province in 2016 stood at 2.3% of GDP. The provincial economy is characterised by primary production of commodities. The light and heavy-manufacturing component of the SEZ, whose incentives are focused on value-added production companies, will scale up beneficiation of products for local and export markets. The iron and steel output of the metallurgical cluster at the SEZ will reduce the cost of steel and iron. This will make these inputs more affordable for local manufacturers and assist them to scale up their manufacturing efforts.

industrial and domestic environments. Investment promotion for the traditional mining sector with a view to beneficiation is at the heart of LEDA’s investment promotion strategy. Primary agriculture and the logistics hub: Limpopo Province is home to the primary production of agriculture cash crops, with tomatoes accounting for the biggest share. The envisaged logistics hub in the Musina-Makhado SEZ will provide a facility for processing, packaging and distribution for both the SADC and overseas export markets. Light and medium manufacturing industries have the potential to attract investors for beneficiation of these agricultural products. Collaboration of businesses in the SADC region will be vital to this enterprise. LEDA-sponsored BRICS business seminar: LEDA recently sponsored a business seminar organised by the BRICS Business Council’s (BBC) financial working group. The two-day seminar targeted organised business to provide a platform for networking and to find out about challenges faced by business in the province. The inputs and feedback generated will shape the policies of the BRICS New Development Bank on developmental funding. The seminar happened just a few weeks ahead of the BRICS Summit in Johannesburg. Key resolutions included BBC inviting the New Development Bank to present its mandate and funding requirements to the Provincial Government, and to request the BBC to lobby the national government to take its various initiatives to all provinces, including Limpopo.

Limpopo’s potential The milestones achieved so far under the stewardship of CEO Mphahlele are considerable and point to a sense of optimism and a forward-looking policy in terms of promoting trade and investment. Traditional mining investment: The Council for Geoscience and Department of Mineral Resources report that 50% of South Africa’s remaining coal reserves are in Limpopo Province and 43% of that is in the Waterberg Coal Basin, amounting to 75-billion tons. In terms of Platinum Group Metals, South Africa is the largest producer, with 41% of reserves found in Limpopo. Platinum is an important resource to produce catalytic converters and fuel cells to reduce emission for environmental management. Nitrogen gas, a by-product of platinum, is consumed in both

N

Beit Bridge Pont Drift

Musina Madimbo

Musina-Makhado SEZ Cities/towns Roads Provincial Boundaries Local Municipality Boundary District Municipality Boundary

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The LEDA group of companies is the nucleus of service delivery Stimulating economic growth in Limpopo Province. Province to Harare in Zimbabwe. On the domestic front, the company acquired a permit to operate transportation services between Limpopo and Gauteng.

Limpopo Connexion

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he Limpopo Economic Development Agency (LEDA) has several subsidiary companies through which the agency executes its mandate from the Provincial Government of Limpopo. As such, they form the nucleus of service delivery.

Great North Transport Great North Transport (GNT) provides transport services to commuters and passengers in the five districts of Limpopo Province and the eastern part of Mpumalanga. Transport is the backbone of the regional economy and in the past financial year GNT conveyed 22-million commuters in both provinces. Responding to regional economic integration in SADC, GNT entered a cross-border operation, transporting passengers from Limpopo LIMPOPO BUSINESS 2018/19

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Broadband technology will drive the future economic growth of Limpopo Province. As markets open up for more industrial and consumer goods, the need for timeless, accurate information and data intensifies. Management in the private and public sectors understand that the future sustainability and longevity of their organisations hinges on the strength and quality of their products and services. This includes usability, safety, accessibility and affordability. All these aspects of future companies need highly technological solutions driven by reliable and high-speed connectivity. Limpopo Connexion’s primary business focus is to develop the ITC industry and establish a Science and Technology Park as a centre for innovation and development of the Fourth Industrial Revolution. Over the past few years, Limpopo Connexion has run campaigns to persuade citizens to embrace technology. To date the


FOCUS company has developed websites for provincial departments, local government and state-owned enterprises, notably the Limpopo Department of Health, Great North Transport, LEDET, Limpopo Wildlife Resorts, the Marula Festival, Limpopo Gambling Board, Risima and Mopani TVET College. The improvements to the GNT website led to more private hire business and the number of enquiries increased substantially. The provincial broadband infrastructure to be rolled out will provide and enhance high broadband speed of connectivity for the public sector, members of the public and private businesses, reduce costs and improve efficiencies in transacting in the province and with the world. The task of creating a knowledge economy in a mostly rural province is a tough one, so the company began a skills training programme targeting young people. The aim is to create a technically knowledgeable pool of young entrepreneurs, professionals and administration personnel on whose technical competence the success of the broadband project will rest. This is in tune with the strategic intent of the Limpopo Province Human Resource Development strategy and it is an appropriate response to the skills set required in the modern global economy. As the focus of the country intensifies on beneficiation in agriculture and mining, unique material conditions applicable to each province will require effective, efficient and relevant programmes. Limpopo Connexion is providing a solution relevant to Limpopo. While funding remains a challenge for Limpopo Connexion, LEDA endeavours to find long-term funding and investing solutions that will propel it into a commercially sustainable company and continue to contribute to the development of the province.

Corridor Mining Resources Mining and quarrying contributes 24.8% towards total national mining production, with agriculture and manufacturing contributing 2.6% and 2.3% respectively. Limpopo currently contributes 7.2%, translating to R3.11-billion to the national income. These economic statistics are based on the primary production statistics in agriculture, mining, logistics and manufacturing. Corridor Mining Resources is a diversified mining resources company, wholly owned by the Limpopo Economic Development Agency (LEDA). CMR boasts a diverse commodity portfolio which includes but is not limited to Platinum Group Metals (PGMs), chrome, gold, magnetite and bentonite. CMR’s mandate is to promote economic development directly or indirectly through mining, create job opportunities and promote sustainable empowerment in mining. CMR has adopted an industrial diversification strategy which will see it actively involved in sidestream and downstream beneficiation.

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Risima Housing Finance To fulfil its developmental mandate of promoting home ownership among previously disadvantaged individuals, Risima Housing Finance offers 100% home loans to employees of government, municipalities and state-owned entities. Clients in the private sector can require as little as a 10% deposit. Risima has the following products and services: Affordable housing loan: The company provides affordable housing solutions for households with a combined minimum income from R8 000 per month. Additional home loans: This is a top-up loan granted to the client in addition to an existing loan, in line with the value of the property and can only be applied for 12 months after implementation of the first loan. Access bonds: All Risima Housing Finance Corporation clients who have paid their accounts in advance can apply for amount of not less than R12 500 and not exceeding 80% of that advance and which are capped at R50 000. Facilitation of home owners risk cover: Risima facilitates clients’ applications for bond and property insurance cover. Risima complies with the National Credit Act. All home loans are granted subject to the applicant’s affordability and credit status. Terms and conditions apply to all products. The availability of lending products is subject to credit policy as amended from time to time. LIMPOPO BUSINESS 2018/19


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LEDA helps SMMEs to go mainstream National, regional and local plans dovetailing to boost economic growth in Limpopo.

Business communities attending information sessions in the Capricorn District on involving SMMEs in the mainstream economy.

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he economic development landscape in Limpopo Province will soon look quite different as more investors enter the province through the Musina-Makhado Special Economic Zone (SEZ). A significant step was taken in May 2018 when representatives of the Limpopo Economic Development Agency (LEDA) signed a Memorandum of Understanding (MoU) with 10 Chinese companies. “We are delighted that the value of investment commitments in the Musina-Makhado SEZ continues to grow at an impressive rate,” LEDA CEO Ben Mphahlele said. Investments were confirmed in the four main projects planned for the SEZ: a coking plant, a power plant, an alloy factory and steel manufacturing. Mphahlele noted that the economic landscape of the people of the Vhembe District would be materially altered by the development of industry at the SEZ. He called it a “game-changer” and pointed out that the positive impact would extend beyond Limpopo to neighbouring countries such as Mozambique and Zimbabwe. The SEZ falls firmly within national policy of driving beneficiation through targeted interventions. The National Department of Trade and Industry (dti) is the lead agent in the creation of Special Economic Zones which are part of the national Industrial Policy Action Plan (IPAP). SEZs are designed to attract investment, create jobs and boost exports. Incentives available to investors 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, LIMPOPO BUSINESS 2018/19

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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. Skills transfer is another stated aim behind the SEZ programme. With the boost to the economy that the Musina-Makhado SEZ will bring, small enterprises and start-ups with potential for growth are likely to experience rapid growth. The LEDA enterprise development programme aims to stimulate growth for enterprises and has the following strategic thrusts: • advocate for allocation of more resources for skills development. Increase access to opportunities for employment of young people. Develop entrepreneurship in key economic sectors through technical and business skills programmes • facilitate policy initiatives to create an enabling environment for trade and investment promotion and implementation • create avenues for public and private sector collaboration to ensure that there is maximum co-funding of investment projects in all industrial clusters


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create an avenue for economic regional integration as envisaged by the National Development Plan and the Limpopo Development Plan.

Tubatse Special Economic Zone The Tubatse Special Economic Zone (SEZ) constitutes an important milestone in the planned Platinum and Chrome Cluster within the Dilokong Spatial Development Initiative in the Sekhukhune District, where the demand for mining input suppliers has created an opportunity for large-scale industrialisation. The Tubatse SEZ, located in the town of Steelport near Burgersfort will be a multi-sectoral SEZ that focuses on manufacturing, mineral beneficiation, green energy, mining inputs and trade and logistics. This is to support a broader-based industrialisation growth path, balanced regional industrial growth and the development of more competitive and productive regional economies with strong up and downstream links in strategic value chains. All the planning work for the SEZ has been executed including the acquisition and preparation of 1 220ha of land, in readiness for the re-application for the SEZ licence. A Strategic Environmental Impact Assessment has been completed and township establishment has commenced. The SEZ Master Plan (Development Framework) is complete with full infrastructure designs and costs in readiness for the infrastructure construction phase. Fifteen companies with a combined investment value of approximately R13-billion have committed to locate in the SEZ and this is envisaged to create 6 000 jobs. Investment opportunities fall into four main categories: Mineral beneficiation: platinum, chrome and vanadium clusters to produce refined platinum, ferrochrome and lithium and radox batteries. Mining inputs supply: manufacturing, assembling and components. Energy: fossil fuel and solar energy generation, pyrolysis plant, oil blending plant, tyre carbon black. General manufacturing: for example, chemicals, pharmaceuticals, sweet sorghum processing, ethanol and sugar, charcoal and PV modules. Further investment opportunities exist in support sectors which will be located in the commercial and residential precincts.

A high-level delegation visits factories involved in the township and rural economy revitalisation programme. From left to right, MEC Seaparo Sekoati, Minister of Trade and Industry Rob Davies and the Managing Director of Izwi Water Waste Environment, Trevor Gopo.

Industrial refurbishment to revive township and rural economies The National Department of Trade and Industry’s industrial cluster division is collaborating with LEDA to revitalise industrial factories in rural areas and townships. The stimulation of manufacturing is intended to create sustainable companies and jobs while reviving both rural and township economies. In Limpopo Province, Trade and Industry Minister Rob Davies officiated at the launch of the programme in the Seshego Industrial Park in 2016. The first phase of that project was the fencing of the industrial area to provide security. A crucial part of the revitalisation project is to secure co-funding from the provincial government. The LEDA’s Land and Property Division, whose responsibilities include the provision of leases to manufacturing businesses, has seen a slight drop in the occupancy rate across its factories province-wide. The revitalisation efforts will provide a new direction and an upward path in occupancy rates. This drive is supported by stakeholder engagement in the form of business imbizos and seminars. The goal is to find a 21st-century way forward in partnership with private enterprise and social partners. LEDA currently has industrial parks in the four districts of Capricorn, Mopani, Vhembe, Capricorn and Waterberg. These cater for manufacturing concerns, retail stores and office rentals.

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Palabora Mining Company Investing – in mining, energy saving, communities and people.

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he Palabora Mining Company (PMC) is one of Limpopo Province’s most significant investors. PMC has been mining, concentrating, smelting and refining copper and other by-products in the eastern part of the province since 1956. Two feasibility studies in 2013 and 2014 underpinned the decision to extend the life-of-mine for a further two decades. PMC’s investment into mining infrastructure brings with it major investments in the communities in which it operates and in people – who live near the mines, and the staff who work for the company.

BRICS investment A Chinese consortium acquired the mining operation in 2013 when there was a possibility that the life of the mine would be culminated and the smelter closed because it was outdated. Both of these scenarios would have led to many job losses. Soon after the sale transaction, the new owners fostered partnerships between Palabora Copper (the operating subsidiary of Palabora Mining Company) and Chinese companies in various areas such as economic development, trade, skills and technology transfers to extend the life-of-mine, refurbish the smelter and build a new floatation plant. The latter two projects were implemented in partnership with China’s Beijing General Research Institute of Mining and Metallurgy (BIGRIMM). LIMPOPO BUSINESS 2018/19

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PMC is the member of the BRICS (Brazil, Russia, India, China, South Africa) Business Council Manufacturing Working Group as it wishes to contribute to a favourable environment for growth, technology exchanges and assist South Africa in building international coop eration plat forms that embody the spirit and ethos of BRICS. PMC’s success story is one that shows that amid cultural differences within BRICS countries, challenges and growing global economic uncer tainties, cooperation by companies from BRICS countries can create a favourable environment for growth.


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Investing in mining Once the decision was made to extend the mine’s operations, large amounts of capital were committed to mining operations (R10.4-billion), construct an improved floatation plant (R261-million) and the refurbishment of the smelter (R878-million). The project to extend the mine’s life is known as Lift II and it will take mining at PMC to 2033. The project aims to make use of a large historical stockpile to create further revenue.

Investing in energy PMC runs an Energy Management Programme that has resulted in significant savings at the mining operation. In the five years to 2017, the company saved R232-million through avoided energy costs with respect to electricity, coal and liquid fuels, and water usage. The company’s investment in energy saving through 31 projects successfully implemented was rewarded with the award by Productivity SA of the 2017 Limpopo Productivity Award.

Investing in communities The decision to extend the life-of-mine has had an impact on surrounding communities and small businesses in the area. Through PMC’s enterprise development and supply chain programmes, local small business owners have been able to open or expand their operations. Over the years, PMC has invested more than R186-million in developing communities through the Palabora Foundation, PMC’s community project execution partner. Community projects include road rehabilitation and construction, and the hosting of sporting events. A 24-hour emergency health

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centre, Mar ulaM e d, w as inaugurated in April 2018. The centre caters to the Phalaborwa community which does not have a private clinic.

Investing in people Education and skills development are among the most important drivers of the Palabora Foundation’s programme. In addition, skills transfer within the staff, most of whom are drawn from local communities, is a company priority. In professional cadres and senior positions, PMC aims to have 40% representation of Historically Disadvantaged South Africans (HDSA). Also included in the plan is the employment of people with disabilities. PMC has at tained and retained the Top Employer Cer tification for three conservative years, from 2016 to 2018. The company aims to have at least 10% of the workforce representing female employees, particularly in roles that were traditionally held by male employees. PMC Chief Financial Officer Dikeledi Nakene was nominated as the most powerful woman on the continent in 2017 at the “Africa’s Most Influential Women in Business and Government Awards”. In August 2017, Dikeledi won the national and regional awards for women working in the mining industry, which earned her a nomination in the continental awards. LIMPOPO BUSINESS 2018/19


INTERVIEW INTERVIEW INTERVIEW INTERVIEW

An exciting period period An An exciting for for Limpopo Limpopo

Kgampi Bapela, IDC Limpopo Kgampi Bapela, IDC Limpopo KgampiBapela, Bapela,IDC IDCLimpopo Limpopo Kgampi Regional Manager Regional Manager RegionalManager Manager Regional

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The IDC is helping new businesses begin and established The IDC is helping new businesses businesses begin begin and and established established The IDC isishelping helping new ones expand. IDC helpingnew newbusinesses businessesbegin beginand andestablished established The is TheIDC ones expand. ones expand. onesexpand. expand. ones he Industrial Development Corporation (IDC) is a national development finance institution which promotes economic he Industrial Development Corporation is a national national develophe Industrial Development Corporation developgrowth and industrial development. Delivery of the IDC’s manheIndustrial Industrial Development Corporation national develophe Development Corporation isisisaaanational development finance institution which through promotesitseconomic economic growth ment finance institution which promotes growth date at provincial level occurs regional offices, mentfinance financeinstitution institutionwhich whichpromotes promoteseconomic economicgrowth growth ment and industrial development. Owned Owned by by the the South South African African and industrial development. located in all nine provinces. and industrial development.Owned Ownedbybythe theSouth SouthAfrican African and industrial development. government, delivery of the IDC’s products at provincial level The Limpopo IDC office is led by Kgampi Bapela, who is very upbeat government, delivery ofofthe the IDC’s products atatprovincial provincial level government,delivery deliveryof theIDC’s IDC’sproducts productsat provinciallevel government, level occurs through regional offices.prospects. “I believe Limpopo has the occurs through regional offices. about the province’s economic occurs occursthrough throughregional regionaloffices. offices. The Limpopo IDC office is is led led by by Kgampi Kgampi Bapela, who isvery very upbeat The Limpopo IDC office Bapela, who upbeat potential to be the business centre of South Africa,” heisistold Limpopo The IDC office Bapela, who upbeat TheLimpopo Limpopo IDC officeisisled ledbybyKgampi Kgampi Bapela, who isvery very upbeat about the province’s economic prospects. “I believe believeLimpopo Limpopo isgoing going about the province’s economic prospects. “I is Business. He says that there are plenty of opportunities in the agricultural about aboutthe theprovince’s province’seconomic economicprospects. prospects.“I “Ibelieve believeLimpopo Limpopoisisgoing going to be the centre of South Africa,” he told Limpopo Business. Business. He says says to be the centre of South Africa,” he told Limpopo He and mining sectors and a great deal can be achieved by “unlocking all totobe bethe thecentre centreofofSouth SouthAfrica,” Africa,”hehetold toldLimpopo LimpopoBusiness. Business.He Hesays says that there is much that still needs to be done in the agricultural and the untapped tourism prospects”. that there much that still needs totobe be done ininthe the agricultural and that thatthere thereisisismuch muchthat thatstill stillneeds needsto bedone donein theagricultural agriculturaland and mining sectors and a great great deal canbe beachieved achieved by“unlocking “unlocking all the mining sectors and deal can by all the The sectors regional office acts deal as a can funder and advisor for start-upall busimining by mining sectorsand andaaagreat great deal canbe beachieved achieved by“unlocking “unlocking allthe the untapped tourism possibilities”. nesses, helps established businesses expand, and advances community untapped tourism possibilities”. untapped tourism possibilities”. The regional office and advisor for start-up busiacts asasaanot funder and advisor for start-up busiprojects. The IDC’s activities are only and centred in urban areas, but the The office acts for busiTheregional regional office actsas afunder funder andadvisor advisor forstart-up start-up businesses, helps established expand, and advances combusinesses expand, and advances comcorporation actively promotes investments in ruraland andadvances township nesses,helps helps established businesses expand, and advancesareas. comnesses, established businesses expand, community projects. The promotes investments in rural and IDC actively promotes investments in rural and Funding can be structured through a wide range of instruments munity projects. The IDC promotes investments in munity projects. The IDCactively actively promotes investments inrural ruraland and township areas. Funding structured through a wide range of can be structured through a wide range of including debt, equity and bridging finance. Bapela makes the point areas.Funding Fundingcan canbe bestructured structuredthrough througha awide widerange rangeof of township townshipareas. instruments including debt, equity and bridging finance. Bapela makes that, “In slowincluding growth times banks to shy away fromBapela funding, the bridging finance. Bapela makes instruments debt, and finance. makes instruments including debt,equity equitytend andbridging bridging finance. Bapela makes the point that, “In banks tend to be shy in lendslow growth times banks tend to be shy in lendIDC on thethat, other hand plays a counter-cyclic role and onin the risk the slow growth times tend to be thepoint point that,“In “In slow growth timesbanks banks tend totakes beshy shy inlendlending sosothe the IDC tries more risk and assisting more.” totoassist assist by taking more risk and assisting more.” to extend during such and assist entrepreneurs.” ing so IDC to by taking risk ing thefunding IDCtries tries assist byperiods takingmore more riskand andassisting assistingmore.” more.” Funders must have see through down-cycles. As the patience toto see through down-cycles. As Funders to see businesses through downFunders must have the patience to see through As Fundersmust musthave havethe thepatience patience see throughdown-cycles. down-cycles. As Bapela notes, “Even prices are down mining activiwhen commodity prices are down mining activicycle periods. As Bapela notes, “Even when commodity prices are down, Bapela Bapelanotes, notes,“Even “Evenwhen whencommodity commodityprices pricesare aredown downmining miningactiviactivimining activities are stillBy happening. By the timeisisisis the project isthe running ties are still happening. By the time the project completed the cycle project completed the cycle ties completed tiesare arestill stillhappening. happening. Bythe thetime timethe theproject project completed thecycle cycle might have turned.” the cycle might have turned.” might mighthave haveturned.” turned.” Although tourism affected by tough times, Bapela has also been affected by tough times, Bapela Although has also been affected by tough times, Bapela sees Although tourism has also been affected by times, Bapela Althoughtourism tourism has also been affected bytough tough times, Bapela ofoftourism tourism emerging, where people might visit one different kind emerging, where people might visit one asees different kindkind of tourism emerging, where people might visitvisit one of sees aaadifferent of emerging, where people might one sees different kind tourism emerging, where people might visit one 53 reserves or a private game reserve the provincial government’s 53 reserves or a private game reserve for of the provincial government’s reserves or a private game reserve of the provincial government’s 53 reserves or a private game reserve of the provincial government’s 53 reserves or a private game reserve afor day outing instead of going on long trips. Limpopo’s location gives day outing instead ofofgoing going on long trips. Limpopo’s location long trips. Limpopo’s location for aaaday instead of on location for dayouting outing instead going onlong longtrips. trips.Limpopo’s Limpopo’s location

TT

Capricorn FM isisone one of the IDC’s funding success stories. Capricorn FM is one of the IDC’s funding success stories. Capricorn FM is one ofofthe the IDC’s funding success stories. FMis oneof theIDC’s IDC’sfunding fundingsuccess successstories. stories. Capricorn CapricornFM

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INTERVIEW INTERVIEW INTERVIEW targets. Says Bapela, “We pro-

The IDC helped helped fund fund the the new new Park ParkInn Innby byRadisson RadissonPolokwane Polokwane and is supporting supporting other other tourism tourismprojects projectsininMagoebaskloof Magoebaskloofand and The IDC helped fund the new Park Inn by Radisson Polokwane Thohoyandou. Thohoyandou. and is supporting other tourism projects in Magoebaskloof and it an edge when travellers head for neighbouring countries such as Thohoyandou.

gives it an or edge when travellers head for neighbouring countries such Botswana Zimbabwe. as Botswana or Zimbabwe. gives it an edge when travellers head for neighbouring countries such Key sectors in Limpopo as Botswana or Zimbabwe. Sectors Key sectors in Limpopo are mining, agriculture, agro-processing and Key sectors Limpopo areencourages mining, agriculture, agri-processing and tourtourism. TheinIDC actively expansion of existing operations Sectors ism. funds The IDC actively encourages expansion of existing operations and and new businesses in these sectors. Key sectors in Limpopo are mining, agriculture, agri-processing and tourprovides funders for new businesses run by local people.operations TheThe vast resources of the Limpopo Province include the ism. IDCmineral actively encourages expansion of existing and The coal vast reserve mineral in resources of theBapela, Limpopo Province include the largest Africa. Notes “Currently provides funders for new businesses run by local people.Limpopo has largest reserve Africa. Limpopo has around 70 operating mines andNotes there are over“Currently 90 Province more that are in the Thecoal vast mineralin resources of theBapela, Limpopo include the pipeline. One mine typically creates between 300 1 000 jobs. around operating mines andNotes there are over 90and that areLimpopo in theOther pipelargest 70 coal reserve in Africa. Bapela, “Currently has line. One70 mine createsmines between 300 and 1 000 mine economic opportunities generally arise once the mine is operational around operating and there are over 90jobs. that Once are in the the pipeand establishments suchbetween as and all all other is operating it may result inshopping a shopping centre and theassociated associated line. One mine creates 300 centres and 1 000 jobs. Once the mine thatwill will berendered rendered.” services that be turn create further joballopportunities.” is operating it may result in ainshopping centre and the associated In agriculture and agri-processing, the IDC is very active. “There The IDC is very active in agriculture and agro-processing. “Thereis services that will be rendered.” potential to to add value to agricultural products inisLimpopo,” says“There Bapela, is potential add value to agricultural products in Limpopo, instead In agriculture and agri-processing, the IDC very active. is of sending them to central buying areas outside the province,” says “instead of sending them to central buying areas outside the province.” potential to add value to agricultural products in Limpopo,” says Bapela, Bapela. Fully 66% ofAfrica’s South Africa’s mangoes, 75%nation’s of the nation’s tomaFully 66% ofsending South mangoes, 75% ofareas the tomatoes and “instead of them to central buying outside the province.” toes and 42% of its citrus comes from Limpopo. Two new blueberry 42% of its citrus comes from Limpopo. Two new blueberry farms in Fully 66% of South Africa’s mangoes, 75% of the nation’s tomatoes and farms in Tzaneen area have the backing of the IDC. This hasfarms added the Tzaneen area have the backing of theTwo IDC, which has thus added 42% of the its citrus comes from Limpopo. new blueberry in another fruit the province’s already basket choice. fruit to to thehave province’s already impressive basket choice. the Tzaneen area the backing ofimpressive the IDC, which hasofofthus added An area that holds potential for areafruit thattoprobably probably holdsthe thegreatest greatest potential forthe the greatest another the province’s already impressive basket of province choice. is tourism. Bapela isBapela alive toholds possibilities. “Tourism the other returns is tourism. isthe alive togreatest the possibilities. “Tourism isbig the An area that probably the potentialisfor the greatest opportunity. Most people don’t know that 70% of the Kruger National other big opportunity. Most people don’t know that 70% of the Kruger returns is tourism. Bapela is alive to the possibilities. “Tourism is the Park is in Limpopo. We need toneed do more marketing this build National Park is in Limpopo. to doinmore in marketing. WeKruger need other big opportunity. MostWe people don’t know that 70% ofand the more accommodation options in our and placesand of interest. toNational build up more options in our places of Park is inaccommodation Limpopo. We need totowns do more intowns marketing. We need We can start building tourism activities around Mapungubwe Worldof interest. At World Heritage Site we can start building to build upMapungubwe more accommodation options in our towns and places Heritage Site.” tourism around that. interest.activities At Mapungubwe World Heritage Site we can start building Other sectors by the Other activities sectors funded funded bythat. theIDC IDCinclude includeautomotive automotiveand andtransport; transport, tourism around basicOther metals; basic and chemicals; chemical and basic metals, basic and speciality speciality chemicals, chemicalproducts products and sectors funded by the IDC include automotive and transport, pharmaceuticals; clothing and textiles; heavy manufacturing; industrial pharmaceutical, clothing and textiles, heavy manufacturing, industrial basic metals, basic and speciality chemicals, chemical products and infrastructure; light manufacturing; machinery and infrastructure, light manufacturing, machinery andcapital capitalequipment, equipment, pharmaceutical, clothing and textiles, heavy manufacturing, industrial media and visuals. media and audio motion pictures. infrastructure, light manufacturing, machinery and capital equipment, A particular focus forthe theIDC IDCnationally is support forinyouth and iswomenA particular focuspictures. for and Limpopo support media and motion owned businesses. Youth Scheme was launched about for youth and women-owned businesses. Aand national IDC scheme was A particular focusThe for Gro-E the IDC nationally in Limpopo is support three years ago where R4.5-billion was specifically targeted at funding launched years ago through whichAR4.5-billion targeted for youth three and women-owned businesses. national IDCwas scheme was youth-owned businesses. This is still core to performance Says launched at three years ago through which was targeted specifically youth-owned businesses. This isR4.5-billion still core to targets. performance Bapela, “We atprovide pre-investment support to those are not specifically youth-owned businesses. This is still core towho performance

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vide pre-investment support to ready and compulsory posttargets. Says Bapela, “We prothose who are not ready and investment support support for everyto vide pre-investment compulsory post-investment youth-owned business that we those who are not ready and support for every youth-owned are funding. compulsory post-investment business that werealistic. are funding. “We are We support for very every youth-owned “We areapplicants very realistic. We know that are not business that we are funding. know that going applicants are not necessarily to be mine “We are very realistic. We necessarily going be mine owners, butapplicants they to could know that are be not owners, they could be supplysupplying services to necessarily going to bethese mine ing services.” It isYouth in that context mines.” The Gro-E owners, they could beScheme supplythat successful applicants get affords qualifying applicants ing services.” It is in that context accesstoto concessionary rates access concessionary rates – that successful applicants get – on average, prime three on average, prime less less 3%. rates access to concessionary percent. Oneaverage, of the first youth – on prime lesstransthree One of the first youth transactions percent. that was approved actions that was approved by the from transtheby One IDC of thecame first youth the IDC that came from Limpopo. Limpopo province. This was actions was approved by This was for two young who engifor thetwo IDCyoung came engineers from Limpopo. neerswas who the field of entered the field providing This forentered twoofyoung engihot asphalt usedasphalt in the roadused con-of providing in neers who hot entered field road construction. Other initiastruction. Other initiatives from providing hot asphalt used in young entrepreneurs include tives from young entrepreneurs road construction. Other initiainclude an innovative mining an innovative mining lab and tives from young entrepreneurs lab and the creation of new prothe creation of new processing include an innovative mining cessing andcreation marketing outlets and marketing outlets their lab and the of for new proproducts by amarketing groupbyof asweet for theirand products group cessing outlets piquant farmers. of sweet piquant chilli for theirchilli products by afarmers. group remembers Bapelapiquant remembers thechilli chilli ofBapela sweet chillithe farmers. project fondly. “These project fondly. “TheseyoungyoungBapela remembers the chilli sters an and sterssaw sawfondly. an opportunity opportunity. They project “These younggathered all the farmers in their gathered all the farmers and sters saw an opportunity. They area their crops saidand we bought will your crop and gathered alltake theall farmers and and a acontract with theysigned signed contract with said we will take your crop and another processor. We another processor. Wehelped helped they signed a contract with them their we thembuild build theircase case and we another processor. Weand helped funded them to the tune funded them for R12-million. them build their case and of we R12-million. During peak During peak season theyseaemfunded them for R12-million. son they employ more ploy more than 200 people.” During peak season theythan em200 people.” sort of 200 success story ployThis more than people.” This ofofsuccess is what keeps Bapela going. Thissort sort successstory story is“Driving around seeinggoing. smoke iswhat whatkeeps keepsBapela Bapela going. “Driving smoke comingaround out ofseeing the chimneys “Driving around seeing smoke coming out chimneys in factories and seeing some coming outof ofthe the chimneys inin factories and some beautiful and knowing factorieshotel andseeing seeing some beautiful and that I hadhotel a hand in knowing itknowing – that is beautiful hotel and that I had a hand in itit––that that I had a hand in thatisis the motivator.” the themotivator.” motivator.” LIMPOPO BUSINESS 2018/19 LIMPOPO LIMPOPOBUSINESS BUSINESS2018/19 2018/19


SPECIAL FEATURE

Tourism in Limpopo Increasing visitor numbers are driving investment into tourism infrastructure.

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he provincial capital has a new hotel. Resorts and lodges in the Lowveld are being upgraded. Limpopo has hosted its first international cycling race. And 2.7-million more domestic tourists chose the province in 2016 compared to the year before. Limpopo in 2016/17 attracted 405 734 visitors to the province, generating an amount of R1.8-billion for the provincial economy. According to the Limpopo Premier’s office, the tourism sector employs about 22 414 people. A new event on Limpopo’s calendar caused great excitement in 2018 with the first riding of the Tour de Limpopo, a four-day UCI Africa Tour 2.2 stage race which started and finished in Polokwane, with a stopover in Tzaneen. A range of sponsors enthusiastically endorsed the race, presented by the Limpopo Tourism Agency (LTA) and Cycling South Africa. Hotel@Tzaneen and Europcar South Africa were sponsors and race officials were provided with cars by Audi Centre Polokwane. All the riders were given backpacks by SA Sport and Cargo and ZZ2 saw to the beverages they needed to keep going up and down the hilly route to the finish line. Another kind of cycle race is the regular Kremetart Cycle Race, a popular family event that draws huge numbers of entries. Limpopo had its own winner in tourism when Besty Travel was awarded the national Lilizela Award in the Emerging Tourism Entrepreneur of the Year Awards. The Limpopo Tourism Agency targets the Lilizela Awards to mentor and support emerging entrepreneurs in the tourism sector. Swadini, a Forever Resort, won in the Camping and Caravan category in 2017. Regular events are holding their own as well: the annual Limpopo Marula Festival in Phalaborwa attracts more than 20 000 participants and is estimated to inject upwards of R45-million into the provincial economy. Several neighbouring countries are well represented in the attendees and 13 co-operatives operating under the Mukumbi Industries brand LIMPOPO BUSINESS 2018/19

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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 LTA also back s the Mapungubwe Festival, which 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. Other popular events include I-Rock, Balobedu Get Together Festival and the BCX Supersport Shootout. Motorcyclists play their part too; the Sapa Yopa Motor Cycling Association, due to celebrate its 10th rally in 2018, does its bit for the provincial economy. The tourist authority has six focus areas: • Golf and game • Hunting and safari • Family and recreation • Special interest • Mega-conservation • Meetings, Incentives, Conferences and Events (MICE).

Hotels and casinos The 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.


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SPECIAL FEATURE The Protea Hotel group has two 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 Polokwane Ranch Resort where guests can walk with lions. The hotel is on a 1 000-hectare nature conservancy and specialises in catering for weddings. In Mokopane near the Waterberg mountains, the family-run The Park Hotel Mokopane 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. There are 237 limited-pay-out gambling machines in the province, and licences of one sort or another generate more than R50-million for the provincial government.

Varied assets Limpopo Province has varied tourism assets that include the bare bushveld of the north, misty mountains in the central highlands, hot springs, a unique cycad forest, excellent golf courses, 70% of the Kruger National Park and numerous luxury private game reserves. Kruger, Mapungubwe and Marakele are all national parks and they are run by South African National Parks (SANParks). There are a further 53 provincial nature reserves managed by Limpopo 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 combined land area of Limpopo’s national, provincial and private game and nature reserves is 3.6-million hectares. LIMPOPO BUSINESS 2018/19

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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)

A new drive to promote home-stays is underway in the northern part of the province. 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 of the mainstream economy. 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. 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 Limpopo Tourism Agency is pursuing a multinational tourism strategy, with the Limpopo-Zambezi brand initiative one example of new approaches to marketing the province.


INTERVIEW

From golf to culture, Limpopo has it all Nomasonto Ndlovu, the CEO of the Limpopo Tourism Agency, outlines the strategic thinking behind growing tourist numbers to South Africa’s northernmost province. What is the mandate of the Limpopo Tourism Agency?

Nomasonto Ndlovu

The core mandate is destination marketing, which includes increasing tourist arrivals, with an emphasis on domestic tourism. We provide strategic market intelligence and tourism information as well as market access support to tourism entrepreneurs. We focus on our seven strategic experience clusters, namely mega conservation, golf and game, special interest, family and recreation, hunting and safari, business as well as culture and heritage. How are the agency’s goals aligned with the Limpopo Development Plan? The Limpopo Development Plan has identified tourism as one of the key pillars of the province’s economic growth. Through our marketing initiatives, we want to create much-needed jobs. Do you have particular priorities for the year ahead?

BIOGRAPHY Nomasonto Ndlovu has wide experience in brand marketing, communications and events in the private and public sector. She worked as Strategic Executive Director for the City of Tshwane before taking senior marketing positions in fields as varied as banking (Standard Bank) and fast-moving consumer goods (Unilever in South Africa and Kenya). In 2005 she joined KwaZuluNatal’s tourism board and then worked as the global manager of business tourism at South African Tourism.

We are focussing on domestic and SADC markets. We want to gain a better understanding of the travellers visiting friends and family, as we have the lion’s share of this market. We want to convert them into holiday-makers that contribute to increased spend in the hospitality sector through inspiring and affordable packages. We have specific initiatives that aim to raise brand awareness and destination profile in SADC markets. We will build on our recently launched Tour de Limpopo cycle race, which is aimed at showcasing the areas of Makgoebaskloof, Modjadjiskloof and Tzaneen in the Mopani region. We want to educate tour operators in other provinces of our product offerings and experiences. Are you planning to focus on a type of tourism? One of the differentiating factors about Limpopo is our people and diversity of our cultures – only in Limpopo will you encounter the Tshivenda, Sepedi and Xitsonga cultures. The other niche is business events (MICE). Limpopo has unique venues nestled in the bush, with varied capacity. How important are the Mapungubwe and Marula festivals? These two events remain very strategic for LTA. We are committed to assisting in building these properties into household events that attract not only locals, but national and SADC visitors.

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LIMPOPO BUSINESS 2018/19


FOCUS

Destination Limpopo More to Enjoy

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impopo offers a mosaic of exceptional scenic landscape, a fascinating cultural heritage, an abundance of wildlife species and many nature-based tourism opportunities. Limpopo is the land of myths, legends, beautiful scenery and landscape, as well as majestic baobab trees. The province consists of living cultures, ancient places, nature reserves and national parks, trees, things to do and things to experience but all of them will leave the visitor with a greater insight into what makes the Limpopo the Great North. Limpopo borders Botswana, Zimbabwe and Mozambique. It is a prime wildlife destination with a host of game and nature reserves. The climate in the Limpopo Province is quite hot since the area is bisected by the Tropic of Capricorn. Visitors will find that they can enjoy long sunny days and dry weather on most days. There is spectacular game viewing and birding in the province, as well as a mix of African cultures, intriguing folklore and legend and prehistoric treasures. It is home to the Mapungubwe World Heritage Site, as well as Modjadji, the fabled Rain Queen, and LIMPOPO BUSINESS 2018/19

the age-old relics of the Makapansgat Valley. It is here that the Venda artists live and thrive, and where places like Lake Fundudzi and the Vondo Forest are considered to be sacred. The birding at Nylsvley RAMSAR Wetland is a magnet for nature-lovers and many golf enthusiasts have the extreme 19th hole at Legend Golf and Safari Resort on their bucket list. The province is endowed with bountiful natural resources, including 54 provincial reserves and many private game reserves. The city of Polokwane is at the heart of the province – a growing urban hub with its sights set on the future, yet with a heart and soul steeped in traditional values. Limpopo is a fascinating province and conference delegates or visitors will enjoy the wild beauty of the area combined with incredible cultural insights and numerous adventure attractions that will keep them coming back for more. Limpopo Tourism Agency is charged with the responsibility of marketing the province as the leading tourism destination in Southern Africa with “More to Enjoy�.

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SPECIAL FEATURE

Limpopo is a heavy lifter in transport and logistics A strategically placed Special Economic Zone is set to further enhance the province’s profile in road and rail.

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ogistics is a vital feature of the Limpopo economy for two reasons – the province has huge volumes of minerals and horticultural products to be transported to markets elsewhere and the province is strategically positioned. In addition to the N1 highway leading north to Zimbabwe, 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. The building of the Musina-Makhado Special Economic Zone (SEZ) will further boost Limpopo’s importance as a transport and logistics hub. Evidence of this focus comes in the form of the Musina Intermodal Terminal, which was officially opened in June 2017 by National Trade and Industry Minister Rob Davies. Located about 15km from the busy Beit Bridge border crossing, the terminal will boost efforts to move cargo from road to rail, serviced as it is by a railway link. Warehousing facilities on site make for loading efficiencies in the main cargoes such as chrome, fertiliser, coal, fuel and citrus. Bulk and containerised cargo will be handled, with an annual capacity of three-million tons per annum. 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. LIMPOPO BUSINESS 2018/19

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It has been successfully focussed on tackling a backlog of infrastructure maintenance but it has also created partnerships with the national roads agency and private companies to deliver roads. The South African National Roads Agency Limited (SANRAL) is involved in two major road projects in support of the MusinaMakhado SEZ. The N1 is to be re-routed and a new single carriageway created in the Musina CBD. A bypass into ZCC Moria, the site of huge gatherings every Easter, has been completed. Elsewhere, the RAL is working with Implats to build 17km of road near the company’s Marula mine. Polokwane is the site of major investments in transport infrastructure. SANRAL is building a


SPECIAL FEATURE

R640-million ring road and a bus rapid transport system is being introduced to the provincial capital. 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). Outside of Polokwane, the towns of Tzaneen, Lephalale, Burgersfort and Musina (a border post with Zimbabwe) are all important in the field of logistics. Great North Transport falls under the Limpopo Economic Development Agency. The company has more than 500 buses, covers about 36-million kilometres every year on 279 routes, employs more than 1 200 people and transports 37.6-million passengers. 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 Transnet Freight Rail (TFR) and taken onward to Richards Bay Coal Terminal, whereas some of the province’s fruits like avocadoes must be handled with extreme care. They must be delivered to ports as quickly as possible as they are delicate and the 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.

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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 bet ween Phalabor wa 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. Eastgate Airport at Hoedspruit is close to the Orpen Gate. Phalaborwa’s airport is notable for its Africanthemed terminal which includes a zebra-patterned floor. Musina, near the border with Zimbabwe in the north, hosts the province’s other regional airport. LIMPOPO BUSINESS 2018/19


INTERVIEW

Delivering road infrastructure to boost economic development Maselaganye Matji, the Chief Executive Officer of Roads Agency Limpopo, explains how partnerships with the private sector are breaking the back of the province’s road backlog.

Mr Maselaganye Matji

Roads Agency Limpopo

Together for better roads

What is the mandate of the Roads Agency Limpopo (RAL)? RAL is mandated to manage, control, plan, develop and maintain the provincial road network on behalf of the Limpopo Provincial Government. RAL is the implementing agent of the Limpopo Provincial Government, under the auspices of the Limpopo Department of Public Works, Roads and Infrastructure. What is the vision and mission of RAL? Vision: To contribute to the socio-economic development by connecting the people of Limpopo Province. Mission: To provide a quality and sustainable road infrastructure network for the economic development of Limpopo Province. What are the core values of RAL?

BIOGRAPHY Maselaganye Matji was appointed as the Chief Executive Officer of Roads Agency Limpopo in March 2015, on a five-year contract. He is tasked with leading a team of talented professionals in implementing the now successful turnaround strategy. Matji is a qualified hydrologist and construction project manager with 27 years of experience spanning both the public and private sectors. He has published several peerreviewed papers, journal articles and a chapter on infrastructure. LIMPOPO BUSINESS 2018/19

We are guided by the following corporate values: • Commitment: We are committed to serving the province with pride. • Reliability: We offer reliable, safe and economic road infrastructure. • Efficiency: We will go an extra mile in serving our communities. • Accountability: We remain accountable to all our stakeholders. • Transparency: We are transparent in both our internal and external business processes. • Excellence: We exceed expectations. • Teamwork: Together for better roads. • Diversity: We value and embrace diversity within the work context. Is the RAL aligned with the Limpopo Development Plan (LDP) 2020? The Premier of Limpopo, the Honourable Chupu Stanley Mathabatha, in his 2018 State of the Province Address, said road infrastructure

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INTERVIEW

roll-out and procurement strategy will be key to stimulating Limpopo economic growth. RAL is not only a quality road infrastructure delivery parastatal, but an economic driver as well. Limpopo Development Plan 2020, a provincial version of the National Development Plan (NDP), draws linkages between road infrastructure and key sectors of the Limpopo economy such as mining, agriculture and tourism. RAL has already set the benchmark with regard to procurement as it continues to create jobs and support SMMEs. The agency has ringfenced 30% of its construction costs for SMMEs in communities where its projects are implemented. Do partnerships with the private sector form part of the strategy for RAL? The current management and board of directors believe partnerships with the private sector are the future. Government budgets are constrained. To put it in context, RAL has been allocated R988.9 million for operational costs, upgrading and maintenance of roads during the 2018/19 financial year. However, at current estimates, it needs R160 billion to upgrade and maintain the entire road network of about 19 997 kilometres in this sparse rural province. Approximately 6 179km of the road network is tarred. The balance of 13 818km is gravel. The total kilometres upgraded from gravel to tar in the period 2015 to 2017 is 168km. The biggest backlog is oddly experienced in mining districts, such as in the Sekhukhune District Municipality. It was in this context that in 2015, RAL adopted a strategic partnership approach as part of the successful turnaround strategy for the agency. The agency has recently surpassed the half-a-billion-rand (R500 million) milestone with the funds raised in the four years since the appointment of the board led by Mr Matome Ralebipi and Chief Executive Officer Mr Maselaganye Matji. Most of the funds were raised from the mining industry, followed by the agricultural sector. The

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agency is hoping to lobby the tourism sector and intensify the participation of the agricultural sector. These three industries are the key contributors to the provincial Gross Domestic Product. This has resulted in a serious dent in the battle against the road infrastructure backlog that has been the bane of the province. Resources are rechannelled to areas that need such infrastructure the most. This approach has enabled the agency to deliver road infrastructure in areas as such Muyexe in the Mopane District, one of the poorest villages in the country. What are some of the projects that RAL is involved in? RAL’s partnership with our national counterpart, South African Roads Agency Limited (SANRAL), is starting to bear fruit, particularly since 2014. Not only has SANRAL made tangible road infrastructure investments in Limpopo, but the transfer of some sections of regional roads to SANRAL has enabled RAL to increase its turnover of projects. LIMPOPO BUSINESS 2018/19


INTERVIEW In this financial year, RAL will commence eight new projects, on top of nine multi-year projects. Some of the road projects to be completed this year include the road between Koedoeskop and Dwaalboom (Waterberg District Municipality), Ga-Seleka roads connecting 13 villages to Lephalale (Exxaro Resources and RAL), upgrading from gravel to tarred roads in several locations and the rehabilitation of the R555 to Tukakgomo village in Tubatse Fetakgomo Municipality, in partnership with Tubatse Chrome (Samancor). What are your priorities for the short term? To avoid the one-step forward two-steps backward syndrome. As RAL intensifies its battle against backlog, RAL will: • widen the net on private-sector partnerships. Mines that are returning for second partnerships since 2015 are increasing their contributions, a vote of confidence in the way the agency conducts business. • engage with technology solution-oriented consulting companies to explore ways of delivering affordable but superior quality roads. • focus on the preservation strategy by channelling available resources to maintenance of existing road network while upgrading roads in economically strategic areas. Does RAL support small, medium and micro enterprises (SMMEs), women, youth and people living with disabilities? In all its upgrading projects, RAL has set aside 30% for SMME development, and 10% of contract value is ringfenced for the empowerment of local labourers. We use the roads we build as vehicles for growing the economy in the villages where we implement projects. The main contractors are required to subcontract 30% of contract value to local SMMEs and spend 10% of contract value to employ local labourers. In the period 2015 to 2017, a total of more than R460 million was spent on SMMEs. The total number of job opportunities created in the period 2015 to 2017 is about 3 833. In the period 2015 to 2017, the total amount spent on local labour is about R76.7 million. This is a clear indication that our road infrastructure delivery programmes are designed to drive village economies. Government recognises that people living with disabilities, women and the youth are the most vulnerable groupings economically, and preference is always given to them in our programmes.

“A SERIOUS DENT IN THE BATTLE AGAINST THE ROAD INFRASTRUCTURE BACKLOG”

LIMPOPO BUSINESS 2018/19

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In the period 2015 to 2017, RAL has equipped a total of 1 033 locals with accredited training, 60% of whom are young people and women. RAL has for many years supported a considerable number of students pursuing studies in civil engineering with bursaries and internships. Can local communities become involved in road maintenance? There are two types of road maintenance, routine road maintenance (RRM) and preventative maintenance, which includes rehabilitation, ie resurfacing. RRM is an ongoing dayto-day upkeep of the road network, and it includes patching of potholes, grass cutting, repairing damaged guard rails, fixing road signs, clearing storm-water culverts, removing stray animals, and clearing the road after accidents. RRM is the best way for communities to get involved in road maintenance. Some RRM contracts can be awarded to specialised big firms but they are still required to further subcontract to local SMMEs and to hire local labourers. Once local SMMEs are empowered in this manner, they can bid for future contracts on their own. Several companies with lower Construction Industry Development Board gradings have benefit ted from maintenance jobs awarded by RAL.


FOCUS

Celebrating Nelson Mandela 100: Creating Legacies Towards WorldClass Public Transport Leeto la Polokwane increases momentum for faster, more inclusive growth that heralds an economic transformation in a sustainable way. By Musa Ndlangamandla

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s South Africa gears itself to be the next big emerging market story of 2018 (according to Goldman Sachs), the public transport sector is at the heart of reigniting economic growth and investment to ensure sustainable livelihoods. A new study of transport systems in 35 major cities around the world has revealed that an efficient public transport network can provide these cities with an economic value of up to R3-trillion ($238-billion) annually by 2030. The best transportation systems are those in cities that can move people quickly, efficiently and comfortably to their destination. This is according to London-based consulting firm Credo, which conducted The Mobility Opportunity study. Like other leading cities, the City of Polokwane is already achiev-

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ing this with the roll-out of an Integrated Rapid Public Transportation System (IRPTS) that features modern infrastructure, easy connections across various modes of transportation, and, above all, a clear strategy of how to meet future needs. E xecutive Mayor of Polokwane Councillor Thembisile Nkadimeng, above, asserts that an efficient and cost-effective LIMPOPO BUSINESS 2018/19


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public transport system not only connects people to daily life but also spurs socio-economic development, sustainable job creation and improved access to markets. The City of Polokwane was chosen by the government, through the National Department of Transport (NDoT) to be among 13 cities in South Africa to introduce the Integrated Rapid Public Transport Network (IRPTN). For Polokwane the vision has found expression in the multi-modal transport service aptly called “Leeto la Polokwane” – It is Our Journey. The project is implemented in phases with Phase 1 covering the Central Business District and Seshego corridor. The project has resulted in the construction of a trunk route of seven kilometres and the upgrading of 27 kilometres of road infrastructure. The majority of road infrastructure has been constructed, including the following: • 5.2km of trunk lanes completed • 12.6km of trunk extensions completed • 29.4km of feeder routes completed • 56 feeder stops completed • 20.5km of non-motorised transport (NMT) lanes completed and • construction of the Control Centre has been completed. LIMPOPO BUSINESS 2018/19

Leeto la Polokwane is characterised by dedicated bus lanes, modern buses, smartcard payment systems, modern bus stations that are safe and comfortable, and a control centre to speed up public transport and give passengers a better quality of service.

“We are well on track towards our Go-Live targets. We have set our sights on delivering the high-quality public transportation infrastructure that the City of Polokwane, and indeed the greater Limpopo Province, needs to build and sustain a more productive economy. The progress that has been made so far in the implementation of Leeto la Polokwane is testimony to this,” says Executive Mayor Nkadimeng. “We will ensure that the people of Polokwane benefit fully from this project, through job opportunities, skills transfers and meaningful participation through stakeholder engagement.”

Honouring Nelson Mandela and Albertina Sisulu Executive Mayor Nkadimeng adds that Leeto la Polokwane was one with South Africa in honouring the Nelson Mandela and Albertina Sisulu Centenary.

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FOCUS “The central theme for this year is to celebrate these great leaders and keep their legacies alive by making an individual and collective contribution towards the attainment of a South Africa where everyone has equal opportunities for self-determination. As Leeto la Polokwane we note and acknowledge the cooperation and support of the people we serve. Such partnerships and dedication to a better South Africa continue to ensure that the project remains on course for Go-Live. These achievements are also a testament to the hard work and dedication that the City has tackled this project with,” she says.

Interaction with taxi and bus owners Since inception of the project in 2012, the municipality has ensured proper and active stakeholder engagement. The taxi and bus industry is among the key stakeholders which fully participate in and benefit from the total value chain and wealth creation of the transportation industry.

“An MOU has been signed between the municipality and the four Taxi Associations involved in Phase 1A of the project. Working with the University of Limpopo’s Turfloop Graduate School of Leadership (TGSL), we have ongoing training sessions to equip the owner members on the Taxi Industry Capacitation Programme with modern business and operational skills in order to create the space and capacity to ensure a successful integrated transport system for our city and value-add for the entire industry,” Executive Mayor Nkadimeng says. Last year, the TGSL programme successfully offered professional business development training to approximately 100 taxi owners across Flora Park-Pietersburg, Moletjie, Seshego-Polokwane and Westernburg Taxi Associations in Polokwane. Participants received a Professional Certificate in Business Management Skills for the Public Transport Sector upon completion. The programme comprises four modules, namely: Introduction to General Management; SA Companies Act and Corporate Governance; Communication, Problem-solving and Negotiation Skills; and Introduction to Public Transport Management. “We have also seen the signing-off of the Great North Transport (GNT) Market Survey Results in December 2017, as an important milestone which presents the

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municipality with a clear picture of the market share of GNT, a significant partner in the Leeto la Polokwane project. I want to emphasise that the GNT is an important stakeholder with a wealth of experience, knowledge and vested interest in the success of the project. This achievement also serves as a resource for understanding the value, amount and number of those affected in Phases 1 and 2 of the project,” she says. Through great effort and hard work by the project team, coupled with cooperation and unity of purpose with key stakeholders, the following milestones have been achieved, among others: • Establishment of the Transpor tation Directorate and appointment of a substantive Director of Transport Services to drive strategy and implementation • Significant road infrastructure network upgrades were completed • Full Non-Motorised Transportation (NMT)

GREAT NORTH TRANSPORT IS AN IMPORTANT STAKEHOLDER WITH A WEALTH OF EXPERIENCE, KNOWLEDGE AND VESTED INTEREST IN THE SUCCESS OF THE PROJECT LIMPOPO BUSINESS 2018/19

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FOCUS Planning and supporting by-laws/policies, awareness programmes, integration with donor-funded NDPG and MIG projects in terms of specifications • Signing of MOA with industry regarding sitting allowances • Signing of MOA with Great North Transport • Completion of Market Surveys for GNT and taxi industry • System naming • The utilisation of council land instead of acquisition of private land • The same design standards are being used across all grants in the municipality, eg same NMT on Public Transport Network Grant (PTNG); and employment of over 180 workers a month through the Expanded Public Works Programme (EPWP). Meanwhile, Executive Mayor Nkadimeng adds that the systems and processes to deliver a world-class project were also put in place. “For example, the tender process for the procurement of buses has been finalised, and the bids have been closed. The appointment of a supplier is imminent. The organisation initiated a transparent and competitive bid process with the support from technical advisors,” she says. Another component is the Public Transport Management System (PTMS) whose primary aim is to improve the movement of public transport vehicles and increase the comfort of their passengers around the controlled urban network. PTMS provides the means of dynamically monitoring the location and status of Public Transport Vehicles to determine performance according to prescribed route schedules and to identify any operational problems quickly. This is an innovative and complex system which has two major components: integrated e-ticketing and Automatic Vehicle Location by GPS (AVL). She adds that significant progress is being made to have a fully-fledged depot.

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“The project is a sustainable package of measures that will transform our province into a healthy and effective urban environment as it integrates Bus Rapid Transit (BRT) with nonmotorised transport, progressive land-use approaches and car-restriction interventions,” Executive Mayor Nkadimeng says. “This has spurred economic growth in our city through upgrades in public physical infrastructure within a wellplanned spatial context and has ensured sustainable job creation while ushering in a clean, green, safe and healthy province. Such improvements have a positive impact in promoting local businesses and stimulating investments.” At a national level, the project is aligned with the National Development Plan 2030 (NDP). Adopted by all political parties represented in the National Assembly, it is government’s blueprint to eliminate poverty and reduce inequality by the year 2030

LIMPOPO BUSINESS 2018/19


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.


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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.’

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KEY SECTORS Overviews of the main economic sectors of Limpopo

Agriculture

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Mining 54 Construction and property

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Energy

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Water

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Information and communications technology (ICT) and telecommunications 68 Development finance and SMME support 76 Education and training

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OVERVIEW

Agriculture Tomato paste factory holds great potential.

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oolworths receives “indigenous” eggs laid by Bosveld hens on the property of an independent farmer in Bela Bela, cabbage and butternut produced by five smallholders is channelled by Spar through its Fresh Assembly Point in Mopani and the Ezemvelo Direct Farm Programme of Massmart has left behind a legacy of small-scale farmers now connected to the fresh produce supply chain – and a packhouse in Limpopo run by a co-operative. All of South Africa’s major retailers have enterprise development programmes which connect farmers to suppliers. Massmart’s five-year programme, which tailed off as the company focussed more on the manufacturing sector more relevant to their main business, trained more than 700 farmers in logistics, food safety and financial management. At its peak, the programme was supporting 164 smallholder farmers. In another initiative to link farmers to markets, the Limpopo Department of Agriculture and Rural Development (LDARD) organised a Market Linkage Information Day in May 2018 at Soekmekaar (photograph above). The Limpopo regional office of the Industrial Development Corporation has recently helped expand the province’s agricultural sector by supporting the creation of two blueberry operations near Tzaneen. The Provincial Government of Limpopo’s nine-point economic plan includes RAAVC (the revitalisation of the agriculture and agriprocessing value chain). National government’s Industrial Policy Action Plan (IPAP) acknowledges agri-processing as one of the best sectors for labour-intensive LIMPOPO BUSINESS 2018/19

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SECTOR INSIGHTS Enterprise development programmes are boosting small-scale farming. • Molemole is set to get an agricultural office.

growth. In that context, the decision by Dursots-All Joy to relaunch and upgrade the tomato processing plant in Modjadjiskloof, Tzaneen, is important for the larger economy. At least 15 commercial farmers now have a ready market for one of Limpopo’s chief products and there is potential for the factory to employ as many as 300 people. There is a shortage of tomato paste in South Africa. More support for farmers comes in the allocation of R32-million by the provincial government for the construction of the Molemole Agricultural Office in the Capricorn District Municipality. In addition to


OVERVIEW tackling drought, the Limpopo Department of Agriculture and Rural Development has had to put a strategy in place to fight Fall Army Worm. 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 subsector. The establishment of agri-parks and co-operatives and support for youth in farming are key provincial government initiatives. Limpopo’s 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, about half is currently produced in two Limpopo regions, Letaba and Tzaneen. Exports 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 underway every year, according to the Southern African Macadamia Growers’ Association (SAMAC), adding to the existing 19 000ha. The other big sellers are mangoes and tomatoes. Limpopo grows three-quarters of South Africa’s mangoes and two-thirds 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 produces grain and Amarula cream liqueur. Through the provincial government’s Letsema programme in financial year 2017/18 (to the end of Q3), 98 projects comprising 2 579 smallholder farmers, 5 096 subsistence farmers and 26 black commercial farmers received supported. In terms of the Provincial Red Meat Cluster Development as a catalyst towards sustainable rural livelihoods development through livestock farming, an Nguni cattle loan project saw a total of 350 livestock breeding animals distributed in 2017/18 to 16 farms. The

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 and Rural Development: www.lda.gov.za South African Macadamia Growers’ Association: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net

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scheme, a partnership between DARD, the Industrial Development Corporation (IDC) and the University of Limpopo, aims to improve the quality of breeding stock. It also forms part of the development of a provincial Red Meat Cluster.

Vegetables and crops 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. 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. Greenway Farms supplies about 45% of the fresh-market carrots consumed in Southern Africa under the Rugani brand. The two most active agricultural companies 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 cold-storage facility. LIMPOPO BUSINESS 2018/19


OVERVIEW

Mining Mineral beneficiation is in the spotlight.

SECTOR INSIGHTS Northam Platinum’s smelter expansion cost R900-million.

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ineral beneficiation is a key component of the newly accredited Musina-Makhado Special Economic Zone (SEZ) in the far north of Limpopo. In 2018 nine Chinese companies committed to investing more than $10-billion in projects related to the zone’s four main areas of activity: a coking plant, a power plant, an alloy factory and the manufacture of steel. Representatives of the Limpopo Economic Development Agency (LEDA) travelled to Beijing to sign a series of memorandums with the Chinese companies. Shenzhen Holmor Resources Holdings, as the manager of the Energy and Metallurgical Cluster within the SEZ, will invest about R40-billion to create infrastructure.

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T h e p lann e d Tub at s e Platinum SEZ will focus on mining, as its name implies. According to 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, magnetite, vanadium and chrome. The other strong mineral focus in the eastern part of the province is at Phalaborwa where Palabora Copper, a subsidiary of Palabora Mining Company, produces about 45 000 tons of copper annually, most of which is sold domestically. It runs a smelter and a refinery and also mines magnetite, vermiculite sulphuric acid and nickel sulphate. Limpopo Province has diamonds in the north, platinum and chrome in the west and east, iron ore in the Waterberg, antimony, copper, phosphate, silicon – and coal just about everywhere – the list goes on and on. Silicon Smelters (the largest charcoal producer in Africa) and


OVERVIEW Anglo Platinum’s smelting facility, 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. Implats sends its product to Implats Refinery Services in Springs, which it intends to take off the Eskom grid and power the refinery using fuel cell technology. Power will come from an 8MW Doosan Fuel Cell. 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 Mine, a small part of which is shown on the opposite page, is 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. 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.

Investments and purchases Major investments in Limpopo include an ongoing project by De Beers to convert its Musina mine from an open-pit mine to a vertical shaft mine and a multi-billion-rand new platinum mine project. Venetia Mine is by far 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. Ivanplats, the subsidiary of the Canadian company, Ivanhoe Mines, has started sinking shafts at its new mine 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 12Mtpa with 1.2-million ounces of PMG, it will rank as the biggest PGM mine in the world. Royal Bafokeng Platinum has paid $70-million for the Maseve Mine and its concentrator. Canadian miner Platinum Group Metals agreed to a

ONLINE RESOURCES Geological Society of South Africa: www.gssa.org.za Minerals Council South Africa: www.mineralscouncil.org.za Mining Qualifications Authority (MQA): www.mqa.org.za National Department of Mineral Resources: www.dme.gov.za

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cash and shares transaction which will give RB Platinum concentrator capacity of 110 000 tons per month. Implats has purchased 15% of the Waterberg project (on the northern limb of the platinum belt) and has an option to buy more. RB Platinum’s new mine, Styldrift, will feed the concentrator and the company has the option to expand the concentrator to take input from all its mines in the area. RB Platinum already controls a concentrator at Bafokeng Rasimone Platinum Mine. Anglo American Platinum opened a new chrome recovery plant in 2017 at Amandebult. The plant, which will make commercial grade chromite concentrate, is partly owned by the Baphalane Ba Mantserre community. Northam Platinum’s Zondereinde mine just south of Thabazimbi was the site of a big celebration in February 2018 when a major smelter expansion project was launched. By building a second furnace, the ambitious Northam is making for provision reaching a goal of processing one-million ounces of platinum group metals (PGMs). The cost of the expansion, which was partly born by Heraeus, is R900-million. Northam has been purchasing mines, including the adjacent Tumela block, which it acquired from Anglo American Platinum. The Eland mine has also been bought from Glencore. Heraeus South Africa has offices in Gauteng and runs a precious metal chemical compounds production and refinery site in Port Elizabeth. LIMPOPO BUSINESS 2018/19


FOCUS

Mining a unique and valuable resource A workforce of nearly 5 000 maintains a complex operation at Palabora Mining Company. Development Corporation (IDC), a black empowerment consortium, PMC employees and local communities.

History

P

alabora Copper (Pty) Limited is an incorporated operative subsidiary of Palabora Mining Company (PMC), a copper mine that also operates as a smelter and refinery complex in Ba-Phalaborwa Municipality, Limpopo Province. PMC successfully extracts and beneficiates copper and other by-products and provides the local market with 85% of its copper requirements.

Ownership The mine is 80% owned by a Chinese consortium comprising HBIS, Tewoo, General Nice and CADFund through Smart Union Resources South Africa. The consortium has consistently reinvested in the mine and its facilities since assuming ownership. The rest of the percentage is jointly owned by the South African government through the Industrial LIMPOPO BUSINESS 2018/19 2016

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Some two-billion years ago, a series of violent volcanic eruptions, which took place over a period of millions of years, gave rise to a rich body of minerals, which became known as the Palabora Igneous Complex. The unique ore body outcropping at a small saddleback hill (and two nearby volcanic pipes) contains a unique variety of minerals. Smelting of copper occurred in the district prior to the discovery. Copper of remarkable purity was produced in the Phalaborwa area as early as the eighth century. The development of modern mining activity started at the beginning of the 20th century when several geologists noted the occurrence of the phosphate-bearing mineral, apatite, in the vicinity of Loolekop. Since its incorporation in 1956, Palabora Copper (PC) has been South Africa’s sole producer of refined copper, although is also mines other by-products such as magnetite, vermiculite, sulphuric acid, anode slimes and nickel sulphate.


FOCUS

Mineral resource The company owes its origin to the unique formation known as the Palabora Igneous Complex. Nowhere else is copper known to occur in carbonitites as is the case at Palabora Copper, and a host of other minerals such as phosphates, vermiculite, phlogopite, magnetite, nickel, gold, silver, platinum and palladium also occur. Palabora operates a large block cave copper mine and smelter complex employing approximately 4 990 employees for both Lift I and II, with a balanced and diversified workforce. The refinery produces continuous cast rod for the domestic market and cathodes for export. Useful by-product metals and minerals include zirconium chemicals, magnetite and nickel sulphate as well as small quantities of gold, silver and platinum. Palabora Copper has developed a US$410-million underground mine with a production capacity of 30 000 tons of ore per day. Palabora also owns a nearby vermiculite deposit which is mined and processed for sale worldwide. Vermiculite is a versatile industrial mineral with hundreds of uses.

Investment Soon after the sale transaction to the consortium in 2013, the new owners fostered partnerships between PC and Chinese companies in various areas such as economic development, trade, skills and technology transfers to achieve ground-breaking and substantive results in extending the life-of-mine, refurbishing the smelter and building a floatation plant. To this end, the consortium approved R10.4-billion to extend the life-of-mine, R878-million to refurbish the smelter to ensure that PC continues to produce copper rod, and R261-million to construct the floatation plant to improve copper recoveries, operational efficiencies and lower operational costs. The smelter refurbishment project and construction of the floatation plant are implemented in partnership with China’s Beijing General Research Institute of Mining and Metallurgy (BIGRIMM).

Skills transfer In addition to technology transfer, BGRIMM has contractually committed to employ 90% of unskilled labour and 80% of the semi-skilled labour from the Phalaborwa area and transfer new skills to PC employees who work at the smelter to empower them to operate and maintain the refurbished smelter once completed. Before commissioning and construction of the floatation plant, PMC’s Executive Managers and Senior Managers travelled to China for fact-finding and comparative-analysis missions on floatation

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plants built by BGRIMM. As part of resource sharing, skills and technology transfer, BGRIMM has subcontracted work to various South African companies.

Going green The company is a certified ISO 14001 business that subscribes to world-leading practices. Located directly adjacent to the world-renowned eco-tourism attraction, the Kruger National Park, PMC coordinates several onsite wildlife management and cultural heritage programmes as part of its ongoing sustainability drive. Over the past years, PMC has retained a record of being one of the safest mines in South Africa and Africa. This is particularly due to our stringent SHEQ regulations and procedures in place and the effective management of contractors on site.

The future PMC is undertaking a life-of-mine extension project known as Lift II. The project aims to extend the life of the business up to 2033. The project includes the magnetite reclamation and beneficiation study aimed at creating additional revenue from the legacy stockpile. Approximately R10.4-billion is expected to be spent on finalisation of the project, which includes the smelter expansion and the floatation plant. For more information: www.palabora.com LIMPOPO BUSINESS 2018/19


MESSAGE

Putting Safety First Safety is our number one priority in achieving Zero Harm

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Gerrie Nortje, General Manager of De Beers Venetia Mine, shares a message on the steps being taken towards achieving “Zero Harm”.

t De Beers, we value the safety of our people above anything and we pursue it without hesitation or compromise. The only production we care about is safe production and we believe that Zero Harm is achievable. Safety is our number one priority and is the reason why we introduced our Put Safety First value in 2017. It is also the reason why we commemorate our annual Global Safety Day, which aims to focus on what it takes to make our workplace safe. The theme in 2018 is “Safety Leadership” and we will engage in a series of activities that will take place across the business into January 2019. Our focus is on what we can all do to be the best possible safety leaders and how this will help us become and stay fatality-free. Establishing a safe and healthy working environment requires every one of us, from the CEO to the most recent hire, to understand that working injury and incident free is our priority: We must Put Safety First. This of course requires personal commitment from all our employees and contractors. We kicked off the year with a CEO Safety Summit to share learnings from across De Beers Group and agreed on focus areas for 2018 in our pursuit of Zero Harm. The top two focus areas are rolling out the “Put Safety First” value and reinforcing the 2017 Safety Pledge to make it a living and personal commitment by every employee. A second CEO Safety Summit was held in August 2018 with representatives from De Beers Group Exco, General Managers, Safety and Sustainable Development Leads, Safety Line Managers from across the Group, including Element Six, Midstream and Upstream. The main topic of discussion was how we going to collectively contribute towards achieving Zero Harm. We have also been working on a 100-day activation since March where the three focus areas are: • Safety leadership • Critical controls and • Work planning and execution. All these focus areas align well with and support the concept of “Safety Leadership.” Our Global Safety Day event in October will reflect on and celebrate our safety leadership journey so far. Nothing is more important than the safety and wellbeing of our employees. I continue to encourage every employee at De Beers Venetia Mine to embrace the PUT SAFETY FIRST value until safety becomes our way of life here at Venetia.

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FOCUS

Community Fairs Strengthening relations with local communities

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n 2018, De Beers Venetia Mine hosted a series of three Fairs to strengthen relations with local communities in which we operate. The Community Fairs are held annually and in every first quarter of the year. The primary objective of the Fairs is to share information with the communities on the operations of Venetia Mine and its contractors. At the Fair, the community is given an opportunity to visit stalls and interact with representatives from various departments at the mine as well as contracting companies. Information on employment and procurement opportunities is shared with the community. Exhibition stalls were popular at all three venues of Blouberg (Eldorado Stadium), Alldays (Alldays Stadium) and Musina (Madimbo Stadium) in 2018. Community members engaged with mine management and staff members about job and training opportunities and received free health screenings. Local community radio stations provided entertainment and traditional dancers gave impressive

displays of their local talents and abilities. Venetia Mine contractors such as Barloworld Equipment, Murray & Roberts Cementation and Basil Read were also invited to the Fair to showcase their services. Health and wellness was also a key focus with nurses from the Venetia Mine Medical Centre teaming up with the Limpopo Health Department to offer screenings for TB, high blood pressure, diabetes and HIV/Aids. There were also opportunities to visit exhibition stalls displaying various programmes, initiatives, jobs and training opportunities. Venetia Mine General Manager Gerrie Nortje said, “We are passionate about our communities and we are happy to have had the opportunity to engage with them directly to share with them the current and future opportunities from the mine and with our contracting partners.” Alldays resident Shiela Mosala said, “This is a wonderful opportunity for our young children, who still have time to study and dream big.”

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LIMPOPO BUSINESS 2018/19


FOCUS

Investing in community development Skills development, infrastructure upgrades and support for local business are among the initiatives of the Marula Platinum Mine.

Recent socio-economic development initiatives include: •

M

arula Platinum Mine is 73% owned by Impala Platinum Holdings (Implats), the world’s second-largest platinum producer, and is one of the first operations to have been developed on the relatively under-exploited eastern limb of the Bushveld Complex in South Africa. It is located in the Limpopo Province, some 35 kilometres north-west of Burgersfort and employs approximately 3 500 people. Marula’s social investment strategy focuses on addressing the needs identified within its host communities. As a responsible community member, the mine invests significantly in local socio-economic development initiatives, drives transformation, and engages with community representatives and government officials at all levels. However, it is through Marula’s core activities – employing people, paying taxes and procuring from host communities – that it makes the biggest contribution to the socio-economic development of the Sekhukhune District and the Limpopo province.

CONTACT INFO Contact: Alice Lourens (Group Corporate Relations Manager) Tel: 011 731 9033 Email: alice.lourens@implats.co.za LIMPOPO BUSINESS 2018/19

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A R32-million investment in the Marula Road Construction Project, which is a project to build 17km of roads with the Roads Agency Limpopo An upgrade of three community borehole pumps – at Driekop, Winnaarshoek and Clapham – from diesel power to electrical power to improve water supply in these communities and the installation of water reticulation in additional areas Full-time literacy classes are provided at the mine and the mine invests in skills development through learnerships, short courses and workplace training Preferential procurement and investment in enterprise and supplier development provide important opportunities for social and economic transformation in our communities. During the 2017 financial year, Marula procured R54-million worth of goods and services from local Tier 1 companies. Local procurement spend accounted for 36% of total procurement spend in the Limpopo province and 6% of total procurement spend.


ENRICHING LIVES Building sustainable communities

Building homes in local Investing communities in skills development

Providing health and wellness to employees Building and upgrading schools

Implats has invested over R4 billion in local communities since 2009, enriching the lives of 100 000 South Africans. We are building stronger, sustainable communities. Coole Adv 17082

Investing in Socio-economic development

Investing in government and municipality support infrastructure


PROFILE

Superfecta Trading Electro-mechanical specialists.

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uperfectca Trading is an electro-mechanical engineering company with a national footprint and a record of successful delivery of projects in all nine provinces. The company was founded in 2002 and has extensive experience in mediumand high-voltage products and related services. Superfecta manufactures high-tension products under the TMA brand and related services. TMA products include transformers, mini-substations and switchgear. Superfecta also employs a team of mechanical experts. The company prides itself on the supply, installation and maintenance of mechanical work and boasts over 14 years of experience in the mechanical field. Superfecta has strategically partnered with three internationally recognised companies: Thomas C. Wilson (New York), Schneider Electric (South Africa) and Jinshanmen Electrical Co. (China). The partnerships have enhanced our performance and enabled us to be the providers of the latest technology.

Ownership Status 100% black-owned registered company, with 55% of the shares owned by women.

strong partnerships and joint ventures with local and international entities that share our values and objectives. We have a full complement of highly skilled engineers, technical and administrative staff. All efforts are geared towards compliance with health and safety standards.

Sectors Superfecta works in a variety of sectors, including but not limited to: • mining • provincial and local government • utilities • transport • oil and gas.

Professional Services

Superfecta is a one-stop shop for all transformer and transformer-related To be the leading electro-mechanical specialist in energy solutions across work and we pride ourselves on delivSouthern Africa. Superfecta aspires to excellence, innovation and trans- ering a comprehensive and complete parency; three prominent features that distinguish us in the marketplace service, including the supply of transand uphold our vision. formers for: • The mining industry • Dry-type mining • Distribution transformers To enable our clients to ensure reliable energy supply through cost-effective • Power transformers. and quality manufacturing, supply, installation and maintenance of infrastruc- • All our transformers are SABS and ture. Superfecta strives to deliver the best solutions which are achieved with IEC compliant and operate at

Our Vision

Our Mission

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PROFILE higher efficiencies than any other on the market. Our turnaround time is less than 60 days, which is a market-beater. What gives Superfecta a competitive edge in the industry is investment in the latest systems and technologies. The company invested millions of rands in an integrated maintenance software called Archibus. Our maintenance system goes above and beyond the management of the maintenance process and asset control by recognising that these processes are just a small part of a full life cycle. The intellectual capability of the system enables us to ensure that our customers are well taken care of by indicating when the following maintenance schedules should take place. We also provide our clients with 24/7/365 support. Transformer oils undergo electrical stresses while the transformer is in operation. This, combined with the contamination caused by the chemical interactions with windings and other solid insulations, gradually render it ineffective. Regular purification is paramount. We periodically test for electrical and chemical properties to make sure that the oil is suitable for further use and provide the purification services needed to extend the life of your transformer oil. This can be done online or offline. Superfecta has played a significant role in the economic development of South Africa, not only through employment, but also through infrastructure development both in rural and urban areas. We pride ourselves on having installed electricity in over 500 households in rural parts of South Africa. The company has not only done an outstanding job but raised the bar in successfully electrifying villages in the geographically challenging landscape of KwaZulu-Natal. With a professional team of mechanical technologists, Superfecta prides itself on the supply, installation and maintenance of mechanical work. Our services include, but are not limited to: • Supply and installation of heat exchangers tubes, boiler tubes, steam pipes and primary air heater • Supply and replacement of pipe works (ash, sluice lines, etc)

CONTACT INFO Physical address: 23 Catalunya Raceway Industrial Park, Gosforth Park, Germiston, Johannesburg 1419 Telephone: +27 11 8693607 Fax: +27 11 825 0086 Email: info@superfectatrading.co.za Website: www.superfectatrading.co.za

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• Replacement and new installation of steel pipe works

• Supply and installation of pumps

• Supply and hire of tube-

testing machine, tube cleaners, vacuum leak dictator, tube cutters, expanding machine • Mechanical engineering (pipe fitting and rigging) • Steel pipe jacking and fitting, supply and install concrete jacks, jacks under roads and gas lines.

All industrial concerns require a complex system of electrical networks to function efficiently and successfully. Superfecta both installs and conducts repairs to high tension electrical circuits. We also oversee electrical reticulation (urban and rural), electricity meters (prepaid and smart meters) and electricity works.

Clients Superfecta is an ISO 9001:2008 certified company that fully embraces a Total Quality Management philosophy in streamlining all its business processes. Clients include Rand Water, FNB, MTN, Airports Company South Africa, Total, Transnet, Passenger Rail Agency of South Africa and Eskom. Superfecta has done work for the public works departments of three provinces, the City of Johannesburg and several other municipalities. LIMPOPO BUSINESS 2018/19


OVERVIEW

Construction and property Mining and energy projects are creating demand for housing.

SECTOR INSIGHTS Limpopo has a second regional shopping mall.

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he mineral riches of Limpopo are attracting new mining projects and the Lephalale’s huge coal deposits determined the construction site of one of the world’s biggest new power stations. The mining and energy sectors are themselves responsible for a great deal of the work in the construction and property sectors, but these new projects are also generating a huge new demand for housing. The Provincial Government of Limpopo says that since the country held its first democratic elections in 1994, it has built 320 000 houses for the citizens of the province. A recent budget of the Department of Cooperative Governance, Human Settlements and Traditional Affairs, pledged a further 80 000 “housing opportunities” by 2019. Steady increments in the COGHSTA budget will accommodate this goal. Of the 2017/18 departmental budget of R2.5-billion, R1.4billion is devoted to housing. By 2019/20, the department will have R2.8-billion to spend. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is the subject of a lot of discussion in South Africa. Opportunities exist in this market, but obviously the risk profile is different. There is even a new association to cater for contractors, developers and bond originators in this subsector, the South African Affordable Residential Developers Association (SAARDA). LIMPOPO BUSINESS 2018/19

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The Risima Housing and Finance Corporation, a division of the Limpopo Economic Development Agency (LEDA), is delivering a product for the gap market, the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and COGHSTA distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. The subsidy is being rolled out in the Polokwane suburb of Bendor and in Lephalale 600 units have been erected, comprising a mix of three-bedroomed houses and semi-detached townhouses. Together with the National Department of Public Service and Administration, Risima arranges through the Government Employees Housing Scheme for a non-mortgaged financial product to assist government employees get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. An innovative approach to unlocking the value of land in traditional areas may happen if the National Home Builders Registration Council (NHBRC)


OVERVIEW approve a plan for the conversion of Permissions to Occupy (PTO). Risima sees potential in converting PTOs to title deeds and is looking at deep rural areas such as Vhembe and Sekhukhune. The Enterprise Development and Finance Division of LEDA not only offers loans to businesses in the construction and property sector but runs specialised training in vocational skills such as bricklaying, plastering, carpentry, plumbing, electrical and welding. Other training relates to project and financial management, business cost and pricing, marketing and understanding public service supply chain and tender procedures. LEDA is an agency of the Limpopo Department of Economic Development, Environment and Tourism. A large development is underway in Thohoyandou in the northern part of Limpopo. A 27ha site is being converted into Thavhani

ONLINE RESOURCES Black Business Council in Built Environment: www.bbcbe.org Construction Education & Training Authority: www.ceta.org.za Construction Industry Development Board: www.cidb.org.za South African Affordable Residential Developers Association: www.saarda.co.za South African Property Owners Association: www.sapoa.org.za

City which will include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Thavhani Mall (with 134 shops across 50 000m²) is already functioning. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. The super-regional Mall of the North, shown on the opposite page, opened in Polokwane in 2011. It was developed by Resilient Properties Income Fund, Moolman Group and Flanagan & Gerard. The annual conference of the Black Business Council in Built Environment (BBCBE) was held in Polokwane in July 2018.

Making you safe, with great designs

TD Steel and Aluminium Products Specialists in gates, gate motors, doors, fences and carports.

TD Steel and Aluminium Products (previously Mphahlele & Sons Civil Construction) was founded in 2009 by Robert Mphahlele. With a workshop based in Polokwane, the company now offers its services all over Limpopo. With expertise in the construction

sector, our experienced staff is ready to customise a product for your home or business. We are proud of the beautiful steel gate designs that we tailor-make for individual customers. We also supply steel palisade fencing

for the home or commercial premises. We supply, install and repair • burglar-resistant doors and aluminium and wooden garage doors • sliding and swing gates • steel carports • Centurion and DTS gate motors.

If it’s aluminium or steel, give us a call. We have more than 10 years of experience! Contact details: Branches: Stand 265, Dithabaneng Ga-Mphahlele, Polokwane (main) and 563 Southern Gateway, Polokwane | Telephone: 073 005 7869 Email: mphahlelesteelworx@gmail.com | Facebook: Mphahlele steel worx

Reg no:2009/203276/23


OVERVIEW

Energy Solar manufacturing holds potential in Limpopo.

SECTOR INSIGHTS The new SEZ will have a power plant.

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n Energy and Metallurgical Cluster is an important component of the new Special Economic Zone that has recently been approved at Musina-Makhado in the far north of the province. The two local municipalities have been allocated R147million by provincial government for infrastructure upgrades. One of South Africa’s biggest engineering projects is underway 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. When the plant is completed, the Lephalale area will become a petrochemical hub and energy complex. The National Department of Energy’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been very successful so far. The three photovoltaic solar projects located in Limpopo have a combined investment value of R3.6-billion. The provincial government’s Green Economy Plan has identified solar and biomass as the main kinds of renewable energy for Limpopo. With huge silicon reserves in the province, there is also potential to produce solar panels and solar charges for cellphones. Nine biogas digesters have been installed in the Vhembe District to be controlled by young entrepreneurs trained by the University of Venda. REIPPPP project

MW

Location

Operational

Tom Burke Solar Park

60MW

Lephalale, Waterberg DM

August 2016

Witkop Solar

29.68MW

Polokwane

September 2014

Soutpan Solar Park

28MW

Blouberg, Capricorn DM

July 2014

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

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A group of 31 students is studying Energy Management Systems as part of the provincial plan. 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 assist local residents in getting access to energy and providing information on energy. 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 is using natural gas to supply 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 roll-out of alternative energy near its remote Tshikondeni mine east of Musina.


OVERVIEW

Water Innovation is solving rural problems.

SECTOR INSIGHTS A Provincial Water and Sanitation Summit is planned.

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he National Department of Science and Technology is piloting a Point-of-Use (POU) project in Malatane village in the Capricorn District. The project is part of the department’s Innovation Partnership for Rural Development Programme (IPRDP), which is supported by the European Union. The POU uses a woven fabric microfiltration gravity filter and can provide up to 40 litres of safe drinking water per day. The system was developed by researchers at Stellenbosch University and the Durban University of Technology. Getting water to rural residents has proved a difficult challenge with several large-scale schemes being stalled. In this context, low-cost, low-tech solutions have the potential to be transformative. At provincial level, concern about drought conditions and water quality under pressure from mines and industry has led to the calling of a Provincial Water and Sanitation Summit. In the 2017/18 financial year, the provincial government committed to providing 210 more schools with potable drinking water and 185 more schools with decent sanitation facilities. Several major projects have recently been completed, or 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 provided good-quality water for the first time 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, includ-

ONLINE RESOURCES National Department of Science and Technology: www.dst.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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ing pipes to get water to Moutse from the Loskop Dam. 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 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. 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. LIMPOPO BUSINESS 2018/19


OVERVIEW

Information, communication and technology (ICT) and telecommunications Libraries are the key to connection in Limpopo.

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ural areas are difficult (and expensive) to connect. 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, hospitals 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. Other areas of focus are under-serviced local municipalities and state facilities such as police stations and prisons. In 2015, 17 community health clinics in the Vhembe district received notebooks, tablets and printers. In his State of the Province Address in February 2018, the Premier of Limpopo, Chupu Stanley Mathabatha, reported that “over 90% of our libraries are well equipped with ICT infrastructure to enhance the reading and learning experience�. He further announced that four more villages would be getting libraries and seven existing libraries would be upgraded to receive ICT connections. A wide area network (WAN) for the province is a goal for the provincial government. A combination of fibre and wireless technology will be used to reduce cost. A science and technology master plan is also to be developed. LIMPOPO BUSINESS 2018/19

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SECTOR INSIGHTS The Limpopo data nerve centre is up and running. 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. Construction of the provincial ICT data centre has been completed. The second phase will cover more than 80% of the provincial population, as per the provincial spatial development framework. Private telecommunications


OVERVIEW 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. A National Library of South Africa (NLSA) project, supported by Vodacom, is connecting 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 started 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 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 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.

ONLINE RESOURCES Limpopo Economic Development Agency: 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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Ten schools have been identified by the ICT Internet Connectivity Project and the National Department of Basic 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. T he Te chnolo gy 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 computerliteracy classes are given at some Limpopo schools by the Internet Service Providers’ Association (ISPA), and the CoZa Cares project of Uniforum SA. 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.

LIMPOPO BUSINESS 2018/19


Imran Khan, Managing Executive, Vodacom Limpopo

Internet of Things

Vodacom Business is a leading telecommunication operator progressing rapidly in our digital transformation journey in terms of strategies and our value propositions to enterprise customers. Shaping a better future in the smart technology era as we embrace the Fourth Industrial Revolution, Digitisation! Herewith a snapshot of some of our key and exciting offerings, positioning enterprise customers for the smart technology era and being competitive.

Creating a smarter connected world

The Internet of Things (IoT) is big news, and it’s all around us right now. Whether it’s the smart meter at your home driving down your utility bills, or the connected car making your journeys more convenient, many of us already benefit from IoT in our daily lives – and we’re only just beginning to understand its full potential.

Making it happen

Our scale doesn’t just give you the confidence that we operate wherever you do business – it means we can offer the exceptional levels of service you need.

The five key elements of any IoT deployment are: • Connected devices sense their environment • Network connectivity carries IoT data • The management platform aggregates data and controls devices • Applications use IoT data in business processes • Professional services keep everything running smoothly

3. The solutions to simplify IoT projects We have delivered IoT applications to organisations of all sizes and across all industries, so we know how to make your IoT solution deliver maximum value to you. We partner with the world’s leading connected device makers to offer a wide range of out-of-thebox IoT solutions that take the complexity out of IoT deployment.

Why Vodacom? IoT projects can be challenging. At Vodacom, we aim to make iteasy. Here are three simple reasons why you should partner with us:

But even when you need a customised solution, our team of experts will ensure your business takes advantage of best practices and methodologies for IoT implementation to ensure you achieve maximum ROI.

1. Unrivalled IoT experience Vodacom has more than 1 400 dedicated IoT experts that you can rely on. We’ve been delivering IoT solutions to our customers for more than 25 years and have over 50-million IoT connections.

To find out more about how Vodacom can help you make the most out of IoT, or to book a free innovation session with one of our IoT experts, contact us at iot@vodacom.co.za, call us on 082 1960 or visit vodacom.co.za/iot

2. Vodafone networks you can rely on Vodacom has mobile operations in 26 countries, partners with mobile networks in 55 more, and fixed broadband operations in 17 markets. As of June 2016, Vodafone had 465-million mobile customers and 13.7-million fixed broadband customers. LIMPOPO BUSINESS 2018/19

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FOCUS Enterprise Mobility

Enterprise Mobility

Enterprise Mobility is a productivity tool which allows a business to operate more efficiently. Services include customised, daily checklists, task management, real-time chat and messaging, route optimisation, tracking user activity and check-in/out via geo-tagging.

Enterprise Mobility has five components:

Vodacom Virtual CIO Vodacom Virtual CIO is an IT support service aimed at the Small and Medium Enterprise (SME) segment. This is targeted at those companies that can’t afford a full-time IT technician. The service will initially be limited to the following geographical areas: Greater Johannesburg metropolitan, Greater Pretoria metropolitan, Greater Cape Town metropolitan, Bloemfontein, Durban, East London, Kimberley, Nelspruit, Polokwane and Port Elizabeth. The service offers proactive and remote monitoring services for both residential and SME customers to prevent IT issues before they occur, and remote telephonic assistance and on-site field support for SME customers at no additional cost.

Mobile LiveTrack LiveTrack is a GSM/GPS tracking solution that allows businesses to track their vehicles in real time.

Econz Wireless Timecard Solutions When companies have employees who are always on the move or in the field, it’s difficult to track the time they start, when they finish, whether they are in the right place, and if the job has been completed to the customer’s satisfaction. Econz Wireless allows you to keep track of where and how your employees are spending their time, export your employees’ attendance data directly to payroll systems for easy accounting, track progress of various tasks assigned to your employees and monitor your employees’ driving behaviour. It is available for use on cellphones, smartphones and tablets.

Mobile Order Entry This is Vodacom’s solution to bring the benefits of electronic commerce to very small retail outlets, many of them informal traders such as spaza shops. This service extends the Electronic Data Interchange (EDI) transaction capability to the informal retailer, digitises the commerce chain and drives brand awareness. In addition, Mobile Order Entry assists in the management of product and price information, the distribution channel and ordering. The traders’ time is better used.

Vodacom Field Communication Managing a team out in the field can be challenging due to delays in exchanging information with the central office hub. Vodacom Field Communication is a custom-built application that allows hands-on management of data from a distance with the receiving of immediate updated information on smart devices.

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LIMPOPO BUSINESS 2018/19


Connect and Communicate

Connect and communicate

Two of the most important pillars of the Vodacom Small andBusiness Medium Ready offering are Enterprise Catalogue • CONNECT: A Ready Business is connected Vodacom • COMMUNICATE: A Power to you Ready Business places communication at the centre The CONNECT component has three main elements: • Internet for your Office • Five kinds of connection are offered, from fibre and wireless, to satellite and digital subscriber. • Internet on the Move • Vodacom Business Data gives you the freedom to be more productive without the worry of out-of-bundle data rates. • Mobile Broadband Data allows you to stay connected with data bundles for your tablet, router or dongle.

Under COMMUNICATE, Vodacom strives to assist in the creation of a Ready Business through:

• Three kinds of business plans • Never miss a business call • One Net Express allows a response to every call, whether you’re in the office or on the move. • Vodacom One Net Business is a cloud-based solution seamlessly converging your mobile and fixed telephony services across any device. • VoIP (Talk) provides high-quality voice calls to any fixed and mobile network. • Push to Talk uses a mobile app to provide similar services as a two-way radio. • Roaming and international offers

Network Solutions Vodacom offers four network solutions: • IPConnect Express provides connectivity over high-speed broadband. • IPConnect is a managed access solution that provides high-capacity Ethernet connectivity, over a range of managed access mediums including fibre, microwave and satellite. • Vodacom’s MPLS VPN gives you worldwide coverage and global networking power. • Vodacom Connect’s Dedicated Internet Access delivers you premium dedicated Internet services over uncontended bandwidth over fibre, microwave or satellite. LIMPOPO BUSINESS 2018/19

When travelling overseas, roam with peace of mind with one of Vodacom’s three great-value options. BECOME A READY BUSINESS Visit: vodacombusiness.co.za

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PROFILE

ONE NET – BUSINESS PRODUCT BROCHURE

One Net Business

A Ready Business never misses an opportunity

A Ready Business capitalises on fixed and mobile convergence across any device Vodacom One Net Business is designed to reduce the number of missed calls and missed opportunities. Be more collaborative in the workplace and reduce communication barriers. Vodacom offers greater agility, productivity and efficiency with less complex solutions:

Vodacom’s One Net Business

services provide all the benefits of: Vodacom One Net Business

1. Fixed and mobile convergence: Allows the user to determine how fixed and mobile calls will be answered and managed between devices. 2.

3.

Voice, through advanced unified communications features which includes:

enterpriseand telephony, hunt groups, auto If you want to integrate mobile fixed networks, attendant, conference calling, receptionist, executive/assistant, more solution. Vodacom One Net Business is the and right Instant Messaging and presence Vodacom takes care enabling you to One voicemail for your customers: Yourof the• platform, cellphone and landline number become one. • Video collaboration focus productivity with reduced monthly Be availableon using improving one number on all end devices regardless of whether you’re in the • Content sharing through a costs. Let usor onmanage telecommunication office, at home, abroad your cellphone. your wider single platform One single voicemail inbox means you’ll never needs through our great range of services including miss calls from customers again. • A range of IP Phones and apps that will enhance the fixed and mobile converged mobile, security, email and document management. One provider: for all fixed and mobile experience

Presence

Content sharing

Voice

requirements.

4. Future-proofed, Unified Communications technology in the cloud: Regular new software releases and an easy-to-use selfservice portal (One Net Manager) that lets you manage your One Net Business services directly. 5.

6. Always ready to answer: monitor the call availability of colleagues and direct calls as needed. 7.

Why is One Net Business better

Vodacom One Net Businessthan combines and mobile traditionalfixed on premise solutions? telephony services into telephony one cloud-based Unified One package: Convergence of mobile and fixed Communications solution, reducing theroute,number telephony services, single support fully converged user experience. of missed calls, making Direct calls: to the right department or person costs more predictable and Simplicity: Configurable for each user, across any device. keeping your Ready Business better connected. easy-to-understand, intuitive, always upgraded to

Through a single platform

Video collaboration

the latest feature capabilities. Cost saving: Free on net closed user group calls

Onecollaboration: Net Business your (fixed and mobile). fixed and mobile Better With diverse converges collaboration tools, your teams can work services. You determine how, when and where and together more efficiently than ever independent of location, time and end device. on which device you want to answer that important Whether in video or audio conferences, through desktop sharing, presence customer call or information message. Communications can be or chat – One Net Business users cooperate simultaneously and in real time. routed seamlessly from your desktop, tablet, fixed or cellphone at a push of a button.

5. 6. 7.

A Ready Business capitalises on fixed and mobile convergence across any device Vodacom offers greater agility, productivity and efficiency with less complex solutions:

55704-304528_Vodacom EBU - One Net Product Brochure_v2.indd 3

1. 2.

3. 4.

Instant Messaging

lets you manage your One Net Business services directly. Direct calls: To the right department or person across any device. 3 Always ready to answer: Monitor the call availability of colleagues and direct calls as needed. Better collaboration: With diverse collaboration tools, your teams can work together more efficiently than ever, independent of location, time and end device.

2017/03/09 2:36 PM

Vodacom’s One Net Business services provide all the benefits of: • Voice, through advanced unified communications features which includes: enterprise telephony, hunt groups, auto attendant, conference calling, receptionist, executive/assistant, and more • Instant Messaging and presence • Video collaboration • Content sharing through a single platform • A range of IP Phones and apps that will enhance the fixed and mobile converged experience

Fixed and mobile convergence: Allows the user to determine how fixed and mobile calls will be answered and managed between devices. One voicemail for your customers: Your cellphone and landline number become one. Be available using one number on all end devices regardless of whether you’re in the office, at home, abroad or on your cellphone. One single voicemail inbox means you’ll never miss calls from customers again. One provider: For all your fixed and mobile requirements. Future-proofed, Unified Communications technology in the cloud: Regular new software releases and an easy-to-use self-service portal that

For more information call 082 1960 or visit vodacombusiness.co.za/onenetbusiness

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LIMPOPO BUSINESS 2018/19


Internet for your Office: Vodacom Connect Solutions

Connect Solutions

Vodacom’s Broadband Connect offers you affordable, high-speed broadband Internet access over a choice of five different access mediums:

• Fibre • Wireless Lite • Wireless Premium

• Satellite • DSL

Four network solutions

Connect Fibre

1. IPConnect Express

Broadband Connect Fibre is stable, durable and capable of carrying massive data loads at extraordinary speeds. • Fibre is the most scalable connectivity for small business • No risk of cable theft ensures that network is secure and always available • Increased productivity, cost savings and competitive edge • Provides high-speed Internet access over scalable fibre connectivity to the small business

Wireless Premium

With IPConnect Express, you are confidently connected to Vodacom’s MPLS VPN (Virtual Private Network) and Dedicated Internet Access (DIA Express) over broadband connectivity. 2. IPConnect Dedicated access offerings are better suited to applications requiring quality of service, where you need the performance of your connectivity to be guaranteed, and bolstered by a service level agreement (SLA). 3. MPLS VPN

We provide the wireless infrastructure at your premises, install the broadband router and support the service via a support helpdesk. • Less downtime with no risk of cable theft

Wireless Lite No fixed-line installation required – virtually same day self-install connectivity.

Satellite We use the latest technology to optimise the satellite link and to bring you cost efficiencies, especially in unserved and underserved areas. • Vodacom’s satellite successes include extensive deployment in the agricultural sector, rural clinics, schools and police stations LIMPOPO BUSINESS 2018/19

DSL (Digital Subscriber Line)

Our business-grade DSL has fail-over functionality so the infrastructure is always available. • Low cost of entry • Quick to deploy – provided you have an existing landline

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MPLS VPN is a managed network infrastructure delivered through a Multi-Protocol Label Switching (MPLS) platform. Connecting to a VPN enables greater network speeds through efficient data transmission as well as reduced latency, while the MPLS ensures that your traffic is always prioritised. 4. Dedicated Internet Access Vodacom Connect’s Dedicated Internet Access delivers you premium dedicated Internet services over uncontended bandwidth over fibre, microwave or satellite. Dedicated Internet Access is available over fibre, microwave and satellite


Cloud and Hosting

Cloud and hosting services

PROFILE

Become a Ready Business compliance and performance. Vodacom Dedicated solutions allow you to refresh your new or existing hardware by leveraging off Vodacom’s buying power. We also provide customers with secure space in a cabinet.

As a Ready Business, information is always at your fingertips, stored securely, without virtual and physical threats, in the cloud. The cloud makes collaboration easier, decisions faster and increases productivity.Vodacom provides you with cloud and hosting solutions and expertise attuned to your business needs.All you have to do is focus on your core business and be Ready for success.

Private Cloud: Combines the robust infrastructure of our Dedicated Hosting offering with Vodacom’s flexible Enterprise Cloud solution – the best of both worlds.

Cloud and hosted services

You as a Vodacom Business client do not need to hire an internal IT department or outsource your IT to small firms; instead, you have access to 24/7/365 support when needed. Vodacom Business’ IaaS, SaaS and even DaaS are underpinned by a strong serviceorientated foundation.

Benefits for your organisation of using the Vodacom cloud include reducing your capital expenditure, less office space and hardware and energy expenses. In addition, the cloud allows for:

• easy scalability and upgrading • licences (only for what you use) • usage-based pricing.

To make the most of your business and our solutions, call 082 1960 or visit http://w w w.vodacombusiness.co.za/business/ solutions/hosting/microsoft-office-365

There are seven major categories of cloud and hosting services offered by Vodacom: Security as a Service; Vodacom Hosted Services; Software as a Service; Platform as a Service; Desktop as a Service; Professional Services and Infrastructure as a Service (Iaas). Infrastructure as a Service (IaaS) makes your organisation more effective: you can save on investing in data centres, cabinet infrastructures or actual servers. It’s a worry-free solution. The Iaas services of Vodacom are: Enterprise Cloud: You can run your infrastructure without having to worry about hardware maintenance and its costs. It is an easily scalable solution. Virtualisation will reduce costs, with an increase in reliability and redundancy. Dedicated Hosting: Ideal for companies that have outgrown a Shared Hosting solution, it is the next step up. Dedicated Hosting increases security

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LIMPOPO BUSINESS 2018/19


OVERVIEW

Development finance and SMME support The private and public sectors are backing small business growth.

L

arge companies in Limpopo are increasingly looking to support new business ventures, both by allocating service functions to local businesses and through training and mentoring. The Implats Group spent 36% of its procurement budget with Limpopo companies in 2017/18. The Marula platinum mine alone spent R54-million on goods and services in the Sekhukhune District where the mine is located on the eastern limb of the Bushveld Complex. De Beers Consolidated Mines plays a big role in the economy of northern Limpopo through its Venetia Mine. The company estimates that for every employee, there are a further 10 people who benefit. The company has launched two business incubators that has participants from the two local municipalities, Blouberg and Musina. The De Beers Zimele Venetia Mine Business Hub has created more than 495 jobs since it was established to support entrepreneurs through low-interest loans, mentorship, coaching and skills development. Local procurement has given chances to 15 local companies, in fields such as road maintenance, the canteen, small civils work and the supply of tyres and batteries. 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. LIMPOPO BUSINESS 2018/19

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SECTOR INSIGHTS A cleaning chemicals company is growing through the Seda Technology Programme.

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. De Beers Venetia Mine has partnered with the Small Enterprise Development Agency (Seda) in training business owners and prospective entrepreneurs. Seda is a subsidiary of the National Department of Small Business Development (DSBD) and is one of the most active agencies in supporting entrepreneurs. Seda is not a financial agency, focussing


OVERVIEW rather on training and administrative support, although the agency will help small, medium and micro-enterprises (SMMEs) get in touch with financial bodies. The Seda Technology Programme (STP) is a key method of helping businesses scale up to the point where their products pass muster in the commercial world. A jam manufacturer may need assistance in getting the necessary health certificates before being able to sell to a big retailer, for example. Nachem Chemical, a company making cleaning chemicals in the Vhembe District Municipality, is an example of a company that has used the STP to good effect. Local, provincial and national government have all committed to spending more of their budgets through small businesses and cooperatives. But when the state is slow to pay, this can have catastrophic consequences for the small business operator. The Limpopo Provincial Government reported that in 2017, government departments had paid invoices within 30 days 96% of the time. 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 a 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. LEDA is to establish a bulk-buying co-operative. The plan is to

ONLINE RESOURCES 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.org.za

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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 underway 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 smallscale farmers and traders. Market stalls have been ereceted at Mopani District and will be put up in Elias Motsoaledi Local Municipality in the Sekhukhune District and Molemole Local Municipality in the Capricorn District. The National Department of Small Business Development 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. The National Gazelles is a national SMME accelerator jointly funded by Seda and the DSBD. The aim is to identify and support SMMEs with growth potential across priority sectors aligned with the National Development Plan and Seda’s SMME strategy. Businesses can receive up to R1-million for training, productivity advice, business skills development and the purchase of equipment. LIMPOPO BUSINESS 2018/19


FOCUS

Building a strong regional economy Local businesses are getting a foothold as suppliers to the Palabora Mining Company.

P

alabora Mining Company (PMC) is the major mining project occurring in Phalaborwa that is integral to the survival of Phalaborwa community. It is a key contributor to the local employment, directly and indirectly. The population of Phalaborwa is roughly 150 000 people and PMC mine employs 4 990 permanent staff, of which 3 995 are local. This represents more than 80% of the staff complement.

Palabora Link: Enterprise and Supplier Development (ESD) In March 2018, Palabora Mining Company announced the launch of Palabora Link, the programme which combines the company’s support for and collaboration with local businesses in the Enterprise and Supplier Development (ESD) programme. This is building on the existing programme, which has been running for several years. The Palabora Link Enterprise and Supplier Development Programme uses the supply chain and service requirements of the mine to benefit local businesses. The objective is to create alternative, sustainable industries that employ local community members and help to grow the local economy. A total of R40-million has been allocated over a three-year period to support the Enterprise and Supplier Development programme. LIMPOPO BUSINESS 2018/19

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The Enterprise Development programme runs for 24 months and has 18 companies currently benefitting, while the Supplier Development runs for 36 months at a time and currently has 19 companies signed up. In 2013, PMC initiated a Supplier Development programme aimed at incorporating members of the community into the business together with the five local traditional leaderships. The strategy aimed to identify businesses in the community that are keen to become part of a supplier base to PMC and to offer them an opportunity to become self-sustaining and expand their business beyond the immediate mining environment. Opportunities to the value of over R100-million were made available to the local companies.


FOCUS This initiative further strengthened the credentials of PMC and moved the company beyond compliance. The intention is to grow an industry of reputable small and medium-sized enterprises that can create further jobs and sustain the livelihood of Ba-Phalaborwa beyond mining. Beneficiaries receive development assistance in the form of entrepreneurial training, funding support, administrative support or the promotion of joint ventures and partnerships which will result in substantive skills transfer. The main categories for funding small enterprises are: • Flagship projects: Manufacturing broadly defined and including agricultural enterprises (poultry, meat, cattle) and larger food businesses. • Special projects: The three primary focus areas are the construction industry, hospitality (including guest houses) and bakeries (many of which are co-operatives). • General projects: This covers any business that is oriented towards customer service, including hair salons, car washes, tuckshops, small traders and game shops.

Health In order to meet the needs of the communities and raise the standard of services, the Palabora Foundation worked with the SABS to put together a menu of services that would benefit not only a clinic but a Wellness and Disease Management Centre that will comply with the National Standard for Comprehensive Health and Disease Management. The structure of the facility was therefore designed to comply with SANS16001. The structure has been completed and the facilities are ready for beneficial usage by the communities. In April 2018, a 24-hour emergency health centre, MarulaMed, was launched to cater for Phalaborwa community as there is no private clinic available in the area.

Community Taking into account the integral part played by the mine in relation to the community, PMC has started a number of initiatives aimed at improving the lives of the community. These include, road construction and rehabilitation, socio economic development projects, enterprise and supplier development projects, soccer tournament and many others.

Employer of choice Since its inception, PMC has been at the forefront of employment practices in the local mining industry. Palabora aims to remain industry-

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competitive through its favourable conditions of employment. This is reflected in the utmost importance devoted to the safety and health of employees in order to remain efficient and profitable as a business. The appointment of Historically Disadvantaged South Africans at professional and managerial levels has increased from 44.8% at 31 December 2010 to 58% at 31 May 2015, to 60% in May 2016. The company has written and developed its code of ethics to follow strategic imperatives which include: providing a safe and healthy work environment for all employees and contractor employees; and practising sound environmental management to ensure the sustainable biodiversity of the natural environment within which it operates. PMC acknowledges and respects stakeholders’ interests and concerns, striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and services, both reliably and responsibly, at national and global level. Palabora always aspires to a “win-win” solution when resolving problems and experience has shown that this can only really be done jointly, with mutual respect and understanding. An important outcome of the close collaboration with unions has been the role they played in encouraging all employees to participate in the various medical aid schemes offered by the company. LIMPOPO BUSINESS 2018/19


Industrial Development Corporation: Limpopo Province

Leading industrial capacity development

T

he Industrial Development Corporation’s Limpopo regional office is well-placed to help the province reach the economic potential which comes from its strategic position as South Africa’s northernmost province. As such, it is seen as the gateway to the rest of Africa. It is bordered by Botswana to the west, Zimbabwe to the north and Mozambique to the east, making it favourably situated for economic cooperation with other parts of Southern Africa.

Values

laborative efforts and extend its reach. The corporation is involved in different stakeholder initiatives, including outreach through local newspapers as well as on radio stations such as Capricorn FM, a wholly black-owned regional radio station. The station is an IDC success story, having been funded by the corporation. The IDC’s main economic driver in Limpopo is agroprocessing, but with the future of the province’s mining industry looking quite prosperous, it might overtake agriculture in the near future.

• Partnership • Professionalism • Passion

Strategic outcomes

Regional office

• Increased development in rural areas and

The regional office is based in Polokwane in a business complex in the hustle and bustle of the city centre and has a satellite offices based in Tzaneen and Thohoyandou. There are IDC regional offices in every province to promote the corporation’s commitment to economic growth and industrial development countrywide. The IDC is located close to other government agencies such as the Small Enterprise Development Agency (Seda) to enhance col-

LIMPOPO BUSINESS 2018/19

• Improve the environmental sustainability of the IDC and the industries in which we operate

• Facilitation of decent, sustainable, direct and indirect employment

improve integration of regional economies

• Promotion of entrepreneurship and small and medium enterprise growth

• Advancement of environmentally sustainable growth

• Growth in sector diversity and increased localised production

• Support for the transformation of communities • Development of black industrialists and support for woman and youth entrepreneurs.

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CONTACT INFO Physical address: Maneo Building, Ground Floor, 73 Biccard Street, Polokwane 0699 Postal address: Postnet Suite 422, Private Bag X9307, Polokwane 0699 Tel: +27 15 299 4080 Fax: +27 15 295 4521 81 Website: www.idc.co.za


FOCUS

Transforming local procurement

Ikefree Projects (Pty) Ltd. is a black youth owned company responsible for building maintenance on mine. Our local business initiatives target local, HDSA youth, women and disabled-owned entities to ensure a lasting impact.

De Beers and Aucor break new ground in Limpopo. De Beers and auction house Aucor on launch day join forces to bring the auction industry to the local communities. The new company is called Aucor Limpopo.

D

e Beers Venetia Mine introduced the EOI (Expression of Interest) process in 2017 to drive the inclusion of local suppliers into the main procurement activities of the mine. The EOI allows for local procurement opportunities in the Musina and Blouberg areas. SMEs that meet the requirements are shortlisted and participate in the tender processes. Since the inception of the programme Venetia Mine has appointed 31 local black-owned SMEs as suppliers, employing more than 200 local people. They are enrolled on the Venetia Mine Supplier Development Programme. The two-year programme includes formal mentorship and training in areas such us Human Resources, Financial Management and Pricing and Costing. These local business initiatives target local, HDSA youth, women and disabled-owned entities to ensure a lasting impact where it is needed most. A company like Ikefree Projects (Pty) Ltd is a black youth-owned company responsible for building maintenance on the mine. Ravujhani Construction and Projects (Pty) Ltd and Amezdo Trading and Projects are black women-owned construction companies. The local procurement transformation aims to LIMPOPO BUSINESS 2018/19

assist SMEs to expand beyond the borders of Venetia Mine and become mainstream businesses supporting the socio-economic activities of the local areas. More recently, the bussing empowerment deal with VM Diamond Transport was concluded. A partnership with Africa’s Auction Authority, Aucor, led to the establishment of Aucor Limpopo, which will see 51% of the business owned by a local business from Blouberg. The aim of this venture is to grow the skills and scope of the local partners, teaching them about the intricacies of the auction industry. These are major milestones for De Beers and the Limpopo region. Both empowerment deals are in line with the continuous drive to uplift communities.

Enterprise Development Venetia Mine recognises that not all local SMEs can benefit from procurement with the mine and that there is a need to develop new and existing SMEs. The De Beers Zimele Hub introduced a number of changes to be able to better equip the local SMEs. These include:

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FOCUS •

• •

Focus away from funding support and rather increase support for business development, mentoring and training. The introduction of the Enterprise Development Incubation Programme aimed especially at conceptual phase businesses or those that have just started to grow. Training and support through our partnerships with SEDA and the NYDA. Access to funding at 6% interest rates for qualifying businesses.

ship between VM Diamond and BEE partners in the relevant communities. A noteworthy feature of the transaction is that it ensures broad-based participation with very good representation in the shareholding by vulnerable groups like women, people living with disabilities and young people. The BEE shareholders have an option to increase their shareholding above 50% within five years. Gregory Petersen, Senior Manager for Enterprise and Supplier Development, says of the transaction, “We are particularly proud that we were able to ensure broad-based participation with very good representation in the shareholding by vulnerable groups like women, people living with disabilities, but also very importantly, the youth who are our future leaders.” The contract entails supplying transport services for 3 500 employees and contractors from the labour-sending areas of Musina and Blouberg on 48 buses to and from the Venetia Mine every day of the year. The value of the agreements is expected to rise above R600-million over the eight-year period of the contracts. To increase the chances of success of the project, VM Diamond Transport will provide technical training to both of the new companies and De Beers will support the local entities with Business Development Support.

These programmes are all aimed at growing community-based enterprises independent of the mine, while at the same time developing and equipping these businesses with the necessary skills required in the local procurement and supplier development sphere should opportunities arise. A new incubation programme in the Blouberg labour-sending area will be established which will target 20 small businesses. In 2017, a total of 26 local businesses “graduated” through the De Beers incubation programme and they are all receiving one-on-one mentoring and support in 2018. In addition, 94 local SMEs have benefited from programmes through SEDA, NYDA and the De Beers Zimele Hub.

Bussing empowerment deal A new bussing empowerment deal invests in local community members, who have a stake in the deal through a 40% share in the new companies. The new bussing companies from the Venetia Mine Employee Bussing Empowerment transaction, ie Hope Diamond Transport (Pty) Ltd in Musina and Millenium Diamond Transport (Pty) Ltd in Blouberg, are a result of a partner-

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LIMPOPO BUSINESS 2018/19


INTERVIEW

Technology Incubation Centres are spurring growth Koenie Slabbert details how the Small Enterprise Development Agency in Limpopo is helping small businesses. What is the key business proposition of Seda Limpopo?

Koenie Slabbert

BIOGRAPHY Koenie Slabbert began his career as an apprentice in tool, jig and die-making. Promotion to Supervisor inspired him to sign up for training at his own expense. Courses at the Production Management Institute of South Africa led to a Higher Diploma in Production Management and a BSc Honours through the PMI/University of Hertfordshire. A Master’s Degree in Operations Management followed. Before joining Seda, Koenie was an industrial engineer at Limac. He has been Provincial Manager from June 2007. LIMPOPO BUSINESS 2018/19

The Small Enterprise Development Agency (Seda) is an agency of the Department of Small Business Development (DSBD) which provides non-financial support to small enterprises and co-operatives. Seda has by far the biggest network of offices in the country. Limpopo has five branches, one in each municipal districts and three co-location points. Seda has presence in some townships and rural areas and has programmes targeting youth and women from all sectors. Seda Limpopo supports three Technology Incubation Centres affording start-ups a well-equipped and protected environment in which to develop and grow for a period of three years. Incubation has been proven to reduce the failure rate in the first few years of small enterprises’ cycle. Seda interventions involve exploring possible new revenue streams, improving competitiveness and productivity in the business. Are there particular economic sectors in which you specialise? Seda assists all types of business and cuts across a number of sectors that are key to job creation. These include: agriculture and agroprocessing, manufacturing, engineering, renewable energy and services (ICT and tourism). Seda has also prioritised small enterprises and co-operatives owned by youth, women, people with disabilities and people in townships and rural areas. What are the challenges and opportunities for small businesses in Limpopo? One of the challenges is access to markets; another is access to funding. There are great opportunities in exporting of primary produce and value-adding through agro-processing initiatives. Manufacturing and technology and ICT initiatives are other areas of potential. Do the branches deal with different kinds of business support depending on where they are located? It is very important for Seda to ensure that its branches provide a series of packaged products and services to assist businesses in various phases

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INTERVIEW Please share any Limpopo success stories. •

The Ultimate Diagnosis Repair Centre is a mechanical workshop in the Mopani District Municipality. Nachem Chemical (shown left) produces cleaning chemicals in the Vhembe District Municipality. Benny & Ernest Leshega Training and Projects is located in Sekhukhune District Municipality.

What are Seda’s key programmes? •

of operation. The dynamics of the economic imperatives will differ from region to region, but Seda has four phases of business development as offered to its clients: Seda Business Talk provides practical answers and guidance to potential entrepreneurs wanting to start their own business and get it right the first time. Assistance includes: business advice and information; small enterprise training and seminars; business registration. Seda Business Start provides businesses with instruments and techniques to plan their operations for a better chance of success. Focus is placed on: business planning counselling and support; business incubation; facilitation of access to finance; basic business skills and training; introduction to co-operatives course. Seda Business Build focusses on clients who want to sustain and strengthen their businesses. Assistance provided: technical support; networking and business linkages; capacity-building systems and mentorship; tender advice/procurement; export orientation; technology transfer; starting and managing a co-operative. Seda Business Grow focusses on clients who wants to grow their business and expand nationally and internationally. Assistance provided: export development; business systems development; co-operative support; growth strategies; technology transfer.

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The Franchise Support Programme promotes franchising businesses to new and current entrepreneurs The Export Development Programme develops export-ready small enterprises that are globally competitive and able to grow markets The Seda Technology Programme seeks to stimulate economic growth and development through technology transfer, increasing the access to and use of technologies and offering technical support The Co-operatives and Community Public Private Partnership Programme promotes the establishment and growth of viable co-operatives and collectively-owned enterprises The EMPRETEC Programme is an integrated capacity building programme of UNCTAD targeting SMEs and entrepreneurial skills.

What are the key factors when starting a small business or co-operative in Limpopo? If you decide to go into business, then you need a hard work mentality. They should run their business or co-operative like a business and not an NPO. For co-operatives, a smaller group is better that a large group as the bigger group is vulnerable to disagreements. LIMPOPO BUSINESS 2018/19


INTERVIEW What does the Biofuel Business Incubator do? A study commissioned by the Department of Science and Technology (DST) found that it would be possible to blend biodiesel, produced from soya beans and sunflower seeds, with coal or crude-based diesel. The Agricultural Research Council (ARC), though its Sustainable Rural Livelihood (SRL) division, approached the DST with a proposal to use available technologies to assist black small-scale farmers and make them the primary producers of the crops for biodiesel production. The Biofuel Business Incubator (BBI) previously known as Makura Mafura Incubator (MMI) started at Tompi Seleka Farmers Training College in Limpopo Province in January 2006. Incubates receive training to enhance their business and managerial skills in order to optimise the yields of crops, primarily sunflowers and soya beans, required for biodiesel production. The strategic objective is to use the biodiesel production value chain as the pathway for the integration of small-scale resource-poor farmers into the agribusiness mainstream. Farmers are assisted with regard to value-chain and market development, enterprise development and technical support. The incubation model of BBI sets a full three-year incubation period while receiving training on crop production (sunflower and soya beans), business skills and technical skills. Graduate farmers receive post-incubation support and are expected to produce high-quality crops. They receive subsidised inputs, a guaranteed market and all the benefits derived from the value chain. What is the Seda Technology Programme? The Seda Technology Programme (STP) is a division of Seda which focuses on sustainable enterprise development through technology business incubation, monitoring, evaluation, improvement of service and product quality and standards, and technology-transfer-funding services and support. STP seeks to make it easier for small enterprises to gain access to technology and technical support, while improving their sustainability and international competitiveness. STP is a programme of the Department of Small Business Development. The Incubation Unit is designed to strengthen technology commercialisation and harness the entrepreneurship of the technology community in South Africa. The Technology Transfer Unit promotes and facilitates the transfer of technology that is appropriate, effective and competitive to small enterprises. The unit offers the following services: grant funding for the acquisition of technology, such as equipment and machinery, to facilitate technology transfer; improving access to technology information by small enterprises; improving access to technologytransfer funding through structured referrals to the funding institutions; linking inventors/universities or science councils with small LIMPOPO BUSINESS 2018/19

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enterprises or entrepreneurs with matching needs. The key mandate of the Quality and Standards Unit is to ensure that small businesses have access to Quality Improvement Programmes that can give small enterprises a sound foundation to be competitive and sustainable. The unit offers: management systems development, implementation; product testing and product certification; product design and packaging; SMME management systems auditing. Please tell us about Seda’s partnerships. Seda works with various large businesses in promoting other SMMEs particularly for supplier development programmes. Businesses such as De Beers, SAFCOL and the Phalaborwa Foundation have partnered with Seda Limpopo in the Vhembe, Capricorn and Mopani districts for enterprise development programmes. We have well-established relationships with entities like Ivanplats, Angloplats mines in Mokopani and Hitachi and Shanduka Black Umbrellas in the Lephalalle in the Waterberg region. Does Seda have programmes designed to assist women and youth in business? Seda’s Women-Owned Enterprise Development and Coaching Programme promotes the development of women-owned enterprises through various capacitybuilding programmes focusing on women.


Seda offices Seda contacts Provincial Office Koenie Slabbert - Provincial Manager Seda Limpopo Provincial Mopani Branch Tel: Office +27 15 287 2940 (located in Tzaneen) Fax: +27 15 297 4022 Koenie Slabbert: Provincial Ms Maseje Nchabeleng: Branch Email: kslabbert@seda.org.za Manager 2ndManager Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700 Tel: +27 2940 Tel: +27 15 306 6400 Postnet Suite15 32287 Private Bag X 9307 Polokwane 0700

Fax: +27 15 297 4022

Fax: +27 15 307 2233

0699

Tzaneen

Seda Vhembe Branch Email: kslabbert@seda.org.za Email: Mr Marcus Mukumela Branch Manager Physical address:- 2nd Floor mnchabeleng@seda.org.za Tel: +27 15 960 8700 Nictus Building Physical address: 2nd Floor Fax: 086 634 8964 68 Hans van Rensburg Street ABSA Building Email: mmukumela@seda.org.za 23 DanieRoad, Joubert Street 7950 Old Polokwane Mutual Building, Old Group Scheme Offices, Mphephu Thohoyandou

0850 Seda Capricorn Branch Capricorn Branch Mr Peter Maredi - Branch Manager Tel: (located +27 15 290 in 8720 Polokwane) Waterberg Branch Fax:Mr. +27Peter 15 290 8736 Branch Manager (located in Mokopane) Maredi: Email: pmaredi@seda.org.za Tel: +27 15 290 8720 Mr Steve Botha: Branch Manager 1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699 Fax: +27 15 290 8736

Tel: +27 15 492 9600

Email: pmaredi@seda.org.za Fax: +27 15 491 7361 Seda Waterberg Branch Physical address: Floor Email: sbotha@seda.org.za Mr Steve Botha - Branch1st Manager Tel: Nictus +27 15 Building 492 9600 Physical address: Old Nedbank Fax:68 +27 15 491 Hans van7361 Rensburg Street Building Email: sbotha@seda.org.za Polokwane 40 Retief Street Old 0699 Nedbank Building, 40 Retief Street, Mokopane Mokopane 0600

Seda Mopani Branch Vhembe Branch Martin Rafferty - Acting Branch Manager (located in Thohoyandou) Sekhukhune Branch Tel: +27 15 306 6400 (located in Groblersdal) Mr Marcus Mukumela: Branch Fax: +27 15 307 2233 Email: mrafferty@seda.org.za Manager Mr Sabelo Ntshangase 27 Peace Street, 1st Floor, 0850 Tel: +27 15 960 8700Prosperitas Building, Tzaneen Tel: +27 13 262 9430

Fax: +27 15 962 4285

Fax: +27 13 262

Thohoyandou 0950

Hereford Street Groblersdal 0470

Seda Sekhukhune Branch Email: mmukumela@seda.org.za Email: sntshangase@seda.org.za Mr Sabelo Ntshangase - Branch Manager Physical address: Bindulavhathu Physical address: Tel: +27 13 262 9430 Office Building Mutual Building Email: sntshangase@seda.org.za 3rdMall, Floor Shop 4 and Office 10, 12 0407 Bareki Shop No. 20B, Cnr Chris Wild and Van Riebeek Street, Groblersdal

We have built a strong team in the province made up of 16 Business Advisors, two Regional Facilitators and five Information Officers who have the responsibility of making measurable differences in the businesses that they assist. This team of Business Advisors works closely with a team of carefully selected service providers who possesses expert knowledge in different functional areas of business and industry sectors.

For more information contact us at: 015 287 2940 or visit our website: www.seda.org.za

TOGETHER ADVANCING SMALL ENTERPRISE DEVELOPMENT


INTERVIEW

Advancing socio-economic transformation Chairperson John Mudau outlines the achievements and goals of the Black Management Forum Limpopo. The Black Management Forum aims to be the thought leadership organisation in South Africa and to provide managerial leadership among Africans and blacks in particular.

Dr John Mudau Vision: To be the foremost organisation in the development and empowerment of organisational leadership in the advancement of socio-economic transformation in South Africa and beyond. Values: Ubuntu; Creativity; Integrity; Effectiveness and Respect. What is your current focus? Corporate transformation and supporting struggling local municipalities. We have established a task team focusing on Section 25 of the Constitution which deals with expropriation of land without compensation. The team, led by lawyer members, will make a presentation to the relevant parliamentary portfolio committee. What are some of the challenges facing business in Limpopo?

BIOGRAPHY Dr John Mudau is currently the Chief Executive Officer of Univen Innovation Growth Company. He obtained his PhD from the University of Venda and is reading towards an MBA at the Tshwane University of Technology. He has lectured at Fort Hare University and the University of Venda. He was Deputy Director at Univen Centre for Rural Development and Poverty Alleviation and serves on several boards, including the Vhembe TVET College Council, of which he is Chairman. LIMPOPO BUSINESS 2018/19

The most critical challenge facing business is failure of government to pay service providers within the legislated 30 days. BMF intends to meet with the provincial departments before it destroys small businesses. Are there sectors where there is good growth? Despite the national challenges and decline in the economy, our agricultural sector remains the critical component of our economy and has registered growth. There is a need to introduce the youth in this sector. What are some of your recent achievements? The hosting of a land dialogue seminar attended by academics, government officials, members of the BMF and members of the Black Lawyers Association in Limpopo. BMF also hosted the Masterplan workshop. How is your relationship with other stakeholders? BMF is very vibrant in the province. There is a lot of respect given to the organisation by both government and other civil society organisations. This is seen in the high attendance figures for BMF events in the province. The organisation is also very proud of its student wing, the BMF student chapter, which is very active at the universities of Limpopo and Venda.

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Busineswomen’s Association of South Africa Limpopo

FOCUS

The voice of women in business.

Speaker, Dr Precious Moloi-Motsepe (sixth from right) and BWASA Limpopo coordinator, Bella Msiza (seventh from right), pictured with guests at the 2018 Limpopo Businesswomen of the Year Awards.

T

he Businesswomen’s Association of South Africa (BWASA) is the largest and most prominent association of business and professional women in South Africa, and the voice of women in business. Through strategic partnerships with sponsors, non-profit organisations, leading companies, business schools and international associations, it provides on-going opportunities to advance the interests of women in business. It is a national association with seven branches countrywide.

Honouring the achievers A keynote event in the BWASA calendar is the hosting of the annual Limpopo Businesswomen of the Year Awards (LBWOYA). Previously known as the Regional Business Achiever Awards, the event has been held since 2001. The Awards honour entrepreneurial and professional women at each of the BWASA branches around the country and acknowledge a winner in each of six categories, including Professional, Corporate, Entrepreneur, Emerging Entrepreneur and Social Entrepreneur. In the Entrepreneur category, awards are given to women as emerging entrepreneurs, established entrepreneurs as well as those who are involved in the social entrepreneurship. The purpose of the function is to give recognition to women who are in service to society, have been working hard and have succeeded

INFORMATION AND CONTACT DETAILS: Businesswomen’s Association of South Africa Limpopo, 42A Grobler Street, Polokwane 0700 Contact person: Elizabeth Modiba Email: limpopo@bwasa.co.za Tel: +27 15 297 8876 or +27 83 278 2040

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in making their mark. Furthermore, the event aims to empower women with tips for success. The speaker at the 2018 event was Dr Precious Moloi-Motsepe. Previous addresses have been presented by the Executive Mayor of Polokwane Thembi Nkadimeng, MEC of Health Phophi Ramathuba, the Minister of International Relations and Cooperation Maite Nkoana-Mashabane and the Chairperson of Mbekani Investment Holdings Limited Dr Judy Dlamini. The event celebrates and LBWOYA 2017 showcases the achievements of women in the business arena in a country where women are still under-represented, it recognises and rewards individuals who have excelled in their chosen careers and the evening provides a platform for the motivation of women by others who have excelled. The event also provides several partnership opportunities and a further chance to give opportunity to women-owned businesses. These include providing sound and lighting effects and videography (recording and editing of video of the event). Partners receive exposure through branding on rotation on visual media at the event, acknowledgment in the Vote of Thanks on the evening and acknowledgment on all BWA social media platforms, print media and radio as one of the LBWOYA sponsors. LIMPOPO BUSINESS 2018/19


OVERVIEW

Education and training Short courses are popular among business leaders.

W

hen 49 taxi business owners attended their graduation ceremony in December 2017, it was the culmination of an innovative partnership between the city of Polokwane and the Turfloof Graduate School of Leadership. Polokwane is revamping its public transport system, and the taxi industry needs to be on board. An agreement between TGSL and the municipality saw the introduction of a diploma course in Business Management Skills for the Public Transport Sector. 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). There are also shortterm management certificate courses which range in duration from six to 12 months. Many of TGSL’s programmes are targeted at middle and senior managers and are popular with public entities. The school also offers eight Short Learning Programmes in management and leadership. The Development Facilitation and Training Institute (DevFTI) has an outward focus, with training provided for NGOs and government departments in various parts of Africa. The Sefako Makgatho Health Sciences University is now an independent university in Gauteng Province and Limpopo University has a separate Medical School. The University of Limpopo is organised into four faculties: Humanities, Management and Law, Science and Agriculture, and Health Sciences. The University of Limpopo counts among its alumni the current president of South Africa, Cyril Ramaphosa, who enrolled for legal studies in the early 1970s. Clashes with the security apparatus of LIMPOPO BUSINESS 2018/19

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SECTOR INSIGHTS South Africa’s new president is an almunus of the University of Limpopo.

the apartheid state meant that had to complete his degree by correspondence through the University of South Africa (Unisa). Unisa has a regional support centre in Polokwane and agencies at Makhado and Giyani. The University of Venda for Science and Technology (Univen) is situated in Thohoyandou in the 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 university has invested more than R1-billion over the last decade in new and improved infrastructure. Most of the funding has come from the


OVERVIEW National Department of Higher Education and Training while a recent project to provide additional student accommodation has been made possible by a R300-million loan from the Development Bank of Southern Africa. There are seven Technical and Vocational Education and Training (TVET) 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 with a different focus. The city campus in Polokwane offers business studies, engineering and National Curriculum Vocation (NCV) subjects. Seshego 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 the merSETA. Waterberg College operates as five business training centres across two municipalities, namely Lepelle-Nkumbi and Mogalakwena.

Schools and skills The provincial government facilitated the training of 190 teachers through the Continuous Professional Teacher Development Programme in 2017/18. Training was also provided to 53 curriculum advisors in mathematics, science and technology (through the Continuous Professional Development Centre) and 1 141 teachers were trained in numeracy and mathematics teaching strategies. In 2017, libraries were constructed in Eldorado, Rooiberg and Ramokgopa with the following villages to receive the same in 2018, Phokwane, Maphalle, Zamani and Mahlabathini. The Limpopo office of the National Education Collaboration Trust (NECT) has a staff of 35 which is rolling out programmes in two Limpopo districts, Vhembe and Waterberg. The two areas comprise 1 499 schools,

ONLINE RESOURCES Limpopo Department of Education: www.edu.limpopo.gov.za National Education Collaboration Trust: www.nect.org.za 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

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19 058 teachers and 601 053 pupils. A number of schools have been selected as Fresh Start Schools (FSS) where NECT will test various methods and interventions. NECT is a registered trust with an impressive array of corporate funders, including First Rand Foundation, the Douglas Murray Trust, Nedbank, the Sishen Iron Ore Community Development Trust, the JSE and Old Mutual. The NCET wants 90% of South African school pupils to pass mathematics, science and languages with 50% by 2030. The board of trustees is chaired by former FirstRand CEO Sizwe Nxasana. 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. 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 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. LIMPOPO BUSINESS 2018/19


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: Ms Nandi Madalane

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: Ms Joyce Mashaba

Department of Safety, Security 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 2900 | 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 Mapula Mokaba-Phukwana

20 Rabe Street, Hensa Building, Polokwane 0700 Tel: +27 15 284 5060 | Fax: +27 15 291 3988/086 576 4784 Website: www.coghsta.limpopo.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 15 293 8300 | Fax: +27 15 293 8319 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.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 7000 Fax: +27 15 295 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 LIMPOPO BUSINESS 2018/19

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LISTING

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

Maruleng Local Municipality Tel: +27 15 793 2409 Fax: +27 15 793 2341 Website: www.maruleng.gov.za

Lepelle-Nkumpi Local Municipality Tel: +27 15 633 4500 | Fax: +27 15 633 6896 Website: www.lepelle-nkumpi.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

Molemole Local Municipality Tel: +27 15 501 0243 | Fax: +27 15 501 0419 Website: www.molemole.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

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

Ephraim Mogale Local Municipality Tel: +27 13 261 8400 | Fax: +27 13 261 2985 Website: www.ephraimmogalelm.gov.za Fetakgomo-Greater Tubatse Local Municipality Tel: +27 15 622 8000 | Fax: +27 15 622 8026 Website: www.fetakgomo.gov.za

Ba-Phalaborwa Local Municipality

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

Makhuduthamaga Local Municipality Tel: +27 13 265 1177/1262 | Fax: +27 13 265 1076 Website: www.makhuduthamaga.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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LIMPOPO BUSINESS 2018/19


LISTING 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

Tel: +27 14 718 3300 Fax: +27 14 717 2931 Website: www.waterberg.gov.za Bela-Bela Local Municipality

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

Collins Chabane Local Municipality Tel: +27 15 851 0110 | Fax: +27 15 851 0097 Website: www.lim345.gov.za

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

Makhado Local Municipality Tel: +27 15 519 3000 | Fax: +27 15 516 1195 Website: www.makhado.gov.za

Modimolle-Mookgophong Local Municipality Tel: +27 14 718 2000 | Fax: +27 14 717 4077 Website: www.modimolle.gov.za

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

Mogalakwena Local Municipality Tel: +27 15 491 9600 Fax: +27 15 491 9755 Website: www.mogalakwena.gov.za

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

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

WATERBERG DISTRICT MUNICIPALITY Physical address: Harry Gwala Street, Modimolle 0510 Postal address: Private Bag X1018, Modimolle 0510

ZIMBABWE

MUNICIPALITIES IN LIMPOPO PROVINCE

Musina

Musina

Tshipise

Alldays

Waterberg

Local Municipality

Vhembe

Lephalale

Thulamela Thohoyandou

Makhado

Blouberg

Makhado

Kruger National Kruger National Park ParkDistrict

R81

N1

N11

BOTSWANA

Greater Giyani

Lephalale Mogalakwena

R81

Lephalale

Tzaneen

Capricorn Waterberg

Mokopane

Greater Tzaneen

POLOKWANE

Polokwane

Lepele-Nkumpi

Thabazimbi

Mookgophong Modimolle-Mookgophong Local Municipality

Bele-Bela

Modimolle

Bela-Bela

North West

Makhuduthamaga

LIMPOPO BUSINESS 2018/19

Sekhukhune

Ephraim Mogale

Greater Groblersdal

Gauteng

94

Phalaborwa

Maruleng

Fetakgomo-Greater Tubatse

N11

Mopani

Ba-Phalaborwa

R40

N1 Thabazimbi

Management Area

Greater Letaba

Molemole

MOZAMBIQUE

Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality

Mpumalanga

Kruger National Park District Management Area


PROFILE

SALGA Limpopo Supporting municipalities for better financial management and service delivery.

T

he South African Local Government Association (SALGA) has introduced the Municipal Audit Support Programme (MASP), which focusses on four pillars: institutional capacity; financial management; leadership; governance. During the 2017/18 financial year, SALGA Limpopo provided support to municipalities with the aim of improving financial management and decent service delivery. SALGA Limpopo implemented the following:

Institutional capacity SALGA has over the past two years been at the forefront of lobbying and advocating for the development of Spatial Development Frameworks that relate to the implementation of Special Economic Zones (SEZs). As a result, an estimated amount of R1.2-million has been allocated for this purpose and land-use schemes in the Musina-Makhado area in the Vhembe District Municipality. SALGA Limpopo also: • coordinated a workshop for best practice on mega-project implementation (Medupi Eskom project in Lephalale Local Municipality) • facilitated best-practice session on Municipal Planning Tribunal • partnered with Vodacom for the establishment of SMMEs in the telecoms industry and placement of interns • supported municipalities on the functionality of their Local Labour Forum • municipalities were supported on the implementation of Integrated Human Resource Management Strategy for local government • facilitated gender mainstreaming summit in partnership with Gender Links and Capricorn District Municipality • coordinated Competency Assessments for five municipalities.

SALGA Limpopo has appointed a new Acting Provincial Executive Officer, Ledile Molope.

Leadership All councillors serving on finance committees were given induction training. Facilitated a project of engaging all Executive Mayors with various media houses. Organised Medupi ESKOM excursion for best practice on mega-project implementation. Partnered with the Limpopo Depar tment of Economic Development, Environment and Tourism (LEDET) for an accredited certificate in local economic development (LED) with the University of Johannesburg.

Governance

Financial management Compiled detailed diagnostic reports to four municipalities, to improve audit outcomes. Provided Vhembe District Municipality with provision for doubtful debts formula. Training was offered on tariffs modelling and mSCOA budgeting. Training was offered on innovative revenue enhancement strategies and revenue conversion. SALGA, in partnership with DBSA, Sebata, UMS and Vodacom, convened a revenue management, debt and credit management workshop for our municipalities. The Greater Tzaneen Local Municipality was assisted with resolving of infrastructure audit findings.

95

All members of public accounts committees received portfoliobased training during September 2017. Over 200 councillors benefitted from this programme, which sought to strengthen oversight and accountability for effective, leadership practices, and to build on the Integrated Councillors’ Development Programme. LIMPOPO BUSINESS 2018/19


INDEX

INDEX

Black Management Forum (BMF)���������������������������������������������������������������������������������������������������� 88 Businesswomen’s Association of South Africa (BWASA)��������������������������������������������������� 89 De Beers Group of Companies - Venetia Mine............................................. 18, 58, 82, OBC Implats�������������������������������������������������������������������������������������������������������������������������������������������������������������� 60 Industrial Development Corporation (IDC)����������������������������������������������������������������������� 30, 80 Leeto la Polokwane���������������������������������������������������������������������������������������������������������������������������43-47 Limpopo Economic Development Agency (LEDA)�������������������������������������������������9, 22-27 Limpopo Office of the Premier������������������������������������������������������������������������������������������������������������6 Limpopo Tourism Agency�������������������������������������������������������������������������������������������������������������35-37 MTN�����������������������������������������������������������������������������������������������������������������������������������������������������������������������5 Nedbank��������������������������������������������������������������������������������������������������������������������������������������������� 3, 15, 48 Palabora Mining Company (PMC).................................................................................... 28, 56, 78 Roads Agency Limpopo........................................................................................................ IFC, 40-42 SA Airlink��������������������������������������������������������������������������������������������������������������������������������������������������������� 33 Small Enterprise Development Agency (Seda)����������������������������������������������������������������84-87 South African Local Government Association (SALGA)����������������������������������������������������� 95 Superfecta Trading����������������������������������������������������������������������������������������������������������������������������������� 62 TD Steel and Aluminium Products������������������������������������������������������������������������������������������������� 65 Vodacom���������������������������������������������������������������������������������������������������������������������������������������� 70-75, IBC LIMPOPO BUSINESS 2018/19

96


Vodacom Vodacomisis aggressively aggressivelydriving driving network networkinvestment investmentinin Limpopo Limpoporegion region Imran Khan Imran Khan

Imran Khan, Managing Executive, Vodacom Limpopo region, Imran Khan, Managing Executive, Vodacom Limpopo region, outlines howhow a focus on network expansion, focus on 4G andand outlines a focus on network expansion, focus on 4G investment in rural areas is yielding positive results. investment in rural areas is yielding positive results.

Please givegive us ausbrief overview of Vodacom’s operations. Please a brief overview of Vodacom’s operations. Vodacom runsruns an end-to-end business in the region, bringing world-class Vodacom an end-to-end business in the region, bringing world-clas communication solutions to consumers andand business customers in Limpopo communication solutions to consumers business customers in Limpop province. We provide our our customers withwith a wide range of communication province. We provide customers a wide range of communicatio services, including mobile voice, messaging, datadata andand converged services services, including mobile voice, messaging, converged service to more thanthan 4.5-million customers in Limpopo province. to more 4.5-million customers in Limpopo province.

How is network expansion progressing? How is network expansion progressing? We have always maintained thatthat our key is the strength We have always maintained our differentiator key differentiator is quality, the quality, strengt andand reliability of our networks. In this regard, we expanded our our 3G sites to t reliability of our networks. In this regard, we expanded 3G sites more thanthan 300300 andand deployed 36 sites in deep ruralrural areas of Limpopo during more deployed 36 sites in deep areas of Limpopo durin the the 2017/2018 financial period. TheThe upgrades increased network capacity 2017/2018 financial period. upgrades increased network capacit andand enhanced mobile datadata speed across the the province. enhanced mobile speed across province.

AreAre Limpopo customers experiencing 4G 4G network? Limpopo customers experiencing network? During the 2017/2018 financial year we invested a lota of in rolling During the 2017/2018 financial year we invested lotmoney of money in rollin out out 4G sites to provide our our customers withwith faster datadata speeds. As aAs result, 4G sites to provide customers faster speeds. a resul 76%76% of the population in Limpopo nownow has has access to our 4G network. of the population in Limpopo access to our 4G network.

Please telltell us about thethe Open Access Network. Please us about Open Access Network. The region has signed a memorandum of understanding withwith other net-net • The region has signed a memorandum of understanding other • BIOGRAPHY work providers to leverage on their existing fibre network infrastructure in i • BIOGRAPHY work providers to leverage on their existing fibre network infrastructure • I m• rI am•nr a n g r egwr e w u p u p i n i nthe the region. As aAs result, the the region has has builtbuilt fibrefibre to 15% of itsofbase stations region. a result, region to 15% its base station the the province. Pietermaritzburg andand graduated • Pietermaritzburg across province. graduatedacross • fromfrom the the University of KwaZuluUniversity of KwaZuluis Vodacom Limpopo doing in youth andand education? Natal. He He is aisfamily manman withwith a aWhat What is Vodacom Limpopo doing in youth education? Natal. a family At the heart of our CSI programmes is the belief that our existing technolpassion for soccer and travel. existing techno passion for soccer and travel. At the heart of our CSI programmes is the belief that our ogy can be an enabler of quality education. Vodacom in partnership withwit With a background in finance With aDETAILS: background CONTACT CONTACT DETAILS: in finance ogy can be an enabler of quality education. Vodacom in partnership Department of Basic Education has has connected 92 teacher centres andand economics, he he hashas heldheldthe the Department of Basic Education connected 92 teacher centre economics, the the country. several positions in Vodacom across country. several positions in Vodacomacross in in Gauteng, KZN, Western Gauteng, KZN, Western is Vodacom e-school? Cape andand Limpopo. Having What is Vodacom e-school? Cape Limpopo. HavingWhat Vodacom e-school is a unlimited online education portal thatthat provides transitioned from accounting to is a free, unlimited online education portal provide transitioned from accounting to Vodacom e-schoolfree, content material for grades R-12. The platform provides online CAPS aligned sales, Imran’s ethos on business aligne sales, Imran’s ethos on business content material for grades R-12. The platform provides online CAPS andand is designed to bridge the the digital divide andand making learning is that youyou cancan never go wrong content is designed to bridge digital divide making learnin is that never go wrongcontent using technology. TheThe e-school portal has has reached overover 439 439 00000 if “you keep the the customer at the exciting using technology. e-school portal reached if “you keep customer at theexciting @RoadsAgency RoadsAgencyLimpopo Website: ral.co.za @RoadsAgency RoadsAgencyLimpopo Website: ral.co.za learners across the country. centre of your universe”. learners across the country. centre of your universe”.


THE GUIDE TO BUSINESS AND INVESTMENT IN LIMPOPO

The two municipalities werewere selected as as De Beers Group and and United Nations The two municipalities selected De Beers Group United Nations (UN)(UN) Women havehave collaborated in a in a the initial focusfocus due due to theto strong potential the initial the strong potential Women collaborated tangible, positive outcomes that that three-year capacity-building programme to deliver tangible, positive outcomes three-year capacity-building programme to deliver support entire communities through the to support 500 women microto support 500 women microsupport entire communities through the economic empowerment of of entrepreneurs in communities nearnear Venetia entrepreneurs in communities Venetiaincreased increased economic empowerment minemine in Limpopo. women micro-entrepreneurs. women micro-entrepreneurs. in Limpopo. The programme will equip women microis part of DeofBeers’ three-threeThe programme is part De Beers’ The programme will equip women micro- The programme entrepreneurs in thein local communities global partnership with with UN UN Women global partnership Women entrepreneurs the local communities yearyear its commitment to stand with with women of Blouberg and and Musina with with business its commitment to stand women of Blouberg Musina business and and around the world. De Beers is investing management skills,skills, an understanding management an understanding around the world. De Beers is investing of access to markets and and marketing, US$3 million to advance women microof access to markets marketing, US$3 million to advance women microentrepreneurs and and STEM students in itsin its sustaining income, and and creating jobs.jobs. sustaining income, creating entrepreneurs STEM students diamond producing countries of Canada, In addition, the programme will help diamond producing countries of Canada, In addition, the programme will help buildbuild life skills and and confidence to support Namibia and and SouthSouth Africa. Botswana, Namibia Africa. life skills confidence to support Botswana, effective decision-making, communication effective decision-making, communication and and negotiation. negotiation.

LIMPOPO BUSINESS

DE DEBEERS BEERSGROUP GROUP COMMUNITY COMMUNITY PROGRAMMES PROGRAMMES

2018/19

Limpopo Business 2018/19  

Limpopo Business is unique as a business and investment guide that focuses exclusively on the Limpopo Province.

Limpopo Business 2018/19  

Limpopo Business is unique as a business and investment guide that focuses exclusively on the Limpopo Province.

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