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2019/20 EDITION

LIMPOPO BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN LIMPOPO PROVINCE

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CONTENTS

CONTENTS Limpopo Business 2019/20 Edition

Introduction Foreword4 A unique guide to business and investment in Limpopo. Infrastructure is a key driver in job-creation and development6 A message from the Premier of Limpopo, the Honourable Chupu Stanley Mathabatha. Creating a conducive climate for investment A message from the Interim CEO of the Limpopo Economic Development Agency, Dr Matata Mokoela.

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Special features Regional overview of Limpopo  10 New mining projects, investments in Special Economic Zones and superb tourism assets are expected to underpin economic growth in Limpopo. Boosting economic growth  14 Sector-specific industrial zones are set to transform Limpopo’s economy. Marula Industrial Hub  Plans are in place to boost the use of a super fruit.

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Destination Limpopo24 Biodiversity holds great potential for growth in the tourism industry. 

Economic sectors Agriculture40 Five Agricultural Development Zones have been declared. Mining44 Eight new investments are bringing jobs to Limpopo. Construction and property Infrastructure and state housing are potential markets for builders. 1

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CONTENTS

Energy59 Large energy users are going off-grid. Transport and logistics The new Musina Intermodal Terminal is operating.

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Banking and financial services Banking choices are expanding very quickly.

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Development finance and SMME support Big companies are using their supply chains to support small business.

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Education and training Training is a key provincial priority.

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

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Index88 Maps

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Limpopo locator map ABOUT THE COVER: Credit: Des Jacobs for Implats. Marula Mine, which is 73% owned by Implats, comprises two decline shafts and a concentrator plant. In FY2018 the operation produced 85 100 ounces of platinum in concentrate.

LIMPOPO BUSINESS 2019/20

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FOREWORD

Limpopo Business

CREDITS

A unique guide to business and investment in Limpopo.

Publisher: Chris Whales

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he 2019/20 edition of Limpopo Business is the 11th 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 several 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 various Special Economic Zones (SEZs) which aim to drive industrialisation in the province and the initiatives which are further enhancing the tourism offering in Limpopo. News related to mining, agriculture, transport and logistics, education and development finance is carried in overviews of the main economic sectors in the province. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www. globalafricanetwork.com Updated information on the Limpopo is also available through our monthly e-newsletter, which you can subscribe to online, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business.

Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Business development manager: Shiko Diala Ad sales: Gavin van der Merwe, Sandile Koni, Sam Oliver, Gabriel Venter, Vanessa Wallace, Jeremy Petersen. Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman

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

Distribution & circulation manager: Edward MacDonald Printing: FA Print

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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

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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, Amplats, De Beers Group, flickr/SA Tourism, iStock, Palabora Mining Company, Photoflurry Productions Photography, Roads Agency Limpopo, Thaba Moshate Casino, Hotel and Conference Centre, Thavani Mall, University of Limpopo, SAB Foundation.

LIMPOPO BUSINESS 2019/20

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

Infrastructure is a key driver in job creation and development Limpopo Premier Chupu Stanley Mathabatha outlines his administration’s priorities in welcoming potential investors to the varied economy that is already receiving interest from China and elsewhere.

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e are fresh into the 6th Provincial Ad m i n is t r at i o n after our most successful national and provincial general election. This was an election which was fought on the

Chupu Stanley Mathabatha, Premier of Limpopo

LIMPOPO BUSINESS 2019/20

promise of growth and development of the economy for jobs and a decent quality of life. This is a promise which we intend to keep, working in partnership with all our social partners and stakeholders. Our collective focus is on the creation of jobs, the need to end poverty and the urgency of building a better life for all. This requires greater focus and determination, and our set targets and objectives can only be realised through working together as government, business, organised labour and other groups and organisations. As we prepare to implement the manifesto priorities of the ruling party, we move from a premise that over the past 25 years the lives of the people of South Africa have changed for the better. Millions of people have houses, electricity and access to clean drinking water. Children from poor communities have access to free education. In the past five years the number of HIV-positive people on antiretroviral treatment has doubled while the overall rate of new infections is decreasing. Over 17.5-million of our most vulnerable citizens receive social grants. We advanced the cause and rights of workers to organise, collectively bargain, refuse dangerous work, and to strike. Our work is guided by the conviction that without ignoring our collective achievements, so much more can and must still be done.

Infrastructure One of the key drivers of employment creation in the province is the government’s deliberate investment in infrastructure projects. By the end of the 2018/19 financial year, provincial infrastructure expenditure stood at above R5.5-billion. We look forward to spending more of the province’s infrastructure grants on capital infrastructure projects which will help to stimulate the economy and create jobs for the people of Limpopo.

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MESSAGE

Several new mining projects are in the pipeline that will boost the Limpopo economy, Image: Des Jacobs

Significant progress has been recorded with regard to the delivery of certain key projects in this province, which we can be proud of. The Musina-Makhado Special Economic Zone (SEZ) programme is beginning to take shape. This SEZ initiative is expected to revitalise Limpopo’s industrial economy by utilising our local mineral resources and integrating the industrial chains of both the upstream and downstream activities. Several plants will be constructed under this SEZ project. These include a coal washery, a coal-fired power plant, a coking plant, a stainless-steel plant, a high-carbon ferrochrome plant and a silico-manganese facility. Supporting administrative services such as houses, hotels, shopping malls, healthcare facilities and schools will also be constructed. This project is expected to create no fewer than 20 000 jobs for the people of this province. The recent mission which I led to the People’s Republic of China has given even more impetus to our Musina-Makhado SEZ programme. Through this mission, Limpopo Province was able to attract a total investment commitment of R100-billion, which will go a long way to creating much-needed jobs and other economic opportunities, especially for the youth.

Mining and tourism are dynamic sectors Mining is the biggest contributor towards the Provincial Gross Domestic Product (PGDP) at 24.5%. Jobs in this sector increased from 71 000 in 2013 to 103 000 in 2017/18. With new mining projects in the pipeline, these figures are expected to increase by a further 3 000. Mining in Limpopo yields significant quantities of coal, copper, diamonds, gold, iron ore, nickel, platinum group metals, rare earth minerals and tin to South Africa’s mineral industry. Limpopo has 147 mining projects that are currently operational, and we envisage a

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further eight new projects in the Capricorn and Sekhukhune Districts. These projects are expected to attract investments worth R2.5billion and create around 3 000 jobs. We are also excited about the new investments in the Ivanhoe Mine in Mokopane. The current investment in this mine is at R4.5billion. We are looking forward to the mine going into full operation by 2024. This mine is expected to create well over 25 000 jobs. The other job driver in the province is the tourism sector. The good news is that our domestic tourism sector has also been doing well over a sustained period of time. According to the latest available figures from StatsSA, Limpopo has since 2014 received over 27. 5-million domestic travellers. During the same period, our province was able to attract 7.8-million international tourists. We intend to build on these figures as we position our tourism sector to become a major job creator in the province. Together, let’s grow Limpopo and bring to life the dream of a better life for all. LIMPOPO BUSINESS 2019/20


MESSAGE

Creating a conducive climate for investment The Interim CEO of the Limpopo Economic Development Agency, Dr Matata Mokoele, explains how LEDA is building infrastructure and supporting initiatives to attract investors.

Dr Matata Mokoele, CEO

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he Limpopo Province investment climate is characterised by highvalue sectors that drive world economies in many ways. Agriculture, tourism and mining continue to define the future economic growth trajectory for the province. Traditionally, these sectors boosted gross domestic product through their primary activities. As LIMPOPO BUSINESS 2019/20

the world evolves and new opportunities emerge in the industrial value chains, these sectors are increasingly becoming key to economic growth through the transformation and industrialisation of the province. Limpopo Province, whose employment is largely driven by the government sector, adopted the Limpopo Development Plan five years ago as a socio-economic transformation blueprint. It outlined how the government in collaboration with civil society institutions could unlock economic growth through appropriate policy. For instance, mining and agriculture were identified as the linchpin for industrialisation through the beneficiation of these resources. The province continues to see steady growth in hunting which can be a springboard in the tourism sector for growth and transformation. The province continues to lead the country in terms of arrivals from the African continent and the tourism sector’s contribution to job creation is significant. These developments and future economic growth are driven through institutions such as the Limpopo Economic Development Agency (LEDA) which develops and promotes SMMEs and cooperatives, investment promotion, business funding and caters for the provision of industrial parks. These industrial parks, situated across the five districts of the province, stimulate manufacturing in line with the Limpopo Development Plan and National Development Plan. LEDA is collaborating with National Department of Trade and Industry (dti) in refurbishing industrial parks in Seshego and Nkowankowa. The goal is to revitalise rural and township economies. The Limpopo Development Plan, which is due for revision for the next five years, has laid a very good foundation for the MTF period. Local and international investors have many avenues for exploring collaboration with local emerging enterprises.

SMMES and co-operatives Support for SMMEs and co-operatives in the province is well documented. LEDA has created and implemented a business incubation

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MESSAGE

strategy for emerging and existing enterprises which imperatives set out by the National Development Plan focuses on registrations and formalisation, training, and Limpopo Development Plan. The stimulation of business planning, access to funding and finance, economic development is embedded in cost-effective and access to markets. The programme has registered communication technologies that are available, success for most businesses. In theenvironment 2018 accessible, reliable and affordable. The Broadband Act Improving lives,participating and creating a conducive for investment. financial year, 294 enterprises were assisted in various calls for connectivity to society at large to ensure that programmes and were able to sustain 1 343 jobs. costs of doing business are reduced and the country is LEDA entered into an MoU with the Companies transformed towards a knowledge economy that can and Intellectual Property (CIPC) where transact with the world public with ease. To date the Data mproving the lives of theCommission citizens of Limpopo is infrastructure, an integrated transport policy all business registration services will be delivered at Centre, which is the nerve centre of the network, the the overarching aim of the Limpopo Develop- and land policies. LEDA at lower cost. Tolevers date, 26 enterprises Call Centre and the on Network Operating Centre are mentoffices Plan. The economic that399 can bring This article focusses the economic aspects were assisted with services ranginginvestment from registrations, Forty-four have been connected that improvement about present op- andcompleted. the potential of the (44) LDP sites for private investors amendments and annual returns. to the network, offering free Wifi services to students portunities, particularly in the sectorsThe thatturnaround have been onto participate. business than mining, five working days, Key at Library Gardens to theDevelopment broader community at identifi ed registrations as key driversisofless growth: tourism elements of theand Limpopo Plan an improvement that ensures that entrepreneurs are the Polokwane Civic Centre. and agriculture. are: industrialisation (beneficiation of mining and able toLimpopo access business opportunities at isthe earliestagricultural products and produce); mining (local The Development Plan (LDP) targettime possible. ing three broad areas for improvement and develop- suppliers, improved training and access to sector

Limpopo Development Plan

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Community services

ment: socio-economic, infrastructural and institu- for entrepreneurs); infrastructure development; Through its subsidiary Great North Transport, tional. Every department of the Limpopo Provincial agri-processing; SMME promotion; and ICT and the LEDA provides economy essential services in atransporting commuters Government has targets within the LDP which knowledge (establish WAN footprint). LEDA’s industrial are host to enterprises and passengers to various destinations onpart a daily are translated intoparks actionable programmes to in bethe Mining is currently the most important of basis. manufacturing and services sectors across the five Transport is the backbone of the economy and through implemented within time-frames. the provincial economy, contributing nearly 30% to districts of the province. In line promotingimmoreGDPR. thisMany subsidised service, it developments provides households Development is defined aswith broad-based platinum mining on the with investment in in the these industrial discounted enablingComplex commuters get to work provements standard andparks, qualitythe of agency life for iseastern limb of fares, the Bushveld havetospurred collaborating the dtitheonprovince, a programme and to about theirOne business. the people livingwith throughout to which togrowth ingo that region. of the goals of the LDP Risima Corporation breaks new increase lettable space forgovernment, rentals. This strategy aimsis to see all institutions (including business, moreHousing beneficiation from theFinance mining sector, ground annually through various housing development to increase manufacturing across the value chain labour and citizens) contribute. Increased job crea- which will support the goal of further industrialisto residents throughout theto province. Risima is and higher make connections between players,ingschemes tion, incomes, better access industrial to good public the province’s economy. Related this is an equallyon active providing products emerging and the management Black Industrialists services andenterprises sound environmental are emphasis the in manufacturing sector.and services in the housing sectorthe in rural townships andZones cities. In the Programme. Phase 1 of the revitalisation in both In the measures of the development plan. response, two areas, Special Economic yearatahead, Risima will endeavour to increase its portfolio Seshego and Nkowankowa complete. This included(SEZs) The plan, currently inisits implementation Musina and Tubatse promote manufactursecurity features to the entire area and plans are of products and services as a contribution to transforming phase, is further supported by a spatial invest- ing. Specific manufacturing value-chains are identiafoot to commence phase The plans to havefiedLimpopo Province, traditionally a rural province, ment framework in with public and2. private sector for each area, based on the base mineral being to an industrial parks in Vhembe are also well underway. industrial powerhouse in terms of mining, agriculture and tourism. LIMPOPO BUSINESS 2017/18 20 We invite all investors to join us in our journey towards a prosperous future. The province is rolling out broadband in the province to support the socio-economic development Website: www.lieda.co.za

Industrial parks

Broadband

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LIMPOPO BUSINESS 2019/20


A REGIONAL OVERVIEW OF THE

LIMPOPO PROVINCE


New mining projects, investments in Special Economic Zones and superb tourism assets are expected to underpin economic growth in Limpopo. By John Young

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ith R150-billion in committed investments so far, Limpopo’s newest major project, the Musina-Makhado Special Economic Zone (SEZ), has every chance of being a real game-changer. The SEZ takes advantage of one of Limpopo’s greatest strategic advantages, namely its location. With a stated aim of benefitting the economies of the region, including neighbours Botswana, Zimbabwe and Mozambique, the SEZ is expected to create more than 20 000 jobs in a range of sectors. The largest projects will be in minerals, mineral beneficiation, energy and logistics. Another SEZ at Tubatse in eastern Limpopo, together with an industrial park designed to promote and enhance opportunities along the value chain that the marula fruit can bring, and the revitalisation of industrial parks at Seshego and Nkowankowa point to the fact that parks are a central plank of provincial economic planning. Mining continues to be biggest contributor to provincial Gross Domestic Product (GDP) at 24.5%. The number of jobs in this sector reached more than 100 000 in 2018, up from just over 70 000 in 2013. With several big new projects underway, a significant number of new jobs will be created in the short term. Tourism is seen as one of the biggest potential earners (and employers) with almost limitless potential. The sector within tourism that is receiving the most attention from authorities at the moment is biodiversity but there are equally unrivalled opportunities in adventure tourism, culture and heritage, birding, golf and the list goes on. Nearly eight million international tourists have visited the province since 2014 and more than 27-million South Africans have visited some part of Limpopo in the same period. 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. 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 Limpopo Province’s 125 754km² covers a remarkably diverse geographical and cultural landscape that is also rich in minerals and agricultural products. The N1 highway (“Great North Road”) is a key 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 (SADC). 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 in that city and in Musina. 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 Airports Authority Ltd (GAAL), an agency of the Limpopo Department of Transport. It has the potential to be an


SPECIAL FEATURE

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 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.

The best-performing subsector of South African exports in recent years has been fruit and nuts. Limpopo has been a major contributor to the country’s excellent export record: fruit and 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 assets include the largest diamond mine in South Africa, the biggest copper mine in South Africa, the biggest open-pit platinum mine in the country and the biggest vermiculite mine in the world. The province has 41% of South Africa’s platinum group metals (PGMs), 90% of South Africa’s red-granite resources and approximately 50% of the country’s coal reserves. Antimony, a highly strategic mineral found in large quantities in China, is another of Limpopo’s major assets. The Provincial Government of Limpopo has committed to allocating 20% of state procurement to enterprises owned by both women and young people. This is line with placing “young people at the centre of our economic development programme”, in the words of Premier Mathabatha.

Growth plans 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. Existing manufacturing in the province is centred on mining areas (smelters and refineries), agricultural estates (juices and concentrates) and Polokwane (food and beverages). Agri-processing is strong, with Pioneer Foods, McCain, Granor Passi, Kanhym, Westfalia and Enterprise Foods prominent, but this sector still has potential to grow. 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. ZZ2 is one of the country’s largest agricultural enterprises. ZZ2 is most famous for the large quantity of tomatoes and avocadoes produced but its product range is also large: mangoes, onions, dates, cherries, apples, pears, stone fruit, almonds and blueberries. LIMPOPO BUSINESS 2019/20

Limpopo’s regions and major cities 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. There are five district municipalities in Limpopo and the capital city is Polokwane (population 629 000).

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SPECIAL FEATURE while one of the major road links between Gauteng and the Kruger National Park also passes through the area, providing excellent logistical links for tourism and business. www.greatertzaneen.gov.za

Polokwane The centrally situated city of Polokwane is the capital of Limpopo Province. Located on the Great North Road (N1 highway) and almost equidistant from the highdensity population of greater Johannesburg and the neighbouring countries of Botswana, Zambia, Zimbabwe and Mozambique, Polokwane’s upgraded international airport plays an increasingly important regional role. 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. The range is broad: soft drink and fruit juice manufacture, confectionery, bricks, clothing, meatprocessing, packaging and jewellery. Polokwane has excellent hotel and conferencing facilities. It is a good starting point for tourism trips into the province and beyond. Unusually, the city has its own game reserve on 3 200 hectares of semi-bushveld land. Several annual festivals are held in Polokwane, including the Mapungubwe Arts Festival. Nearby Moria attracts up to a million people every year, when the Zion Christian Church celebrates Easter. www.polokwane.gov.za

Phalaborwa Known as the Gateway to the Kruger National Park, Phalaborwa is situated in such a moderate climatic belt that it is also sometimes known as the town of Two Summers, so similar are the summer and winter temperatures. Phalaborwa has a good airport and the town’s proximity to the Kruger National Park makes it a tourism hub. The town has several attractions of its own. Cruises on the Olifants River are popular and the highly regarded Hans Merensky Country Club golf course hosts national tournaments. The prospect of meeting wildlife on the fairway adds spice to the golf experience. Palaborwa Mining Company (PMC) is the major economic driving force in the area. Copper has been mined in the region for many centuries, with evidence from as far back as 400AD having been found. The popular Marula Festival is held in Phalaborwa in February every year. This not only promotes the iconic fruit (and its associated foods and beverages) but is a celebration of local arts and crafts and music. Sports events such as golf and soccer tournaments and half-marathons are held to coincide with the festival. www.phalaborwa.org.za

Tzaneen A subtropical climate and fertile soils combine to make greater Tzaneen one of South Africa’s most productive areas in fruit and vegetables. Steep valleys and gently sloping mountains provide ample opportunities for tourism of all sorts. The Letaba Valley produces a large proportion of South Africa’s mangoes, avocadoes and tomatoes. Citrus fruits also thrive, as do macadamia nuts, litchis, paw-paws and bananas. Forty sawmills operate in the area, drawing on the heavily forested hills around the city. Tzaneen is the economic hub of the region, with a population of 80 000. The Phalaborwa Spatial Development Initiative passes through the Greater Tzaneen Municipal Area,

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LIMPOPO BUSINESS 2019/20


SPECIAL FEATURE

Boosting economic growth Sector-specific industrial zones are set to transform Limpopo’s economy.

Mineral beneficiation is a vital part of Limpopo’s economy. Photo: Impala Platinum.

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n July 2016 the national cabinet approved the Musina-Makhado Special Economic Zone (SEZ). Located in the far north of Limpopo in the Vhembe region, Musina-Makhado is strategically located near the border of Zimbabwe and on the Great North Road which links South Africa to the broader Southern African region. The location of the Musina-Makhado SEZ, with links to Zimbabwe, Botswana and Mozambique, promotes the Trans-Limpopo Spatial Development Initiative. Logistics will be one of the key focus areas of the SEZ. Soon after the announcement of the designation of the SEZ, the National Department of Trade and Industry (dti) said that a consortium of Chinese investors, Sino, has agreed to put R40billion into the Musina-Makhado SEZ where they will operate the mineral beneficiation operations.

LIMPOPO BUSINESS 2019/20

The initiative has already attracted investors in the form of the Eco-Industrial Solutions (EIS), the private sector investor behind the Limpopo EcoIndustrial Park (LEIP). LEIP aims to be an integrated industrial development comprising five major industrial components that sets new standards in sustainability. Set on 6 400ha of land, the LEIP will include a nature reserve, two residential estates and schools. The Limpopo Economic Development Agency (LEDA) is working with EIS to establish a petrochemical cluster within the Musina-Makhado SEZ. 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 (LEDET). LEDA’s brief

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SPECIAL FEATURE

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. Two key areas of focus relate to Special Economic Zones and Corridor Development and to land, property and infrastructure development (including business parks and industrial parks). As these targeted areas grow, the infrastructure and associated industries will act as a magnet for other businesses and industries in the same sector, together with service industries. A Musina-Makhado Skills Development Plan has been approved by the provincial government. A second application for an SEZ at Tubatse is pending. Tubatse is in the Sekhukhune District Municipality and hosts a number of mining operations. The SEZ in Tubatse will focus on the beneficiation of platinum group metals (PGM) and mining-related manufacturing. The province of Bashkortostan in Russia has also expressed an interest in the SEZs of Limpopo. Phase one of the SEZ project would see a 280ha site developed to accommodate a mining suppliers park, light manufacturing, heavy manufacturing, logistics, a solar energy cluster and a PGM beneficiation cluster.

SPECIAL FEATURE Limpopo Development Plan The Great Nor th Road passes through Limpopo The SEZ and industrial parks being promoted in from the south to the borthe province fall within a broader framework. The der town of Musina and on Limpopo Development Planand (LDP) targets three to Zimbabwe its neighbroad areas forbours improvement and African development: in the Southern socio-economic, infrastructural and institutional. Development Community. The busy N11 Limpopo highway links Every department of the Provincial thetargets provincewithin to Botswana to which Government has the LDP the actionable west and Mpumalanga are translated into programmes to be Province to the east. implemented within time-frames. Most of South Africa's loThe plan is supported by strategies relating to a gistics operators have a presspatial investment framework in public and private ence in the provincial capital

sector infrastructure, an integrated public transport policy and policies on land development. Key elements of the Limpopo Development Plan are: industrialisation (beneficiation of mining and agricultural products and produce); mining (local suppliers, improved training and access to sector value chains 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, and this is where the SEZs’ role becomes critical. While the Limpopo Development Plan is aligned with the broader National Development Plan, there are also 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). Other national SIPs of relevance relate to green energy, agri-logistics and rural infrastructure, regional integration and water and sanitation infrastructure.

city of Polokwane and freight logistics hubs have been 15 established at that city and at Musina. Limpopo covers about 10% of South Africa's

LIMPOPO BUSINESS 2019/20 The province also has a sophisticated rail net-


INTERVIEW

Promoting a symbiotic relationship between people, planet and profit Webster Mfebe, Chair of the Limpopo Eco-Industrial Park

Board Chair Webster Mfebe outlines the steps to be taken by Eco-Industrial Solutions to create the ground-breaking Limpopo Eco-Industrial Park. What does your company do?

BIOGRAPHY Webster Mfebe, Chair of the Limpopo Eco-Industrial Park, has won several awards in construction and leadership. He is the CEO of the South African Forum of Civil Engineering Contractors (SAFCEC) and has accumulated a wealth of senior leadership and management expertise during nearly 40 years in the mining, construction and engineering industries, broadcasting and politics. Webster has addressed international conferences on political and economic issues and has contributed to business intelligence articles in some publications. LIMPOPO BUSINESS 2019/20

Eco-Industrial Solutions (Pty) Ltd (EIS) is committed to integrated and sustainable industrial property development. Its slogan is “Industry Nurturing Nature”. EIS is developing the Limpopo Eco-Industrial Park (LEIP) project, powered by renewable energy and municipal waste syngas, to be the world’s first zero solid-waste, carbon neutral heavy and light-industrial park integrated with a 2 200-hectare nature park. This development recognises and promotes a symbiotic relationship between people, planet and profit. The LEIP is a multi-billion-rand project that will significantly contribute to growing an inclusive economy and creating new jobs, particularly in the Limpopo Province. The LEIP project provides a fully serviced and secure platform for heavy and light industrial tenants as well as incubating and supporting Small, Medium and Micro Enterprises (SMMEs). The LEIP Master Plan is based on principles derived from the field of industrial ecology to create a closed loop or circular economy, which benefits local communities whilst integrating and preserving the environment. No flaring of emissions will be necessary, as all waste gases and solid waste will be gasified at extremely high temperatures without interrupting or requiring process changes to tenants’ business models. How was the company formed? EIS was formed by founding members who share the vision and passion to create job opportunities through environmentally friendly industrialisation and shared benefits to local communities. In response to some of the major challenges facing humanity today such as ecological collapse followed by social uprising,

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INTERVIEW due to rapidly increasing climate change and environmental degradation of the life support systems, EIS was specifically formed in 2011 to address these problems by implementing technoeconomically viable and sustainable industrial development projects.

are panicking about the state of the environment and the fate of future generations. With increased awareness and more developed consciousness coupled with technological advancements, the LEIP pioneers the transition required in terms of altering humanity’s development pathway to a sustainable one. As a mega-industrial and residential growth point and an infrastructure CAPEX in excess of R10.7 billion, the LEIP will be a catalyst for transforming Musina into a mega-city. Musina will become South Africa’s most sustainable and desirable fully integrated industrial-residential growth point, facilitating socio-economic transformation and inter-regional trade, to the lasting benefit and well-being of all South Africans and SADC. Musina’s growth into a mega-city will be underpinned by beneficiation of local and regional resources, manufacturing of industrial chemicals and information te chnolo gy components, as well as agro-processing and superior logistics services that enable improved inter-regional trade. The layout of the park was dictated by consulting ecologists and heritage specialists who used sensitivity maps to indicate areas suitable for development and areas that should be preserved as part of a nature reserve. Typically, ecologists and heritage specialists are involved during the environmental authorisation process, which is too far down the line in terms of the broader project development process, at which point impacts are mitigated rather than avoided by protecting the environment from the outset. The LEIP is committed to transformation and to replicating its transformation blueprint, where applicable, in all its future eco-industrial developmental initiatives. All contractors and services providers will be made aware to comply with the contractually obligated transformation requirements.

What is the ownership structure of the company? The project development company, EIS, is 89% black-owned and 57% black women-owned, while the LEIP project is 65% black-owned with 90% board control. Local Limpopo Vhembe District citizens have been allocated 10% of the ownership of the LEIP with Musina Local Municipality as the proxy shareholder. Funds and dividends are to be used for developmental activities identified by the communities themselves, including bursaries and other communal co-operative activities such as farming and agro-processing. Why have you chosen northern Limpopo as the location for the park? EIS recognised the future growth potential of the Musina Municipality, considering its location adjacent to the Beitbridge border post as a gateway for doing business in Southern Africa. After a rigorous site-selection process, the site in Musina was deemed ideal based on its accessibility as well as its strategic location. The national N1 highway and Transnet’s north-south rail line traverses the site, providing major links to the rest of South Africa and superior access to neighbouring countries to the north. Please explain what is unique about the LEIP. Why is it a game-changer? The LEIP demonstrates that ongoing industrial pollution can be stopped through the application of existing, technically proven and commercially available technologies, for example, plasma waste gasification and the combination of viable renewable energy options. The LEIP’s design incorporates these essential technologies through creative application and funding. Worldwide, people

How many people will be employed at the park? Total LEIP: Direct jobs: 58 967. Total including indirect and induced jobs: 289 251.

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LIMPOPO BUSINESS 2019/20


PROFILE

Eco-Industrial Solutions The Limpopo Eco-Industrial Park will set new standards in ecologically sound industrial development.

E

co-Industrial Solutions (Pty) Ltd (EIS) was established to create an innovative industrial park combined with a nature park in the northern area of Limpopo. The Limpopo Eco-Industrial Park (LEIP) will be Africa’s first zero solid-waste eco-industrial park. Municipal waste and renewable energy will be utilised to provide syngas and power for industrial enterprises within the park. Waste from the park will be contained and disposed of within the park through the application of plasma gasification technology and a closed-loop water management system.

Vision To find techno-economically viable solutions to the challenges facing humanity. To promote industrialisation in a way that is beneficial to local communities as well as the environment.

Motto Industry nurturing nature.

The concept Background The world’s first zero solid-waste eco-industrial and integrated nature park. The Limpopo Eco-Industrial Park will illustrate the symbiotic relationship between people, planet and profit by demonstrating their mutually beneficial co-existence, thereby preserving Mother Earth for future generations.

In South Africa air pollution kills an estimated 20 000 people per year, 780 000 people in Africa and worldwide nine-million people per year. Coupled with the plight of unemployment in Africa and more specifically in South Africa, the expertise of the founding members covers heavy industrial development in various countries globally, experience in implementing environmental protection as well as the realisation of institutional mega-projects.The Musina, Vhembe, region is blessed with an abundance of natural resources, accessible labour and existing major infrastructure. The LEIP concept has been successfully integrated into the Integrated Development Plan (IDP) and Spatial Development Framework (SDF) of the Musina Local Municipality. Furthermore, the LEIP concept is in tune with the spirit encapsulated in South African President Cyril Ramaphosa’s vision of a “New Dawn”, predicated on the twin pillars of “Renewal and Rebuilding”. LIMPOPO BUSINESS 2019/20

Location Musina, northern Limpopo. Near Beitbridge border post and part of the Musina-Makhado Special Economic Zone.

LEIP components 1. 2.

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450MW PV Solar Power for agro-processing, buildings and water heating and supply excess to the Eskom grid. Two approved off-channel dams with 20 million cubic metres water storage capacity.


PROFILE target is for the industrial park to be a self-contained unit with a zero-waste impact on the surrounding countryside and communities.

STRATEGIES TO MITIGATE RISK AND PROMOTE THE CIRCULAR ECONOMY •

• • •

3. 4. 5. 6. 7.

Timeline

Ensure that all toxic materials, other waste and gases are disposed of within the LEIP. Reduce food waste and recycle key nutrients (N, P) through their recovery from food waste and waste water. Generate power through solar PV and municipal waste syngas and export excess power to the grid. Use Eskom power for construction only. Capture heat and gas emissions to supplement electricity supply. Protect and integrate sensitive areas throughout the LEIP. Responsibly manage the value chain of waste materials such as metals, plastics and wood. Waste concrete and bricks will be crushed and mixed with local hard rock into a uniform and usable construction material.

2019/20: Bankable project studies to be finalised. Infrastructure construction proceeds (including LEIP East basic infrastructure, Transnet Intermodal Terminal Facility and bulk water and sewage treatment facilities). Musina Eco-Housing Estate construction begins. 2021: Construct truck stop and warehousing, agroprocessing facility, PV solar farm 1 000ha, plasma gasification facilities, ITC development centre. 2022: Establish a balanced renewable energy system that is integrated with waste gasification and syngas generated power. Construct copper processing plant. Establish nature park, including 80 chalets. Establish Industrial Ecology Research Centre. 2023: LEIP East Operations commence with commissioning of utilities, infrastructure and financial management systems. Commission SEZ operations. Construct LEIP West basic infrastructure, to accommodate a chemical plant complex including ammonia-urea, methanol and resin, by utilising carbon engineering technology to generate the required feedstock hydrogen (H2) and carbon monoxide (CO), the basic building blocks for these plants.

Blue Drop status drinking water and environmentally friendly waste-water treatment facilities. A Nature Reserve comprising 2 286 hectares of environmentally sensitive tourism area. 80 chalets in the integrated nature reserve. Two residential eco-estates: Musina EcoHousing Estate (3 797 units) and Singelele Equestrian Estate (903 units). Waste gasification plants for residential and industrial waste.

Impact • GDP impact 2019: R744 million • GDP impact 2025: R17.2 billion • GDP impact (direct and induced) from 2019 to 2025: R61.3 billion.

CONTACT DETAILS Head Office Eco-Industrial Solutions (Pty) Ltd, Modimolle 0510, Limpopo, South Africa Phone: +27 87 702 6065 Email: ceo@eco-industrialsolutions.org Website: www.limpopoecoindustrialpark.com

Game-changer Plasma waste gasifiers will be used extensively. This technology has been used elsewhere to transform waste to energy, but the LEIP aims to take this a step further by ensuring that no waste leaves the site. The

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FOCUS

Building skills and creating jobs through partnerships The Limpopo Eco-Industrial Park is set to make a huge economic impact.

T

he Limpopo Eco-Industrial Park (LEIP) is an integrated and sustainable industrial development that is aligned with and in support of South African government goals articulated in the National Development Plan and the Industrial Policy Action Plans. The LEIP is a private-sector initiative driven by Eco-Industrial Solutions (EIS), but the development incorporates significant partnerships at local, provincial and national level illustrating the inclusive philosophy of the developers. The park, through its various industrial components, will create tens of thousands of direct and indirect jobs over the first five years, provide about 4 900 permanent housing opportunities in the town of Musina and add more than R15-billion to the revenue of the provincial government. It will also provide a boost to the national tax base. LIMPOPO BUSINESS 2019/20

Among the projects to which the LEIP initiative will contribute via partnerships are the National Development Plan, the Green Economy Plan, and the achievement of South Africa’s Transformation and Sustainable Development Goals. In January 2019, South African President Cyril Ramaphosa attended a Business Economic Indaba organised by Business Unity South Africa (BUSA), on the sidelines of which the Public Private Growth Initiative (PPGI) made a presentation on 18 projects from 19 economic sectors, representative of opportunities for South Africa’s private and public sectors to work together to combat unemployment and stimulate the economy. The LEIP is project number 17 on the list of 18 PPGI projects which were promised full government support, while engagements within the PPGI platform will take place with the

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FOCUS Presidency over the next five to 10 years, with a view to implementing sectoral plans.

amenities such as five schools, a children’s hospital as well as local churches, shopping and community centres. The following innovations are aimed at benefitting local communities: • Establish a Research and Development Industrial Ecology Faculty within the LEIP in collaboration with local universities (University of Venda and University of Limpopo). The LEIP aims to support innovation, research and development, community engagement and literacy and numeracy. • A Skills Development Centre and Trade Test Centre is to be built and fully equipped in consultation with the Department of Higher Education and Training (DHET), which will invite the participation of the various Sector Education and Training Authorities (SETAs). The goal is for the skills centre to also be available for use by learners from the SADC region.

Partnerships Several key partnerships with EIS involve NECSA, SAFCEC, Lepelle Northern Water, Transnet Freight Rail, Musina Local Municipality and LEDA. SAFCEC will be responsible for quality monitoring of their construction members. The Nuclear Energy Corporation of South Africa has signed an agreement with EIS and LEIP to jointly develop and implement plasma gasification of municipal and gaseous waste on a localised scale, thereby minimising the adverse impacts of longerdistance logistics. The Lepelle water utility has signed up to be the LEIP’s water service provider. Plans for a Special Economic Zone (SEZ) in the Musina area have been aligned with Transnet’s requirements. Transnet Freight Rail intends to operate its new intermodal terminal facility within the LEIP as a dry port extension of a seaport. It is expected to have an initial storage capacity of 50 000 units. A train ferry is intended that will be able to carry roughly 1 000 vehicles per day across the Beitbridge-Zimbabwe border. The Musina Local Municipality has approved the land development application for the LEIP and will at financial close become an equity partner in the project, holding a 10% share on behalf of the local communities. LEIP is the first part of a broader initiative, the Musina to Africa Strategic Hub Initiative (MUTASHI), of which the Musina-Makhado SEZ is the other major component. The Limpopo Economic Development Agency (LEDA) has signed an agreement to work with EIS to establish the LEIP as the Musina SEZ Operator within the Musina-Makhado SEZ.

Transformation The transformation imperatives of the LEIP project as a private development are mainly aimed at contributing towards the empowerment of the following targeted groups of South African citizens: • Youth (in support of the Youth Empowerment Service YES programme) • Women • People with disabilities • Military veterans • Rural and township communities. • Only construction companies rated no less than Level 2 BEE status will be contracted to do work at the LEIP, and such companies will be vetted to assess their state of competence and readiness to undertake quality construction services. In special cases, for technical reasons, contractors and service providers with less than Level 2 BEE status will be allowed if they form SMME partnerships with locals, who will jointly carry out the work on site.

Economic and social benefits The LEIP has been designed to ensure that local women, youth and disabled people benefit from the project. The housing developments are designed as integrated communities with the natural environment and with

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LIMPOPO BUSINESS 2019/20


SPECIAL FEATURE

Marula Industrial Hub Plans are in place to boost the use of a super fruit.

T

he Marula Festival has become a popular annual event. When the 15th annual Marula Festival comes around in 2020, there will be additional reasons to celebrate as that is the anticipated launch date of the Marula Industrial Hub. The Marula Festival attracts more than 30 000 people over two weekends in February and serves to highlight the marula fruit and its uses. At the moment, these are mostly confined to making traditional beer and supplying the raw product for the manufacture of the famous Amarula Cream Liqueur. Outgrowers, mostly small-scale women farmers, supply Distell with the fruit. The theme for the festival for the next few years will be “Discover the Wealth of Marula”, in line with the idea of expanding the fruit’s usefulness. But the festival itself is not just about beer – although there is a lot of beer! The 2018 festival programme included a marathon, a career expo, a dance challenge, performances of gospel and jazz bands, a golf day and a trade exhibition. The economic benefit to the local economies of Ba-Phalaborwa and the Mopani District economies is about R45-million annually. The Marula Industrial Hub will provide a platform to further exploit the tasty marula fruit, which has a LIMPOPO BUSINESS 2019/20

high vitamin C content and is much loved by elephants. The Limpopo Department of Economic Development and Tourism (LEDET) wants to see the University of Limpopo doing more research on the possible uses for the fruit, including jams and cosmetics. Facilities at the hub will include a centre for research and processing facilities to create more value from the raw product. Advisors will be available to help small-scale farmers and SMMEs enter the formal economy. The marula tree is a protected species that is protected by environmental laws. The tree and its fruit are also part of the cultural heritage of the region. The Festival of The First Fruit, “Ku LumaNguva/Go Loma Morula”, is a ceremony performed by traditional leaders at the marula season’s beginning. Only at the conclusion of the ceremony can drinking begin. The Marula initiative is consistent with the broader agricultural sector plans for Limpopo. The provincial government has identified five Agricultural Development Zones (ADZs) across the province, including the Mopani District within which the Marula Industrial Hub is located. Programmes to increase productivity have been presented to smallscale farmers. In the year 2017/18 more than 50 000 small-scale producers received support in the form of irrigation infrastructure, livestock infrastructure and other production inputs.

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MADE FROM AFRICA

DRINK RESPONSIBLY.

AMARULA.COM

MADE FROM MARULA FRUIT


Destination Limpopo Biodiversity holds great potential for growth in the tourism industry

T

ransforming the wildlife sector and creating opportunities for communities and small businesses in tourism sector are priorities for national and provincial authorities. Supporting local businessmen and women to enter the formal tourism market is part of the Industrial Development Corporation’s brief. The IDC backed local entrepreneur Mofasi Lekota in his hotel venture in the provincial capital, Park Inn by Radisson Polokwane. The development finance institution is also getting behind projects in Magoebaskloof and Thohoyandou. Almost 70% of South Africa’s number one tourist attraction, the Kruger National Park, falls in Limpopo, and yet relatively few local communities benefit materially from the park, beyond wage earning. In 2018 the celebration of the International Day of Tourist Guides was hosted by the Limpopo Department of Economic Development and Tourism (LEDET) at the Mopani rest camp in the Kruger National Park. At this gathering, the National Department of Tourism announced a new approach to supporting small, micro and medium enterprises LIMPOPO BUSINESS 2019/20

(SMMEs). Incentives and market support are to be offered in order to compete in the global market. Tour guiding is seen as an area with strong growth potential. The National Registrar of Tourist Guides works within the department. Wildlife farming and hunting generates enormous amounts of money but South Africans who were previously excluded by law still have very little access to this sector. According to calculations done by a Professor in Tourism at the University of the North West, Peet van der Merwe, trophy and biltong hunters contributed a combined R13.6-billion to the South African economy in the 2016/17 season. The number of direct jobs created in this period in Limpopo was 17 806 (The Conversation). In 2018, the formal wildlife auction turnover for the whole of South Africa was R750-million, as reported by Yolande Groenewald in the Mail & Guardian. A buffalo bull was sold in 2016 for R178-million. LEDET aims to create wider opportunities within these sectors via its Wildlife Transformation Policy. When President Ramaphosa visited Limpopo in 2017, it was to launch the National Biodiversity Economy Programme. Planners believe that the

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SPECIAL FEATURE The LTA also backs 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. The tourist authority has six focus areas: • Golf and game • Hunting and safari • Family and recreation • Special interest • Mega-conservation • Meetings Incentives Conference and Events (MICE).

Tour guiding can boost local employment.

biodiversity economy can achieve an average annualised GDP growth rate of 10%. Limpopo is rich in natural resources and heritage. Between 2014 and 2018, Limpopo received more than 27. 5-million domestic travellers and 8-million international tourists. As more infrastructure is rolled out and partnerships created between the public and private sectors, more investment and job opportunities will result. According to the Limpopo Premier’s office, the tourism sector employs about 22 414 people. The 5-in-5 strategy aims to increase visitor numbers to five-million in five years. 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, promoted by the Limpopo Tourism Agency (LTA). Hotel@Tzaneen and Europcar South Africa were sponsors and race officials were provided with cars by Audi Centre Polokwane. Regular events are holding their own as well: the annual Limpopo Marula Festival in Phalaborwa attracts more than 30 000 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 cooperatives operating under the Mukumbi Industries brand normally brew about 12 000 litres of marula beverages for the thirsty crowds. Other marula products are also sold such as nuts, body lotions, jam, cooking oil and soap.

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, 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 the Limpopo Department of Economic Development, Environment and Tourism (LEDET). 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. The provincial government has committed to enhancing the value of Limpopo’s two UNESCO World Heritage Sites, Makapans Valley and Mapungubwe, where the superbly crafted little golden rhinoceros, a relic from medieval times, was found in 1932. This is also a priority programme in the National Tourism Sector Strategy. The Waterberg Biosphere Reserve is a UNESCO protected site. 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 the mainstream economy.

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LIMPOPO BUSINESS 2019/20


SPECIAL FEATURE

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 South African Golf Tourism Association says that up to 10% of visitors to the country are attracted by its golf courses, and Limpopo’s offering has been extended and improved in recent years. At the high-end of the luxury offering are the Zebula Golf Estate and Spa (west of Bela Bela) and the Legend Golf and Safari Resort. Adventurous visitors can choose from off-road biking, hunting, elephant rides and tough 4x4 trails. A vast array of different cultures can be experienced, from the Rain Queen and her people in the central districts, to the myth-inspired art of the Venda in the north, to the bright geometric house designs of the Ndabele people in the Sekhukhune District.

Hotels and casinos

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.

ONLINE RESOURCES

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. The Protea Hotel group has two hotels in the province. The Protea Hotel Landmark in Polokwane has 80 rooms and six conference venues. Just outside

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Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za Limpopo Tourism Authority: www.golimpopo.com Marula Festival: www.limpopomarulafest.co.za South African Golf Tourism Association: www.sagta.co.za South African National Parks: www.sanparks.co.za


MESSAGE

Limpopo will soothe your soul Nomasonto Ndlovu, CEO of the Limpopo Tourism Agency, extends a warm welcome to visitors.

W

e welcome everybody to our peaceful Province of Limpopo which offers an opportunity to see Africa’s Big Five, while the adventurous can go abseiling, bungee jumping, rock climbing, walking on trails, caving, horse riding or kloofing. For those who enjoy more relaxed and conventional sport, the province offers some magnificent golf courses. We guarantee everybody the enjoyable and breathtaking tranquillity of nature’s fauna and flora. It is heart-warming to note that visitors to our province can expect to receive a warm welcome in our people’s homes. The Limpopo Tourism Agency and Traditional African Homestays – South Africa (TAH-SA) has found a solution to the concept of homestays in South Africa. We are proud that this award-winning organisation is in Limpopo and continues to make an impact in the lives of the poor women in the Makhado Municipal area. Makushu village is an international tourist attraction visited by tourists from England, USA, Holland, Australia and Germany. The village now has 25 homestays and TAH-SA hopes to expand to other areas.

A wonderful surprise is in store for visitors to the Modjadji Cycad Reserve, boasting some of the oldest and largest cycad specimens on earth. The natural forest can be viewed in its prehistoric state thanks to its strict protection by succeeding generations of Modjadji (“rain queens”), the hereditary rulers in the area. Limpopo is a land of beautiful and contrasting landscape with hidden gems, exquisite flora and fauna, expansive national parks and nature reserves, mountain passes, rivers and productive fruit farms. Less than 100km north-east of the capital of Limpopo Province, Polokwane, lies the Magoebaskloof mountain range. This area is known as “The Land of the Silver Mist” and offers incredible views, mountainbike trails and canopy tours along zip lines. Then there is the Mapungubwe UNESCO World Heritage Site, the “Cradle of Humankind”, and archaeological sites such as Sterkfontein and Makapans Caves. Some of the flagship events that visitors can look forward to include: the Tour de Limpopo cycle race, the Limpopo Golf Championship, the Limpopo Marula Festival and the Mapungubwe Cultural Festival. We look forward to welcoming you in Limpopo.

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LTA 2pp interview, pp 28-29

INTERVIEW

BIOGRAPHY

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

South Africa’s most visited province pulls ahead South Africa’s most visited province pulls ahead

The CEO of the Limpopo Tourism Agency, Nomasonto Ndlovu explains how The CEO of the Limpopo Tourism Agency, Nomasonto locals can become valued tourists. Ndlovu, explains how locals can become valued tourists.

Nomasonto Ndlovu

Howmany many visitors visitors has years? How hasLimpopo Limpopohad hadininrecent recent years?

Destination enjoyed a lead as the most visited province in in the coun DestinationLimpopo Limpopo enjoyed a lead as the most visited province the country 2016despite to 2018 despite fluctuating Limpopo’s since 2016from to 2018 fluctuating figures.figures. Limpopo’s performance can b performance can depicted three years as follows: depicted over thebepast three over yearsthe as past follows:

Year

Domestic Trips 8.3-million 5.1-million 3.3-million

2016 2017 2018

International Arrivals 1.5-million 1.8-million 2.1-million

Do increase these numbers? Doyou youhave have aa strategy strategy totoincrease these numbers?

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 KwaZulu-Natal’s tourism board and then worked as the global manager of business tourism at South African Tourism. LIMPOPO BUSINESS 2019/20

LTA has a marketing strategy which gets reviewed annually for LTA hasofamaintaining marketingrelevance. strategy which getstoreviewed annually for purposes of purposes It is aligned the National Tourism maintaining It is aligned the National Sector Strategy Sector Strategyrelevance. (NTSS), Limpopo TourismtoGrowth StrategyTourism (LTGS) and (NTSS), Limpopo Tourism Strategy (LTGS) and the Limpopo the Limpopo Development Plan.Growth The Agency has developed another Development Plan. The Agency has developed another strategy strategy that would address the visiting friends and relatives (VFR) that would addressto the friends relatives (VFR) segmentmakes to be transformed in segment bevisiting transformed intoand holiday-makers. This segment holiday makers.ofThis upbut a big number of our domestic touris up a big number oursegment domesticmakes tourists with less spending, with lessdospending, they oftenasdo not view themselves asbut they often not view as themselves holiday-makers. This planas holiday make This to plan seeks the to increase thetourists domestic visit the seeks increase domestic thattourists visit thethat province forprovince for holidays, against those that are VFR, thus improving spend, length of stay and geographic spread. LTA will develop consumer insights that will assist in developing well-targeted campaigns and interventions. We will also develop a targeted all-year-round campaign that focuses on the VFR market in order for them to explore extending their stay to enjoy the tourism attractions in the province, thereby positively contributing to tourism and economic growth. What sectors are you focussing on? The Agency focuses on several clusters to achieve its vision of being a leading tourism destination in Southern Africa. LTA reviewed its clusters and has finalised a new structure. The clusters are as follows:

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INTERVIEW

Culture and Heritage, Family and Recreation, Sport and Wildlife Safari, Safari and Hunting, Business and Events and Special Interest. Our campaigns are all-encompassing with specific events supporting other respective clusters such as adventure events like 4x4 off-road challenges and cycling events. The Agency also sometimes invites media and influencers to the province to familiarise them with some products and attractions in the province. These trips often provide positive feedback which lead to more visits to the province.

stage race is a UCI Africa Tour 2.2 stage race for professional teams. The Tour de Limpopo aimed to set a new precedent in stage racing, one that would develop and leave a legacy of continued and sustained cycling development and investment into community SMMEs as service providers to the event. This was an opportunity to showcase Limpopo Province as a premier Adventure Tourism destination with so much to enjoy. This was a perfect platform to showcase via livestreaming the beauty of attractions such as Magoesbaskloof, Moria Zion City, Modjadjiskloof, the Sunland Baobab and Debengeni Falls.

What role do festivals play in the tourism offering of the province?

What is the mandate of LTA?

Events play a key role in driving people from one place to the other. LTA partners with several festivals as they draw people to the province. The role of LTA in these events is to assist by bringing the marketing element to make sure they are successful. Provincial flagship events like the Limpopo Marula Festival and the Mapungubwe Cultural Festival are the two government-organised events that LTA annually partners with and assists in marketing for their success. The Agency has identified several other events and festivals that have the potential to grow to the level of the two provincial festivals. Other festivals that also draw more people are organised in various districts and local municipalities such as the Phala Phala Royal Festival in Vhembe District, Collins Chabane Cultural Festival, Thobela FM Gospel Festival and Sekhukhune Gospel Festival. Festivals contribute immensely to the provincial economy.

Limpopo Tourism Agency (LTA), established in respect of Limpopo Tourism Act No 2 of 2009, has witnessed a metamorphosis since its inception 14 years ago. Limpopo Tourism and Parks (LTP) at the time was also responsible for conservation including management of provincial nature reserves, but in 2007, the Limpopo Executive Council resolved to transfer the conservation function to Limpopo Economic Development, Environment and Tourism (LEDET). It was against this background that the legislation for the establishment of the LTP Board, Limpopo Tourism and Parks Board Act No 8 of had to be repealed to give way to the new one. From then on the entity remained with the management of state-owned resorts (Limpopo Wildlife Resorts) in provincial nature reserves. In August 2015, the Board underwent a strategic workshop to internalise the new piece of legislation governing it, Limpopo Tourism Act No 2 of 2009. The entity was commissioned to review its marketing strategy in line with the new Act. The Executive Council also issued Resolution No 7 of 2015/16, which further directed that Limpopo Wildlife Resorts be transferred to LEDET. This left LTA with only one focus or mandate, of marketing Limpopo Province as a leading tourist destination in Southern Africa. Limpopo Wildlife Resorts (LWR) would be promoted like all other tourism products in the province.

Please comment on the first Tour de Limpopo cycle race in 2018. Limpopo Tourism Agency Board and the MEC for Economic Development, Environment and Tourism (LEDET) officially welcomed the organisers and the teams that participated in the inaugural Tour de Limpopo road race, at Park Inn Hotel in Polokwane on 22 April 2018. This was the first international road cycling stage race to be hosted in Limpopo Province and South Africa. The fully-catered

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LIMPOPO BUSINESS 2019/20


FOCUS

Business tourism on a growth trajectory Limpopo’s venues range from game lodges to conference centres.

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impopo is undoubtedly on a growth trajectory in respect of business tourism. Evidence of this trend comes in the form of the International Fellowship Evangelical Students (IFES) World Assembly which was held in July 2019 in Bela Bela at ATKV Klein Kariba. The conference attracted an estimated 1 200 delegates from some 160 countries, who spent about two weeks in the region. The idea to bring the conference to Limpopo was born out of engagements by Limpopo Tourism Agency (LTA) at Meetings Africa 2018, confirming the importance of this marketing platform. The agency will also host International Association of Schools and Institutes of Administration (IASIA) at ATKV Klein Kariba from 19-25 July 2020. Limpopo offers unique conference, meetings, incentives and other venues with relevant resources and superb settings. In recent years, the meetings and incentive industry within Limpopo has grown significantly. Limpopo’s MICE (Meetings, Incentives, Conferences, Exhibitions) products are conveniently situated within one-and-a-half to three-hour’s drive from Johannesburg. Access to most of the venues is LIMPOPO BUSINESS 2019/20

made easy, as the province is served by three airports with direct flights from Johannesburg and Cape Town. Limpopo offers a wealth of conferencing and exhibition facilities, including custom-built centres designed to the highest international specifications, facilities at hotels, educational institutions and theatres. Conference venues in the province range from country lodges to large conference and exhibition centres in the cities. While in Limpopo on a business mission, conference goers will be spoilt for choice with a plethora of offerings from wildlife to adventure activities. Three South African cities are currently excelling in the business tourism sector, namely, Johannesburg, Durban and Cape Town. Limpopo does not have the same sort of large infrastructure that these centres can call on such as convention centres, but the LTA is now focussing on creating awareness about what the province has to offer in the business tourism space. While Limpopo is still striving towards its goals in taking full advantage of the opportunities in tourism, the MICE sector undoubtedly presents an opening for the province as a destination to focus

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FOCUS

on providing big entities or corporate organisations with opportunities to host a variety of activities. This includes incentive trips and team-building sessions which would be ideally suited to what the province has to offer. LTA already has a Business Tourism Strategy in place that guides it on what needs to be done in the marketing space and on the supply infrastructure and tourism demand side. The entity is ready to establish a dedicated conventions bureau unit to begin searching for and bidding for events from associations in the country and beyond, for example, mining chambers, the Mango Association and Grain Association. LTA intends to secure the calendars of these organisations to lobby for their events to be held in Limpopo Province. It must be emphasised that there are excellent facilities throughout the province although transformation is critical given a low number of previously disadvantaged enterprises working in this space. The Agency will work closely with Limpopo Economic Development, Environment and Tourism (LEDET) to address this challenge.

Limpopo Province continues to be one of the major recipients of tourism arrivals in South Africa given its broad tourism product offering and appeal. Limpopo Tourism Agency will continue to build and strengthen partnerships with the industry, local government and other key stakeholders in order to deliver on its mandate. The Agency will capitalise on this advantage to support and nurture its business tourism profile. The Agency will continue to maximise its competitive advantage of being bordered by three countries in the SADC region, namely, Botswana, Zimbabwe and Mozambique. These countries are seen as a low-hanging fruit as the distance to Limpopo for business events and conferences is shorter than anywhere else in the country. Destination Limpopo’s prospects in business tourism are enormous with the upcoming Makhado and Tubatse Special Economic Zones (SEZs) that will inject R44-billion in investments to the province’s economy thereby creating 22 800 direct jobs. This will also contribute to business tourism growth in the province.

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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 landscapes 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 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 2019/20

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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ADVERTORIAL

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

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

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

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


ADVERTORIAL

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

Trust us to protect your business against everyday risk

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

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

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


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KEY SECTORS Overviews of the main economic sectors of Limpopo

Agriculture

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Mining 44 Construction and property

58

Energy

59

Transport and logistics

60

Banking and financial services

70

Development finance and SMME support 74 Education and training

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OVERVIEW

Agriculture Five Agricultural Development Zones have been declared.

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impopo’s fruits and vegetables form an important part of South Africa’s export basket and more than 45% of the annual turnover of the Johannesburg Fresh Produce Market originates in the fertile province. The percentage contribution of Limpopo agriculture to national agriculture is 7.6% although its contribution to provincial GDP is just 2.3%. Agri-processing has enormous potential to expand in every subsector. The establishment of agri-parks and co-operatives and support for youth in farming are key provincial government initiatives. Cotton growing is experiencing a renewal in the province. 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 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 Macadamias South Africa (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 the marula fruit that goes into Amarula cream liqueur. LIMPOPO BUSINESS 2019/20

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SECTOR INSIGHTS The IDC’s support of a blueberry operation created 62 new jobs. The Limpopo Department of Agriculture and Rural Development has identified five Agricultural Development Zones (ADZs) where support will be given to farmers to promote production in the sector. More than 1 000 small-scale farmers are being trained annually to improve their skills and to improve production. Irrigation schemes have been revived in eight districts to assist farmers. The Provincial Government o f L im p o p o’s nin e - p o int e co n o m i c p l a n i n c l u d e s RAAVC (the revitalisation of the agriculture and agri-processing value chain).


OVERVIEW National government’s Industrial Policy Action Plan (IPAP) acknowledges agri-processing as one of the best sectors for labour-intensive growth. In that context, the decision by DursotsAll 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 of the construction of the Molemole Agricultural Office in the Capricorn District Municipality. In addition to tackling drought, the Limpopo Department of Agriculture and Rural Development has had to put a strategy in place to fight Fall Army Worm. All of South Africa’s major retailers have enterprise development programmes which connect farmers to suppliers. In Limpopo Woolworths supports independent farmers by buying their produce and Spar channels produce from smallholders through its Fresh Assembly Point in Mopani. Massmart’s five-year programme, which tailed off as the company focussed more on the manufacturing sector which is 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. Another example of an initiative to link farmers to markets was a Market Linkage Information Day, organised by the Limpopo Department of Agriculture and Rural Development (LDARD) in 2018 at Soekmekaar. The Limpopo regional office of the Industrial Development Corporation (IDC) has helped expand the province’s agricultural sector by supporting the creation of two blueberry operations near Tzaneen. Tzaneen Blueberries used its own money to establish 17.5ha of blueberry plantations but approached the IDC to fund later stages of development. The IDC’s R13.5-million assisted in the building of a packhouse. The expansion created 62 jobs. In terms of the Provincial Red Meat Cluster Development as

ONLINE RESOURCES Agro-Food Technology Station, Limpopo University: www.ul.ac.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 Macadamias South Africa: www.samac.org.za South African Subtropical Growers’ Association: www.subtrop.net

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a catalyst towards sustainable rural livelihoods development through livestock farming, the Nguni cattle loan project saw a total of 350 livestock breeding animals distributed in 2017/18 to 16 farms. The scheme, a partnership between LDARD, the Industrial Development Corporation 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.

Companies 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 the 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 freshmarket carrots consumed in Southern Africa under the Rugani brand. T he t wo mos t ac tive 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 2019/20


PROFILE

Mahlolane Agricultural Projects Creating sustainable employment.

Vision To create sustainable employment opportunities for young people and encourage them to look no further than farming.

How do we realise that goal? Seek partnerships with provincial government and agricultural schools to provide internships and create export markets.

Company objectives •

M

ahlolane Agricultural Projects is an agricultural production company currently operating at remotely located Lepelle Nkumpi Municipality. The company was formed in 2014. Production capability is based on 30 hectares of land that is prepared for crops, which include tomatoes, green peppers, cabbage and spinach. There are 15 employees, with scope for at least 30 more people to be employed. Underpinning the project is the idea that hard work promotes peace and happiness. This is captured in the Latin saying “Labor pacemque felicium”.

ONLINE RESOURCES Mahlakoleng Village, Ga–Mphahlele 0736 Limpopo Province General Manager, Pontsho Gloria Mooa Tel: 076 296 8544 Non-executive Director, Richard Mooa Tel: 082 467 3049 Email: richardm@globeflight.com

Mission statement To demonstrate crop farming as a sustainable commercial venture for young and seasoned farmers. LIMPOPO BUSINESS 2019/20

The company’s short- to medium-term ambitions are to attract tourism through crop- and stock-farming activities. Our company to be used as an agricultural school for primary and secondary schools to visit and learn first-hand about farming. To provide local crèches and primary schools with crops and vegetables at affordable prices. To encourage retail stores and supermarkets at shopping malls to buy local, freshly produced products. To serve and aid strong and aggressive protection of food security in our province.

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Making farming a success story

FOCUS

Ambitious plans to grow Mahlolane Agricultural Projects into a sustainable model.

Non-executive Director, Richard Mooa

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ichard Mooa is a man on a mission. As a man who has achieved success in more than one field, he set out in 2014 to plough back to the community and environment where he grew up. As he puts it, it was his way of saying, “Thank you for raising me, I now want to do something for you.” The vehicle was Mahlolane Agricultural Projects (Pty) Ltd, which has continued to grow over the five years of its existence, and now stands ready to further expand, if sufficient support can be found and beneficial partnerships can be created.

Tackling problems The project was designed as a sizeable, affordable and wellmanaged project to relieve the pain of hunger among povertystricken people, especially families without breadwinners, from nearby villages in the Lepelle Nkumpi Municipality area in the Capricorn District Municipality.

The other major goal was to address the question of jobless youth wandering the streets aimlessly and hopelessly. These are the youth without any formal education or any form of training that could help them to support themselves. Farming was chosen as the solution, the way to bring hope and selfconfidence to these two target groups. The project faced many challenges, not least from people who did not believe that it could work. But Mooa was driven. Remembering that time, he says, “Just because I did not know where I was at that time, did not mean that I did not know where I wanted to be.” He wanted to help people and make a difference in their lives.

Partnerships Of the project’s current status Mooa is upbeat, “I am so delighted at the progress so far,” but he wants the project to achieve much more. He is looking for partnerships and the support of agricultural institutions and departments at local, provincial and national levels. There are many reasons to support MAP, both social and economic. These include: • the creation of employment for local people • encouragement of youngsters to work and get to love farming as a career • the use of animal manure as a means of soil fertilisation • local pride in a special project of its own • employees being given a chance to be leaders in their own right.

Huge potential The challenges faced by the project are real, not least the dryness and the heat of the area and the fact that movable assets require constant repairs and maintenance. Access to capital would make it possible to expand production, sink boreholes, install a pivot irrigation system, fence off areas and buy seed and equipment. A marketing strategy and a website would help the project achieve its full potential. Potential partners – private and public – could provide the assistance to take this project a long way. “We are blessed in that we work with young and highly ambitious people, determined to be role models in their own rights,” says Richard Mooa. “We believe we have a viable and highly profitable commodity here,” he says. Moving to the next level will depend on the quality and quantity of resources that are made available.

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OVERVIEW

Mining Eight new investments are bringing jobs to Limpopo.

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ining companies are increasingly concerning themselves with environmental issues. A R1.5-billion project to improve air quality at Anglo-Platinum’s Polokwane smelter will be finalised in 2020. The Sulphur Dioxide Abatement project will reduce carbon emissions by 96%, create 500 construction jobs and provide contract work for about a dozen Limpopo companies. The smelter is shown in the main picture on this page. Anglo Platinum’s (Amplats) Mogalakwena mine produced a record 1 170 000 PGM ounces in 2018, an improvement of 7%. The company recorded a number of improvements in efficiencies (operating time of concentrators rose to over 94%) and the company is investigating possible expansion of the mine complex. The sale in late 2018 of Glencore’s stake in the Mototolo PGM mine and chrome plant marked the end of that company’s foray into platinum. The purchase of Glencore’s 39% stake takes Amplats’ share in the complex LIMPOPO BUSINESS 2019/20

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SECTOR INSIGHTS Amplats’ Polokwane smelter has installed sophisticated air-quality equipment.

up to 89%, giving Amplats access to a further 130 000oz of platinum and improving the prospects of working on the adjacent Der Brochen. The deal was worth about R1.5-billion. Eland mine, after being put on care and maintenance, was sold in


OVERVIEW

expansion projet at its Zondereinde mine just south of Thabazimbi. By building a second furnace at the facility, Northam is making provision for reaching a goal of processing one-million ounces of PGMs. The cost of the expansion, which was partly born by Heraeus, is R900-million. Heraeus South Africa has offices in Gauteng and runs a precious metal chemical compounds production and refinery site in Port Elizabeth. Limpopo contributes 4% of coal mining in South Africa, according to the National Department of Mineral Resources, but it is 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. This is where Exxaro operates its Grootegeluk mine. Nine plants serve a 4km long and 120m deep opencast mine on a 1 200ha site. Originally intended to supply the nearby power plants, Exxaro is now eyeing the export market with countries such as Ethiopia, Egypt and Pakistan potential markets. By 2023 Exxaro hopes to be producing 60-million tons of coal from its sites in Limpopo and Mpumalanga. Its current annual production is 47-million tons.

New projects 2017 by Glencore to Northam for R175-million. In 2019 plans were being put in place to re-open the mine because of higher prices for rhodium. The company intends spending R300-million at Eland and R1.5-billion at Booysendal. Impala Platinum (Implats) has an interest in two big operations on the eastern limb of the Bushveld Igneous Complex. Marula (in which Implats is a 73% shareholder) is in Limpopo, 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. Northam bought the Tumela block from Amplats and invested heavily in a smelter

Eight new mining projects in the Capricorn and Sekhukhune districts are expected to attract investments worth R2.5-billion and create about 3 000 new jobs. There are currently 147 active mining projects in the province and the sector contributes 24.5% to the Provincial Gross Domestic Product (PGDP). According to the Office of the Premier, the number of jobs in the sector increased from 71 000 in 2013 to 103 000 in 2017/18. The soils of Limpopo are rich in platinum group metals, coal, copper, diamonds, gold, iron ore, nickel, rare earth minerals and tin. Other major investments in Limpopo include an ongoing project by De Beers to convert its Venetia

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LIMPOPO BUSINESS 2019/20


OVERVIEW

NEW WIMSA CHAIRPERSON RAISES THE BAR Selected as one of the “Top 100 Global Inspirational Women in Mining” by Women in Mining UK in 2018, Thabile Makgala was recently appointed to the position of Chairperson of Women in Mining South Africa (WiMSA). Thabile holds the position of Executive: Mining at Impala Platinum but getting to the top was no easy journey. Thabile recalls “numerous obstacles while navigating my mining career path”. Her qualifications include a master’s degree in business administration from the University of Stellenbosch Business School and a Bachelor of Science degree in Mining Engineering (Cum laude), from the University of the Witwatersrand. But as the first female mining engineer graduate at Goldfields Kloof and Driefontein division (now Sibanye Gold), it soon became clear that, as she recalls, “the industry had not adequately prepared itself to accept women in mining”. “The response to women’s needs (infrastructure, personal protective clothing, and policies) was slow and very little was in place to address women’s issues.” Her extensive experience has given Thabile insight into what is needed. “Women and men should hold equal representation in the workplace,” she says, “and mining companies should prioritise and advocate for diversity, inclusion, parity and for greater recognition of female leadership within their organisations.” Thabile is encouraged by progress made by women in mining but wants to see “more deliberate and proactive action”. Her hope is that in 10 years, “the fundamental elements such as empowering, caring, showing respect, connecting and growing our female talent, would have been achieved”.

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mine from an open-pit mine to a verticalshaft mine, and a multi-billion new platinum mine project led by a Canadian firm. 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, 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. Mineral beneficiation is a key component of the newly accredited Musina-Makhado Special Economic Zone (SEZ) in the far north of Limpopo.

The De Beers Group’s Venetia mine in northern Limpopo is a giant project in every sense.


OVERVIEW

Impala Platinum is a major presence in 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. The planned Tubatse 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 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.

ONLINE RESOURCES Minerals Council South Africa: www.mineralscouncil.org.za Department of Mineral Resources: www.dme.gov.za Geological Society of South Africa: www.gssa.org.za South African Institute of Mining and Metallurgy: www.saimm.co.za

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LIMPOPO BUSINESS 2019/20


PROFILE

Ties with China build a better Phalaborwa Since 1956, PMC has been South Africa’s sole producer of refined copper.

and the mine produces other by-products such as magnetite, vermiculite, sulphuric acid, anode slimes and nickel sulphate.

Chinese investment

P

alabora Copper (Pty) Limited is an incorporated operative subsidiar y of Palabora Mining Company (PMC), a copper mine that also operates as a smelter and refinery complex in BaPhalaborwa Municipality, Limpopo Province in South Africa. The mine is 80% owned by a Chinese Consortium comprising HBIS, Tewoo, General Nice and CADFund through Smart Union Resources South Africa. The rest of the equity is jointly owned by the South African government through the Industrial Development Corporation (IDC), a black empowerment consortium, PMC employees and communities. Since its incorporation in 1956, Palabora Copper (PC) has been South Africa’s sole producer of refined copper, LIMPOPO BUSINESS 2019/20

The Chinese Consortium acquired PC in 2013 when PC was facing two possible scenarios: (a) culmination of the life-ofmine and (b) no overhauling of the smelter which was outdated and facing shutdown. The first scenario would have resulted in the loss of employment for more than 3 500 employees (direct and indirect) while the second scenario would have led to the loss of jobs for more than 700 off-stream employees at the smelter. Soon after the sale transaction, the new owners fostered partnerships between PC and Chinese companies in 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 Chinese Consortium approved R10.4-billion to extend the life-of-mine to beyond 2033, R878-million to refurbish the smelter to ensure that PC continues to produce copper rod, and R199-million to construct the floatation plant to improve copper recoveries, operational efficiencies and to reduce operational costs.

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PROFILE

Looking into the future Palabora Copper is undertaking a life-of-mine extension project known as the 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. The company committed about R700-million to the pre-feasibility study and approximately R10-billion is expected to be spent throughout the development of the project.

The employer of choice Since its inception, Palabora Copper has been at the forefront of employment practices in the local mining industry. Palabora, which employs an average of 3 700 employees (Lift I and II) aims to remain industry competitive through its favourable conditions of employment. This is reflected in the utmost importance with which the safet y and health of

employees is regarded in order to remain efficient and profitable as a business. 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. Palabora Copper acknowledges and respects its stakeholders’ interest and concerns, striving to be a leading corporate citizen within the mining industry and supplying a high standard of quality products and services, reliably and responsibly, at national and global level. Palabora Copper is certified as a Top Employer. For more information: www.palabora.com

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LIMPOPO BUSINESS 2019/20


FOCUS

PMC’s support for ongoing sustainability drive is paying off Palabora Mining Company is an energy-efficiency leader in the mining sector.

The water quality of the Olifants River (above) and the Selati River are constantly monitored as part of PMC’s Environmental Management Programme.

P

alabora Mining Company’s code of ethics includes consideration given to the healthy work environment of employees but also to ensuring that sound environmental management is pursued so that the biodiversity of the natural environment in which PMC operates can be sustained for many years to come. These are among the company’s strategic imperatives.

project managers who would, in conjunction with mining personnel, identify, implement and sustain energy cost-saving projects. As a result, 117 initiatives were identified. Following stringent technical and financial adjudication processes, 31 projects were implemented. Step 1: Identify energy cost-saving opportunities and ideas through data collection and process analysis. Step 2: Scope the ideas in terms of cost and return. Step 3: Prioritise the ideas based on ease of implementation, highest return and least cost. Step 4: Develop an implementation plan for the suite of projects submitted to management and board members for approval. Step 5: Implement the approved plan. Step 6: Continuous measurement and verification of each project’s performance to ensure the sustainability of the programme.

Energy Management Programme Mining activities are inherently very energy intensive, so PMC launched an Energy Management Programme in 2012 to curb the half-a-billion-rand energy bill which was continually growing. PMC collaborated with a consulting company, resulting in the employment of 12 energy specialists and LIMPOPO BUSINESS 2019/20

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FOCUS

As a result of adherence to the Productivity Approach over the past five years the company has saved R232-million through avoided energy costs. These consist of: • Electricity savings worth R181-million • Coal and liquid fuels savings worth R43-million • Water savings worth R8-million. With the help of external funding mechanisms worth R28-million the Energy Management Programme had a net benefit of R173-million by the end of July 2017. Palabora Mining Company ’s Energy Management Programme has not only created a sustainable model but has also emphasised the company’s standpoint regarding its environmental responsibility. PMC is now an energy-efficiency leader in the mining sector.

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

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FOCUS

Women of PMC

A

number of highly motivated women are making stellar careers for themselves in mining at PMC and providing inspiration for scores of other women in the sector.

Matsela Ntsepe: Process Engineering Manager Matsela Dolphinah Ntsepe is a chemical engineer with more than 17 years of experience in diamond, coal and copper mining. Matsela is Palabora Copper’s (PC) Process Engineering Manager for the Smelter Retrofit Project, a position she earned through hard work and ascending through the ranks. Matsela started her career as a Metallurgical Trainee and rose through various levels including System Engineer, Refinery Technical Metallurgist, Refinery Technical Superintendent, Concentrator and Magnetite Technical Superintendent and Refinery Operations Manager. Matsela’s experience in the mining industry embraces equipment evaluation and selection, plant process audits, treatment and optimisation, initiation, implementation and management of processes, maintaining and improving safety and financial and human resources management. Matsela or “Tsela” serves as the current Chairperson of the Women in Mining (WiM) PC branch and is an Ex-Officio Executive Member in the Limpopo region. In addition, Tsela is a member of PC Transformation Committee and a Trustee of PC Essop. Matsela holds a National Diploma and B-Tech in Chemical Engineering from Witwatersrand Technikon and a Management Development and Financial Management Programmes from the University of South Africa. Being able to acquire mining technical qualifications is hard and being a manager in the mining industry is a difficult ladder to climb. Matsela has achieved both while maintaining her humility and promoting the needs of others. Tsela proved that a woman does not need to behave like a man to be smart, support other women and make it in the mining industry. LIMPOPO BUSINESS 2019/20

Matsela Ntsepe: Process Engineering Manager

As the member of the PC Transformation Committee, Tsela influences and facilitates the direction of PC’s future strategic transformation agenda. This includes recommendations on local economic development projects that take gender mainstreaming and equality into consideration. Tsela is a finalist for the Limpopo Mine and Safety Council’s Women Achievers Award and the Standard Bank Women in Science Award. Manyabela Mailula: Manager for Training, Development and Contractor Management At only 35 years of age, Manyabela Mailula has more than 13 years’ experience in technical research and mining in countries such as Turkey, Georgia, USA and South Africa. Manyabela is Palabora Mining Company (PMC) Manager for Training, Development and Contractor Management. She holds a National Diploma in Metallurgical Engineering from Vaal University of Technology, a BTech in Metallurgical Engineering (Tshwane University of Technology), Honours in Management of Technology (University of Pretoria), a Higher Certificate in Education, Training and Development (University of Johannesburg) and a Work Place Assessor Certificate from the Drum Beat Academy.

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PHOTO FLURRY PRODUCTIONS PHOTOGRAPHY

Experience, skill and drive underpin three success stories.


FOCUS contract). Zani is required to appreciate socio-economic dynamics and balance the socio-economic imbalances which exist in society. Zani indirectly plays a role in ensuring that PC training, procurement and learnership opportunities are in line with the national transformation agenda and the demands of local communities. As an author, Zani published a poetry collection titled Re-routing in 2018. Her poems criticise gender- and children-based violence. Other poems in the anthology speak to her love for Africa and pride in being an African. As a social and gender activist, Zani is committed to alleviating poverty and to opposing violence. She has for the past three years dedicated time and financial resources to donating food parcels, sanitary towels, school shoes and blankets to disadvantaged families and children, of which the majority are women. This she achieves by asking for donations, and sometimes by utilising her own limited resources. So far in 2019, Zani has donated 156 pairs of shoes to Zamani Primary School and 46 winter blankets to Phulabyehola Primary School. Zani has also adopted Thabelang Disability Centre based in Makhushane. The Centre houses 56 physically challenged adults and children from the Phalaborwa municipal area. Zani regularly donates food parcels and her commitment has helped attracted sponsorships: a borehole has been dug and paint donated. Zani is a finalist for Limpopo Mine and Safety Council’s Best Poverty Alleviation Project Award and Standard Bank Young Achiever of the Year Award.

Manyabela Mailula: Manager for Training, Development and Contractor Management

Manyabela started her career as a Metallurgical Trainee at ASA Metals (Dilokong Chrome Mine). She joined PMC/ Palabora Copper (PC) as a Smelter Training Officer and ascended to the position of Operational Readiness Manager. Manyabela’s current responsibilities include the development of PC’s training and development strategies, policies and standards. Manyabela is the Chairperson of Limpopo Region’s Women in Mining. She is Chairperson of Employment Equity Skills Development and serves as the member of the board of Phalaborwa’s Technical and Vocational Education and Training (TVET) College. Training and development policies influence how the company perceives safety, gender parity and employment equity. Manyabela has used her role at PC to create training materials that allow for gender freedom and flexibility. Manyabela is a finalist for the Limpopo Mine and Safety Council’s Women Achievers Award and Standard Bank Young Achiever of the Year Award. The latter award is for women who have achieved a lot before the age of 40. Zani Kutumela: A leader without a title Zani Kutumela, 35, is an author, social activist, motivational speaker and mother. She has a BA Degree in Communications, with majors in English and Journalism, from the University of Johannesburg. Palabora Copper (PC) employs Zani on a full-time basis as an Administrator for the Training Department. Her work involves interacting with people from diverse social, political, economic and cultural backgrounds. The majority interact with PC in order to get some type of assistance (securing employment or learnership opportunities or a

Zani Kutumela: Social activist and author.

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LIMPOPO BUSINESS 2019/20


FOCUS

Addressing community needs Electrification, water supply and a crèche upgrade are recent projects undertaken by Marula Platinum Mine.

Recent initiatives Water supply: The installation of an electric pump and three JoJo tanks in the Seuwe community in the Mashibiring section. The pump supplies water to 500 households, approximately 5 000 people in the village and a nearby crèche and secondary school. Crèche revamp: Karabo Crèche, an early childhood development centre in Mashibiring, now consists of an office, kitchen, sick bay and three additional classrooms. The donation brings to an end many years of struggles with the daily running of the centre because of limited space and inadequate facilities. Village electrification: The Maahlapa section in Ga-Mashishi Village has been electrified from the proceeds of the chrome project. Phase two of the project will see another 108 houses electrified. Literacy: Ongoing full-time literacy classes are provided at the mine, and Marula invests in skills development through learnerships, short courses and workplace training. Supporting local business: Preferential procurement and investment in enterprise and supplier development provide important opportunities for social and economic transformation. During the 2018 financial year, Marula procured R101-million worth of goods and services from local companies.

M

arula Platinum Mine is 73% owned by Implats 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. The mine is in the Limpopo Province and employs approximately 3 500 people. Black economic empowerment forms a key component of the Marula operation, and our partners together own 27% of the company. Marula’s social investment strategy focuses on addressing the needs identified within its host communities. The mine invests in local socio-economic development initiatives, drives transformation, and engages with community representatives and government officials at all levels. Makgoma Chrome is a joint venture that assists local communities with the extraction and marketing of chrome from tailings. 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. LIMPOPO BUSINESS 2019/20

CONTACT INFO Contact: Alice Lourens, Group Head: Investor Relations and Corporate Communication Tel: +27 11 731 9033 Email: alice.lourens@implats.co.za

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ENRICHING LIVES in many ways

Implats’ commitment to sustainable mining businesses creates employment and stimulates local business opportunities and the development of social infrastructure around its operations. Implats is proud of its contribution to the economy and the role it plays in bringing about economic transformation – enriching lives in many ways.

Coole Adv 18361


INTERVIEW

Safety first at Venetia Mine Gerrie Nortje, General Manager at Venetia Mine, outlines all the steps that are taken to keep miners as safe as possible. What are the key principles behind keeping a mineoperation safe?

Gerrie Nortje, General Manager at Venetia Mine

All mines should be constructed and operated as per the design to eliminate and, where not possible, mitigate risk in every part of the process. Quantifying the risks to which our employees and communities are exposed forms a key pillar in Safety Management. Engineering controls remain the most effective and as a result are the highest on the hierarchy of controls. At De Beers and Venetia Mine, we pride ourselves in our first value, which is “Putting Safety First”. This means that all our employees and contractors are empowered to work safely, stop unsafe work, withdraw from an unsafe area and escalate any unsafe conditions. This is an expectation from every employee. The safety culture and one of transparency and collaboration is absolutely critical. Not tolerating risk and being unconditional about safety every single day remains paramount in succeeding. Fatigue management is also important. What programmes are in place to promote safety?

BIOGRAPHY Gerrie Nortje began his career with Anglo American in 1997 as a bursar studying Mining Engineering. On completion of his degree, he worked at various Anglo American Thermal Coal operations before becoming Operations Manager at Xstrata. He re-joined Anglo American as a Principal Mining Engineer and transitioned into a Lead Open Pit Mining role during 2014 as a member of the Technical and Sustainability team. At head office he was involved with a variety of projects across the group’s business units. LIMPOPO BUSINESS 2019/20

We have in excess of 20 workstreams focusing on elimination of fatalities. Controls keep people safe and critical controls keep people alive. We are improving all our critical controls and verifications. What are some of your achievements in tackling safety? Before we talk about successes, we should first reflect on the tragic death of Maggie Semata on 25 March 2018 in the ore-processing plant at Venetia. The loss was devastating for Maggie’s family, everyone at Venetia Mine, De Beers Group and Anglo American. I have taken a stance that no Venetian will lose his or her life ever again. Is Zero Harm achievable? There is no doubt that Zero Harm is achievable. Some departments at Venetia have never suffered an injury in 27 years since commencement of operations. Will mechanisation assist in advancing safety? Removing employees from harm’s way will remain one of the most effective measures, so yes it will. Mechanisation and automation play a critical role in keeping our employees safe. It also provides opportunities for employees to develop other skill sets.

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INTERVIEW

Moving more Giants Project aims to translocate 300 elephants.

T

he second translocation of elephants from the Venetia Limpopo Nature Reserve (VLNR) in South Africa to Zinave National Park in Mozambique has taken place. The first herds of elephants made the 1 700km road journey to Zinave in the last week of June 2019. The final herds arrived at Zinave on 11 July​, bringing the total number of elephants moved in 2019 to 53. During the first phase of the project, 48 elephants were translocated. These elephants, moved in family groups, consisted of matriarchs, younger males and females, and calves. Those elephants have been seen integrating with other herds at Zinave and have been thriving with more space and food now available to them. The translocation is part of a major conservation effort – “Moving Giants” – that aims to move some 200 elephants over three years to secure the future of the VLNR, which was under threat due to too many elephants affecting the broader ecosystem, and to help repopulate Mozambique’s elephant population. VLNR is partnering with Peace Parks Foundation, a transfrontier conservation organisation whose aim is to re-establish, renew and preserve

57

large functional ecosystems, and Conservation Solutions, experts in wildlife management whose team manage the challenging logistics and veterinary care of the elephants throughout the process. Peace Parks co-manage Zinave National Park with the Mozambique government and have ongoing responsibility for the wellbeing of the elephants. Werner Myburgh, CEO, Peace Parks Foundation, said, “The future of the African elephant is bleak in most parts of Africa, except for the southern Africa region where the outlook on their population numbers are stable and even, in some cases, increasing. Zinave National Park in Mozambique is one of these places and brings hope as a new founder population is on the rise.” Anglo American is backing up its investment in the elephant translocation initiative by providing Peace Parks with a further US$500 000 investment from the Anglo American Foundation to enhance and extend anti-poaching support measures. Peace Parks has been working with local communities to ensure that the introduction of the elephants to the park has a positive impact for their human neighbours. LIMPOPO BUSINESS 2019/20


OVERVIEW

Construction and property Infrastructure and state housing are potential markets for builders.

SECTOR INSIGHTS A provincial theatre is in the planning stages.

T

he Risima Housing and Finance Corporation, a division of the Limpopo Development Agency (LEDA), is helping citizens of the province to become homeowners. Since 2014, Risima has assisted 1 037 beneficiaries with loans of up to R1.5-million. The gap market – people who earn too much to qualify for social (RDP) housing but don’t earn enough to be granted bonds – is a hot topic. Opportunities exist, but the risk profile is different. A new association caters for this subsector, the South African Affordable Residential Developers Association (SAARDA). Risima has introduced the Finance Linked Individual Subsidy Programme, for those earning between R3 501 and R15 000 per month. Risima and the Department of Cooperative Governance, Human Settlement and Traditional Affairs (COGHSTA) distribute grants to cover a deposit or to make up the shortfall between an asking price and what the applicant can afford. A non-mortgaged financial product assists government employees to get a foot on the property ladder. Risima is also exploring cooperation with mining houses such as Exxaro, Amplats and Northam at Thabazimbi. The Provincial Government of Limpopo has built more than 320 000 houses since 1994. A budget of R3.9-billion has been assigned by National Treasury towards the Limpopo Academic Hospital. Clinics are also

ONLINE RESOURCES Black Business Council in Built Environment: www.bbcbe.org Construction Industry Development Board: www.cidb.org.za South African Property Owners Association: www.sapoa.org.za

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being built, providing more work opportunities in the construction sector. A start has been made on a provincial theatre, with R15-million allocated to allow planning for the project to get underway. A large development is under way in Thohoyandou. A 27ha site is being converted into Thavhani City which will include an office park, automotive-related businesses, private healthcare, a library, an information centre and a sports stadium. Thavhani Mall (pictured) is already functioning. Its anchor retail tenants include Woolworths, Edgars, Pick n Pay and SuperSpar. The partners in the R1-billion project are Thavhani Property Investments, Vukile Property Fund and Flanagan & Gerard Property Development. 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.


OVERVIEW

Energy Large energy users are going off-grid.

T

he Mogalakwena Mine run by Anglo American Platinum (Amplats) is a large energy user. The mine’s concentrator relies on constant and reliable electricity supply. With energy comprising a significant portion of costs and national utility Eskom experiencing difficulties in terms of its debt and its ability to supply reliable power, the mining company is investigating the installation of a large solar PV project. In early 2019 the project was at the “request for interest” stage. Anglo Platinum has pioneered 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. Implats is already 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. The huge Eskom project at Medupi power station is over budget and behind in implementation. Three of the plant’s six units are operating (although there have been some problems) and two more will come on stream in 2019. When the plant is completed, the Lephalale area will become a petrochemical hub and energy complex. An Energy and Metallurgical Cluster is an important component of the new Special Economic Zone that has recently been approved at Limpopo Projects Project

MW

Location

Operational

Tom Burke Solar Park

60MW

Lephalale,

August 2016

Waterberg DM Witkop Solar

29.68MW

Polokwane

September 2014

Soutpan Solar Park

28MW

Blouberg,

July 2014

Capricorn DM

SOURCE: IPPPP, Provincial Report IV, March 2017.

ONLINE RESOURCES

The provincial government's Green Economy Plan has identified solar and biomass as the main kinds of renewable energy for Limpopo. With National Department of Energy: www.energy.gov.za huge silicon reserves in the province, there is also potential to produce Southern African solar panels and solar Biofuels charges forAssociation: cell phones. www.saba.za.org South African Photovoltaic Industry Nine biogas digesters have been installed in Association: the Vhembe District to be controlled by young entrepreneurs trained by the University of Venda. A www.sapvia.co.za group of 31 students is studying Energy Management Systems as part of the provincial plan.

59 Online resources National Department of Energy: www.energy.gov.za Southern African Biofuels Association: www.saba.za.org South African Photovoltaic Industry Association: www.sapvia.co.za

SECTOR INSIGHTS The Musina-Makhado Special Economic Zone (SEZ) will be a power generator.

Musina-Makhado in the far north of the province. The two local municipalities have been allocated R147-million by provincial government for infrastructure upgrades, including electricity. The National Department of Energy’s Renewable Energy Independent Power Producer Pro cure m e nt Pro gr amm e (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 chargers for cell phones. Nine biogas digesters have been installed in the Vhembe District to be controlled by young entrepreneurs trained by the University of Venda. A group of 31 students is studying Energy Management Systems as part of the provincial plan. LIMPOPO BUSINESS 2019/20


OVERVIEW

Transport and logistics The new Musina Intermodal Terminal is operating.

T

he official opening of the Musina Intermodal Terminal near the Beitbridge border post is further confirmation of Limpopo’s status as a leader in transport and logistics. Located in the town of Musina on the N1 highway leading to Zimbabwe, the terminal is used to move cargo from road to rail. Warehousing facilities on site make for loading efficiencies in the main cargoes such as chrome, fertiliser, coal, fuel and citrus. Bulk and containerised cargo are handled, with an annual capacity of threemillion tons per annum. Logistics 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, 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 since 2006, whereas the R33 carries less traffic. The building of the Musina-Makhado Special Economic Zone (SEZ) will further boost Limpopo’s importance as a transport and logistics hub. 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. 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 Musina-Makhado 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, RAL is working with Implats to build 17km of road near the company’s Marula mine. LIMPOPO BUSINESS 2019/20

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SECTOR INSIGHTS The Great North Transport company runs more than 500 buses. Since 2014, some R2.6-billion has been spent by the provincial government on building bridges and upgrading gravel roads to tar. Polokwane is the site of major investments in transport infrastructure. SANRAL is building a 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 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


OVERVIEW

kilometres every year on 279 routes, employs more than 1 200 people and transports 37.6-million passengers. In addition to ownership of Great North Transport buses, the provincial government has 26 private bus subsidy contracts. In 2018/19, R737-million was spent on bus subsidy services. 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. Companies such as Freezerlines, Fast ‘n Fresh and Cold Chain have developed specialist techniques in getting delicate 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 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 firm that began in Tzaneen transporting fruit and vegetables. Other active companies

ONLINE RESOURCES Gateway Airports Authority Limpopo: www.gaal.co.za Limpopo Economic Development Agency: www.lieda.co.za Limpopo Department of Public Works, Roads and Infrastructure: www.dpw.limpopo.gov.za Limpopo Department of Transport: www.ldot.gov.za Roads Agency Limpopo: www.ral.co.za Transnet Freight Rail: www.transnet.net

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in Limpopo include Dawn Wing Logistics, Kargo, F&R Logistics and Aramex SA. Polokwane International Airport (PIA) is wholly owned by the provincial government and run by the Gateway Airport sAuthority Ltd (GAAL), an agency of the Limpopo Department of Transport. It has the potential to be an important regional cargo airport. SA Airlink caters mainly to the business market and offers 21 flights to Johannesburg six days a week. The airline also provides links between Phalaborwa and Johannesburg, and between Hoedspruit and Johannesburg and Cape Town. Many game reserves have airstrips and regional airports in the eastern part of the province provide easy access to the Kruger National Park. Eastgate Airport at Hoedspruit is close to the Orpen Gate. Phalaborwa’s airport is notable for its African-themed terminal which includes a zebrapatterned floor. Musina, near the border with Zimbabwe in the north, hosts the province’s other regional airport. LIMPOPO BUSINESS 2019/20


PROFILE

Gateway Airports Authority Limited Accelerating change to improve aviation.

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ateway Airports Authority (SOC) Limited (GAAL) is a strategic entity of the Limpopo Department of Transport. It has the fundamental responsibility of providing passenger and cargo services through its airport, Polokwane International Airport, while also providing aviation support services. The geographical location of the province provides the airport with numerous business and economic opportunities. Limpopo Province, which is the Gateway to the rest of Africa, shares borders with Botswana, Zimbabwe and Mozambique. The airport is therefore a strategic entity to boost and to benefit from trade relations between South Africa and the rest of Africa. GAAL’s annual performance plan for 2018/19 shows a clear understanding of the priorities of the Limpopo Provincial Government; purposefully to contribute towards the growth of the provincial economy and the creation of employment opportunities in line with the Limpopo Development Plan. Customer services targets as set out in the annual performance plan will ensure the success of the ultimate strategic objectives as set out by GAAL. Polokwane International Airport welcomes thousands of business people and visitors to our province annually. Our airports welcome millions of business people and visitors to our country. We are proud that our world-class infrastructure supports economic growth, job creation and contributes to the tourism value chain. LIMPOPO BUSINESS 2019/20

Commitments GAAL is committed to running the airport efficiently and ensuring we remain relevant while contributing towards the province’s economy. GAAL is also committed to addressing the challenges to increase the frequency and number of flights as well as utilising bigger aircraft to unlock the latent demand in Limpopo and to build a culture of flying to complement the prevailing road travel preferences. GAAL is committed to its corporate social investment and to live up to its corporate citizenship responsibilities and to deliver on the plans and targets put forward in the annual performance plan. All of these commitments are made with the prime objective of accelerating change in order to improve aviation in Limpopo.

CONTACT DETAILS Physical address: N1 North Makhado Road Gateway Drive Polokwane 0700 Postal address: PO Box 1309, Polokwane, Limpopo 0700 Tel: +27 15 288 0122 Email: marketing@gaal.co.za Website: www.gaal.co.za

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Leading the growth of the aviation industry in Limpopo The Gateway Airports Authority Limited (GAAL) provides aviation services and maintains the Polokwane International Airport.

Mission Statement •

To operate and develop public airports within the province of Limpopo To create an intra-Limpopo flight operations network to feed Polokwane International Airport (PIA) To develop PIA as the hub of the SADC region and the north region of South Africa In collaboration with our key stakeholders, to stimulate economic and social development for the people of Limpopo.

GAAL core values Passionate - Living our values and pursuing our goals, shared vision and commitment to our mission with passion Integrity - Enabling trust and respect in all our actions by doing the right actions all the time and being accountable and ethical Agility - Ability to move quickly, easily and accurately in compliance with aviation and other applicable legislations Commitment - Appetite and thirst for new challenges, and caring for the business’ success Customer-centric - Providing innovative all-round service delivery to the customer needs and positive experience

Tel: +27 15 288 0122 | Website: www.gaal.co.za


MESSAGE

Limpopo’s airport authority is exploring business opportunities GAAL’s new CEO, Masingita Baloyi, envisages turning the Polokwane International Airport into a hub for airfreight and passengers by setting up a feeder network for all the airports within the province.

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GAAL CEO, Masingita Baloyi

BIOGRAPHY Masingita has a wealth of experience in aviation. He holds a bachelor’s degree in Administration from the University of Limpopo and a programme in e-Commerce from UNISA Graduate School of Business Leadership. He is currently studying for a Master of Business Leadership. Masingita has worked at the University of Johannesburg, South African Airways (cargo and revenue management) and First Rand Bank. He was GM: Human Resources of the Independent Development Trust. Before joining GAAL, he was a management consultant at ATA Research. LIMPOPO BUSINESS 2019/20

he Gateway Airports Authority Limited is a state-owned company under the custody of the Limpopo Department of Transport. Despite the entity’s listing as a schedule 3D public enterprise in terms of the Public Finance Management Act, it is administered in accordance with the Companies Act of 2008’s scope and limitations. GAAL’s mandate is derived from its articles of association dated 29 March 1995, which is for GAAL to act as airport manager and administrator within the province. GAAL seeks to create prolific business opportunities to better maximise the utilisation of its assets and resources so as to generate sufficient revenue to be a financially sustainable entity that generates modest profits. Among other prospective business opportunities are the plans the entity has to lease 45 hectares of land to potential investors for business opportunities that will be in support of the growth, development and operations of the entity. The entity is also currently looking to secure alternative passenger and/ or commercial airline operators as well as increase routes from OR Tambo International Airport to other airports such as Lanseria, Cape Town International Airport and King Shaka International Airport on a 1, 5, 7 schedule. Another business prospect that the entity is looking to secure is that of a reputable restaurant that will operate from the Polokwane International Airport. Such business prospects will allow the entity to make the Polokwane International Airport an optimally functioning airport that serves the needs of its clientele. Infrastructure The airport has successfully installed positive pressure ventilators in the airside as well as upgraded and maintained its runways and lights. Other completed developments include the construction of the JOC operating centre. An infrastructure development that is currently still in the supply-chain process is that of upgrading and maintaining the airport’s board signages. Aeronautical services This service focusses on all airline operations, including private chartered flights. Non-aeronautical services This service includes: general aviation, car rentals, travel agencies, retail stores, aviation fuel supply, hangars and office rentals.

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

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 Londonbased consulting firm Credo, which conducted The Mobility Opportunity study. Like other leading cities, the City of Polokwane is already achieving 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. Executive Mayor of Polokwane Councillor Thembisile Nkadimeng, above, asserts that an efficient and cost-effective

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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.

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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 and the upgrading of road infrastructure. The majority of road infrastructure has been constructed, including the following: • a trunk route between Seshego and the City • trunk extensions • feeder routes • feeder stops • non-motorised transport (NMT) infrastructure • a control centre at the new Peter Mokaba Stadium • a layover facility • Leeto la Polokwane is characterised by dedicated bus lanes, modern buses, smartcard payment systems, modern bus stations that LIMPOPO BUSINESS 2019/20

are safe and comfortable, and a control centre to speed up public transport and give passengers a better quality of service Go-Live 2019 will in the interim operate kerbside until the depot and bus station are ready. Buses will in the interim be operated at the layover facility.

“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. “The central theme for this year is to celebrate these great leaders and keep their legacies alive

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FOCUS by making an individual and collective contribution towards the attainment of a South Africa where everyone has equal oppor tunities 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 MOA has been signed between the municipality and the four Taxi Associations involved in Phase 1&2 of the project. Working with the University of Limpopo’s Turfloop Graduate School of Leadership (TGSL), owner members were trained 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. In 2017, the TGSL programme successfully offered professional business development training to approximately 100 taxi owners across Flora ParkPietersburg, Moletjie, Seshego-Polok wane 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 October 2017, as an important milestone which presents the municipality

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THE TAXI INDUSTRY IS AN IMPORTANT STAKEHOLDER WITH A WEALTH OF EXPERIENCE, KNOWLEDGE AND VESTED INTEREST IN THE SUCCESS OF THE PROJECT LIMPOPO BUSINESS 2019/20

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 Transportation Directorate and appointment of a substantive Director of Transport Services to drive strategy and implementation • Significant road infrastruc ture net work upgrades were completed • Full Non-Motorised Transportation (NMT) 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

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FOCUS • • • • •

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. To date 36 Universal (UA) Compliant buses (21x12 metre and 15 x 9 metre) have been procured and installed with Automated Fare Collection (AFC) and Public Transport Management System (PTMS). PTMS’s primary aim is to monitor the movement of public transport vehicles and increase the comfort of their passengers around the controlled urban network. It 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. “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 non-motorised transport, progressive land-use approaches and carrestriction interventions,” Executive Mayor Nkadimeng says.

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“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. The system will go operational before the end of 2019.

LIMPOPO BUSINESS 2019/20


OVERVIEW

Banking and financial services Banking choices are expanding very quickly.

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he first new banking licence in nearly two decades was issued in 2017, to TymeDigital by Commonwealth Bank SA. The bank will have no physical branches although Tyme’s Money Transfer product, which it launched in 2016, is available at Boxer and Pick n Pay. African Rainbow Capital is the venture’s BEE partner. The banking licence is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. In a province with a high proportion of rural citizens such as the Limpopo, the prospect of Postbank being upgraded to a full-service bank is positive news. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. The large geographical footprint of the Post Office will make the bank easily accessible to even remote parts of the country. Two other state-owned enterprises are looking to create banks, The Ithala Development Finance Corporation is an enterprise funder in KwaZulu-Natal that has applied for a banking licence. At national level, LIMPOPO BUSINESS 2019/20

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SECTOR INSIGHTS South African businesses are lining up to register new banking licences. there is a plan to create a Human Settlements Development Bank. The focus will be on financing housing for poorer households and for large state-funded housing projects. Part of the drive is to integrate cities better and to combat the legacy of the spatial divide that apartheid left behind. The Limpopo Economic Development Agency intends


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OVERVIEW

establishing a local life insurance company. These initiatives aim to make banking more accessible for rural communities and to make finance more readily available to small and micro-sized businesses. Trying to integrate small business into the mainstream economy is a major goal of national and provincial governments in South Africa. VBS Mutual Bank, one of three mutual banks in South Africa, was placed under curatorship in 2018. The appointed curator was not able to confirm all deposits. In the lead-up to the bank not being able to meet its commitments, municipalities had been making deposits to the bank although these violated restrictions put in place by the National Treasury. VBS began life as the Venda Building Society in 1982. The Public Investment Corporation held 34% of equity. To support entrepreneurial students, the University of Limpopo has set up the Limpopo Student Seed Fund together with the SAB Foundation. The signing ceremony for the fund is shown in the photograph on the previous page. Support will be offered to businesses that promise to find solutions to social problems such as unemployment and hunger. Ubank is owned by a trust that is managed by the Chamber of Mines and the National Union of Mineworkers (NUM). It has about 100 branches and a strong presence in Limpopo because of its focus on the mining sector. Ubank has about half-a-million clients. South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province. Agriculture is an important focus area for banks and so they have established specialised units such as Nedbank Agribusiness. Focus areas for this unit are agronomy (grain, oil seeds, sugar and cotton), livestock (including game farming), horticulture (fruit and vegetables, for example), and secondary agriculture which covers agricultural processing and storage. The two most active agricultural companies in Limpopo are both registered financial service providers. NTK, a subsidiary of the Free State-based VKB, has access to lending for farmers and insurance products. Afgri offers the same services under the brand Unigro, and it has another service called Gro Capital Financial Services which offers

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

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more sophisticated products such as trade finance, foreign exchange and currency, and interest rate hedging. Banks are actively working to sign up more of the unbanked population. Nedbank has Approveit™, which allows customers to accept or reject an Internet transaction by cellphone. Nedbank also has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas. Some of Nedbank’s other innovations include Home Loans Online Digital Channel and Market Edge, together with the Nedbank App Suite™. The Keyona Plus account includes funeral cover, a loan facility and a method of transferring money. The Nedbank4me account is tailored to the youth market. The insurance market has adapted to specific market segments, including middleincome earners. A typical example of a new product is Old Mutual’s iWYZE medical gap cover, designed to pay the difference between what a medical aid scheme is willing to pay and the fee of the hospital or doctor. Relative newcomer, Capitec, is rapidly moving towards being part of a Big Five and it announced in 2018 that it would partner with Centriq Life to enter the insurance market. Capitec has no fewer than 69 branches and ATMs outlets in Limpopo, suggesting that its low-cost banking model is popular.


SMME Development Programme

Limpopo Jewellery Business Incubator’s SMME Development Programme identifies jewellery businesses which need assistance with developing and growing their businesses. After a needs analysis interview is conducted, a comprehensive development and growth plan is put in place. N The entrepreneurs enter a three-year incubation programme where they are offered business assistance, training and development, guidance, jewellery 3.6 CENTER mentoringPRODUCTION and ongoing support.

s and the aim is to Entrepreneurs who meet the following should its apply: n s The u r e iCentre t s requirements manufactured own jewellery

Entrepreneurs who have trading pieces for exhibitions, shopformal sales andjewellery the bridal boutique in town. The main aim is nufactured Interested entrepreneurs should emailtotheir b o o s t sapplications a l e s a n dto:a l s o t o e n s u r e i t s n team: Mabatho Malatji: mabatho@slji.org.za or sustainability. Frans Nkuna: info@slji.org.za 3.6 CENTER PRODUCTION Tel: +27 15 293 0214​​​

y e o s

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086 of 232the 7348 Below areFax: some products manufactured The Centre manufactured its own jewellery and repairs by the Centre Production team:

businesses and also those who are trading without a formal business. Entrepreneurs who have passion in the jewellery sector with or without a jewellery qualification. Who qualifies? South African citizens. Youth and adults. The following documents are required for application: Application letter; CV with supporting documents; company registration documents (if applicable); portfolio of evidence. Benefits include full access to a workshop with state-of-the-art machinery, business skills training, mentoring, facilitate access to market and funding. Technical training is offered in metal, glass beads, costume and traditional beads. New physical address: Seshego Industrial Park, 7 Freedom Drive, Zone 6, Seshego 0742 Email: info@slji.org.za Website: www.slji.org.za

pieces for exhibitions, shop sales and the bridal boutique in town. The main aim is to boost sales and also to ensure its sustainability. Below are some of the products manufactured and repairs by the Centre Production team:

Limpopo Jewellery Business Incubator (LJBI) is a jewellery design and manufacturing business incubator which is unlocking the potential of technical graduates and promoting entrepreneurship. Products illustrated here range in price from R150 to R550. The LJBI offers training in jewellery design and manufacturing and fosters a culture of entrepreneurship among marginalised black communities. Accreditation and licences: • Precious Metal Jeweller’s permit • Member of JCSA • Full accreditation by MQA • ISO 9001:2015 certificate • Import and Export permit • Member of Proudly South African


OVERVIEW

Development finance and SMME support Big companies are using their supply chains to support small business.

SECTOR INSIGHTS The University of Limpopo has started a Seed Fund for students with business ideas.

Chairman of Zizwe Opencast Mining, Howard Maimela, Kgosi Manotshe Ramokoka and senior general manager of Amandelbult Complex, Patrick Morutlwa.

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he provincial government, through its departments and agencies, has since 2014 given financial support amounting to more than R51-million to 1 200 co-operatives. In the same period, R193-million was provided to SMMEs. In partnership with the Small Enterprise Development Agency (Seda), the provincial government has established a construction incubation centre at Steelpoort in Sekhukhune to train emerging contractors. A jewellery incubation centre in Polokwane trains young jewellery makers. Local, provincial and national government have all committed to spending more of their budgets through small businesses and cooperatives. The Limpopo Provincial Government reports that in 2017, government departments paid invoices within 30 days 96% of the time. The University of Limpopo has launched the Limpopo Student Seed Fund which aims to promote social innovation among students. Sponsored by the SAB Foundation, the new fund will see R400 000 distributed to students whose businesses tackle social issues such as hunger, violence and unemployment. A concerted strategy to strengthen and develop the economies of the townships and villages of Limpopo has been launched. Spearheaded LIMPOPO BUSINESS 2019/20

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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 microenterprises (SMMEs), indigenous products are supported and protected, and encouraging small businesses to support one another through the clustering approach. The revitalisation of the Seshego and the Nkowankowa Industrial Parks is intended to boost the local economy, with SMMEs expected to benefit the most. The National Department of Trade and Industry has committed R21-million to revitalising the Seshego Industrial Park which will provide trading and storage space for businesses of all sizes. LEDET has signed memorandums of understanding with the South African Bureau of Standards (SABS) and with


OVERVIEW Productivity South Africa. These agreements aim to help SMMEs within the province become more competitive. Ten SMMEs and 10 co-operatives are currently being assisted. LEDA intends establishing a bulk-buying cooperative. The plan is to enlist more than 200 members whose collective buying power will give them an advantage in purchasing stock. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include: • The Black Business Supplier Development Programme, a costsharing 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.

Private sector Large companies in Limpopo are supporting new business ventures by allocating service functions to local businesses and through training and mentoring. Anglo American Platinum has extended the contract with Zizwe Batlase for the provision of strip-mining services at its Amandelbult Complex. Zizwe Batlase is 51% owned by the local community of Baphalane through the Baphalane Community Trust, named Batlase. Since 2016, Zizwe Batlase has been providing employment, SMME development, infrastructure development and business opportunities to local and small businesses in the community. 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 has

ONLINE RESOURCES Industrial Development Corporation: www.idc.co.za Limpopo Department of Economic Development, Environment and Tourism: www.ledet.gov.za National Gazelles: www.nationalgazelles.org.za Shanduka Black Umbrellas: www.shandukablackumbrellas.org Small Enterprise Development Agency: www.seda.org.za Zimele: www.anglozimele.co.za

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launched two business incubators in 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. 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. T he Se da Te chnolo g y 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. LIMPOPO BUSINESS 2019/20


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 2019/20

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 of operation. The dynamics of the economic imperatives will differ from

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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. What are Seda’s key programmes? •

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 Communit y 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 is the Seda Technology Programme?

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 of fers the following services: grant funding for the acquisition of technology, such as equipment and machiner y, to facilitate technology transfer; improving access to technology information by small enterprises; improving access to technology-transfer funding through structured referrals to the funding institutions; linking inventors/universities or science councils with small 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. Does Seda have programmes to assist women and youth in business?

The Seda Technology Programme (STP) is a division

We have capacity-building programmes focusing on women.

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Small businesses thriving through Empretec programme Seven years of success. support systems to facilitate the growth and internationalisation of their ventures. Empretec training sessions have been proven to have a positive impact over seven years. Data shows that the sur vival rate of SMEs of Empretec graduates is almost twice as high as that of nonEmpretecos, and that over 80% of participants reported a steady and efficient growth of their business as a result of participation in the programme. Seda Limpopo has hosted 10 Empretec sessions so far and more training sessions will be rolledout. Empretec promotes a methodology of behavioural change that helps entrepreneurs to put their ideas into action and helps fledging businesses to grow. Innovative, experiential and competency-based entrepreneurship training initiatives such as UNCTAD’s Empretec programme are key components of a dynamic and sustainable entrepreneurship ecosystem. As Seda Limpopo continues to roll out the programme in all local municipalities in the province, the programme also benefits from the support of many different strategic partners, including De Beers Venetia Mine and the National Department of Tourism. Other local donors and partners are invited to form part of this opportunity which yields tangible impact on the lives, businesses and communities of entrepreneurs.

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he Small Enterprise Development Agency has adopted Empretec, which is a capacity-building programme of the United Nations Conference on Trade and Development (UNCTAD). T he programme aims to promote entrepreneurship and to enhance productive capacity and international competitiveness of small and medium-sized enterprises (SMEs) of developing countries and economies in transition. The Empretec programme is designed to provide training, technical assistance and an institutional base for the formation, expansion and transformation of SMEs. The programme identifies promising entrepreneurs, provides them with training aimed at developing their entrepreneurial skills and understanding basic business procedures, assists them in the preparation of business plans and in obtaining finance for their business ventures, helps to arrange mutually beneficial connections with larger national and foreign companies, and makes available long-term LIMPOPO BUSINESS 2019/20

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Seda offices Seda contacts Provincial Office Koenie Slabbert - Provincial Manager Mopani Branch Seda Limpopo Provincial Tel: Office +27 15 287 2940 (located in Tzaneen) Fax: +27 15 297 4022 Ms Maseje Nchabeleng: Branch Mr Koenie Slabbert: Provincial Email: kslabbert@seda.org.za Manager 2ndManager Floor Suite 6, Maneo Building, 73 Biccard Street, Polokwane 0700 Tel: +27 15 306 6400 Tel: Suite +27 15 2940 Postnet 32 287 Private Bag X 9307 Polokwane 0700

Fax: +27 15 297 4022

Fax: +27 15 307 2233

0699

Tzaneen

Seda Vhembe Branch Email: Email: kslabbert@seda.org.za Mr Marcus Mukumela Manager mnchabeleng@seda.org.za Physical address:- Branch 2nd Floor Tel: +27 15 960 8700 Physical address: 2nd Floor Nictus Building Fax: 086 634 8964 ABSA Building 68 Hans van Rensburg Street Email: mmukumela@seda.org.za 13 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 8720 Waterberg Branch in Polokwane) Fax:Mr. +27Peter 15 290 8736 Branch Manager (located in Mokopane) Maredi: Email: pmaredi@seda.org.za Mr Steve Botha: Branch Manager Tel: +27 15 290 8720 1st Floor Pharmarama Building, 68 Hans van Rensburg Street, Polokwane 0699 Fax: +27 15 290 8736

Tel: +27 15 492 9600

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

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

Fax: +27 15 962 4285

Fax: +27 13 262

Thohoyandou 0950

Hereford Street Groblersdal 0470

Seda Sekhukhune Branch Email: sntshangase@seda.org.za Email: mmukumela@seda.org.za Mr Sabelo Ntshangase - Branch Manager Physical address: Physical address: Bindulavhathu Tel: +27 13 262 9430 Mutual Building Office Building Email: sntshangase@seda.org.za Shop 4 and Office 10, 12 0407 3rdMall, Floor 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


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Local business benefits from spirit of Chinese investments and technology exchanges PMC is supporting progress and development through community initiatives.

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RICS describes the group of Brazil, Russia, India, China and South Africa working together to promote development. The Palabora Mining Company success story shows that amid cultural differences and global economic uncertainties, cooperation by companies from BRICS can create a favourable environment for growth, technology exchanges and the buiding of international cooperation in the spirit of BRICS. Before commissioning and construction of the new floatation plant at PMC, the executive managers and senior managers travelled to China for fact-finding and comparative analysis missions on floatation plants to be built at the site in Limpopo. As part of resource sharing, skills and technology transfer, the main Chinese contractor has subcontracted work to various South African companies.

Community development initiatives Collaboration between Palabora Copper, the Chinese Consortium and BGRIMM does not only extend to tangibles, considerable investments and technology transfer opportunities, but is also benefitting the communities of Phalaborwa. Since 2013, the Chinese Consortium – through PC – has spent more than R186.5-million in socio-economic development initiatives in Phalaborwa. These include:

Skills transfer Palabora Mining Company’s smelter refurbishment project and construction of the floatation plant are being implemented in partnership with China’s Beijing General Research Institute of Mining and Metallurgy. 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. The aim is to empower employees to operate and maintain the refurbished smelter once it is completed. LIMPOPO BUSINESS 2019/20

Enterprise and Supplier Development Palabora Copper has implemented enterprise and supplier development programmes to empower Phalaborwa’s Small, Medium and Micro Enterprises (SMMEs) to so that they are able to grow and shine the economic candle of Phalaborwa beyond the life of PC.

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Renovation of schools

Instilling the love of sport

Palabora Copper has renovated Block C of Matome Malatjie High in Maseke Village and painted Lepato High School in Makhushane to ensure that pupils study in a conducive environment.

Palabora Copper understands the positive effect of sports on youth. As a result, Palabora Copper supports township sporting events and has hosted several soccer tournaments to instil the love of sports in the youth.

Bus shelters Construction and rehabilitation of roads Palabora Copper has constructed 19 bus shelters around the Ba-Phalaborwa Municipal area to ensure that bus users wait for busses in the shade, considering the heat in Phalaborwa.

Palabora Copper believes that rehabilitation and construction of roads signifies the company’s seriousness about socio-economic development. Roads are an essential part of human endeavour, a symbol of progress and development. In collaboration with the BaPhalaborwa Municipality and other strategic stakeholders, PC established a road rehabilitation project which involves tarring of roads and streets in Namakgale, the biggest township in Phalaborwa. To date, Palabora Copper has collaborated with various strategic stakeholders to rehabilitate the Ack son Malatji, Zakes Ngwasheng and Maphutha Malatji roads. The amount spent on the rehabilitation of these roads is over R44-million.

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Turning dreams into lasting realities Zimele improves the sustainability of SMEs.

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imele, which means “stand on one’s own feet” was introduced to local communities near mines to bring about sustainable black economic empowerment through the creation and support of small, medium and micro-enterprises (SMMEs). In 2017, De Beers Zimele changed its strategic focus from being a funding initiative to one that targets capacity-building and improving the sustainability of SMMEs. Over the last three years, De Beers Zimele at Venetia Mine has made huge strides in supporting and developing sustainable enterprises though the Enterprise and Supplier Development programmes. Measures were introduced to make available procurement opportunities from the mine to local businesses.

Local procurement and supplier development There are now 34 locally owned companies doing business with Venetia Mine and they employ in excess of 340 people. The Bussing Empowerment transaction led to community members now owning 40% of each of the newly established companies called Hope Diamond Transport and Millennium Diamond Transport. They employ more than 120 people. Chibadura Trading was appointed as the supplier for Venetia Mine LDV tyres, EMV rims and LDV batteries. Strategic partners Bridgestone and Global Wheel are providing training. Aucor Limpopo was established in partnership with the biggest auction company in Africa. In 2018, Aucor opened its doors in Bochum. Two locally owned construction companies were appointed to do construction on the Venetia Underground Project. De Beers Group is committed on the journey of “turning diamond dreams into a lasting reality” for the communities in which it operates.

Enterprise Development •

52 SMEs have enrolled on an SME incubation programme with the focus on operational and financial management and marketing. Through partnership with the Small Enterprise

LIMPOPO BUSINESS 2019/20

Development Agency (Seda) more than 150 SMEs from Musina and Blouberg benefitted from business courses. The relationship with the National Youth Development Agency (NYDA) resulted in five local youth-owned businesses gaining access to equipment worth R50 000. 27 local businesses employing more than 84 people were supported through Enterprise Development Programmes. AWOME (Accelerated Women Owned Micro Enterprises) was launched in partnership with the UN Women organisation which aims to reach 500 women.

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New crèche brings joy Madimbo community receives new facility from Venetia.

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Basil Reed. Today, I am completely overjoyed and speechless,” she said. The new facility is a much safer environment in which to play and learn. The upgrade is allencompassing, with everything from the kitchen to the ablution facilities and classroom being newly furnished. Bonani Nyabane, Social Performance Specialist at Venetia Mine, said, “As De Beers, we are excited to hand over such a beautiful facility to the most important members of our society, our children. We are committed to the development of our children and will continue to work to ensure that there is an improvement in the level of education in communities in which we operate.” For Mahada, what started as a small request for a few blankets and toys, turned into something much greater. “I don’t think there is anybody here who is not happy about this development. Thank you to Venetia; I promise to take care of this facility and will continue to raise these children, care and protect them,” she said. The toddlers were visibly excited as they enjoyed their new play areas and toys.

n Friday, 26 July 2019, De Beers Venetia Mine handed over the keys to the newly-built community crèche in the small village of Madimbo. The project was undertaken in partnership with Basil Reed, with the core focus of providing adequate infrastructure to support childhood development. The children have now moved from an old fourroomed house into a big, bright, modern, fullyequipped building, which is kitted out with a variety of educational toys and learning resources. Catering for 126 children between the ages of two and five, the crèche is also furnished with small plastic tables and chairs. Run by principal Precious Mahada, the crèche strives to educate preschoolers despite a lack of resources. Mahada said that she could not believe that the facility is now theirs to operate in. “As you can see, there are no playgrounds for our children in our community. Many parents cannot afford to buy toys for their children, yet toys can play a big role in a child’s development. This new crèche will offer them that opportunity, all thanks to thanks Venetia Mine and their partnering contractor

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Ikefree Projects looks to take its mission to a higher level Patience Nqaba wants to grow the company and create jobs.

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kefree Projects is a maintenance and services company that operates in the Musina area and is growing through its exposure to the De Beers Zimele programme and opportunities on offer through the Venetia Mine. Patience Nqaba, the co-owner of the business, says that when Ikefree Projects was established about five years ago, it was with a desire to not only promote innovation in Musina, but to inspire confidence in the hearts of unemployed young people. And when she agreed to kickstart the business, she admitted the plan was to keep going despite LIMPOPO BUSINESS 2019/20

having encountered difficulties, as she could clearly see how valuable the business would be to the community of Musina. But rather than just keep going, Nqaba has committed to taking the business to a much higher level. And with the help of her life partner and co-owner, Ikemeleng Mokoena, she is driving Ikefree Projects in doing just that. “We realised there was a gap and asked ourselves how we could effectively penetrate the market. It was not easy but when we came across the opportunity at Venetia Mine, things started

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picking up. We applied for a tender, and have never looked back since,” she says. T he business of fers a full spectrum of civil maintenance services to residential and commercial proper ties, including building, painting, plumbing, carpentry and tiling. Nqaba says that Ikefree Projects currently employs 29 skilled and driven young people to help the company grow, and to allow them to improve their craft. “A lot of young people from our community who are willing to do this kind of work do not have the necessary tertiary education but because they have the skills, we take them on. Right now, we have added four other young people to join us for a three-month basis, and even though it is just a short period, I think they will leave this place more skilled than before,” she said. Together, Nqaba and Mokoena are working to make the business an important part of the ecosystem in Musina as they have also recently started a food delivery service in partnership with Nando’s. “We recently signed a contract with Nando’s to deliver orders to their customers and are in the process of approaching other fast food franchises in and around Musina. This has been one of our greatest achievements as we continue to receive positive feedback from them,” she said. In addition to this, Ikefree Projects signed a contract with Top 40 JSE company, Tiger Brands, to provide maintenance services to their property. “It was purely by chance that we landed the contract. We conducted some research and realised they had no maintenance company. Thereafter, we pitched and presented our proposal, and they were highly impressed with our profile as we had listed Venetia Mine as one

of our clients. They then gave us a contract to renovate an office. As the saying goes, the rest is history,” says Nqaba. With the help of the De Beers Zimele programme, the owners of Ikefree Projects are now equipped to run the business more efficiently than before. “We are continuously trained in interpreting financial statements and budgeting, and we are shown how to create provision for unexpected expenses. We are also guided on how to apply for tenders and how to market the business better while complying with the mandatory regulations,” she says. Like any business, Ikefree Projects has the broad goal to be a trusted and sustainable company in Musina. The business owners are actively laying a solid foundation that will enable it to do just that. “The goal is to continue doing what we are doing but at an even larger scale. Yes, there will be challenges and equally, there will be opportunities. And thanks to the exposure Venetia Mine has given us, we – the small business that secured a contract with Tiger Brands – shall continue to move steadily forward,” she laughs.

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LIMPOPO BUSINESS 2019/20


OVERVIEW

Education and training Training is a key provincial priority.

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he provincial government saw to 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 due to receive libraries in 2018: Phokwane, Maphalle, Zamani and Mahlabathini. The province’s relationship with Cuba is paying off handsomely in that 145 graduates of the medical student programme were working as doctors in the province in 2018. A further 328 students are currently studying in the Caribbean.

Tertiary education and training 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. Impala Platinum, with Limpopo subsidiary Marula Platinum, has a partnership with the National Department of Minerals and Energy and the Da Vinci Institute for Technology Management, which focuses on the training of black women in the mining industry. 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. The Sefako Makgatho Health Sciences University is now an independent university in Gauteng Province and Limpopo University

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

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SECTOR INSIGHTS Local doctors trained in Cuba are working across the province. has a separate Medical School. The University of Limpopo is organised into four faculties: Humanities, Management and Law, Science and Agriculture and Health Sciences. University of South Africa (Unisa) has a regional support centre in Polokwane and agencies at Makhado and Giyani. The University of Venda for Science and Technology (Univen) is situate d in Thohoyandou. 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 infrastructure. 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. The Turfloop Graduate School of Leadership (TGSL) is based in Edupark, Polokwane, and offers three master’s degrees.


PROFILE

SALGA Limpopo A pilot project is promoting rural densification.

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he South African Local Government Association is an autonomous association of all 257 South African local governments. SALGA comprises a national association with one national office and nine provincial offices. The SALGA Limpopo Provincial Office is in Polokwane. Membership of the association is voluntary. Targeted rural densification programme Densification is about increasing the intensity with which land is used. The aim is to create more compact and sustainable settlements by building more on a smaller geographic footprint. Population distribution has a major impact on the provision of public amenities and facilities such as transport, utilities and social infrastructure. In Limpopo, Thulamela Municipality in the Vhembe District Municipality is being piloted for this project. Thulamela is in the far north-east of the province and borders the Kruger National Park. The town of Thohoyandou is a regional centre. Current challenges • •

Unserviceable locations. Due to the remoteness of some of the settlements, service installation is exacerbated by treacherous terrain. Spatially disoriented and economically unviable locations. Dispersed rural areas are on the periphery of economic opportunities. One-dimensional rural development approach. The current approach is inordinately focused on capital investment, with little attention given to addressing structural challenges. Discretionary land allocation. There are instances of outdated methods in the allocation of land by tribal authorities.

Rural densification benefits Higher densities lead to higher population thresholds which increases social returns on infrastructure investments. Higher densities also create

CONTACT INFO Acting Provincial Executive Officer, Ledile Molope Physical address: 125 Marshall Street, Private Bag X9523, Polokwane Tel: +27 15 291 1400 and 082 268 5163 Fax: +27 15 291 1414 Email: lmolope@salga.org.za and mraboshakga@salga.org.za

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

more viable private investments and the cost of basic infrastructure is considerably reduced in a dense development. Higher densities create viable social services based on minimum population threshold standards, whereas dispersed settlements are inextricably linked to poverty and underdevelopment. An added benefit is that higher densities create a significantly lower environmental footprint. SALGA’s value proposition All work on this project is internally sourced, which is the first time a specialised service of this nature has been done internally without the aid of a service provider. Cost saving for municipalities can be achieved in township establishment applications and support is offered directly and quantitatively. LIMPOPO BUSINESS 2019/20


INDEX

INDEX De Beers Group of Companies — Venetia Mine...................................... 56, 82-85, OBC Distell ​(Amarula)​​​​​.........................................................................................................................................23 Eco-Industrial Solutions​​​​................................................................................................................. 16-21 Gateway Airports Authority Limited (GAAL)​.................................................................... 62-64 Implats​​​​​​..............................................................................................................................................................54 Leeto la Polokwane​​​​.......................................................................................................................... 65-69 Limpopo Eco-Industrial Park...................................................................................................... 16-21 Limpopo Economic Development Agency (LEDA) .............................................................. 8 Limpopo Jewellery Business Incubator.......................................................................................​​73 Limpopo Office of the Premier​​​........................................................................................................... 6 Limpopo Tourism Agency ​​.......................................................................................................... 27-33 Mahlolane Agricultural Products​​.....................................................................................................42 MTN​​​​​​​...................................................................................................................................................................... 3 Nedbank​​​​​​.............................................................................................................................................5, 34, 71 Old Mutual........................................................................................................................................... ​​​​​​IFC, 36 Palabora Mining Company (PMC)​​................................................................................... 48-53, 80 SA Airlink.......................................................................................................................................................​​​​​​IBC Small Enterprise Development Agency (Seda)​​............................................................... 76-79 South African Local Government Association (SALGA).....................................................87 LIMPOPO BUSINESS 2019/20

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VENETIA UNDERGROUND PROJECT The future of South African diamond mining.

The new US$2 billion Venetia underground mine ranks as the biggest single investment by De Beers Group in the South African diamond industry. Excavation work for the underground extension got under way in 2013, the year De Beers celebrated its 125th anniversary. Production is scheduled to begin in 2022,

climbing to full production in 2025. Over the course of its life, the underground mine will treat about 132 million tonnes of ore containing an estimated 94 million carats. The underground project will extend the life of Venetia mine to 2046, securing the future for our host communities.

Profile for Global Africa Network

Limpopo Business 2019/20 edition  

The 2019/20 edition of Limpopo Business is the 11th issue of this highly successful publication that, since its launch in 2007, has establis...

Limpopo Business 2019/20 edition  

The 2019/20 edition of Limpopo Business is the 11th issue of this highly successful publication that, since its launch in 2007, has establis...

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