North West Business 2021-22

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2021/22 EDITION

NORTH WEST BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE NORTH WEST PROVINCE

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Inspiring hope and enabling dreams A brief history of Standard Bank in the North West Province.

Standard Bank has had an uninterrupted connection of 135 years with the region now known as the North West Province, created in 1994 by the merger of the former Western Transvaal area with the homeland territory of Bophuthatswana. Although Standard Bank had initially opened a branch in Potchefstroom in 1877, following the British annexation of the then Zuid-Afrikaansche Republiek (Transvaal), it had to close the branch again after the Transvaal regained its independence in 1881 as it could only, in terms of its original Memorandum and Articles of Association, operate in areas under British control. Rather than leaving the Transvaal completely,

the bank amended its Memorandum and Articles of Association to allow it to operate in areas outside direct British jurisdiction. Until the establishment of the Nationale Bank der Zuid-Afrikaansche Republiek in 1891 Standard Bank was also the banker of the Transvaal government. By the late 19th century, the Western Transvaal was primarily a good farming area, especially known for the high-quality wheat it produced. The discovery of gold throughout the Transvaal in the early and mid-1880s boded well for its economic prospects and gold fever spread to

Rishaad Webster Head, Client Coverage Business Clients North West

Yonash Naidoo - Head, Sectors Specialist, North West and Head, Business Centre, Rustenburg

Otto Lessing Head, Business Centre (Client Coverage), Klerksdorp

Image by Caspar Camille Ruben on Unsplash

Business Leadership Team, North West


semi-tropical fruit-growing area. The soil was also well-suited to the cultivation of cereals, tobacco, sugar and coffee. After the end of the Second Anglo-Boer War in 1902, reports that the railway line was to be extended from Krugersdorp to Rustenburg boosted the area’s prospects. Consequently, Standard Bank opened a branch there on 11 February 1903. From the 1920s onwards the town and district prospered further with the mining of platinum, iron, nickel and other rare minerals. The modern era Following the 1994 general election the country’s four former provinces were split to create the current nine provinces. In 1995 Standard Bank restructured its operations to create nine provincial structures, including one for North West, whose geographic boundaries largely corresponded to the country’s new provinces. Potchefstroom following discoveries at Zeerust and Lichtenburg. Many farms in the Potchefstroom area were also gold bearing. Standard Bank recognised that a small safe business could be undertaken at Potchefstroom and duly reopened there on 21 July 1886. Rustenburg potential Standard Bank had been interested in the development of Rustenburg; the second Dutch Reformed parish established in the Transvaal in 1851. The town was in the centre of a good

Proudly North West Over the years Standard Bank has been the banker to several municipalities in the province. The bank has also partnered with the North West Provincial Government to help provide mentorship and funding for entrepreneurs and viable SMEs. We at Standard Bank are highly invested in the North West and committed to driving her growth. We strive to create value for our clients through our regional knowledge and industry expertise. It’s about more than just banking. It’s about being a trusted partner, understanding your business and unlocking value. ■

Business Leadership Team, North West

Nqobile Zondi Manager, Enterprise Direct, North West

Dawood Kabelo Seleka Manager, Entrepreneur, Klerksdorp

Melvyn Edmunds Manager, Entrepreneur, Rustenburg


Bank on Standard Bank Trade to grow your business

Giving peace of mind to traders and exporters.

This includes the following: • Introductions to new vetted potential buyers, locally and around the globe. • Assistance with diversifying your supplier base and products through access to new international, vetted suppliers. • The provision of working capital finance. • Mitigation of risks of non-delivery and non-payments and foreign currency fluctuations. • A single point of contact to assist in all your importing needs, including all-in costing, logistics facilitation, product track-and-trace services, payments, foreign exchange covers and customs clearing. Banks play a critical role in helping small and medium businesses trade both in the local and international markets. The impact of Covid on trade in SA has been complicated and layered. The restriction on the movement on goods has taken its toll on various sectors. What the pandemic has shown is the importance of innovation from both an infrastructure and business model point of view. Digital transformation in trade creates efficiencies and breaks down barriers to entry, linking suppliers and customers and allowing for the creation of new supply

chains. Trade by Standard Bank has devised new and differentiated solutions for customers: Trade Club The Standard Bank Trade Club is an innovative networking platform to enable business customers to find new opportunities both locally and globally through exclusive access to an online networking platform with over 15 000 pre-vetted members from 15 international banks and across 43 countries. Trade Finance Standard Bank’s Trade Finance allows you to expand and mitigate risks that could stand in your way. This service will help to maximise your profit by bolstering your cash flow, collecting outstanding payments, and strengthening your working capital cycle. Trade Suite Local regulations and compliance issues can be inhibitors to trade. The Trade Suite offering gives Standard Bank the ability to advise a client on the movement of their goods, manage the movement of their goods and even calculate the landed cost of each item imported. These solutions allow Standard Bank to play a vital strategic role in our clients’ sustainable business growth. Trade by Standard Bank is well positioned to understand its clients’ business and to assist them in navigating the pathway of both domestic and international trade. ■

Image by Ian Taylor on Unsplash

With Trade by Standard Bank, we aim to be a partner in your growth journey and can help create a secure and trusted environment for you to trade by providing an end-to-end trade solution ecosystem.



CONTENTS North West Business Edition 2021/22 edition

Introduction Foreword 7 A unique guide to business and investment in the North West.

Message 9 A message from the North West Development Corporation.

Special features A regional overview of the North West Province

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The North West has the metals and minerals to help the world go green

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Global prices are supporting rising production for miners and farmers but governance issues at local level need to be addressed.

Palladium is more valuable than gold, and not only in dollars.

Economic sectors Mining 18 Many mining companies are thinking of expansion.

Agriculture 28 Training in agriculture is in the spotlight.

Water

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Manufacturing

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A cross-provincial irrigation scheme is a national priority.

An Integrated Manufacturing Strategy aims to stimulate the sector.

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FOREWORD

North West Business A unique guide to business and investment in the North West.

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

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he 2021/22 edition of North West Business marks the 11th publication of this highly successful journal that, since its launch in 2009, has established itself as the premier business and investment guide for the North West Province. The boom in commodity prices that accompanied the international slowdown that resulted from the Covid-19 pandemic was a boon to the North West’s mining companies and helped to offset some of the hardship in the province during 2020 and 2021. This topic is covered extensively in the mining overview and in a special feature on the new uses to which platinum group metals (PGMs) are being put in the service of the rising cleaner energy movement. North West Business includes news and analysis of the most important sectors. Best known for its platinum mines, grain and livestock farming and tourism, the province is making a concerted effort to bolster its manufacturing capacity through a dedicated new strategy. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.co.za. Updated information on the North West is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces, our flagship South African Business title and the new addition to our list of publications, African Business, which was launched in 2020. ■ Chris Whales Publisher, Global Africa Network | Email: chris@gan.co.za

PUBLISHED BY

DISTRIBUTION

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

Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za ISSN 1996-1022

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

COPYRIGHT | North West 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 | Aurecon; Bushveld Minerals; De Wildt Solar; Juanita Swart on Unsplash (boats on Hartbeespoort Dam); Implats; Mafikeng Digital Innovation Hub; North-West University; Pilanesberg Platinum Mine; Sun City; Tourism North West; Vuselela TVET College; John Young.

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CONTENTS

Energy

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Solar plants are proliferating in the North West.

Tourism 38 Biodiversity protection is expanding.

Education and training

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Development finance and SMME support

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Banking and financial services

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A new vocational stream is being introduced at schools.

The Mafikeng Digital Innovation Hub will assist small businesses. Smartphone banking is catching on.

Reference Municipal map

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Key sector contents

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A guide to North West’s district and local municipalities. Overviews of the main economic sectors of North West.

Locator map

IBC

Index

IBC

ABOUT THE COVER: Credit: North West Provincial Government. The North West is responsible, together with the Free State, for 80% of sunflower seed production in South Africa. In 2018/19 the crop was 681 000 tons. The Agricultural Research Council’s oil and protein seed research farm is located in Potchefstroom. According to the Southern African Grain Laboratory, there are nearly 100 grain silos in the province.

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MESSAGE MESSAGE

Key investment Thecatalytic Musina-Makhado Special Infras projects are available Economic Zone is a flagship project The North West Province is theStanley ideal place for commercial Limpopo Premier Chupu Mathabatha invites ventures and the North West Development Corporation private investors to work with the public sector in guides the infrastructure way as a valuable business partner. building and growing the economy.

IT

drive devel

want to start by thanking Global Africa Network for sustaining the Limpopo Prem publication of West this important magazine, Limpopo Business. I also wishstrategic to join thrust is to drive he North Development Corporation The NWDC’s an priorities in w in celebrating this 12th edition of what I consider a premier business and welcomes the publication of North West inclusive strategy towards economic growth and already receiv investment for our Limpopo Province. Businessguide 2021/22 andbeautiful invites all potential transformation in the province in line with the Indeed, Limpopo Business is an important partner in the continued investors to engage with the NWDC relating provincial priorities. market andwhich position as a leading attractive toendeavour the myriadto opportunities our Limpopo province offers. and The most NWDC’s purpose is to contribute towards e and investment destination.Corporation business The North West Development the growth and transformation of the economy by t Thisisinformative once again affords us an opportunity to take you (NWDC) an agency edition of the Provincial Government positioning the North West Province as a competitor the West plentiful business and investment ourSADC province, from Africa and the globe in A ofthrough the North Province. It was establishedofferings to in ofthe region, Premier Chupu Bela-Bela to Musina. a plan, finance, coordinate, promote and carry out the investment attraction. Stanley Mathabatha Through this publication, you will also learn about private-public successful natio economic development of the North West Province great The NWDC aims to demonstrate its leadership partnership economy. key programmes and providing general electio and its people.investments that are the pulse of our provincial by implementing As you willfocuses come to Limpopo isfinance, home to a support thriving mining sector, The NWDC onlearn, the commerce, for the development of key sectors ofelection the which w tantalising tourism offerings and aagriculture, limitless potential the agricultural sector. mining, tourism, manufacturing, retail foreconomy in line with the conventional economic and The construction industryand is one of the booming sectors of policies the Limpopo enterprise-related activities other business industrial of the North West. economy,in thewealth inherited legacy an infrastructure resulting and job ofcreation while backlog means that the sectorcognisance has a longeroffuture. Investment in this sector isKey an investment in the taking aims and objectives of the strategic programmes future. Limpopoand Province has also moved to embrace new digital economy Reconstruction Development Programme of the • SMMEs and co-operative development (financial through competitive support the Republic of South Africa. It isinfrastructure. listed as a Schedule and non-financial support) The Musina-Makhado Special Zone (MMSEZ) remains our 3D provincial government entity in Economic terms of the • Project management services flagship economic development throughZone (SEZ) PFMA of 1994, Act 01 of 1999 andproject. reportsThrough to the this• initiative, Specialand Economic partnerships with the of private sector,Development, we hope to stimulate economic growth, Provincial Department Economic • Property development and management create much-needed employment opportunities the ballooning Environment, Conservation and Tourism (DEDECT). and • reduce Mining gap of inequality. • Agro-processing Business opportunities in this SEZ project are limitless. These opportunities Vision • Tourism from manufacturing, agroprocessing, automotives, steel, pharmaceutical, Torange be the cornerstone of promoting trade, attracting • Trade and Investment logistics and more. investment andmany ensuring inclusive economic growth What is even in more tantalising is the fact that this project enjoys the CONTACT DETAILS and transformation the North West Province. overwhelming support of our National Government. Head Office As the Limpopo Provincial Government, we have placed this MusinaMission 22 James Watt Crescent, Industrial Site, Mahikeng Makhado SEZ Project at the apex of our priorities. We believe the only Chupu Stanley To contribute to the inclusive economic growth and Tel: +27 that 18 381 3663 available option for us is toWest makeProvince this project a resounding success. Premier of Lim Fax: +27 86 503 4391 transformation of the North through: Limpopo is open for business! ■ Rustenburg branch and Trade Invest • Industrial development 209 Beyers Naude Drive, Rustenburg • Commercial investment Tel: +27 14 594 2570 • Property development and management Fax: +27 86 559 6549 • Development of sustainable enterprises Email: info@nwdc.co.za • Trade and investment attraction Website: www.nwdc.co.za • Programme management.

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LIMPOPO BUSIN BUSINESS2021/22 2020/21 NORTHLIMPOPO WEST BUSINESS


A REGIONAL OVERVIEW OF

NORTH WEST PROVINCE The North West has massive mineral resources. Credit: Implats

Global prices are supporting rising production for miners and farmers but governance issues at local level need to be addressed. By John Young

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that had previously been shelved. This also helped to ameliorate the effects of the global pandemic in terms of job losses in the North West. The other sector in good shape – and in which the North West excels for variety and quality – is agriculture. The grain sector, one of the province’s strongest, experienced an unusual bonanza of nearrecord harvests and good prices on the international market. The good prices are driven by drought in other parts of the world and increasing demand from China. Logistical challenges, not all of which were

here was good news for South African taxpayers in the first half of 2021: expected income tax increases did not materialise. This was because the mining industry, many of whose key players have operations in the North West, delivered R99.6billion more than expected to National Treasury. With many global prices for commodities rising to record levels in 2020 and 2021, mining companies were able to pay down debt, reward shareholders and dust off feasibility studies for expansion projects NORTH WEST BUSINESS 2021/22

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SPECIAL FEATURE

related to Covid-19, somewhat hampered the amount of product that miners and farmers were able to export through the country’s ports. At local level, Clover announced in 2021 that it was to close down its cheese factory in Lichtenburg because of unreliable water and power supply. The ability of local authorities to manage the infrastructure of towns and districts has been under scrutiny for some time and national government has signalled its intention to intervene. The African National Congress, the province’s biggest political party and the party of national government, announced a new premier four months before local government elections were due to be held. The North West Provincial Government announced a series of steps taken within its administration which showed that accountability for bad behaviour was being implemented. Among the measures were the firing of the head of the Department of Health, the cancellation of an ICT contract and a restructuring process undertaken in conjunction with the National Department of Public Service and Administration. The establishment of the Mafikeng Digital Information Hub, a co-working 4IR hub in the centre of Mahikeng, is an indicator that the province is intent of joining the digital movement. The hub is led by Joseph Ndaba, who is serving on the Presidential Commission on 4IR. The aim of the hub is to unearth and cultivate innovative solutions that will assist communities to acclimatise to the digital world and to help incubate new businesses.

AI 4 Rural Development at the Mafikeng Digital Innovation Hub. The mineral reserves in the province are enormous. Platinum group metals (PGMs) predominate but there are significant deposits of gold, uranium, diamonds, copper, vanadium, fluorspar and nickel. Stone and limestone are also found in large quantities. Mining beneficiation takes place at many places, with Rustenburg being particularly strong in this sector. The economy of the town is closely linked to the fortunes of platinum mining, with the sector contributing about 70% of the city’s gross geographic product. Automotive components firms are clustered in Brits, which in turn is close to the automotive manufacturing hub of Rosslyn (Pretoria) in Gauteng. Towns like Klerksdorp (agro-processing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity. The North West is a major producer of maize and sunflower seeds and many other agricultural products. About 20% of South Africa’s maize comes from the province, as does 15% of its wheat. The dry western part of the province is home to beef cattle, game ranching and hunting. The normally well-watered eastern and north-eastern regions carry varied crops, many of which are sold in Johannesburg and Pretoria. The agricultural sector also generates largescale storage and logistics operations, particularly in Klerksdorp, Vryburg and Brits, together with a number of agro-processing plants. Senwes is one of the biggest with extensive silo infrastructure while Suidwes has 17 retail outlets and MGK makes full-fat soy at its manufacturing plant. Lichtenburg-based NWK makes liquid fertiliser and animal feed, processes sunflower seeds and runs 37 silos and three grain mills.

Geography and economy The North West is bordered on the west by the Republic of Botswana and on the east by Gauteng, the engine of the South African economy. The North West province makes up 6.8% of the population of South Africa (3.6-million), 8.7% of the land mass (105 076km²) and accounts for 5.8% of economic output in terms of gross value added. The Vaal River runs along the province’s southeastern border with the Free State, and the province also shares borders with the Northern Cape to the south and Limpopo in the north.

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The Valley of Waves at Sun City. Credit: Sun City T h e p ro v i n c e’s t h re e Te c h n i c a l a n d Vocational Education and Training ( T VET ) colleges and the well-respected North-West University all have several campuses catering to a wide range of educational disciplines. The university has a strong reputation as a research institution. Major towns Mahikeng The capital city of the North West Province lies on the banks of the Molopo River. Situated in the north-west sector of the province near the Botswana border, the city has a strong services sector and a population of approximately 300 000. The city’s main sectors are financial services, services, transport and trade. The Garona District houses the North West parliament and government buildings. The arts are promoted by the Mmabana Cultural Centre, while the North West Institute of Hotel and Tourism Management is one of three tertiary institutions in the city. North-West University’s Graduate School of Business and Government Leadership is located in the city, and Unisa has a presence. Other institutions are the Taletso TVET College and the International School of South Africa. The town is well served by hotels such as the Mmabatho Palms, Hotel and Casino Convention Resort. White rhino and giraffe can be found at the Mahikeng Game Reserve. NORTH WEST BUSINESS 2021/22

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Tlokwe The city of Potchefstroom is administered by the Tlokwe Local Municipality. A large campus of North-West University and its business school is located in the city, as is the Vuselela TVET College and the Potchefstroom College of Agriculture. More than 120 000 people regularly attended the annual Aardklop Festival before Covid. The city has a population of about 173 000. The sports facilities of North-West University are world-class and have been the base for Spain’s soccer team and Australia’s cricket team in world cups. Tlokwe is a hub for the strong commercial agriculture of the region and has several food and beverage manufacturers including Nestlé. Some of the bigger enterprises include fertiliser companies such as Kynoch, munitions manufacturers, and food processors like King Food. An army base contributes to the economy, and the airfield formerly used by the military is now run by the municipality. The N12 Treasure Route passes through the city and holds potential for further development of tourist highlights such as Boskop Dam and the Mooi River on which the town is located. Rustenburg Rustenburg is a local municipality within the Bojanala Platinum District Municipality and the headquarters of both bodies are in the city of about 625 000 residents.


areas. The Bloemhof Bonanza is the biggest and most lucrative inland-angling event in South Africa, with more than 2 000 anglers trying to FEATURESA win R1.5-million in prize money.SPECIAL The nearby Lombard Nature Reserve has a fine herd of black wildebeest.

an important regional centre and the town where several important companies' headquarters are located. These include Senwes, through whose silos a large proportion of South Africa's grains move every year, and a number of engineering enterprises which serve the mining industry.

Municipalities in North West Province

Limpopo

BOTSWANA

Moses Kotane

Ramotshere Moiloa

Bojanala

Madibeng

Moretele

Rustenburg

Molopo

Kgetlengrivier Mafikeng Ratlou

Ngaka Modiri Molema

Gauteng

Ditsobotla JB Marks

Kagisano

Dr Ruth Segomotsi Mompati

Matlosana

Naledi

Maquassi Hills

Mamusa Greater Taung

Northern Cape

Dr Kenneth Kaunda

Tswaing

Lekwa-Teemane

Free State Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality

NORTH WEST BUSINESS 2019

Rustenburg straddles the N4 “Platinum Highway” about 120km west of the cities of Pretoria and Johannesburg in the Gauteng Province, the economic hub of South Africa. The N4 stretches across South Africa from Mozambique in the east, to the Botswana border in the west and, as the Trans Kalahari Route, ultimately to Namibia. At the foot of the Magaliesberg Mountain Range, Rustenburg is only 50km from one of the country’s premier tourist resorts, Sun City, which in turn is adjacent to the 550km² Pilanesberg National Park and Game Reserve which has a small airport. Orbit TVET College has a campus in Rustenburg, Unisa has a regional office and the Agricultural Research Institute’s Industrial Crops Division is also located in the city. The Royal Bafokeng Sports Palace hosted five group matches in the 2010 World Cup. Platinum mining began in 1929 and has driven the city’s growth ever since. ■

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Bojanala Naledi


SPECIAL FEATURE

The North West has the metals and minerals to help the world go green Palladium is more valuable than gold, and not only in dollars.

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inding new uses for platinum is one of the biggest priorities exercising the minds of the leaders of the South African mining industry as it moves to adapt to a world anxious to distance itself from fossil fuels. Among the innovators and investors looking for new solutions and applications for platinum group metals (PGMs) and other commodities are companies operating in the North West. A neat symbol of the shift in thinking can be found in central Johannesburg where the head office of the Minerals Council South Africa is powered by 40 ounces of platinum and natural gas. The fuel cell (pictured) of the national mine owners’ association is South Africa and Africa’s first base load installation. While there is broad agreement that the world needs to steer away from minerals that pollute the environment, the supply of materials used in electric car manufacture, such as nickel and cobalt, is also finite.

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Electric vehicles A key reason for a surge in palladium prices at the start of 2021 was increased demand for the metal in the creation of catalytic converters on motor vehicles. The price went past $2 000 per ounce, surpassing the price of gold. Stricter emissions rules in Europe and the US are driving demand. China is planning to impose similar rules. Hybrid cars also need catalytic conver ters but the supply of palladium is not able to keep up with demand. One of the results of this is that car manufacturers are looking at alternatives such as rhodium or platinum. Speaking at the 2019 Investing in African Mining Indaba, Ford’s head of Energy Storage Strategy and Research, Ted J Miller, said that the motor industry was “uncomfortable driving these commodities”. He noted that Ford has already reduced cobalt production by two-thirds, but the challenge is scale.


SPECIAL FEATURE

hydrogen technology. What is true for Germany will be true of other European nations as they pivot from carbon. An Atlas of Green Hydrogen Generation Potentials in Africa already exists and areas with good solar coverage and steady winds have great potential. Many parts of South Africa qualify. Germany’s Federal Research Ministry will fund the first phase of the partnership to the tune of €40-million. If a kilogram of hydrogen can be produced in Namibia for less than €2, as is envisaged, it will be the cheapest hydrogen in the world. Cleaner processing Platinum has proven benefits and applications as a catalyst in the creation of hydrogen fuel cells but if the method used to mine the platinum is itself carbon-emitting and “dirty” then the processes could be said to be cancelling one another out. Pilanesberg Platinum Mines has introduced a method of processing that itself is cleaner than traditional methods. The result is that sulphur dioxide emissions are eliminated from the smelting process. The Kell plant also reduces electricity usage (by more than 80%), improves recovery rates and can extract cobalt, the chemical element which is another important element for batteries for electric vehicles. Sedibelo Platinum Mines, which owns Pilanesberg, is a partner in Kell South Africa with the Industrial Development Corporation (IDC), together with another partner.

The editor of the respected Mining Weekly publication, Martin Creamer, has published a series of articles and editorials extolling the virtues of what he calls the “best of two new carbonreducing technology worlds”. Creamer notes that South Africa’s abundant supplies of platinum group metals and manganese ore can make the country a leader in battery electric vehicles (BEV) and fuel cell electric vehicles (FCEV). He further points to the work being done by Hydrogen South Africa (HySA) at three universities and the Council for Scientific and Industrial Research (CSIR). South Africa’s good supplies of sunshine and wind make it ideally suited to generate hydrogen and if the country could capture 25% of the world market, it would be worth $600-million (Mining Weekly). The German government is reaching out to African countries in its search for sources of “green hydrogen”. PGMs can play an important role in the creation and application of this cleaner product and Germany has signed an agreement with Namibia to partner on green

Credit: Bushveld Minerals

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SPECIAL FEATURE In 2012, Anglo Platinum launched an underground locomotive powered by a fuel cell. Platinum coating greatly enhances the hydrogen absorption capacity of fuel cells. In 2016 Impala Platinum Refinery unveiled a fuel cell forklift and a hydrogen refuelling station in Springs. Bushveld Minerals has two arms: Bushveld Vanadium, which mines and processes vanadium, and Bushveld Energy, which is working on Vanadium Redox Flow Batteries (VRFB). Energy storage is the focus of much research across the globe and Bushveld Energy intends its solar installation at its Vametco mine, supported by VRFB, to answer many questions. Bushveld Vanadium is one of three vanadium producers in the world. Vanadium has traditionally been used mainly in steel production, but its newage uses are becoming more and more important. World supply is below 100 000 tons per annum. Bushveld Vanadium has three assets: the Vametco mine and processing plant, the Brits vanadium project and the Mokopane vanadium project where feasibility studies are underway (in Limpopo Province). Bushveld Minerals estimates that, when energy storage applications in the electric transport sectors are considered, total demand for batteries is forecast to reach 4 584GWh by 2040. The company believes that South Africa is well positioned build an industry that will play a critical role in Africa and beyond. To that end, it is partnering with the Industrial Development Corporation (IDC) to build a $10-million plant in East London (Eastern Cape) to produce vanadium electrolytes from the ore

mined in the North West. The electrolytes are a vital component of the redox flow battery. Lithium batteries need nickel sulphate and nickel sulphate is a byproduct of platinum production. A new company has been formed, Thakadu Group, to buy and sell nickel offtake from Lonmin. The deal will see Thakadu handle 25 000 tons of nickel offtake to sell to battery makers. Sibanye-Stillwater, which started its life as a gold company in South Africa and swiftly became a global leader in mining PGMs, bought a share in a Finnish mining and chemicals company Keliber in early 2021 with the aim of producing battery-grade lithium hydroxide in that country. The partnership will invest in lithium mines, a concentrator plant and a lithium hydroxide plant. Sibanye-Stillwater is the world’s largest primary producer of platinum, second-largest primary producer of palladium, third-largest producer of gold and the world’s leading global recycler and processor of spent PGM catalytic converter materials. Two of the company’s three South African PGM assets are in the North West, Marikana and Rustenburg, and it is the majority shareholder in the Platinum Mile tailings retreatment facility near Rustenburg, which recovers PGMs from the tailings of the Rustenburg operations. Impala Platinum (Implats) has assets on both limbs of the Bushveld Complex. Impala Rustenburg near Rustenburg in the North West comprises a multi-shaft mining complex and concentrating and smelting plants. The base and precious metal refineries are in Springs, east of Johannesburg. Northam has invested heavily in a smelter expansion project at its Zondereinde mine. ■

Green mobility. Electric cars need the minerals and metals that the North West has. Credit: John Young


Creating a better future …through the way we do business

Developing and caring for host communities

Caring for and supporting our environment

Bringing long-term growth and opportunity

Providing meaningful employment

Creating value for our stakeholders

This is our PURPOSE To improve the lives of future generations

Coolead 18725


SPECIAL FEATURE

Mining Many mining companies are thinking of expansion. SECTOR INSIGHT Energy plants are being constructed on mines.

Credit: Implats

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ommodity prices buoyed the mining sector in 2021. Impala Platinum (Implats) posted a 125% increase in headline earnings in September 2021. The group allocated 70% of free cashflow to shareholder returns through convertible bond repurchases and cash dividends. This came about because of record rand prices for the PGM basket, increased sales and improved operations. Work has been done

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a t I m p l a t s’ R u s te n b u rg to enhance mine flexibility and the company expects this to deliver further growth. Pilanesberg Platinum Mines has been active 80km north-west of Rustenburg since 2009. Mining operations are conducted by contractors while PPM manages the concentrator (screen, crush, mill, float, thicken and dry). The operation has annually achieved an average of about 150 000 ounces of platinum group metal (PGM) concentrate. RBPlat declared an interim dividend of R1.5-billion in August of 2021 and was expecting to have similar good news at yearend, despite reduced production volumes because of the Covid-19 pandemic. The four metals that make up the bulk of Royal Bafokeng Platinum’s portfolio increased in price by more than 50% in the course of 2021. Rhodium earns RBPlat 45% of its income, followed by palladium, platinum and gold. Even though the Rustenburg furnace 5 was put on care and maintenance, Merafe Resources reported a small improvement in ferrochrome production for the first quarter of its financial year. The joint with Glencore, Glencore Merafe Chrome Venture, apparently


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10 REASONS WHY YOU SHOULD INVEST IN SOUTH AFRICA

01.

HOT EMERGING MARKET Growing middle class, affluent consumer base, excellent returns on investment.

02.

MOST DIVERSIFIED ECONOMY IN AFRICA

South Africa (SA) has the most industrialised economy in Africa. It is the region’s principal manufacturing hub and a leading services destination.

LARGEST PRESENCE OF MULTINATIONALS ON THE AFRICAN CONTINENT SA is the location of choice of multinationals in Africa. Global corporates reap the benefits of doing business in SA, which has a supportive and growing ecosystem as a hub for innovation, technology and fintech.

04. 03.

FAVOURABLE ACCESS TO GLOBAL MARKETS

05.

The African Continental Free Trade Area will boost intra-African trade and create a market of over one billion people and a combined gross domestic product (GDP) of USD2.2-trillion that will unlock industrial development. SA has several trade agreements in place as an export platform into global markets.

SA has a progressive Constitution and an independent judiciary. The country has a mature and accessible legal system, providing certainty and respect for the rule of law. It is ranked number one in Africa for the protection of investments and minority investors.

06.

ABUNDANT NATURAL RESOURCES

SA is endowed with an abundance of natural resources. It is the leading producer of platinum-group metals (PGMs) globally. Numerous listed mining companies operate in SA, which also has world-renowned underground mining expertise.

08.

ADVANCED FINANCIAL SERVICES & BANKING SECTOR SA has a sophisticated banking sector with a major footprint in Africa. It is the continent’s financial hub, with the JSE being Africa’s largest stock exchange by market capitalisation.

PROGRESSIVE CONSTITUTION & INDEPENDENT JUDICIARY

07.

WORLD-CLASS INFRASTRUCTURE AND LOGISTICS

A massive governmental investment programme in infrastructure development has been under way for several years. SA has the largest air, ports and logistics networks in Africa, and is ranked number one in Africa in the World Bank’s Logistics Performance Index.

YOUNG, EAGER LABOUR FORCE SA has a number of world-class universities and colleges producing a skilled, talented and capable workforce. It boasts a diversified skills set, emerging talent, a large pool of prospective workers and government support for training and skills development.

Page | 2

09. 10.

EXCELLENT QUALITY OF LIFE

SA offers a favourable cost of living, with a diversified cultural, cuisine and sports offering all year round and a world-renowned hospitality sector.

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SOUTH AFRICAN BUSINESS 2020


SPECIAL FEATURE achieved efficiencies which helped it to increase production by 3% for the three months to the end of March 2021, compared to the same period in 2020. The total produced was 103 000 tons. Platinum group metals (PGM) miner Sibanye Stillwater will spend a further R3.9-billion on an expansion project at its Marikana mine, after previous owners Lonmin spent more than R4-billion on it. The aim is to be producing 250 000oz per year of platinum, gold, palladium and rhodium in 2028. It is not only PGMs that are sparking interest in expanded operations. Harmony Gold is at an advanced stage of a feasibility study to determine the viability of expanding the Kalgold open-pit operation (Windmill zone). Kalgold is an open-pit gold mine situated on the Kraaipan Greenstone Belt, 55km south-west of Mahikeng. In 2020, 1 153kg of gold was produced, against 1 249kg in the previous year. Small business support Pilanesberg Platinum Mines created Community Crusher as a nonprofit enterprise but with 14 employees and a steady set of orders for building projects run by the company, the small business is starting to show signs of becoming a bigger business. Many mines run similar programmes, sourcing goods and services from local community-based companies and sometimes providing mentoring and advice on how to improve as businesses. Implats has a programme of procurement in which it supports local business and black-owned businesses through enterprise and supplier development programmes. The Provincial Government of the North West is in talks with several mining companies in the Matlosana Local Municipality area (which includes Klerksdorp and Orkney) as some mines are being closed down. One of the initiatives to extract more value from mining is the proposed Platinum Valley Special Economic Zone. Creating a base for companies to supply the mining industry is one of the key drivers behind the scheme. The SEZ is intended for Mogwase in the Bojanala District, north of Rustenburg and east of Sun City. When fully developed, 200ha of land will be taken up by three infrastructure facilities comprising Logistics, Light Manufacturing and Heavy Manufacturing. The Seda Platinum Incubator (SPI) is an initiative of the Platinum Trust of South Africa and is funded by the Small Enterprise Development Agency (Seda) through its Seda Technology Programme (Stp) with the support of the North West Provincial Government and private companies. Mineral resources The North West Province is aligned with the Western Limb of the Bushveld Igneous Complex, a remarkably rich minerals formation. Mines in the province produce 50% of the platinum produced in the world, and 65% of South Africa’s PGMs. NORTH WEST BUSINESS 2021/22

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Laboratory testing being done at Pilanesberg Platinum Mines. Credit: PPM Chromite is the other major mineral mined throughout the province, and there are several ferrochrome smelters and other processing plants. South Africa produces about 70% of the world’s chrome. Gold and uranium are found along the border of the province with Gauteng and the Free State (in Klerksdorp and Orkney). Diamonds are mined at Christiana, Bloemhof and Lichtenburg. Other minerals include fluorspar, vanadium, rhodium, uranium, copper, limestone, slate, phosphate, manganese, coal and nickel. Limestone quarries run by G&W Base and Industrial Minerals in the Marico District are located next to a PPC cement factory. One of the last economically viable limestone deposits in South Africa is mined and processed by Sephaku Cement. Sephaku runs a 6 000-ton-per-day clinker plant near Lichtenburg. AfriSam, PPC and Lafarge are active in the Mahikeng/ Lichtenburg area, but Sephaku is confident that its clinker and cement-production facilities will be supported by raw materials for at least 30 years. AfriSam has taken measures to reduce carbon emissions at its Dudfield cement plant. ■


SPECIAL FEATURE

SPECIAL FEATURE

South African economy at a glance Insight into the South African ecomomy. SPECIAL FEATURE ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 7%

NAMIBIA

Gauteng Mpumalanga 7% 35%

North West 6%

SWAZILAND

KwaZuluNatal 16%

Free State 5% Northern Cape 2%

LESOTHO

Eastern Cape 8% Western Cape 14%

Percentage contribution of each province to national GDP.

Credit: Impala Platinum

SOURCE: STATS SA WWW.STATSSA.GOV.ZA

secured tens of thousands of new seats on direct

Trends flights to and from the city). Table: South African mining production

Companies are successfully trading into Africa. Good signs for the economy include: • Niche agricultural markets are booming with • Several provincial governments and investment macadamia nuts being the most successful. agencies are establishing trade relations and Pecan nuts have done well and wine and grape study programmes with BRICS countries. State exports to China are growing. Largest contributors % increase % contribution visits to and from China immediately before and • Private education at school and tertiary level is growing as a sector. after a major BRICS summit in 2018 gave an indication that Ramaphosa holds high hopes for • New banking licences have been issued and Platinum Group Metals 276.1%several more 39.2% are in the pipeline. increased trade with the biggest of the BRICS nations. Two-way trade between the countries in • New stock exchanges came on line in 2017 and more are expected. 2017 was worth $39.1-billion. South Africa wants Gold 177.9% • Investment16.6% in infrastructure (especially ICT and to grow tourist numbers from China. South Africa railways) is strong. Nedbank’s report on capital became the first country in the world to export expenditure in South Africa stated that the beef to China in 2017, to go with existing exports of iron ore, platinumore and fruit and wine. 208.2%29 large projects Manganese 14.2%announced in the first half • Tourists are visiting South Africa in record numof 2018 were valued at R63.9-billion (Financial bers (Cape Town’s Air Access programme has Mail). The renewable energy programme

Increased by 116.5% year-on-year in April 2021. •

Iron ore

149.1% 17

13.3% SOUTH AFRICAN BUSINESS 2019

Source: StatsSA.com

Source: world exports.com

Table: South African mineral sales Mineral sales increased by 152.7% year-on-year in April 2021. Largest contributors

% increase

% contribution

PGMs

465.9%

103

Iron ore

115.6%

19.5

Gold

40.9%

6.5

Source: StatsSA.com

Source: world exports.com


ADVERTORIAL

Money experts serving the North West business community

additional support that is most needed in times of change and uncertainty.’

We know that success in business is about partnerships, so we put the building of deep, lasting, value-adding relationships at the centre of everything we do.

Nedbank knows that navigating your business through a challenging economic landscape is hard enough, and that taking care of your daily business-banking needs shouldn't add to that load. 'With this in mind, we’ve designed the Nedbank Business Hub with convenience, security and control in mind. The Nedbank Business Hub boasts 130 different services and enables you to bank and transact, get finance, invest and insure – it's hassle-free banking at your fingertips,’ says Swanepoel.

‘Ultimately, our philosophy is to partner with our clients to grow their businesses, so we’re always finding ways to support them in this quest. Our aim is to use our financial expertise to do good to help build a strong, resilient economy for the betterment of all,’ he says.

Johann Swanepoel, Regional Manager for Business Banking, says that a deep commitment to partnership is what governs the team's personal and professional values.

To take your business to the next level or for more information about Nedbank’s specialised service offering, please email Johann Swanepoel at JohannEu@nedbank.co.za or visit www.nedbank.co.za/business.

‘Our bigger-picture banking approach enables us to not only offer solutions that our clients need, but also a holistic view of how our products are connected to create a framework that yields maximum impact across every facet of their businesses and beyond,’ he says. ‘We know that success in business is about partnerships, so we put the building of deep, lasting, value-adding relationships at the centre of everything we do. This means your goals are our goals, your vision is our vision, and your success is our success – while you rely on our

NORTH WEST BUSINESS 2021/22 see money differently

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


ADVERTORIAL

Nedbank Business Banking helps the public sector see money differently

We understand that the various spheres of government and their agencies face unique challenges...

But the bank's role goes beyond offering banking solutions to these vital entities. As money experts who do good, Nedbank strives to empower the people behind the public sector by saving them time, money and helping them manage their money better. 'We help them save time by offering on-site help from dedicated teams and through our market-leading Nedbank Money app and other digital solutions. We also help them save money through our preferential banking solutions and our award-winning Financial Fitness and Consumer Education Programme. The latter helps them manage their money better by providing budgeting and money management training, equipping their employees to deal with everyday money management challenges,' says Seleho. Nedbank is committed to delivering easy and innovative banking solutions to government, municipalities, state-owned enterprises and academic institutions, including TVET colleges and universities, throughout South Africa.

To find out more about how Nedbank can partner with your organisation to grow a greater South Africa, please email Monei Seleho on MoneiS@Nedbank.co.za or visit www.nedbank.co.za/business.

Monei Seleho, Nedbank's Provincial Manager for the Public Sector in the North West, says that given the strategic importance of the public sector to the economy and the country at large, Nedbank has a dedicated team to offer financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges. They are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation.’

see money differently

23

NORTH WEST BUSINESS 2021/22 Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).


ADVERTORIAL

Nedbank offers specialist support for a post-Covid-19 world informational access while not compromising on security. For example, with the award-winning Nedbank Money app, clients can manage accounts and investments, make payments and set savings goals and budgets, all from their smartphones. They can also make instant payments to anyone on their contact list, even if the recipient isn’t a Nedbank client,’ he says.

This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and the communities in which it operates.

One of the solutions the bank has added to its portfolio, specifically with Covid-19 safety in mind, is appointment banking. ‘For your convenience and to limit the time you spend in public spaces, you can now make an appointment with a dedicated relationship banker directly via the Money app or Online Banking. Just choose the date, time and branch that suits you,’ says Makinita. Daniel Makinita, Regional Manager for Retail Business Banking in the North West, says that as South Africa progresses through the various stages of Covid-19, Nedbank is working through recovery scenarios with existing and prospective clients. This is all while staying true to Nedbank's brand promise to use its financial expertise to do good for individuals, families, businesses and the communities in which it operates.

To find out more about banking from the comfort of your home or for more information about Nedbank’s specialised service offering, please email Daniel Makinita at DanielMak@Nedbank.co.za or visit www.nedbank.co.za.

‘Throughout the pandemic, we have elevated our client engagement and extended tailor-made relief to many of our clients, equipping and enabling them to benefit from various digital and remote solutions. This ensures uninterrupted transactional and

NORTH WEST BUSINESS 2021/22 see money differently

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


ADVERTORIAL

Small-business solutions aimed at creating jobs and growing the economy Small businesses often lack formalisation, as seen in many not qualifying for Covid-19 assistance because of outdated records and not meeting regulatory requirements. Naudé says that Nedbank’s experts are available to offer all the support small businesses need, which goes beyond affordable banking solutions. ‘We offer value-added services to get and keep your business going, like our free-to-join networking portal, SimplyBiz.co.za, The Essential Guide for Small-business Owners, business registration services and free small-business seminars.’

Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs.

Nedbank’s Regional Manager of Retail Relationship Banking in the North West, Pieter Naudé, explains how brand values built on the bank’s expertise can benefit Nedbank clients, especially during what is now considered ‘the new normal’.

‘With dedicated relationship bankers, tailored financing options and 24/7 service, the banking experience we offer is seamless, enables our clients’ financial aspirations and is flexible to grow as your needs grow,’ says Naudé.

Naudé says that for small-business clients, Nedbank continues to deliver end-to-end solutions through a dedicated business manager. ‘Our bigger-picture business approach enables us to have a holistic view of each business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs. This way, we become trusted advisors to business owners who strive to grow their businesses.’

see money differently

Naudé adds that Nedbank’s Professional Banking solution is built on five pillars. ‘We provide our professional clients with banking at their fingertips; benefits that matter; expert savings and investment advice; and a unique household banking approach that allows them and their families to finance their dreams and growth.

If you want to tap into our small-business or professional banking expertise to reach your business goals, please email Pieter Naudé at PieterN@Nedbank.co.za or visit www.nedbank.co.za.

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NORTH WEST BUSINESS 2021/22 Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).



KEY SECTORS Overviews of the main economic sectors of North West Mining 18 Agriculture 28 Water 32 Manufacturing 36 Energy 37 Tourism 38 Education and training 40 Banking and financial services 42 Development finance and SMME support 46

The South African National Roads Agency (SANRAL) opened the R512 Pampoennek road in 2020, improving the interprovincial link between Brits in the North West and Randburg in Gauteng. Credit: SANRAL


OVERVIEW

Agriculture and agro-processing Training in agriculture is in the spotlight.

W

ith more agricultural subjects being offered in schools and more spaces being created for students of agriculture, it comes as no surprise to learn that a large new agricultural farm school at is to be built at Rysmierbult, near Ventersdorp. The idea behind the institution (a “mega farm school”) is that it will provide support to smaller farm schools and not only raise the numbers of young people educated in agriculture, but also raise the quality of tuition. Existing infrastructure is also receiving attention, by way of the construction of a 6km access road being built to serve the Kgora Farmer Training Centre in Mahikeng. Although cattle and maize crops feature strongly in any discussion of North West agriculture, a black-owned company has succeeded on the back of hard work in the citrus market. Batlhako Temo Services, a former co-operative which started life cultivating sunflowers, is now a Brits-based company exporting to the Middle East and Taiwan. Over the years, the group of farmers has received support from the Department of Agriculture, Rural Development and Land Reform and from the Small Enterprise Development Agency (Seda) which has enabled them to invest in equipment and expand their workforce. Another provincial government initiative will see 12 000ha of fallow land that around the Springbokpan grain silos infrastructure in Ditsobotla revived for the cultivation of grain. For those who know the North West as a water-scarce region, it may be surprising to learn that a priority in 2021 has been the repair

NORTH WEST BUSINESS 2021/22

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SECTOR INSIGHT More than 20% of South Africa’s maize crop is produced in the North West. of earthen dams and fences damaged by flooding. As part of a drive to help more farmers get connected to the more profitable end of the value chain, a beef beneficiation project is under consideration. To be located in the Dr Ruth Segomotsi Mompati District, a feasibility study is investigating whether a public-private partnership for constructing abattoirs and other relevant infrastructure would work. Various agro -processing plants are under consideration for the city of Mahikeng: a feedlot and a meat-processing plant, including an abattoir and packaging facilities. In Taung the plan is to establish an animal


OVERVIEW feed-manufacturing plant. A 10ha vineyard in Ventersdorp is to be expanded to 40ha and a black-owned logistics co-operative has been signed to distribute products from the farm.

Regional variety The dry western region of the province is home to large beef-cattle herds, and this is where the growing game-ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops. The North West has approximately 1.6-million beef cattle, representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The number of goats for the province is estimated at 701 587 which is 12% of South Africa’s total. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove. Nearly two-million hectares is planted with summer cereals, with about 50 000ha given over to winter cereals. The North West produces about 20% of South Africa’s maize and about 15% of its wheat. The central and southern sections of the province are dominated by maize and wheat farming. When it comes to sunflower seed, North West is responsible for 33% of South Africa’s stock, and 23% of the nation’s groundnuts. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari are ideally suited to the cultivation of seed potatoes. The North West is sometimes called “The Texas of South Africa” because of its superb cattle herds but the province also produces good crops of onions and other vegetables. Proximity to the large urban concentrations of Pretoria and Johannesburg are advantages for the horticulture subsector.

Companies Senwes has a strong grain division and it controls 68 silos. Its headquarters are in Klerksdorp and in 2019 it increased its stake in KLK so that it now controls 57.44% of the company most

strongly associated with the Northern Cape. Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animalfeed depot), mechanisation, finance and research and agricultural economics (Terratek). Brits is the location of the headquarters of the MGK Group. The company runs five divisions and a plant that makes full fat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburgbased enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. NWK also deals in grain, runs several retail outlets and has a half-share (with Senwes) in CertiSure Brokers. The company has 37 silos with a capacity of 2.5-million tons. AgriNW is the mouthpiece of its affiliated farmers and keeps an eye on policy and laws affecting the sector. It also acts as a supportive network to help its members achieve optimal results. ■

ONLINE RESOURCES Agri NW: www.agrinw.co.za Grain SA: www.grainsa.co.za North West Department of Agriculture and Rural Development: www.dard.nwpg.gov.za Red Meat Producers Organisation: www.rpo.co.za

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The future of smart farming in South Africa

Standard Bank is finding innovative ways of funding agriculture.

In the South African context, a dualistic agricultural economy exists with highly developed commercial players on the one side and those that practise farming for subsistence on the other. Technology has already been successfully applied in the commercial sector. The implementation of smart-farming technologies has helped farmers and growers to achieve the highest potential. Take South African maize production. Back in the 1970s, the country was producing an average of two tons of maize per hectare. Fast forward to today and South Africa produces more than four tons per hectare. South African farmers now apply everything from regenerative agriculture, which relates to the use of smart technologies to improve efficiency, right through to gene technology. Genetically-modified maize now makes up about 80% to 90% of the total. Meanwhile, GPS technology is making an impact in livestock farming by making it possible to identify, track and trace an animal through the value chain. Standard Bank recently financed a citrus producer that is now using robotics in its packhouse. There

are also technologies being applied to make sure the quality and quantity of what is to be produced for a specific market is at the correct standards. Climate-monitoring technology is also being used to ensure that produce for export markets meets the relevant standards. The application of technology across South Africa’s agriculture sector is at significant levels. The challenge is to extract the data and integrate it into other areas of the economy such as financial services. Technology and data in finance Standard Bank is currently assessing the extent to which we can better track and trace the development of a crop. If treatment needs to be given, we then know about it and can finance it. Affordability is a barrier for emerging farmers, but the cost factor could be addressed with greater collaboration. The bank could find value in data generated out of satellite technology. The same would be the case for an insurance provider or a pesticides provider. Joining forces can make those technologies more affordable. Standard Bank is currently enabling financing for appropriate farming technologies while working with its enterprise development unit to make specialists available to small-scale farmers to prepare farmers for a digital future. ■

Image by Jan Kopřiva on Unsplash

T

echnology has completely transformed agriculture. These days, farmers are integrating everything from drones and satellite sensing to genetic modification and Artificial Intelligence to reduce costs and enhance yield.



OVERVIEW

Water A cross-provincial irrigation scheme is a national priority. SECTOR INSIGHT A Provincial Water Master Plan is delivering projects.

Lush fields made possible by the huge Vaalharts-Taung Irrigation Scheme. Credit: Aurecon

T

he revitalisation of the Vaalharts-Taung Water Irrigation Scheme will double the land available to emerging farmers, create more than 10 000 jobs during its implementation, resolve water shortages in local municipalities and provide certainty for producers of fresh produce. The project was gazetted as one of the Strategic Integrated Projects (SIPs) in July 2020 and falls under the Presidential Infrastructure Coordinating Commission (PICC). The existing Vaalharts Irrigation Scheme is one of the largest irrigation schemes in the world, covering 39 000ha under irrigation, and extending it to Taung in the North West will give it even greater reach. The scheme currently has 1 000km of concrete-lined canals and more than 300km of concrete drainage. The Vaalharts Water User Association is headquartered in Jan Kempdorp, a town in the Northern Cape right on the border of the North West and at the centre of the scheme’s area of operations. Infrastructure development company Bigen Group is engaged in the irrigation scheme upgrade and is also involved in treating and recycling water for mining companies in the province. At the Bafokeng Masimone mine local effluent resources are converted to a product which is suitable for a variety of mine-water applications.

Municipalities Large infrastructure has been the focus of national and provincial initiatives in recent years. Municipalities are charged with delivering NORTH WEST BUSINESS 2021/22

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water and handling wastewater but many municipalities have not been equal to the task. Magalies Water is the Water Services Authority (WSA) serving two of the local municipalities in the Bojanala Platinum District Municipality, Moses Kotane and Rustenburg. It also supplies water to five mines in the province and is active in the provinces of Gauteng and Limpopo. When a crisis situation emerged in the neighbouring municipality of Madibeng (which includes the large manufacturing town of Brits), the National Minister of Water and Sanitation called on Magalies Water to tackle the problems. The Brits Water Treatment Plant was fixed and boreholes were dug to service rural areas. A new body has been formed to help municipalities deliver services. The Municipal Infrastructure Support Agency (MISA) falls under the National Department of Cooperative Governance and Traditional Affairs and will assist municipalities to plan for, provide and maintain infrastructure. The first action of MISA was to commission 81 engineers and town planners. Municipalities in the North West have been instructed


OVERVIEW to submit specific plans to feed in to the Provincial Water Master Plan in an effort to get an overview of the sewerage and sanitation problems facing communities. Several projects have recently been completed. These include Dinokana Water Augmentation project, the Ganalaagte Boreholes and Sewer Pump Station Refurbishment project, the Naledi Water Augmentation Phase 1 and 2 projects and the Tshing Cent Fall Sewer Line project. Various wastewater treatment plants have been refurbished and the last phase of the Taung/Naledi Bulk Water Supply project was tackled in the second half of 2021. This will improve water supply to 55 villages in the Dr Ruth Segomotsi Mompati District Municipality. Progress has been made towards supplying water to the 79 schools in the province which were identified as having inadequate water facilities. This includes the drilling of boreholes and construction of storage tanks. All new schools built in the North West are supplied with kitchens in line with the National Schools Nutrition Programme. The province has 83 sewage-treatment plants, and the national Blue Drop award system has found most of them need improvement. JB Marks Local Municipality, which has Potchefstroom as its main town, is one of only three municipalities in the country that acts as a water-service authority and as a service provider. It has won awards for its levels of service. The biggest service providers active in the North West are: • Rand Water. • Magalies Water. • Sedibeng Water (which has taken over the service area of Botshelo Water). • Midvaal Water Company, which supplies water to Matlosana (Klerksdorp).

South Africa is a waterscarce countr y and water management is critical to e c o n o m i c p l a n n i n g. Th e western part of North West Province is particularly dry. In the eastern part of the province, national government has sent water tanks to some parts, and has upgraded the treatment plants upstream from the Hartbeespoort Dam. Three of South Africa’s six major catchment areas are located in the province: the Limpopo, the Orange and the Vaal. Within these catchment areas, only the Vaal River has a strong-enough flow to allow for significant amounts of water to be taken from it directly to support irrigation or industry. There are four watermanagement areas in the province, three of which are linked to the Vaal River. Water is imported into the provincial system through transfers between water basins. ■

Credit: Unsplash

ONLINE RESOURCES Blue Drop Awards: www.ewisa.co.za National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Vaalharts Water Users Association: www.vaalhartswua.com Water Research Commission: www.wrc.org.za

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FOCUS

Magalies Water responds to urgent water needs Infrastructure expansion projects will bring relief to Rustenburg and the Royal Bafokeng Administration. Even though the local economy of Rustenburg has faced many challenges, mainly due to the protracted mining sector industrial actions the demand for bulkwater in Rustenburg and the surrounding areas has been on a steady rise. Mining, which is the economic backbone of the town, also relies on the availability of water for operations which run on a 24-hour cycle. Allied to this is the region’s expanding population growth which increases through rural-to-urban migration as people come to Rustenburg in search for economic opportunities. Small-to-medium scale farming and industries have also been identified as some of the major activities that influence migration of people to Rustenburg. This movement of people has a direct bearing on the municipality’s ability to provide clean drinking water to all communities. All of this contributes to making Rustenburg the economic hub of the province. The Rustenburg Local Municipality’s Integrated Development Plan (IDP) reflects an urgent need for intervention on water augmentation.

Magalies Water Chief Executive, Sandile Mkhize

M

Rolling out Phase 2 Magalies Water Chief Executive, Sandile Psychology Mkhize, says that Phase 2 of the Pilanesberg South Bulkwater Supply project will bring relief to Rustenburg and the Royal Bafokeng Administration (RBA). Phase 1 of the Pilanesberg project was completed in 2016. He continued, “The proposed bulkwater scheme is also in line with Magalies Water’s regional bulkwater master planning and the Royal Bafokeng Nation’s Water Services Development Plan. As part of its Bulk Infrastructure Capital Expenditure Programme, Magalies Water has identified numerous extensions to the existing

agalies Water, which is one of South Africa’s nine water boards, has proved to be a worthy contributor in the water sector. The water utility, which services local municipalities in the North West, Limpopo and Gauteng, also supplies bulkwater to mining operations within its area of service as well as other industries. The Rustenburg-based state-owned entity has over the last few years made an intentional and targeted effort to address the bulkwater supply challenges plaguing Rustenburg, the hub of industry in the North West.

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FOCUS Bulkwater Supply Schemes from the Vaalkop Water Treatment Works. This Pilanesburg Bulkwater Supply System (PBWSS) project is anticipated to be completed in early 2023,” Mkhize remarked. He also provided technical details on how the second phase will be rolled out. “Phase 2 of the PBWSS, which will cost about R900-million, will be approached in three stages that will be funded through multi-year funding by the Regional Infrastructure Grant of the Department of Water and Sanitation and the capital funding allocation of Magalies Water.” Packages involve the following: Stage 1: Construction of Tlhabane Reservoir. This will involve earthworks where large excavation will be done, concrete structures, pipe-work comprising large-diameter steel/uPVC and stainless-steel pipes and large-bore valves in variable sizes. Stage 2: Construction of Mafenya to Tlhabane bulkwater pipeline, mainly of steel/uPVC to withstand high pressures in the system. Stage 3: Construction of the pumping station next to the existing Mafenya reservoir to pump water all the way to the Tlhabane reservoir with a combination of gravity feed. Some 55km east of the Vaalkop Dam, which is home to the 270 megalitres-per-day (ML/d) Magalies Water Treatment Works, another project is at concept stage. This project, once completed, is intended to increase the bulk capacity of water to the communities of Bethanie and Modikwe through an upgrade of the Kortbegrip pipeline. Early financial expenditure projections are estimated to the tune of R88-million and will make use of the Modikwe reservoir in achieving the increased water supply to the region.

Vaalkop water treatment works The project will be co-funded with the participation of Magalies Water and Rustenburg Local Municipality as well as Rhoven Glencore Mine through its social labour plan (SLP) as part of the licence conditions where mining companies are to implement social impact projects within their host communities. Currently four villages (Bethanie, Modikwe, Berseba and Makolokwe) are experiencing water challenges with their source of water coming from boreholes and bulkwater supplied from the Vaalkop Water Treatment Works through the Kortbegrip pipeline to Modikwe reservoir. While the project is still at its infancy stages, small, micro and medium enterprises (SMMEs) from the locality stand to benefit by way of skills transfer through subcontracting opportunities. This will help to achieve local economic development objectives. While the economy of Rustenburg and the surrounding areas seems to be reviving, Magalies Water remains steadfast in fulfilling its important constitutional mandate, which seeks to ensure that within its area of operation, through existing relationships with local municipalities, communities have access to clean drinking water compliant to the SANS 241:2015 drinking water standard. Local Municipality for the leasing of a water-tank truck. ■

CONTANCT DETAILS Address: 38 Heystek St, Rustenburg 0300 Tel: +27 14 597 4636 Email: info@magalieswater.co.za customerservices@magalieswater.co.za Customer Care Line: 0860 000 720 Whatsapp: 060 966 7994 Website: www.magalieswater.co.za

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OVERVIEW

Manufacturing An Integrated Manufacturing Strategy aims to stimulate the sector. SECTOR INSIGHT North-West University now offers mechatronic engineering.

Credit: Bosch

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provincial Integrated Manufacturing Strategy has been compiled. The strategy notes the North West’s strategic location near to the industrial hub of Gauteng and its low input costs and easy access to busy trade routes. Chemical processing would be a good proposition for investors. The province also has easy access to natural resources, especially with regard to the ingredients necessary for the manufacture of phosphate and nitrogen-based fertilisers. As one of the country’s biggest producers of livestock, hides for car seats for the province’s automotive industry could profitably be sourced locally. The Centre for Advanced Manufacturing (CFAM) at North-West University specialises in extruder technology and the recent introduction by NWU of a new qualification in mechatronic engineering will give graduates a head start in a wide range of enterprises. A mechatronic engineer is able to combine computer systems, electronics (such as sensors) and precision mechanical engineering. Bridgestone South Africa’s investment in new technology at its plant in Brits is allowing the company to produce 19-inch tyres for the BMW X3 being assembled in Pretoria. These tyres would otherwise have to be imported. Brits’ proximity to Tshwane’s Rosslyn automotive hub is a competitive advantage for the city. Bridgestone’s factory is one of only four in the world that produces runflat tyres. About 850 people are employed at the plant. Also in Brits are Bosch and Dubigeon Body and Coach. SOS Tie & Die is a manufacturer of precision pressings, components and press tools. AVMY Steel Science is the largest supplier of small-quantity steel in the SADC region. Chassis manufacturer KLT Group has acquired the Brits plant which comprises a pressing, welding, assembly and e-coating

ONLINE RESOURCES Automotive Industry Development Centre (AIDC): www.aidc.co.za National Department Trade, Industry and Competition: www.dtic.gov.za North West Development Corporation: www.nwdc.co.za

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facility. The KLT Group has four plants in South Africa and employs more than 1 000 people. In addition to Brits (automotive components and tyres), other concentrations include mining equipment and engineering (Klerksdorp) and food and beverages (Potchefstroom). Rustenburg has a mixture of enterprises, the biggest of which are mining-related smelters. Production of non-metallic mineral products is concentrated around Lichtenburg and Mahik eng (cement), and Rustenburg (stone). Tough Metals Toys factory and Totpak are located in Ventersdorp. RCL Foods has a large processing plant at Rustenburg and Dairybelle (Bloemhof ) has cheese factories in the province. Clover’s decision in 2021 to leave Lichtenburg because of a lack of reliable services was a blow for employment opportunities in the Ditsobotla Local Municipality. About 30% of the country’s grain and oil-seed crop pass through Senwes silos every year. Sasko operates a white-maize mill in Klerksdorp. The SAB Rosslyn Brewery supplies the North West with most of its beer.. ■


OVERVIEW

Energy Solar plants are proliferating in the North West. SECTOR INSIGHT Pilanesberg Platinum Mines is installing energy-saving technology.

W

Credit: De Wildt Solar

hen De Wildt Solar near Brits (pictured) started commercial operations in January 2021, it became, according to Engineering News, the “fourth utility-scale plant that has come on line in the North West in under five months”. The province was lagging somewhat in terms of projects undertaken in terms of the national private producers’ renewable energy programme, but now it’s making up for lost time. With 169 140 solar modules, the South African-owned plant delivers 123 186MWh/year and will bring economic benefits to many residents and businesses of the Madibeng Local Municipality and beyond. A brickmaking co-operative was involved in the solar farm’s construction Pilanesberg Platinum Mines introduced its Kell processing plant in 2021, a technology that reduces electricity usage and eliminates sulphur dioxide emissions in smelting. With platinum group metals (PGMs) attracting good prices partly because of the role they can play in the hoped-for lower-carbon economy, cleaner and cheaper methods of extraction and processing offer even sunnier projections for the miners of PGMs. Most of South Africa’s energy requirements are met by Eskom’s coal-fired power stations but the drive to start producing renewable energy is growing, and researchers and companies in the North West are investigating several options. Big mining companies are among the biggest users of energy and many belong to the Energy Intensive Users Group of Southern Africa. Bioethanol, biodiesel and methane gas from waste and renewable resources are among the types of biofuels under

ONLINE RESOURCES Energy Intensive Users Group of Southern Africa: www.eiug.org.za South African Independent Power Producers Association: www.saippa.org.za South African Photovoltaic Industry Association: www.sapvia.co.za South African Renewable Energy Council: www.sarec.org.za

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discussion. Sunflower seeds and sweet sorghum are suitable for converting into biofuel and bioethanol. The South African Energy Resource I nstitute (Saneri) Chair in biofuel research is held by a professor on the Potchefstroom campus of NorthWest University (NWU). Silversands Energy is a North West company that produces ethanol fuel for an ethanolpowered bus made by Scania South Africa for the City of Johannesburg. South Africa’s nuclearresearch centre is located at Pelindaba near Hartbeespoort Dam and is run by the South African Nuclear Energy Corporation. The NWU Nuclear Engineering Department is the only one of its kind in the country, and the National Department of Science and Technology has allocated a chair in Nuclear Engineering to the university. One of the key focus areas for the planned Platinum Valley Special Economic Zone (PVSEZ) is the promotion of renewable energy. The PVSEZ is in the Mogwase industrial area in the Bojanala Platinum District Municipality and has already attracted the interest of several investors. ■ NORTH WEST BUSINESS 2021/22


OVERVIEW

Tourism Biodiversity protection is expanding.

SECTOR INSIGHT A new licensing act aims to better regulate business activity.

ULT.X BMX and Skate Championship 2021, Sun City

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n additional 24 000 hectares of land is to be conserved through a biodiversit y stewardship programme that forms part of the North West Protected Areas Expansion Strategy and Implementation Plan. The North West Parks Board and the Provincial Government of North West aim to protect representative ecosystems in ways that make them resilient to climate change and create opportunities for local communities to make a sustainable living. Finding a balance between agricultural activities and tourism is not the only challenge in an area that also frequently experiences droughts. Although the reserve that lies just to the north of Sun City is known as Pilanesberg National Park, in fact it falls under the North West Parks Board and is one of many parks and reserves controlled by the province. Both Pilanesberg and Madikwe have gained international reputations for the diversity of flora and fauna they have to offer and the high standard of accommodation at private concessions within the boundaries of the parks. The malaria-free Pilanesberg National Park, located in the ecologically rich transition zone between the Kalahari and the Lowveld, has more than 7 000 animals, 360 bird species, and more than 200km of roads. The North West Parks and Tourism Board (NWPTB) is investing in the province’s 12 smaller parks with the intention of creating jobs. In partnership with the National Department of Tourism, work has begun on the Manyane Game Lodge in Mahikeng, with a budget allocation of R43-million. Another project envisages a mega-park in the north-western sector of the province, the Heritage Park.

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The impact of Covid-19 will be felt for many months to come, and the tourism sector of the North West Province will be affected by the restrictions on travel that were put in place in 2020. Provincial authorities are going ahead with infrastructure projects in the expectation that tourists will return in numbers. Among them are: • Bloemhof infrastructure project (R30-million). The second phase will be completed in the 2021/22 financial year. • Vaalkop Dam (R15-million): plans approved. • Borakalalo Tented Camp (R15million): plans approved. A saving grace for the province is the extremely wide range of activities that are offered to a high standard. This makes it more likely than one or more of these subsectors will be in a position to lead a recovery. Sun City (golf, conferencing and hotels) and several game lodges within game reserves are world famous. Birding, fishing, hunting and hotair ballooning are among other popular pursuits and Potchefstroom has outstanding sporting facilities. Australia and Spain won the cricket and soccer world cups from their


OVERVIEW base in Potchefstroom and international athletes often visit the city for training camps. The Mahika-Mahikeng Cultural Festival continues to grow in popularity. Arts and culture development centres (Mmabana Centres) are found in three of the province’s districts. Twelve public museums have been identified together with 400 heritage sites as part of a census on the province’s cultural assets. The NWPTB is unique in South Africa in that it is the only provincial government entity that runs a hotel school. The Institute of Hotel and Tourism Management (IHTM) has two campuses, one in Mahikeng and one at Ga-Rankuwa outside Pretoria. In addition to the provincial tourism authority, there are regional tourism organisations which market special attractions: • • • • • • •

Harties Tourism Association Matlosana Tourism Association Mooinooi: Buffelspoort Valley N12 Treasure Route Association Potch Tourism Association Vredefort Dome Tourism Association. Taung is the site of the first discovered fossil of Australopithecus africanus. The Vredefort Dome is a UNESCO World Heritage Site for its significance as the landing site of a meteorite many millions of years ago.

The North West Business Licensing Act No. 3 of 2019 has been passed by the provincial legislature to ensure that business is conducted ethically and in a way that promotes opportunities for historically disadvantaged people to fully participate in business. The Faculty of Economic and Management Sciences at the North West University offers Tourism Management and the professors and researchers are at the top of their profession.

Hotels and conferences Sun City has a range of venues available for hire ranging from a 12-seater Council Room to the Superbowl which can accommodate 6 000, and just about everything in between. With six kinds of accommodation, two outstanding golf courses, casinos and a choicefilled entertainment complex, the Sun City Resort is a major tourism

ONLINE RESOURCES Marico Tourism: www.marico.co.za North West Development Corporation: www.nwdc.co.za North West Parks Board: www.northwestparks.org.za Tourism North West: www.tourismnorthwest.co.za

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Pilanesberg National Park, Credit: Tourism North West asset and significant employer in the province. Sun City is far from being the province’s only conference venue. Tourism North West lists on its website a range of venues from small guesthouses with conference facilities in towns such as Rustenburg and Brits to lodges on the banks of the Hartbeespoort Dam. In the provincial capital, Mahikeng, there are several options: among them are the Mmabatho Palms Hotel Casino Convention Resort, part of the Peermont group, which has hotels and casinos in six of South Africa’s provinces. Mmabatho Palms offers eight gaming tables and slot machines. Gaming is controlled in South Africa and licences are restricted to certain operators. Mahikeng is also home to the Protea Hotel and the Mmabatho Convention Centre (the main auditorium can seat 3 000 people). The Hotel School can accommodate up to 200 people. Most of the luxury lodges in the province can accommodate conferences, albeit on a smaller scale. ■ NORTH WEST BUSINESS 2021/22


OVERVIEW

Education and training A new vocational stream is being introduced at schools.

SECTOR INSIGHT A Covid-19 vaccine candidate is being tested at NWU.

Open Day at the Jouberton Campus of Vuselela TVET College.

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orth-West University (NWU) is working together with Walter Sisulu University (WSU) on a new Covid-19 vaccine candidate. The results of preclinical trials in June 2021 were described as “very promising”. Prof Markus Depfenhart, who holds extraordinary appointments as a professor at both universities, developed the vaccine candidate, the trials for which are being run at the Pre-Clinical Drug Development Platform at the NWU. NWU has ambitious aims with regard to accommodating students in residence: 50% of contact students and 75% of first-year students is the goal. There are 38 NWU-owned residences on three campuses and one off-campus residence in Vanderbijlpark. There is also some rented accommodation which amounts to more than 10 000 beds managed by the university. The CHE has announced that the NWU Bachelor of Laws (LLB) programme has received full accreditation. A new qualification, Mechatronic Engineering, has been added to the courses offered by the Faculty of Engineering. The Bachelor of Mechatronic Engineering programme has been approved by the Engineering Council of South Africa (ECSA), enabling graduates to compete internationally. The faculty now offers eight specialities, including industrial and electromechanical and chemical engineering (minerals processing). Partnerships include Sasol, Eskom, Denel Aviation, Telkom and Sappi. The Faculty of Engineering is a leading department in terms of innovations and plays a role, together with the NWU Technology Transfer and Innovation Support Office, in commercialising ideas by creating companies.

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The universit y and its researchers are leaders in many fields, including astrophysics, tourism, solar energy and extruder technology. Among the research entities at NWU, there are five chairs allocated by the South African Research Chairs Initiative (SARChI): Astrophysics and Space Physics, Coal Research, Biofuels and other clean alternative fuels, Nuclear Engineering and Early Detection and Prevention of Cardiovascular Disease in Africa. The University of South Africa (Unisa) has three branches in North West, at Rustenburg, Potchefstroom and Mmabatho.

Training and skills A new, third, stream is being piloted at 11 schools across the province. In addition to the existing technical and academic streams, vocational will be offered. The new option includes 13 new subjects and is intended to widen the options available to young people. As par t of this initiative, three schools will increase their enrolment of pupils wanting to study agricultural subjects. Fifteen


FOCUS

Education and skills training are making an impact Impala Rustenburg’s local economic development strategy boosts employment potential. the region of Impala Rustenburg’s operations. To support this thrust, Implats’ comprehensive education and skills development programmes span the entire education value chain, from early childhood development through to higher levels of schooling and continuous skills development. In promoting quality schooling, Impala Rustenburg supports 33 schools – 21 primary and 12 high schools – in the Bojanala Platinum District Municipality. To mitigate the impact of months of schooling missed due Covid-19 lockdowns, the operation provided academic support to more than 2 000 matric learners, who received catchup classes in maths, biology, life sciences and geography ahead of their final exams. Impala Rustenburg also implemented a teacher-mentoring programme, supporting 12 teachers in eight local schools to improve their teaching sk ills. I mpala Rustenburg monitors the learners’ performance, which c o n t i n u e s t o b e e n c o u r a g i n g. D u r i n g 2020, the Impala-supported schools in the Rustenburg region achieved an average matric pass rate of 85%, compared to 79% achieved at other local schools. Platinum Village and Sunrise View secondary schools, both constructed by Implats together with its social partners, achieved 100% and 94% pass rates, respectively. Impala Rustenburg also delivered several infrastructure projects this year in support of education. These include constructing a new early childhood development centre, Phase 2 renovations of the Kutlwanong School for the Deaf, renovating and equipping three libraries in the Eastern Cape, which is a labour-sending area for the operation, and constructing 12 new National School Nutrition Programme kitchens in Taung and Ganyesa. ■

I

mpala Rustenburg is committed to delivering a lasting positive contribution to local communities and those affected by its activities. Its local economic development (LED) strategy focuses on collaborating with government, the Royal Bafokeng and other mining companies to identify and implement h i g h e m p l o y m e n t g e n e r a t i n g p ro j e c t s through public-private partnerships. Since 2018, Impala Rustenburg and the Royal Bafokeng Nation (RBN) have collaborated in developing a strategy and project plan to identify projects that will support job creation and create sustainable livelihoods beyond mining. This strategic initiative actively pursues par tnerships with key players in sectors that have the highest potential of creating employment opportunities for youth living in

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NORTH WEST BUSINESS 2021/22


OVERVIEW new schools are under construction in the province in 2020/21 with a further 25 to enter the planning phase in the 2021/22 financial year. In the annual State of the Province Address in 2021, Premier Job Mokgoro acknowledged the contribution to school building and upgrading of several companies: Glencore, Impala Platinum, Samancor, Sibanye Gold, Northam Zondereinde Community Trust and Sun International Limited. The PPC Training Centre in Slurry near Mahikeng admitted 25 young people as part of the provincial government’s Artisan Development Programme in 2020. A further 10 were placed at the Intelek Training Centre for assessment to resume their apprenticeships. Another provincial programme, the Automotive Skills Development Programme, aims to involve 200 young people in learning all about repairing, welding, panel-beating and the workings of engines at the Automotive Industry Development Centre (AIDC). The provincial government has also been training people in useful digital work. A group of 144 young people were trained and hired as business regulations data capturers for the SMME Relief Fund. They are also developing an online provincial database of liquor traders in the province. Another programme that has received young people for skills training is the EPWP Waste Management & Biodiversity Economy Programme and 100 beneficiaries will get work experience in tourism businesses. In an effort to incubate 135 new SMMEs and create 540 jobs over the next three years, the provincial government is partnering with a range of entities in manufacturing, engineering services, mine-water rehabilitation and the reclamation of gold in existing mine tailings. During the 2021/22 financial year, the provincial government will partner with: • Lepharo Incubator, a Seda Incubator (R22.3-million) • Harmony Gold’s Kraaipan Operations (R4.5-million) • Rustenburg Local Municipality (R9.5-million) • Department of Economic Development, Environment, Conservation and Tourism, DEDECT (R14.5-million). Technical Vocational and Educational Training colleges teach skills that are relevant to the workplace. North West has three TVET colleges with several campuses each. Vuselela TVET College has its headquarters in Klerksdorp, where there is also an accredited trade test centre. There are a further four campuses: Jouberton Centre for Engineering

ONLINE RESOURCES Mining Qualifications Authority: www.mqa.org.za North West Department of Education: www.desd.nwpg.gov.za North-West University: www.nwu.ac.za NWU Business School: www.commerce.nwu.ac.za

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NWU aims to have 50% of contact students and 75% of first-year students accommodated in residences. Credit: NWU Studies; Matlosana Campus; Potchefstroom Centre for ICT and Taung Campus. Orbit TVET College has three sites, Rustenburg, Mankwe and Brits, with about 15 000 students overall. The Rustenburg campus of Orbit College hosts a Microsoft IT Academy while the Mankwe campus offers automotive training, the result of a partnership between the Manufacturing, Engineering and Related SETA (MerSETA), Lelethu Training and Ford South Africa. Orbit TVET College hosts an electronics academy courtesy of sponsors Samsung Electronics on the Mankwe campus, and in partnership with the MerSETA. Mankwe also offers Automotive Repair, Maintenance and Transport and Logistics and is a Centre of Specialisation in Diesel Trade. The Taung Agricultural College is accredited by the Council on Higher Education (CHE) to offer the NQF level 6 Diploma in Agriculture specialising in Irrigation Technology. ■


OVERVIEW

Development finance and SMME support The Mafikeng Digital Innovation Hub will assist small businesses.

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he North West Provincial Government is investing in digital infrastructure. SMMEs will be able to use the newly-established Mafikeng Digital Innovation Hub (pictured) as a co-working environment and to get support in using digital tools. A Digital Covid-19 SMME Business Recovery training intervention was carried out by the Hub in partnership with the Department of Economic Development, Environment, Conservation and Tourism (DEDECT). This resulted in more than 180 entrepreneurs from all four districts of the province receiving training. A Youth Digital Skilling programme aims to teach skills such as software and app development, Artificial Intelligence and robotics. R6-million has been allocated for the 2021/22 financial year by the province to support women co-operatives and SMMEs. Support includes mentoring, training and buying equipment. Most of the Cooke’s Lake Information Centre in Mahikeng (excluding the existing office block) is to become a permanent flea market. The South African National Roads Agency Limited (SANRAL) currently has nine contracts covering more than 2 300km in the province. A set of subcontracts is being negotiated for routine maintenance such as the patching of potholes, fencing and the cutting of grass verges.

ONLINE RESOURCES Mafeking Digital Innovation Hub: www.mafihub.co.za North West Development Corporation: www.nwdc.co.za Small Enterprise Development Agency: www.seda.org.za Tholoana Enterprise Programme: www.sabfoundation.co.za

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SECTOR INSIGHT An SMME and co-operative support programme has a budget of R6-million for 2021/22. The National Depar tment of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. These include the Black Business Supplier Development Programme and the Cooperative Incentive Scheme, a 100% grant. The Small Enterprise Development Agency (Seda) is an agency of the DSBD and gives nonfinancial support to entrepreneurs through training, assistance with filling in forms, marketing and creating business plans. T h e S e d a Te c h n o l o g y Pro gramme helps p otential businesses become trading entities. The Industrial Development Corporation is a strategic lender and plays a strong role in supporting small and emerging enterprises. The SAB Foundation Tholoana Programme provides grant funding and business support in the North West. The programme invests in entrepreneurs, particularly women, youth, people in rural areas and persons with disabilities. The 18-month programme provides mentorship, business development tools and workshops, access to peer networks finance, and support throughout the time spent on the programme. ■ NORTH WEST BUSINESS 2021/22


OVERVIEW

Banking and financial services Smartphone banking is catching on. SECTOR INSIGHT Financing is available to mitigate climate change.

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outh African banking customers have a wider choice since Tyme Digital received a licence in 2017 to run a bank, the first time a new licence had been issued in decades. By early 2019, TymeBank was available in 500 Pick n Pay and Boxer stores and more than 50 000 customers had an account. Tyme stands for Take Your Money Everywhere; the bank does not have a branch network. African Rainbow Capital began as the venture’s BEE partner but in 2018 bought out the Commonwealth Bank of Australia. Tyme reported in October 2020 that it had 2.4-million customers, up from 1.4-million at the end of March. A 400% increase in the use of services such as airtime and electricity purchases was also noted. A recent addition to the market is Standard Bank’s low-cost MyMo account. With free electronic transactions, unlimited card swipes and a low monthly fee, the MyMo account is ideal for low-income earners, micro-entrepreneurs and the poor. Customers can sign up by taking a selfie. All of the big banks have agricultural desks where experts can offer relevant advice. Nedbank is making a point of making funding available for climate-change mitigation such as more efficient irrigation and water-use technologies. All of the large agricultural companies have finance divisions. All of the country’s major banks and financial institutions are represented in the North West. Financial services are available in small towns, although the bigger cities like Potchefstroom, Rustenburg

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Auditor-General of South Africa: www.agsa.co.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co NORTH WEST BUSINESS 2021/22

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and Klerksdorp have a greater concentration and diversity. Financial services extend beyond advising rich people on how to invest their assets or balance their portfolio. In a province where there has been some real financial distress programmes are in place to assist people. Long strikes, volatile global markets and layoffs have created tough conditions for some workers in the platinum sector. Anglo American Platinum has teamed up with Summit Financial Partners to help miners manage their debt and plan their finances better through a scheme called Nkululeko. Garnishee orders went down among the Nkululeko group by 80% in a five-year period. The Association for Savings and Investment South Africa is behind another initiative called Project Qaphela, a financial literacy programme aimed at workers in the mining sector. Partners in the programme include the National Union of Mineworkers, Sanlam and Coronation. Ubank is owned by a trust that is managed by the Minerals Council South Africa and the National Union of Mineworkers (NUM). It has several branches in the North West. ■


INDEX

INDEX

INDEX INDEX

Africa Biomass Company (ABC) ...............................................................................................................................5, 9

Implats. ......................................................................................................................................................................17, 41 Implats...................................................................................................................................................................................24-25 Magalies Water...................................................................................................................................................... 34-35 Nedbank ..............................................................................................................................................................................16-19 North West Development Corporation (NWDC)....................................................................................... 9 Pilanesberg Platinum Mines ........................................................................................................................................IFC Nedbank.................................................................................................................................................................... 22-25 Pilanesberg Platinum Mines...............................................................................................................................IFC Rustenburg Rapid Transit (RRT)..............................................................................................................12-15, OBC Standard Bank.................................................................................................................................. 2-5, 30-31, OBC Sibanye-Stillwater .........................................................................................................................................................26-27

SPECIAL SPECIALFEATURE FEATURE ZIMBABWE

Limpopo

NAMIBIA

North West NORTH WEST

Mpumalanga Gauteng SWAZILAND

Vaalwater Vaalwater

N N Thabazimbi Thabazimbi

R49 R49

BOTSWANA BOTSWANA

LESOTHO

Sun SunCity/Lost City/LostCity City

Eastern Cape

N4 N4

Western Cape

Zeerust Zeerust

Swartruggens Swartruggens Groot-Marico Groot-Marico Rustenburg Rustenburg

Moloporivier Moloporivier Vorstershoop Vorstershoop

Mmabatho Mmabatho

MAHIKENG MAHIKENG

Koster Koster

R52 R52 N14 N14

Sannieshof Sannieshof

Stella Stella

Delareyville Delareyville

R 49 R 49

Ottosdal Ottosdal

Kuruman Kuruman

N14 N14

Lykso Lykso

Reivilo Reivilo Sishen Sishen

N18 N18

Taung Taung

Wolmaransstad Wolmaransstad

Kathu Kathu N12 N12

Northern Northern Cape Cape Warrenton Warrenton

Postmasburg Postmasburg

Ulco Ulco

Klerksdorp Klerksdorp

Christiana Christiana

N1 N1

R57 R57

R82 R82

Kroonstad Kroonstad

N3 N3

Sasolburg Sasolburg

Parys Parys

Heilbron Heilbron

Free Free State State

Wesselsbron Wesselsbron Welkom Welkom Bultfontein Bultfontein

Carletonville Carletonville

N12 N12

R59 R59

Bloemhof Bloemhof

N1 N1

Vereeniging Vereeniging

R30 R30

SchweizerSchweizerReneke Reneke

Gauteng Gauteng

JOHANNESBURG JOHANNESBURG

Westonaria Westonaria Ventersdorp Ventersdorp

Orkney Orkney

R34 R34

Hartbeespoort Hartbeespoort Mooinooi Mooinooi

Potchefstroom Potchefstroom

Vryburg Vryburg Hotazel Hotazel

Coligny Coligny

R30 R30

PRETORIA PRETORIA

Brits Brits

Magaliesburg Magaliesburg

Lichtenburg Lichtenburg

R49 R49

R31 R31

Limpopo Limpopo Bela-Bela Bela-Bela

KwaZuluNatal

Free State Northern Cape

MOZAMBIQUE

BOTSWANA

NORTH NORTH WEST WEST PROVINCE PROVINCE

Ventersburg Ventersburg

Motorway Motorway Main MainRoad Road Railway Railway

Reitz Reitz

NORTH WEST BUSINESS 2020/21 The Mahikeng International Airport is served by SA 40Potchefstroom College of Agriculture. More than 120 Express. The city’s main sectors are financial services, 000 people attend the Aardklop Festival every year. Municipalities in North West Province services, transport and trade. The Garona District houses The city has a population of aboutLimpopo 173 000.


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