2020/21 2018/19EDITION EDITION 2018/19 EDITION 2019/20 EDITIO
NORTHERN CAPE NORTHERN CAPE NORTHERN CAPE NORTHERN CAPE BUSINESS BUSINESS BUSINESS BUSINESS
ORTHERN CAPE USINESS
THE GUIDE GUIDE TOTO BUSINESS AND INVESTMENT THE BUSINESS AND INVESTMENT IN THE NORTHERN CAPEAND PROVINCE THE GUIDE TO BUSINESS INVESTMENT IN THE NORTHERN CAPE THE GUIDE TO BUSINESS ANDPROVINCE INVESTMENT IN THE NORTHERN CAPE PROVINCE IN THE NORTHERN CAPE PROVINCE
GUIDE TO BUSINESS AND INVESTMENT E NORTHERN CAPE PROVINCE
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Physical: Metlife Towers, 13th Fl, Cnr Stead & Knight Sts, Kimberley, 8300 Postal: Private Bag X6108, Kimberley, 8301 Tel: 053 839 4000 | Fax: 053 832 6805 Web: http://economic.ncape.gov.za Email: firstname.lastname@example.org
CONTENTS Northern Cape Business 2020/21 Edition
Introduction Foreword 6 The Northern Capeâ€™s unique guide to business and investment.
Special features A regional overview of the Northern Cape Province
A new university, a world-class astronomy project and billions of rands of investment in renewable energy underpin the Northern Capeâ€™s investment proposition.
Catalyst to economic growth in the Northern Cape
De Aar Logistics Hub
Investment opportunities outlined
The planned Namakwa Special Economic Zone to be established in the Aggeneys region of the Namakwa District will have a transformative effect on the local, regional, provincial and national economies. Centrally located hub will reduce costs and improve efficiency. Port, Rail and Infrastructure Development Project. The Northern Cape Economic Development Trade and Investment Promotion Agency (NCEDA) has four attractive investment opportunities.
Economic sectors Agriculture 32 Rooibos is a hit around the world.
Wine and grapes
A water equity scheme is under discussion. The Orange River region punches above its weight in grape and wine production. NORTHERN CAPE BUSINESS 2020/21
BEAUTIFUL COUNTRY BEAUTIFUL RAISINS
A Taste of South Africa Grown and ripened under the South African sun for the most delicious tasting fruit. Helping to develop the Rainbow Nation South African raisins are produced in the Orange and Olifants river regions, which is in the Northern and Western Cape respectively. These regions experience exceptional levels of sunshine, on average 10.5 hours every day between January and March, which is when the fruit is harvested and naturally sundried. The dry, sunny climate, along with the ample supply of water from the rivers, makes ideal growing conditions to produce the highest quality raisins. Raisins are a â€˜natural powerhouseâ€™ packed full of nutrients, such as fibre, iron, calcium and antioxidants. Because most of the water is extracted from dried fruits, their nutrients are concentrated. South Africa is dedicated to adopting sustainable farming processes that benefit its produce, workers and the environment.
Mining 38 A public mining company is planned in the Northern Cape.
Engineering 42 Fast cars and superfast data are set to break records.
Tourism 44 The stars are aligned for Northern Cape tourism.
Education and training
Banking and finance
Development finance and SMME support
Enrolment at Sol Plaatje University is rising. A hybrid wind and solar plant could power a new zinc mine. Solar projects are attracting financial backing. Local businesses are thriving in support of mining.
ABOUT THE COVER:
The quiver tree is in fact a type of aloe, which can occur in forests. It has become a botanical symbol of the stark landscape of the dry north-west. This picture was taken near Klein Pella in the Gordonia district near the border between South Africa and Namibia. The bark and branches of the â€œKokerboomâ€? were used by early residents of the area to make quivers for their arrows. Photo: Sproetniek/iStock.
References Key sector contents Northern Cape locator map.
INDEX Africa Biomass Company (Bandit Industries Inc) 5, 34 Kimberley Diamond and Jewellery Incubator (KDJI) 39, 41 Nedbank 26-29 Northern Cape Chamber of Commerce and Industry (NOCCI) 23 Northern Cape Department of Economic Development and Tourism IFC, 3, 12-22, 39, 41, OBC Northern Cape Economic Development Trade and Investment Promotion Agency (NCEDA) 24 SA Airlink IBC Sol Plaatje University 48 Standard Bank 7 NORTHERN CAPE BUSINESS 2020/21
Africa Biomass Company Buy your own Bandit wood chipper Bandit the only logical choicebiomass for wood chippers in or hire us to deal with your
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Africa, which are now fitted on SABS-approved trailers.
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With a comprehensive understanding of the operational challenges of wood recycling in South Africa, ABC has established state-of-the-art facilities to service, repair and rebuild wood chipper equipment of Wood chipper services any brand and size. ABC’s facilities are operated by a • Agricultural: orchard / vineyard recycling and remarkable team of very experienced and suitably qualified engineers, technicians and65XP artisans. mulch spreading A small selection of Bandit wood chippers (from left to right): Model 75XP Engine; Model PTO and theor Intimidator™ 12XPC. An equally remarkable team of field-service • Biomass for generation of heat electricity Company Slogan technicians deliver repairs, maintenance and parts • Site clearing and preparation to clients’ sites to optimise uptime and efficiency. • River rehabilitation in riparian zones Become an owner of a Bandit chipper Africa Biomass Company is the authorised dealer For more information on the Bandit, see page 34 • Workshop, field services, parts and spares for Bandit Industries in Southern Africa. All existing and new customers are welcome • Operator training services: SETA-certified ABC has built up a substantial fleet of Bandit to contact us if they want to become the wood chippers for use by the company as part The most experienced owner of the top-class range of Bandit • Manufacturing workshop Company Slogan
of our wood recycling services, but ABC also equipment. Industries have delivered biomass producer in Bandit Africa offers a whole range of Bandit wood chippers successful recycling solutions to basically The X-factor in wood chippers to clients who want to invest in the Bandit range. every corner of the planet.
Dimensional Bandit chippers are designed with quality,wood chips are produced by the removal production andchippers longevity in mind. Hand-fed of alien invasiveAtrees in ripariantozones, previously ABC is the authorised dealer for Bandit wood commitment support chippers are mounted on custom-built, SABSABC, however, now has in Africa. Bandit combines first-world technology and deemed as impossible. Africa Biomass Company is fully equipped approved trailers. Owning a Bandit wood and stocked to service and repairthe any job Bandit thefront knowledge and technology to get experience with third-world functionality. This makes chipper will always put you in the seat of machine anywhere in South Africa. We own reliable wood chipping operations. done. These wood chips are then used a fully-equipped parts warehouse (650m²), In many cases, the Bandit wood chipper sets a greenmanufacturing applications department asaswell as field the benchmark for other brands in the wood in agri-industrial services to ensure that for partseither are always to coal heatreadily or chipping industry. We are ready to supply the er alternative available and our own, as well as our clients’ right Bandit wood chipping solution with advice electricity production. Bandit wood chippers are not out of commission and aftercare to your doorstep. All existing and longer than they have to be. new customers are welcome to contact us to Geographical footprint www.abc.co.za become the owner of Bandit equipment.
CAPE(Western BUSINESS 2020 9 is located in WESTERN ABC Worcester Cape), Kirkwood (Eastern Cape), Nelspruit (Mpumalanga) and Upington (Northern Cape). We operate in all nine provinces in South Africa and also across the borders into Sub-Saharan Africa, including Namibia, Botswana, Zimbabwe, Mozambique, Zambia, Malawi, Tanzania, Kenya and Nigeria. ■
Northern Cape Business A unique guide to business and investment in the Northern Cape.
Credits Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Art director: Brent Meder Designer: Simon Lewis Production: Lizel Olivier Ad sales: Gavin van der Merwe, Sam Oliver, Jeremy Petersen Gabriel Venter, Vanessa Wallace, Themba Khumalo, Shiko Diala and Sandile Koni. Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print
he 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged, investment opportunities. These include plans for the establishment of Special Economic Zones (SEZs) within the province, which have specific incentives designed to make investment into the Northern Cape even more attractive. The hi-tech exploits of astronomers and engineers in search of a landspeed record are the focus of an article on engineering sector while the rapidly expanding solar energy sector which continues to attract significant capital is discussed in some detail. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on the Northern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well our flagship South African Business title. In 2020, the inaugural African Business joined the Global African Network stable of publications. â– Chris Whales Publisher, Global Africa Network | Email: email@example.com
Northern Cape Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africaâ€™s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies. Member of the Audit Bureau of Circulations
COPYRIGHT |Northern Cape 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 | Cover: Sproetniek/iStock; ACWA Power; Carpe Diem Group; Charlie Sperring (Bloodhound LSR); Bokkeveld Rooibos; iStock by Getty Images; John Middleton/Wikipedia; Kumba Iron Ore; Northern Cape Department of Education; Northern Cape Tourism Authority (Experience Northern Cape); Paul Dippenaar/Dippenaar Choice Fruit;
NORTHERN CAPE BUSINESS 2020/21
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: firstname.lastname@example.org | Website: www.gan.co.za
Savage + Dodd Architects; South African Agency for Science and Technology Advancement; South African Radio Astronomy Observatory (SARAO); South African Heavy Haul Association; SAOpen2019.com. DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Northern Cape Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.
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Image: Savage + Dodd Architects
A regional overview of the Northern Cape Province By John Young
A new university, a world-class astronomy project and billions of rands of investment in renewable energy underpin the Northern Cape’s investment proposition.
an arid region means that future programmes will be developed to study agriculture in waterstressed conditions. Building on the campus, which will eventually cover 190 000m², is expected to continue for another decade. The competition held to choose architects for the first new buildings lead to some award-winning designs, including the multi-functional building (pictured) which houses a canteen, residences, offices and a retail section. The colourful wind-driven louvres were designed by Savage + Dodd Architects and executed by RVI Architectural Solutions. Several black and women-owned companies have been active on the 12 projects currently
outh Africa’s largest province is also the country’s sunniest and investors in solar energy are taking advantage of large tracts of sunlit land to build giant solar farms. South Africa’s newest university is growing in Kimberley and one of the world’s biggest scientific projects, the Square Kilometre Array (SKA) radio telescope, is taking shape around Carnarvon. Sol Plaatje University has a strong suit in teacher training, but an expanding curriculum speaks both to being able to exploit the SKA link through subjects such as ICT and data science and an appreciation of the past via heritage studies and paleo-sciences. The university’s location in
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SPECIAL FEATURE of abalone per year. The plan is to increase production five-fold to cater for increased demand, particularly from Hong Kong. The Provincial Government of the Northern Cape wants to develop an industrial base for the province based on agriculture and mining. Various projects such as the creation of a rooibos tea plant are supporting that plan, as are the various spatial planning initiatives being pursued by provincial government. These include corridors of development, industrial parks and Special Economic Zones. There are plans to build on the existing infrastructure that lies on the east-west axis roughly aligned with the existing N14 national highway and the Sishen-Saldanha railway freight line. • At the far east of this corridor lies the mining towns of Sishen, Kathu and Kuruman – an industrial park is planned for Kathu. • In the middle is the town of Upington – a Special Economic Zone is envisaged with a focus on solar energy and manufacturing. The existing airport is an important part of the region’s transport and logistics infrastructure.
underway. A Great Hall is planned on a portion of the Oppenheimer Gardens. Mining and agriculture, the traditional pillars of the provincial economy, remain important. Both sectors continue to contribute (despite fluctuating iron-ore prices and periodic droughts) but both sectors are showing potential to expand into new and productive terrain. The Kalahari Basin contains 80% of the world’s manganese reserve, but only 15% of global production comes from this area so there is enormous scope for development. Several new black-owned manganese projects are underway. The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand. Iron-ore miners have done particularly well recently but it’s the development of new zinc and copper projects that is catching the eye. Vedanta Zinc International has invested $400-million in the first phase of its Gamsberg project and Orion Minerals announced in 2019 that its bankable feasibility study was positive for a planned zinc and copper project at Okiep. The modern global economy needs particular minerals for its cellphones, renewable energy batteries and electric vehicles, and the Northern Cape has a lot of them. Investors are expected to follow in search of cobalt, copper, lead, nickel and zinc. A notable feature of Northern Cape agriculture is its diversity, a result of the diverse soil and weather conditions. The 38 000ha Vaalharts Irrigation Scheme produces wheat, fruit, groundnuts, cotton and maize and along the banks of the Orange River many high-value horticultural products such as table grapes, wine grapes, sultanas and cereal crops are cultivated. A quarter of the country’s onions are produced in the Northern Cape and in the drier areas, goats and sheep do well. Niche products such as rooibos tea and karakul pelts are other provincial specialities, with aquaculture and mariculture showing great potential. Sea Harvest, the new owner of Viking Aquaculture, has started work on expanding its Diamond Coast Aquaculture facility near Kleinzee. It currently covers 400ha and produces 100 tons
Viking Aquaculture’s abalone factory near Kleinze. • Aggeneys lies 277km west of Upington on the N14 where Vedanta Zinc International is mining zinc – a smelter and a refinery would be the centrepieces of the Namakwa Special Economic Zone. • Boegoe Baai/Port Nolloth – feasibility studies are being done into deepening and expanding this harbour to be able to export minerals. This would happen in conjunction with investments into fishing and aquaculture.
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John Taolo Gaetsewe District Municipality
The Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site and the Namaqualand spring flower display draws many visitors. Most of the province is semi-arid (with a coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold.
Towns: Kuruman, Kathu, Hotazel Kuruman is the headquarters of local government in this region and contributes 19.7% to the province’s economy. The local spring produces 20-million litres of water every day. Most of the district is situated on the Ghaap Plateau, over 1 000 metres above sea level and can experience extreme temperatures. Most agricultural activity is limited to grazing and boer goats are a popular breed among farmers, although game hunting is growing. Kathu has a well-developed CBD with shopping malls that arose when iron demand was high. The Sishen iron ore mine outside Kathu is a vast undertaking, providing employment for thousands of people. Samancor’s Mamatwan and Wessels manganese mines and plants are situated at Hotazel. Investment opportunities: • Kathu Industrial Park (IDC involvement) • Eco-tourism and hunting • Boesmansput diving resort • Gamagara Mining Corridor (housing, infrastructure) • Goat commercialisation • Agri-processing: olives, grains, pecan nuts, medicinal plants.
Quiver trees in the Richtersveld.
Municipalities The Northern Cape has five district municipalities.
Frances Baard District Municipality
Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp This district accounts for 40.3% of the province’s economic activity. It is the smallest but with a population of approximately 325 500, it is the most densely populated. Although Kimberley is historically renowned for diamond mining, its economy is now driven by its role as the administrative headquarters of the province. Strategically located and with good infrastructure, Kimberley is the leading centre in the province for retail, financial services, education, commerce and light industry. The Mittah Seperepere Convention Centre and the Sol Plaatje University are in Kimberley. Mining and agriculture are found in rural municipalities. Agriculture in the region comprises crop cultivation and stock and game farming. The Vaalharts Water Scheme is the largest irrigation project of its kind in the southern hemisphere. Investment opportunities: • Sol Plaatje University • Kimberley International Diamond and Jewellery Academy (KIDJA) • Mining: diamonds and precious stones • Manufacturing: textiles, agri-processing. NORTHERN CAPE BUSINESS 2020/21
Namakwa District Municipality
Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay The Namakwa district stretches from the northwestern corner of the province, and the country, bordering Namibia and the Atlantic Ocean to the southern border of the province with the Western Cape Province. It includes the famous star-gazing town of Sutherland on its southern edge. The district is sparsely populated, and predominantly rural. It contributes 11.1% to economic activity in the province. A major new investment has been undertaken in zinc at the Gamsberg project. The mining and agricultural sectors provide most employment, while tourism and small-scale manufacturing are also present. There are plans to upgrade the harbour at Port Nolloth.
SPECIAL FEATURE Investment opportunities: • De Aar rail cargo hub and workshops • SKA engineering, science, logistics support and education • Douglas holiday resort • Booktown Richmond festivals • Wool, pistachio nuts and venison processing • Water tourism activities on dams.
The region’s economy gets a boost every spring when tourists flock to see the veld in bloom. The climate and soil support certain niche crops, and the sites and sights are unique to the region, offering opportunities in agriculture and tourism. Niewoudtville is the site of a rooibos tea factory. The /Ai/Ais/Richtersveld Transfrontier Park, the Namakwa National Park and the Tankwa Karoo National Park have the potential to grow as travel destinations, as does the western coastline. Investment opportunities: • Development of Port Nolloth and smaller harbours • Hondeklip fish factories • Abalone and hake • Kelp processing and export • Game and nature reserve infrastructure • Rooibos tea • Calvinia: sheep and goat processing.
ZF Mgcawu District Municipality
Towns: Upington, Groblershoop, Kenhardt, Kakamas, Postmasberg The Orange River supports a thriving agricultural sector and a growing tourism sector. The investment climate is ripe for tourism along the Orange River and around unique physical attractions such as the Augrabies Falls. Upington is already a busy town with processing facilities for agricultural products. The planned development of a Special Economic Zone (SEZ) in the town and next to Upington International Airport will boost manufacturing. The main targeted sectors at this stage are in the renewable energy sector, for example, solar panels. Most of the population of the //Khara Hais Local Municipality lives in Upington. Agriculture is a prominent feature of the local economy, as well as wholesale and retail services in and around the town. Various kinds of high-speed car racing and testing takes place on the roads, tracks and airport runway in or near the town. The processing of wine and dried fruit is one of the biggest manufacturing activities in the province. Mining activities take place in Kgatelopele, where diamonds and lime are found. Together with sheep and cattle farming, mining provides most of the employment to be found in Siyanda.
Pixley Ka Seme District Municipality
Towns: De Aar, Hanover, Carnarvon, Douglas, Mar ydale, Prieska, Hopetown, Richmond, Noupoort, Norvalspont, Colesberg The district covers 102 000 square kilometres in the central Karoo and contributes 11.3% of the economic activity of the province. It has four national roads passing through it. De Aar, the site of the municipal headquarters, has national significance as a railway junction. The provincial government has published plans to create a logistics hub at De Aar. The area around the town has several new solar farms. Star gazing is Carnarvon’s great claim to fame, and it is host to the Square Kilometre Array (SKA) radio telescope project. The district is home to three of South Africa’s major dams. Agricultural production includes wheat, maize, peanuts, grapes, beans, potatoes, nuts and sheep farming. Pixley Ka Seme is the largest wool-producing district in South Africa, but most of what is produced is processed in the Eastern Cape, so opportunities exist for the establishment of a cotton mill, a tannery and a facility to add value to semi-precious stones. Horse breeding is a valuable contributor to the regional economy.
Investment opportunities: • Upington Special Economic Zone • Upington Cargo and Electronics hub: SKA, renewable energy and aircraft storage • Upington International Airport • Orange River Smallholder Farmer Settlement and Development Programme • Tourism: wine tours, adventure and hunting • Upington vehicle testing site • Business Process Outsourcing (BPO). ■
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Catalyst to economic growth in the Northern Cape The planned Namakwa Special Economic Zone to be established in the Aggeneys region of the Namakwa District of the Northern Cape Province will have a transformative effect on the local, regional, provincial and national economies. Photos: Kevin Wright/Vedanta Zinc International & iStock
he Northern Cape Department of Economic Development and Tourism, in conjunction with the national Department of Trade, Industry and Competition (dtic), is in the process of finalising submission documents for the declaration of a Namakwa Special Economic Zone. The anchor investor of the SEZ will be Vedanta Zinc International which is already running the Gamsberg Zinc Mine and intends to build a smelter. The SEZ would advance the aims of developing infrastructure,
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accelerating skills development and empowerment, and consolidating economic development in the Northern Cape.
Executive summary At the official launch of the Vedanta Gamsberg Zinc Mine, President Cyril Ramaphosa suggested that the mine complex could be the core and catalyst for economic development for the region through the establishment of a SEZ. He specifically called for more beneficiation of South Africaâ€™s minerals to take place in South Africa. Vedanta Zinc International started exporting product from the mine in 2018 and has so far invested about $400-million in the project. The company is considering the construction of a smelter; together, these facilities
Development in the Norther SPECIAL FEATURE
would form the base of the SEZ. Investors in related downstream activities such as fertiliser, explosives, paints and sulphuric acid would use product from the mine and the smelter. Further opportunities in renewable energy, transportation, storage and construction would naturally flow from the primary activities. All investors would benefit from the special benefits that accrue to investors in SEZs (outlined below). The plan for the Namakwa SEZ complies with and is aligned with the Provincial Growth and Development Strategy of the Province, the Northern Cape Spatial Development Framework and the National Spatial Development Framework. Furthermore, the plan supports the concept of development corridors and local economic development.
Aggeneys is in the Khai-Ma Local Municipality within the Namakwa District Municipality of the Northern Cape Province. Aggeneys is 66km from Pofadder (headquarters of the local municipality) and 110km from Springbok, where the office of the district municipality is located. All three towns are on the N14, the national road that links Springbok with Pretoria. The proposed Namakwa SEZ is strategically located along a bulk commodity corridor, which runs from a planned port on the Atlantic coast (the Boegoebaai Deep Port Harbour) through Aggeneys to the large urban centre of Upington and beyond to the concentrations of iron ore and manganese ore at Sishen and Kathu. Upington Airport is capable of handling large aircraft. The railway line that currently transports ore from Sishen to the coast at Saldanha is one of the engineering marvels of the world, moving 40-million tons every year along an 861km route.
Building a new industrial city in the Northern Cape as part of the Northern Cape Industrial Corridor: Namakwa SEZ in Aggenys where you will live, work and play.
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Anchor investment The value proposition of the Namakwa SEZ is based on the existence of the Vedanta Gamsberg Zinc Mine and the proposed building of a smelter by Vedanta Zinc International. These would be the anchor tenants of the SEZ. In 2010 Vedanta Resources acquired Black Mountain Mining (Pty) Ltd from Anglo American. Black Mountain Mining (Pty) Ltd, part of Vedanta Zinc International, owns and operates the Gamsberg Zinc Mine. By 2014 environmental authorisation had been granted to Vedanta, together with a waste management and water-use licence. Versatile zinc offers great investment opportunities Zinc is an incredibly versatile and useful product so there are many investment opportunities related to Gamsberg and the proposed smelter within the Namakwa SEZ. Uses of zinc Coats and protects steel from corrosion, temperature and oxygen. Used in the automotive parts industry for door-lock housing, pawls, retractor gears and pulleys in seatbelt systems, camshafts and sensor components. Zinc oxide is widely used in the manufacture of several products such as paints, rubber, cosmetics, pharmaceuticals, plastics, inks, soaps, batteries, textiles and electrical equipment. Identified investment opportunities Fertiliser phosphates Sulphuric acid as by-product could allow for the establishment of a sulphuric acid plant to support and stimulate agriculture in the province. Zinc-coated steel The availability of locally-produced zinc concentrate creates production opportunities at steel plants throughout the country. Battery storage Zinc is a cheaper product than lithium for use in newtechnology batteries. New technology is creating opportunities for zinc-bromide redox flow batteries. Copper smelter project Potential for further exploration and mining in the region, which the smelter could stimulate.
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Development work began in June 2016 and the mine is currently mining four-million tons per annum and producing up to 250 000/tpa of zinc metal in concentrate for export. Th e m i n eâ€™s a p p rove d capacity to produce zinc and lead concentrate is 10-million/ tpa. The planned increase in volumes will lead to the concentrator plant producing 1.1-million/tpa of zinc and lead concentrate. The opencast mine and concentrator plant are being developed in phases. The construction of the concentrator plant began in 2017 with the official opening in February 2019. Phase 1 is complete, and planning work for the commencement of Phase 2 is currently underway.
Smelter It is proposed that a smelter be built to treat zinc concentrate produced at Gamsberg. The zinc concentrate produced at the existing concentrator plant will be treated in the smelter using the conventional roast-leachelectrowinning (R-L-E) process. The full process would involve the treatment of 680 000/tpa of zinc concentrate to produce 300 000/tpa of high-grade zinc ingots for export. As a by-product 450 000/tpa of 98.5% pure sulphuric acid will be produced for both export and consumption within South Africa*. Various types of infrastructure will be needed to support the smelter. These include: • Secured landfill facility: 21ha in extent and situated 1km away from the smelter, connected by a paved road. • New water pipeline: Approximately 7km water pipeline to connect the Horseshoe reservoir with the smelter complex.
• B usiness partner camp: 12ha for accommo-dation during the construction period. • L aydown area: 15ha for use during the construction period. • Upgrade of transmission line: upgrade 66kV transmission line to 132kV transmission line within the existing servitude and associated upgrades to the Eskom substation at Aggeneys. In 2018 alone, Vedanta spent R44-million on skills development, health, enterprise development and municipal infrastructure support, with a further R77.5-million spent with local businesses. In the period 2014 – 2019, Vedanta over R77 million on a range of CSR programs, and over R88 million on various training initiatives. Gamsberg is considered one of the most digitally advanced mines in South Africa, which will give impetus to the provincial ICT sector.
Downstream investment Non-ferrous metals such as zinc have characteristics that make them immensely useful in a wide range of downstream applications. Resistance to corrosion and their non-magnetic qualities are among the reasons for the wide range of uses to which they can be put. It is envisaged that investors wanting to take advantage of the by-products of the mine and the smelter will be attracted to the Namakwa SEZ. Various wastes and by-products will be generated by the smelter that could be useful to investors. Waste includes: Iron cake stabilized (dry), Jarofix; effluent treatment plant cake (dry); evaporation pond salts (dry); and cellhouse sludge (dry). By-products include: manganese cake (dry); Cu-Cd cement (dry); Co-Ni cement (dry); and sulphuric acid (wet). Investors in this category include businesses in the follow sectors:
NORTHERN CAPE BUSINESS 2020/21
• S ulphuric acid (including pharmaManufacturing Mining • Zinc • Galvanising-Steel, Regional c e u t i c a l, a u to m o t i ve • Granite wire, tube Inputs • Copper • Super alloys-automotive, • Rare Earth batter ies and paper 9 nuclear 2 • Rose Quartz • Batteries Engineering Mineral • Slate • Roofing & supplies bleaching) Processing • Mine • Zinc processing plant • Fertiliser • Agri • Zinc smelter • Renewable energy • Copper processing plant • Transport • Explosives • Construction 3 • Paints 8 Petro-chemical Agriculture There is another category • Sulphuric acid • Fertilizer • Agriculture supplies NAMAKWA • Explosives • Agriculture volume of potential investors in the • Paints SEZ consolidation • Hydrogen production • Agriculture processing SEZ who will provide ancillary Economic • Fertilizer Phosphates & packaging 4 Cluster services to the companies 7 Contruction Pharmaceuticals using the by-products of the & food • Mine • Smelter • Zinc • Housing mine and smelter complex. • Food Additives • Regional 5 • Hoodia 6 • Harbour These include: • Dam Transport Localisation & Supplier Development • Construction Regional • Mine & Agriculture Regional • Incubator • Regional Exports Consolidation • Skills Development • Engineering • Depot + Services • Agri consolidation • Transport • Storage • Housing A third category of investor will provide power, over and above Benefits of SEZ investment what is available from the national grid. All of the enterprises within the SEZ will require power, so the opportunity exists for independent The planned Namakwa SEZ power producers to propose alternative energy sources. reflects a trend in South African The Northern Cape is already the country’s leading province industrial planning. National with regard to solar power, and there are also a number of windgovernment is supporting the power projects operating throughout the province. A total of 18 idea of creating industrial parks investments were made into the province between January 2011 and SEZs as a means to cluster and March 2016. Companies from a wide array of countries were together businesses that can among the successful investors including Enel Green Power (Italy), benefit from proximity to one ACWA Power International (Saudi Arabia), Mainstream Renewable another and as a way to boost Power (Ireland) and Accione (Spain). local manufacturing through incentives and tax rebates. The policy aims to attract new skills and develop new industries. SEZs are created in terms of an act of the national parliament, the Special Economic Zones Act of 2014 (Act 16 of 2014). The act defines an SEZ as “geographically designated areas of the country that are set aside for specifically targeted economic activities and supported through special arrangements and systems that are often different from those that apply to the rest of the country”. Lower corporate tax rates and duty-free imports NORTHERN CAPE BUSINESS 2020/21
are among the advantages that accrue to investors. Key goals behind the establishment of SEZs are: • To encourage industries to develop in clusters, leading to economies of scale, skillssharing and easier access by suppliers • To c r e a t e i n d u s t r i a l infrastructure to promote investment • To promote cooperation between the public and private sectors • To use the zones as a launching pad for other developments. Apart from attracting foreign direct investment and boosting employment, SEZs can also play a role in adding new sectors or subsectors to an economy. Various industrial parks (private or public) are pursuing similar goals. The emphasis in most of these initiatives is on beneficiation, mainly of minerals but also of agricultural products. South Africa’s most recent Industrial Policy Action Plan has a manufacturing focus, so beneficiation supports the diversification of the economy and strengthens the country’s ability to make things. The cur rent suite of incentives consists of tax incentives, administered by
SARS; grants, administered by the DTIC; and various incentives offered by the municipalities where the SEZ is located. The SARS-administered tax incentives are as follows: • Corporate Income Tax Incentive: Businesses located in a SEZ may be eligible for a reduced rate of 15 percent. • Building Allowance: Businesses and operators may be eligible for the building allowance which allows companies to reduce their taxable income linked to expenditure incurred on the cost of any new or unused building or improvement. This allowance may be claimed at a rate of 10% per annum. • Employment Tax Incentive: Allows employers hiring people, regardless of age, to reduce the amount of employees’ tax paid on behalf of their employees whilst leaving the wage received by the employee unaffected. It allows employers hiring people to reduce the amount of employees’ tax paid by the employer. This creates a cost-sharing mechanism between employers and government. • Customs and Excise Incentive: Goods imported into a customscontrolled area (CCA) situated in a SEZ are relieved from applicable import customs, excise duties and economic restrictions whilst stored and undergoing manufacturing (which includes processing, cleaning and repair) within the CCA. Goods manufactured in the CCA and subsequently supplied to the local domestic market are subject to the payment of the import customs and excise duties that were relieved at time of importation on the imported goods (raw materials). The liability for customs and excise duties, which enjoyed relief on imported goods used in manufacturing in the CCA, cease upon subsequent export. • Value-Added Tax Incentive: Goods and services that are acquired from the domestic market are charged with VAT at 0% and the import of goods is exempt from VAT. This applies only in the SEZs CCA. ■ * This information is taken from the Draft Scoping Report, NonTechnical Summary, prepared by SLR Consulting, January 2020.
Contact Details Address: Northern Cape Department of Economic Development and Tourism, Metlife Towers, Corner Stead and Knight Street, Kimberley 8300 Enquiries: Riaan Warie (Director: Trade & Investment Promotion) Tel: +27 87 310 7683 • Fax: +27 53 831 3668 Fax2email: 086 641 9321 • Cell: 079 877 2828 Email: email@example.com or firstname.lastname@example.org Website: www.northern-cape.gov.za/dedat Enquiries: Mr Hendrik Louw (Director: Regional Economic Development) Email: email@example.com Tel: +27 53 802 1638 • Cell: +27 81 323 2533
NORTHERN CAPE BUSINESS 2020/21
Promotion of Economic Grow Development in the Norther FOCUS
De Aar Logistics Hub Centrally located hub will reduce costs and improve efficiency.
PROJECT VALUATION SUMMARY
De Aar is strategically located in the centre of South Africa. It is a major rail junction at the intersection of the Cape Corridor (Johannesburg to Cape Town), the Namibian corridor (Gauteng to Namibia) and provides a link to the three ports of the Eastern Cape. The N10 road highway (Port Elizabeth outskirts to Upington) passes through the town.
Project cashflows Project IRR
Equity cashflows Equity IRR
Equity NPV Payback period
There are inefficiencies in the transport sector which restrict economic growth and job creation because over 80% of freight in South Africa is moved via road. The result of this is poor road conditions which have an impact on product quality, product losses and substantial expenditure towards vehicle maintenance and related costs. The result is increased operational expenditure for miners and farmers. The Northern Cape is a major exporter of table grapes, fruit and meat and is responsible for much of the cattle, sheep and goat farming in the country. Long distances and poor access to markets and storage facilities are limiting profitability for farmers. Small-scale and emerging farmers are excluded from exporting due to the lack of critical mass and other dynamics such as access to markets and financial resources. The mining sector has expressed similar concerns. Approximately 60% of the commodities from three large producers (BHP, Kumba and Assmang) is already moved from Hotazel by rail through the province via De Aar or Bloemfontein to Port Elizabeth. Various other commodities are moved via rail through the town of De Aar, of which
18.8% 209 146 8 years
the most notable are cement from Ulco (domestic market), coal and lime, and containers holding general cargo and automotive components. Train drivers and locomotives are changed in De Aar which supports the concept of De Aar becoming a consolidation point for freight to ensure migration from road to rail due to its location and connectivity. The De Aar Logistics Hub serves as the first step for the long-term solution sought by the Northern Cape Department of Transport, Safety and Liaison (NCDTSL) to optimise the freight strategy and logistic functions of the province.
Project desription The project entails construction of an inland intermodal system comprising a container terminal, a vehicle parking terminal, and a warehouse/cold room terminal. Once completed it is envisaged that De Aar Rail Freight Intermodal Terminal will be an internationally accessible trade free zone, with facilities that can handle intermodal operations, warehousing, logistical services and a rail cargo-carrying service.
Project objectives The long-term goal is to provide a sustainable transport network for the transportation of freight/ commodities by miners and farmers using the hub NORTHERN CAPE BUSINESS 2020/21
FOCUS as a central storage facility that can be redistributed to its destination via rail. The immediate plan is to develop SMME enterprises that will benefit from the hub’s key facilities such as the storage, foodprocessing plant and a multi-purpose container depot. Local SMMEs will participate in an enterprise development and incubation programme that will prepare them to play an integral part in providing core services.
50 to 60mtpa predominantly for the export market
18mtpa for the local and export markets
15 000 units per annum
2mtpa (exports and local markets)
45 000 tons (provincial market)
Upington Cargo Hub
Tonnages to be confirmed and to serve the export market
The project has the potential to add R1.7-billion to local economic development in the Pixley ka Seme District and to create 2 475 temporary and full-time jobs.
Tonnages to be confirmed
Transnet Strategic Material Supply Hub
Tonnages to be confirmed for provincial market only
the car parking terminal, container terminal and the cold-room warehouse. Development of the project is estimated at 24 months. The proposed funding structure entails a cash equity injection of 15% and the balance being funded through senior and subordinated loans.
Project structure The Northern Cape Department of Transport, Safety and Liaison appointed a team of specialist advisors to embark on Transactional Advisory (TA) Services, spearheaded by the TM/Nelutha Consulting Joint Venture to determine project feasibility and to develop the De Aar Logistics Hub business case. This project will be structured as a Public Private Partnership (PPP) and by using the PPP model in terms of Treasury Regulation 16 issued to the Public Finance Management Act (PFMA) No 1 of 1999.
Potential commodity mix The Northern Cape has many commodities that can be traded and transported via the De Aar Logistics Hub which could serve as a catalyst for local and regional economic development (see table above).
Contact details: Northern Cape Department of Transport, Safety and Liaison Tel: +27 53 839 1743 Email: firstname.lastname@example.org ■
Total development costs are estimated at around R780-million, excluding borrowing costs during construction. This will be expended in building Company
2020 2020 2020 2020 2021 2021 2021 2021 Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4
DTSL/TM-NELUTHA Conclusion of land acquisition process TM-NELUTHA
Commencement with the scoping study and engage-
ment with the authorities for environmental process
Environmental Impact Assessment Study
Establishment of the project management office (PMO)
Setting up of ICT infrastructure and project data bank
Updating of Feasibility Study Reports
Revision of Commodity Demand Mix Studies
Updating of Financial Model FASKEN
Legal Services/Revision of Commodity Demand Mix Studies
NORTHERN CAPE BUSINESS 2020/21
Promotion of Economic Growth a Development in the Northern Ca
Project Sheet 21 June 2018
t and Rail Project
13th Fl, Cn Posta
Department of Transport, Safety and Liaison (NCDTSL)
nal Department of Transport, Department of Public Enterprises, Treasury
a Consulting JV (TM)
stics, NAKO ILISO
Port and Rail Infrastructure Development Project.
FEL2 phase. Finalisation of FEL2 is planned for December 2018.
n +/-40% accuracy. Rail = ~R9 billion +/-50%
nt and 18 000 indirect jobs
· To optimise the cargo distribution within the South African port system. · Stimulating regional and provincial socioeconomic development. · Securing a competitive advantage regionally for South African ports. · Offers an alternative to Saldanha Bay for exporting surplus volumes of minerals.
tudy at FEL 2 level to be completed end of April 2019
dry bulk export ail line (550 modate
Boegoebaai is approximately 60km north of Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area.
catalyst for y constrained usion from danha line ganese route on gas fields mining
Targeted sectors Exporting dry bulk, liquid, bulk commodities and containerised multi products.
he SA port
opment ly for SA
The Northern Cape Province has the volumes of commodities to Comment warrant a deep-sea commercial New volume from junior miners port, specifically as a result of mining and agricultural Lower cost logistic solution activities. All commodities are currently transported Closest port to mines Multi-purpose commodities, mining and low container volumes via road agricultural, or rail for exports through ports in other provinces, effectively making the Northern Cape province economically landlocked, even though it has access to 338km of Atlantic coastline. Despite a 70% gross domestic product (GDP) growth in the transport sector between 2010 and 2016, save for Port Nolloth, the Northern Cape did not experience the GDP growth as a result of seaport activities. The Boegoebaai site has all the advantages for the potential development of a deep-sea port, namely: the 20-metre contour is 250m offshore and it is a greenfield site owned by the people of the Richtersveld through the Community Property Association (CPA).
Project metrics Capital cost
Temporary jobs created during construction 1 000 per year over 3 years Permanent jobs created at the port
Export volumes On average 9 megatons per annum of dry bulk
On average 30 000 TEUs per annum
Import volumes On average 1.5 megatons per annum
On average 100 000 TEUs per annum
Project indicators Project IRR
Economic IRR Economic NPV Economic Benefit Cost Ratio
Project key drivers
Economic benefits to the region over time
· To reduce the economic cost of moving cargo within the Northern Cape hinterland. · To unlock greater export logistics capacity for minerals from the Northern Cape.
•Land values increase
NORTHERN CAPE BUSINESS 2020/21
• Surrounding towns expand and develop
•Additional jobs in the mining sector due to expansion in export of minerals
47,4% +R43.72-billion 2.43
Boegoebaai: Port, Rail & Infrastructure Development Project Project Location The Boegoebaai Port, Rail & Infrastructure Development Project is situated approximately 60km north of Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area. The figure below shows the position of Boegoebaai.
Project description Deep-water port development comprising two berths: one dry bulk export berth and one break bulk berth, supported by a 550km railway line, bulk services and associated social infrastructure.
Transaction advisory team TM/Nelutha Consulting (JV) was appointed by the Northern Cape Department of Transport, Safety and Liaison (NCDTSL) to embark on Transactional Advisory Services to assist with project structuring, technical feasibility, financial viability and potential funding mechanisms to realise the dream of a Northern Cape Deep Water Port which is strategically poised to support producers with exports and to attract potential investors.
Public-Private Partnership This project will be structured as a PPP, primarily to transfer risk and to source investment. Optimal risk allocation creates value. By granting a long-term
concession, market, investment and operational risks can be transferred to a terminal that can absorb part of the commercial risk. A PPP for a deep-water port of the nature being contemplated at Boegoebaai would typically operate within a concession framework. This means that the private party/concessionaire is granted permission by the appropriate public procuring entity to design, build, finance, insure, operate and maintain the port and collect revenues from it, for a fixed period of time after which the port will be handed back to the public entity. The project is being developed in terms of the PPP Project Cycle in terms of the Treasury Regulation 16 of the Public Finance Management Act, 1999. The development of a Northern Cape Provincial SEZ Establishment Framework will be used for a Special Economic Zone as an economic growth and development instrument to attract new local and foreign investment. NORTHERN CAPE BUSINESS 2020/21
Marine infrastructure design*
Landside infrastructure design*
Project technical coordination
Marine infrastructure design
Project technical coordination
Landside infrastructure design
Landside infrastructure design
PRDW SURVEY STUDIES
Site monitoring (marine)
NAKO ILIOS SURVEY STUDIES
Landside topographical survey
PMO, ICT, Transaction Advisory, ICT and Financial Model
2018 2019 2020 2021 2022 2023 2024 2025
To date the following FEL2 deliverables have been completed: • Marine Infrastructure Design • Landside Infrastructure Design • Setting up of Project Management Office • Legal Services, ICT and Financial Modelling
* (invoiced to date)
Project status Business case and feasibility studies reports have been completed and submitted as part of TA1 National Treasury’s approval process. The table above outlines the project’s deliverables both completed and outstanding, as well as their respective budgets. ■ Project contacts
Dept of Transport, Safety
Mr MP Dichaba
+ 27 53 839 1743
082 675 1933
Dept of Transport, Safety
Mr P Mguza,
+27 53 807 4812
079 694 3254
National Dept of Transport
Mr Clement Manyungwana
+27 12 309 3408
083 679 9662
Transnet Nat Ports Auth
Mr H Nxumalo
+27 31 361 8821
083 299 7966
Mr P Maniza
+27 53 833 1010
082 889 3685
Mr T Mqina
+27 53 833 1010
065 907 8401
NORTHERN CAPE BUSINESS 2020/21
Northern Cape Chamber of Commerce and Industry Your ultimate business connection.
Our heritage in brief
and unify their thinking as they work together – committees accurately sense the environment, process information and provide valuable guidance to the member • Holds functions and special events, allowing members to network and learn about interesting topics
NOCCI was established on 22 February 2000 when the Chamber of Business and the Kimberley Afrikaanse Sakekamer amalgamated. At the time, these two organisations had served the business community of Kimberley for 120 years.
Can you afford not to belong? The increasingly complex business and social environment requires a comprehensive support structure to ensure the most favourable climate for the continued viable existence of individual businesses in a system of free enterprise. At the same time, the Chamber movement facilitates adjustment by business to those realities that cannot be altered. Involvement in the Chamber movement bears abundant fruit for the well-being of each business. If you are a businessperson with vision, you cannot afford not to join the Chamber movement.
From left: Cornel Nel (Personal Assistant), Sharon Steyn (CEO of NOCCI) and Beverley Deke (Members Manager)
Membership advantages A Chamber assesses and evaluates the needs of the local business community, in particular the need for services to small business at a reasonable cost: • Monitors developments at the local level • Mobilises business opinion on local issues • Exerts a positive influence on the environment in which business operates and helps prospective members grow their business • Promotes and encourages the pursuit of a high standard of business ethics • Disseminates information that is useful to the business fraternity • Creates opportunities for improving business skills • Extends business contacts locally, regionally and nationally, and allows individual businesspeople to share in the provincial and national business decision-making processes • Upholds the market economy and private enterprise system • Has committees which are ideal places for members of diverse interests to consolidate
Executive Committee of NOCCI Chairperson: Hendrik Wessels (Bookkeepers Online) 1st Vice-Chairperson: Tasneem Motlekar (Engelsman Magabane Inc) 2nd Vice-Chairperson: Pieta Serfontein (Hancor Dairy) Treasurer: Anton Nicolaisen (Standard Bank) Executive members: Hannes van Niekerk (Super Armature Winding), Harry Hurndel (Roburn Construction), Innes Joubert (GWK), Jaime Goncalves (KEW), Johan Du Plessis (DFA), Lian Laing (Ekapa Mining), Louw Van Rheenen (Beefmaster), Nicola Smith (ACSA). ■
Contact info CEO NOCCI, Kimberley: Sharon Steyn Tel: +27 53 831 1081 | Fax: +27 53 831 1082 Cell: 083 457 8148 | Email: Sharon@nocci.co.za Website: www.nocci.co.za
NORTHERN CAPE BUSINESS 2020/21
Investment projects Project location
The town of Postmasburg is located in the Z F Mgcawu District Municipality, 196km from Kimberley (to the south-east) and 217km from Upington (to the south-west).
There are many commercial and smallscale stock farmers in the district. Distance from market and access to processing plants are limiting factors for farmers. A meat-processing plant will focus on beef and game meat-processing, drawing from suppliers in the surrounding district.
Sector Poultry & packaging Agri-processing and packaging Investment value ±R20-million Job creation 60 (direct & indirect/ construction phase)
The town of Danielskuil is located on the R31 road south of Kuruman and between Upington and Kimberley in the Z F Mgcawu District Municipality.
Poultry farming has low barriers to entry and is therefore a good response to dealing with food security. A poultryprocessing facility would give small-scale farmers a chance to create more value for their chickens.
Sector Wollastonite mining Investment value ±R100-million Job creation 40 (direct & indirect/ construction phase)
Keimoes is about halfway between Upington and Kakamas in the Z F Mgcawu District Municipality.
Wollastonite is a mineral that has several industrial applications. The mining sector in the Northern Cape is well-established with good infrastructure and there are strong support systems for investors. Wollastonite has applications in plastics, as a paint filler and in ceramics, among other things.
Sector Agri-processing and farming Investment value ±R20-million Job creation 50 (direct & indirect/ construction phase)
Kakamas is located on the banks of the Orange River on the N14 highway that connects Springbok with the interior. Kakamas falls under the Z F Mgcawu District Municipality.
Small-scale farmers and producers are often restricted in their growth through not gaining good value for their products because they are sold in their raw state. The Ecksteenskuil Raisin Co-operative in Kakamas seeks to change that by engaging in processing to add value to their raisins.
Sector Agri-processing Investment value ±R15-million Job creation 30 jobs (direct & indirect/ construction phase)
Four of the current development projects currently seeking investor partners in the Northern Cape.
FOCUS To discuss these and other opportunities, contact: Babalwa Mbobo, Sector Specialist, NCEDA Tel: +27 54Â 333 1137 Mobile: +27 78Â 179 7611 Email: email@example.com
Project description The company intends to establish a beef and game-processing plant in Postmasburg. Investors are invited to participate. The plant will act as an agri-hub, using the value chain network created by the Agri-parks programme. This project will enable the growth of market-driven commodity value chains as well as contributing to the achievement of rural economic transformation.
Project description Investors are invited to support a poultryprocessing and packaging company in the rural town of Danielskuil. There is good access to the urban concentrations of Upington and Kimberley. Chickens will be sourced from the network arising from the Agri-parks programme and the plant will act as an agri-hub.
Project description The company intends to establish a wollastonite mining and beneficiation plant. Investors are sought to finance the project which will contribute to local economic growth.
Finance Property developers and investors. Partnerships Northern Cape Economic Development Agency (NCEDA), Department of Trade, Industry and Competition (dtic). Project status Project feasibility complete Business case complete.
Finance Property developers & investors. Enabling infrastructure and various incentives will be available from relevant national government, provincial and municipal authorities as part of support for the project. Partnerships Northern Cape Economic Development Agency (NCEDA), Department of Trade, Industry and Competition (dtic). Project status Project feasibility complete. Business case complete.
Finance Property developers and investors. Enabling infrastructure and various incentives will be available from relevant national government, provincial and municipal authorities as part of support for the project. Partnerships Northern Cape Economic Development Agency (NCEDA), Department of Trade, Industry and Competition (dtic). Project status Project feasibility complete. Business case complete.
Project description Ecksteenskuil Raisin Co-operative grows and produces raisins. Investors are needed for the project. This is a community project which benefits a wide range of families and farmers. Investors will enable the growth of a marketdriven commodity chains and contribute to rural economic transformation.
Finance Property developers and investors. Enabling infrastructure and various incentives will be available from relevant national government, provincial and municipal authorities as part of support for the project. Partnerships Northern Cape Economic Development Agency (NCEDA). Project status NORTHERN CAPE BUSINESS 2020/21 25 Project feasibility complete. Business case complete.
see money differently
NEDBANK BUSINESS BANKING AIMS TO SUPPORT ALL BUSINESS SECTORS Gary Long, Nedbank’s Provincial Business Banking Manager for the Free State and Northern Cape, says there is good news for Free State and Northern Cape business owners and entrepreneurs.
edbank Business Banking has 18 business managers in the two provinces who are specialists in commercial industries, agriculture and the public sector. ‘At Nedbank Business Banking, we believe that you need a flexible, resilient financial partner who not only understands your circumstances and aspirations, but who also provides you with relevant solutions and a banking experience that is hasslefree, allowing you to concentrate on what’s most important to you – running your business,’ says Long. Our bigger-picture banking approach enables us not only to provide you with the banking solutions you need, but also to give you a holistic view of how our products are connected to create a framework that yields maximum impact across every facet of your business and beyond. We know that success in business is about partnerships, and that is why 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 additional support
We understand that the various spheres of government and their agencies face unique challenges, and are ready and able to draw on the bank’s innovative, seamless and hasslefree products to help build a greater nation.
that is most needed in times of change and uncertainty. Nedbank has a dedicated public sector team to provide financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges, and are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation,’ says Long. If you are interested in taking your business to the next level, please contact Gary Long on +27 (0)72 985 5009 or GaryL@nedbank.co.za or visit www.nedbank.co.za/business.
see money differently
MONEY EXPERTS SERVING THE FREE STATE AND NORTHERN CAPE BUSINESS COMMUNITIES Heino Bosman, Nedbank’s Regional Manager for the Free State and Northern Cape, explains how Nedbank continues to build on its client-centred strategy aimed at delivering distinctive experiences for businesses in the region.
nnovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives. At the core of Nedbank’s offering in the Northern Cape and Free State is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank. Bosman’s team operates from offices in Kimberley and is ready to assist clients with professional advice, industry-specific solutions and a comprehensive range of financial products and services. In addition, his team is supported by skilled agricultural specialists, who provide specialised advisory services.
Bosman says the bank encourages its clients to see money differently with the bigger-picture approach that Business Banking offers. ‘This is an additional benefit of banking with Nedbank Business Banking and means that your business and your personal financial needs are managed in one place. Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to them and their staff, because
… an additional benefit of banking with Nedbank Business Banking and means that your business and your personal financial needs are managed in one place.
we already know and understand their needs,’ he says. ‘We believe you need a financial partner with a thorough understanding of your business, and who offers innovative, relevant solutions and support and gives you a banking experience that is hasslefree. As money experts, we are committed to doing good, so you can concentrate on making a success of your business and contributing to building the economy as a whole,’ says Bosman. If you are interested in taking your business to the next level and would like more information about Nedbank’s specialised service offering, please call Heino Bosman on +27 (0)76 011 1400, send an email to HeinoB@nedbank.co.za or visit www.nedbank.co.za/business.
see money differently
SOLUTIONS FOR SMALL BUSINESS AIMED AT CREATING JOBS AND GROWING THE ECONOMY Nedbank’s Provincial Manager of Small Business Services for Free State and Northern Cape, Kim Lawrence, explains how Nedbank is committed to partnering with businesses for growth.
mall businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the smallbusiness sector. Over and above our Small Business Services solutions, we provide small-business owners with support that goes beyond banking – freeing up their time to truly focus on running their businesses,’ she says. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as SimplyBiz.co.za, The
Essential Guide for Small-business Owners, business registration services and free small-business seminars – all geared to
support small and medium enterprises. SimplyBiz.co.za is a free-to-join networking portal designed especially for small businesses. It helps them improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas. The Essential Guide helps entrepreneurs be better prepared for engagements with the bank to avoid common mistakes and be set up for success from the start, while our business registration services allow you to
The Essential Guide helps entrepreneurs be better prepared for engagements with the bank to avoid common mistakes and be set up for success from the start.
register your business online through SwiftReg and open a business account online in one seamless process. ‘Our experts are available to provide all the support you need when starting off. Nedbank offers simple, affordable banking solutions and value-added services to get you and your business going,’ says Lawrence. If you wish to tap into our small-business expertise to reach your business goals, get in touch with Nedbank’s Small Business Services. Call Kim Lawrence on +27 (0)82 352 2964, send an email to KimL@nedbank.co.za or visit www.nedbank.co.za/business.
see money differently
MONEY EXPERTS BRINGING 21ST-CENTURY BANKING TO ALL COMMUNITIES Chantelle Kuhn, Nedbank’s Provincial Sales Manager for the Free State and Northern Cape, says that a deep connection with the community is what underlies the team's personal and professional values.
'We help them save time by providing onsite assistance from our dedicated teams, and we help them save money through our preferential banking packages and our award-winning Financial Fitness and Consumer Education programmes. These
help them manage their money better by providing budgeting and money management training, equipping their staff to deal with everyday money management challenges better.' And the innovative banking journey continues, ensuring greater value for clients. Our market-leading Nedbank Money app allows clients to manage accounts and investments, make payments and set savings goals and budgets from their smartphone. The Money app also allows clients to make instant payments to anyone on their smartphone’s contact list, even if the recipient is not a Nedbank client.
Our market-leading Nedbank Money app allows clients to manage accounts and investments, make payments and set savings goals and budgets …
Kuhn adds that working with communities is entrenched in the bank’s values through community development, skills development, education and job creation, as well as environmental conservation. ‘These play a vital role in building a sustainable economy and vibrant society. We believe our fast-growing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,' she says. If you are interested in taking your business to the next level and would like more information about Nedbank’s specialised service offering, please call Chantelle Kuhn on +27 (0)83 236 0527, send an email to ChantelleK@nedbank.co.za or visit www.nedbank.co.za. Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
uhn says that, as money experts who do good, Nedbank strives to empower the people who drive the Northern Cape and Free State economies by saving them time and money, as well as helping them manage their money better through the bank’s Workplace Banking.
NORTHERN CAPE BUSINESS 2020/21
KEY SECTORS Overviews of the main economic sectors of the Northern Cape. Agriculture 32 Water 35 Wine and grapes 36 Overviews of the main economic Mining 38 sectors Engineering 42 of the Northern Cape Tourism 44 Education and training 46 Agriculture 34 Energy 50 Grapes and wine 38 Banking and finance 52 Mining 42 Development finance Water and SMME support 50 53
Banking and financial services 58 Centre The Mittah Seperepere Convention in Kimberley can accommodate up to Development finance 2Â 500 delegates. Kimberley hosted the SA and SMME support 60 Open Chess Festival at this venue in 2019.
Image: SAOpen2019.com. 31
NORTHERN CAPE BUSINESS 2020/21
Agriculture Rooibos is a hit around the world.
Image: Bokkeveld Rooibos
rom a funky coffee bar in Des Moines, Iowa, to the refined palates of discerning Japanese tea-drinkers, rooibos is on trend around the world. And that’s good news for farmers and producers in the Northern Cape. Bill Bryson was famously sniffy about the sophistication of his hometown in the middle of America, but at Zanzibar’s Coffee Adventure in downtown Des Moines, red cappuccino is now a popular favourite. Using rooibos allows for any style of espresso that comes without the caffeine kick. Rooibos has not yet made a big dent in the 200 000 tons of tea consumed by Japan every year, but sales grew 7% in 2018 and introducing a new variety to a country of tea aficionados is easier than tackling a nation of coffee drinkers. A total of 2 000 tons were shipped to Japan from South Africa in 2018. Rooibos is competing in the “Healthy Tea” segment and a popular restaurant chain’s decision to use the tea as a complement to its pork bone broth has helped to promote the product. Brazil is being explored as a potential market. Recent studies proving that rooibos tea increases antioxidant capacity in human blood are further proof of the beverage’s healthy qualities. The unique climate and soil of the western part of the province support this niche crop. About 6 000 tons of tea is exported to more than 30 countries and domestic consumption is about 8 000 tons. The South African Rooibos Council states that more than 5 000
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Sector Insight • Food security is a key concern for social planners. • The successful goat kid project has expanded to Botswana. people are employed in the rooibos industry. Only the leaves of the Aspalathus linearis (a legume that is part of the fynbos family) are used in making rooibos (Afrikaans for “red bush”). Harvested while still green, the leaves are left to dry and ferment in the sun after being cut up. Naturally high in a range of vitamins and potassium, zinc and iron, its low tannin content makes it an excellent alternative as a hot drink. Another niche product of the Northern Cape is karakul
OVERVIEW pelt, which is a speciality of the Gordonia district of Upington. This exclusive product is distributed via the capital of Denmark and the Italian fashion capital of Milan. Copenhagen is the site of two auctions of karakul pelts that are held annually. Agri-company KLK is the only organisation that handles these pelts in South Africa. Glovemakers in Milan are among the international clients to whom farmers of the dorper sheep breed sell the wrinkle-free skins of their sheep, at good prices. Another exclusive niche is horse stud breeding, a speciality of the area around Colesberg, where the cold evenings and warm days combine to drive out disease and promote strong growth. Among the studs are Henham and Southford, a 900ha property near the Gariep Dam which once was home to the famous stallion “Damask”. Compared to other types of manufacturing, agri-processing can be scaled up relatively quickly with good financial rewards. It can also be labour-intensive. As such, agri-processing is a key plank in the growth plans of the Northern Cape. Work has already been done in providing manufacturing f a c i li t i e s fo r ro o i b os a t Niewoudtville and investments have been made in fisheries and new vineyard development for groups of people who previously had not had exposure to the grape and wine sector. The Northern Cape Department of Agriculture, Land Reform a n d R u r a l D e ve l o p m e n t (DALRRD) was behind the
rooibos tea factory, which now trades as Bokkeveld Rooibos. The factory takes tea from 85 local farmers with the goal of helping to integrate these farmers into the agricultural and agri-processing business chain. Two areas of interest to assist small-scale farmers are being explored with regard to hemp and crops that can produce liquor. The dry interior of the Northern Cape is suitable for the growing of Agave that provides the source material for tequila and there are several other opportunities. The rapidly-changing legislative environment for hemp and marijuana holds potential in textiles and medicine. A programme to empower black farmers is supporting six farmers in 2020. The Commercialisation of Black Producers Programme targets farming and agri-processing in the expectation that graduates will mentor young people and create employment. The commercialisation of the goat project which was successfully extended to Namibia has now been further expanded to include Botswana. Small-scale farmers are being given access to market and further expansion is expected.
Food security The Integrated Food Security and Nutrition Programme aims to promote and support urban agriculture and to support community and institutional food gardens. Beneficiaries practising poultry farming in their backyards will receive broilers and layers for egg production. This will improve household nutrition and generate income. Long-term thinking underpins the adoption by the provincial government of the Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle drought and other climate change issues. Occupying 36-million hectares, the Northern Cape is the largest province in the country, almost a third of South Africa’s total land area. Although the province is a predominantly semi-arid region, agriculture is a major component of the regional economy and the province’s farmers contribute 6.8% to South African agriculture. The agricultural sector also plays a vital role in the broader economy of the Northern Cape, employing as it does about 45 000 people. This represents about 16% of employment, a much higher figure than the national figure of 5.5%.
Online Resources Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development, Trade and Investment Promotion Agency: www.nceda.co.za South African Pecan Nut Producers Association: www.sappa.za.org South African Rooibos Council: www.sarooibos.co.za Zanzibar’s Coffee Adventure: www.zanzibarscoffee.com
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OVERVIEW BANDIT – EXPERIENCE THE BEST OF BOTH WORLDS First-world technology and quality combined SABS-approved roadworthy trailers built at Africa with African simplicity. The main woodchipper Biomass Company in Worcester, South Africa. unit is manufactured by Bandit Industries, Inc. Engine-powered woodchippers are fitted with 35-plus years’ experience with Tier 3, South African standard, diesel or in innovation and international petrol engines, depending on the woodchippers’ research. These units specification or clients’ preference. Electric and PTO are shipped to options are also available in various Bandit models. South Africa The add-ons are specifically handpicked to give where they are you the best set-up and will provide you with a fitted onto well-balanced woodchipper that will outperform most other chippers in Africa.
Agricultural development takes place along defined corridors within the province: In the Orange River Valley, especially at Upington, Kakamas and Keimoes, grapes and fruit are cultivated intensively. High-value horticultural products such as table grapes, sultanas and wine grapes, dates, nuts, cotton, fodder and cereal crops are grown along the Orange River. Wheat, fruit, groundnuts, maize and cotton are grown in the Vaalharts Irrigation Scheme in the vicinity of Hartswater and Jan Kempdorp. The Vaalharts Irrigation Scheme is one of the biggest systems of its kind in the world. Ranging over more than 30 000ha, it has transformed a semi-desert zone into a productive area that sustains cotton, wheat, maize, lucerne, citrus, peanuts, fruit, grapes, olives and pecan nuts. Vegetables and cereal crops are farmed at the confluence of the Vaal River and the Orange River in the vicinity of Douglas. Of the nearly 40-million 10kg bags of onions produced in South Africa (outside of linked production chains set up by supermarkets), about 10-million 10kg bags come from the Northern Cape. Wool, mohair, karakul, Karoo lamb, venison, ostrich meat and leather are farmed throughout most of the province. The province is second only to the Eastern Cape in terms of the number of sheep farmed and is the fourth-largest wool-producing province based on annual sale of producer lots. The Beefmaster abattoir in Kimberley is one of three abattoirs in South Africa to export frozen beef to China. The company processes and packages about 30 000 tons per annum at the abattoir.
Companies KLK is based in Upington and does much more than karakul pelts. The company’s interests include 19 retail outlets, 12 petrol stations, four Build it franchises and a strong auction division. KLK runs three abattoirs in NORTHERN CAPE BUSINESS 2020/21
Calvinia, Carnarvon and Upington that slaughter lamb and beef carcasses. SA Dorper manages the production and export of dorper skins and the production of cattle hides. GWK is another company with its headquarters in the Northern Cape, in this case the town of Douglas. Senwes is one of the country’s biggest agri-companies and its Northern Cape area of operation is mostly around the Vaalharts irrigation area, which is close to the headquarters just over the provincial border in North West, at Klerksdorp. Storage and handling of grains and oilseeds are the speciality of Senwes. OVK controls the large Gariep abattoir at Strydenburg, which has a daily capacity of 1 300 sheep, 100 cattle and either 250 ostriches or 750 small game animals. OVK also has trade branches, vehicle dealerships, a finance division and manufacturing facilities for maize meal and wheat meal. Kaap Agri, a Western Cape company, has a significant presence in the Northern Cape and Namibia. ■
Water A water equity scheme is under discussion.
he right to use water in a water-scarce area can often be a contentious issue. An analysis of Water Equity Schemes is underway to establish whether or not they are working to the benefit of intended beneficiaries. It is thought that if the scheme is correctly applied, more than 3 000ha of land currently lying fallow could be brought into production for food security and for the cultivation of high-value crops. One of the major private suppliers of water in the province is Sedibeng Water. Sedibeng Water’s Central Laboratory, based at Balkfontein near Bothaville, is accredited by the South African National Accreditation System (SANAS). A new laboratory has been built to monitor the quality of water at the revamped Vaal Gamagara scheme. The laboratory’s four sections cover Instrumentation, Wet Chemistry, Sewage and Microbiology.
The Eye of Kuruman Six municipalities have been identified for the eradication of informal settlements. A major obstacle in the municipalities of Sol Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and Ga-Segonyana is the lack of bulk water and sanitation facilities. Ring-fenced funding in terms of the Division of Revenue Act has been approved. Two of South Africa’s great rivers meet in the Northern Cape at a point south-west of Kimberley. After absorbing the Vaal River, the Orange River continues westwards to the Atlantic Ocean and provides the basis for agriculture all along its path.
Online Resources National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za
Sector Insight The Vaal-Harts irrigation system supports intensive agriculture. North of Kimberley, the confluence of the Vaal and the Harts rivers encompasses one of South Africa’s most intensely irrigated areas. The Vaal-Harts irrigation system is one of the most productive in the country, covering about 38 000 hectares with a variety of crops. Various water users’ associations (WUAs) representing particular areas (such as the Vaal-Harts) are recognised by the national water authority. Two of South Africa’s biggest dams, the Gariep and Vanderkloof, also provide water for irrigation and hydro-electric power. Many parts of the province are dry with sections of the north and northwest classified as semi-arid and arid. The southern Kalahari Desert receives rain but the fact that mining is a primary economic activity in the dry regions of the province presents many challenges. The town of Kuruman is an exception in that it has a natural and prolific spring, the Eye of Kuruman. Engineering group ELB Group has been appointed by Vedanta Zinc International to do a wide range of jobs at its new Gamsberg project. This includes laying a water pipe from the Orange River to the mining company’s processing plant. ■ NORTHERN CAPE BUSINESS 2020/21
Grapes and wine The Orange River region punches above its weight in grape and wine production.
Photo: Dippenaar Choice Fruit
he word “audit” is normally associated with financial institutions or public bodies that must account for their expenses. But for the grape farmers and wine producers of the Northern Cape, meeting various health standards is a serious business on which rests access to lucrative export markets. Although the province has just 3% of South Africa’s vineyards, 18% of the nation’s white wine grapes are cultivated along the Orange River. For grape producers such as the family-run company Dippenaar Choice Fruit, their three-person HACCP team is a vital element in operations. HACCP stands for Hazard Analysis and Critical Control Points. Among the audits which this team oversees are the BRC (British Retail Consortium) Version 8 Audit and SiZA, the Sustainability Initiative of South Africa. An instructive feature of the Dippenaar Choice Fruit website is the Chinese language option, a strong signal of the growing popularity of South African grapes in China. The company farms seedless grapes on 306ha across eight farms, including Gamcaip Grape Farm (pictured), along the Lower Orange River. The intention is to expand to 340ha and increase production from one-million cartons (4.5kg carton equivalent) to 1.5-million cartons by 2022. NORTHERN CAPE BUSINESS 2020/21
Sector Insight Northern Cape wines are winning awards for quality. The region as a whole has 5 688ha of vines and the Orange River Producer Alliance represents its farmers. According to the South African Table Grape Industry (SATI), the grape industry in the Northern Cape employs 1 215 people permanently, with a further 12 415 people finding seasonal work. Harvesting happens from early November to early February. Almost a third of South Africa’s table grape crop is
OVERVIEW produced in this fertile region. The South African table grape industry has been investing in hardier varietals which produce a better yield. A variety of seedless grapes dominate plantings, with Thompson Seedless, Prime, Sugraone, Grapaes and Crispy Flame Seedless among the most popular. If ambitious plans to create a Special Economic Zone at Upington come to fruition, the grape, raisin and wine traders of the Northern Cape could get their products to market more quickly. There are plans to add 40 000 tons of grapes for wine, juice and raisins to the Northern Cape’s capacity. A draft six-year plan has been developed for the Northern Cape Vineyard Development Scheme. Of the Sultana grapes grown in the Lower Orange River Region, 70% are used for vine-fruit products. There are 1 250 Sultana grape growers in the province, producing three Sultana-type grapes which rank among the best in the world: the Sultana Clone H5, a new hybrid called Merbein Seedless, which has proved resistant to splitting after rain, and the most popular type, the 143B.
Wine The 2019 season was a good one for Northern Cape wine farmers. Warm to hot conditions, coupled with the nutrient-rich land on the banks of the Orange River and sharply contrasting temperatures combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm.
The Northern Cape’s Orange River wine region accounts for 25.6% of South Africa’s Colombar vines and 10% of Chenin Blanc. The focus is on Colombar and Hanepoot grapes. Orange River Cellars (ORC) is the region’s biggest producer, sourcing its grapes from 850 grape producers in the area known as the Green Kalahari. ORC has a winery at its head office in Upington and a further four at Keimoes, Groblershoop, Kakamas and Grootdrink. Orange River Concentrate Producers (part of the ORC group) produces about 7.5-million litres of white grape juice concentrate, a percentage of which is exported to Japan where the Itochu Corporation uses it in soft drinks and food. ORC reported better yields in 2019 than the year before, at about 35 tons per hectare. Both Chenin Blanc and Colombar performed well with the latter doing exceptionally well. At the 2019 Top 100 SA Wines/National Wine Challenge, ORC went some way to changing the narrative about the type of wine that the region produces. ORC is famous for its sweeter wines, such as Muscadel but a blend of Petit Verdot and Shiraz (Lyra Vega) won a spot among the competition’s top 100 wines. In addition, the cellar garnered two Grand Cru Awards (best in category) and a further two Double Platinum positions in the select 100. The Douglas Wine Cellar produces about 6 000 cases per year. Together with the Landzicht cellar (just over the border in the Free State), the Douglas Wine Cellar is a GWK company. The Douglas cellar crushes 7 000 tons of grapes every year and produces 5.6-million litres of wine. Hartswater Wine Cellar is a part of the region’s other big agricultural company, Senwes. Two wine brands (Overvaal and Elements) are produced in the Hartswater irrigation area north of Kimberley. Photo: Carpe Diem Estate The 2019 national wine grape crop was slightly smaller than the previous year. The Orange River was one of four regions to record a slight increase, but that was off a low base in 2018. For 2019, the national crop estimate was 1.2-million tons (SAWIS, South African Wine Industry Information & Systems). Vinpro is an organisation that 2 500 South African wine grape producers, wineries and wine-related businesses. ■
Online Resources Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Raisins South Africa: www.raisinsa.co.za SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za South African Wine and Brandy Company: www.sawb.co.za
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Mining A public mining company is planned in the Northern Cape.
Photo: Anglo American
he Premier of the Northern Cape has announced that his administration wants to “vigorously pursue the possibilities of establishing a Northern Cape State Mining Company”. This company will do prospecting, apply for licences and look for investments on behalf of the people of the Northern Cape. The Northern Cape Economic Development, Trade and Investment Promotion Agency (NCEDA), the province’s investment agency, is tasked with researching feasibility. Base metals are showing great potential and it is in that sector that any public mining company would likely be active. The world market for base metals (which includes zinc and nickel) is in good shape because of trends in the energy and automotive markets and the fact that the global supply of copper is expected to decline. One of those base metals, manganese, is finding its ways to ports much more rapidly and in greater bulk thanks to a concerted effort by Transnet Freight Rail (TFR). In 2019 TFR announced a ninth manganese mining freight contract. The decision to rail manganese to a variety of South African ports, rather than being limited to Port Elizabeth, led to 14.5-million tons of the metal being transported in 2018, a massive increase on the five-million tons achieved in 2012. The target is 16-million tons. The other reason TFR is able to cope with such volumes is the incredible Sishen-Saldanha train, which continues to set world records in terms of length of train and volumes. The latest is 375 wagons NORTHERN CAPE BUSINESS 2020/21
Sector Insight Transnet Freight Rail is ramping up manganese volumes. carrying 63 tons each and seven of the 49 weekly trips on this line have been given over to manganese, the balance being devoted to iron ore. The biggest new mine in the country is a zinc mine at Aggeneys, the Gamsberg project of Vedanta Zinc International, which will deliver 600 000 tons of zinc when phase three is complete. About $400-million has been invested since the project began and the company started trucking product to the Port of Saldanha in 2018. The provincial government is using the mine’s location (and possible future smelter) as
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OVERVIEW the basis for an application to create a new Namakwa Special Economic Zone. An old zinc mine that produced a million tons of zinc and 430 000 tons of copper before it closed in 1991 is to be revived by Australian miner Orion Minerals. A bankable feasibility study was completed in June 2019 and it confirmed earlier positive findings.
Good earnings Good prices for iron ore served Northern Cape mining companies well in 2019. Afrimat, a construction materials group which recently got into mining with the purchase of Demaneng mine, boosted overall earnings for FY 2018/19 on the back of this diversification strategy. Afrimat hit a record R3-billion in revenue. The company intends expanding into coal. Assore was another company to set a record, with its R6.4-billion in headline earnings (12 months to June 2019) being 25% better than the year before. This was despite small decreases in production and sales. Major expenditure on Gloria, Nchwaning and Black Rock has been underway for some time, with 93% of the latter expansion project spent. Kumba Iron Ore’s six-month earnings to June 2019 followed the same trajectory, with global prices and a weak rand mainly responsible. The company expected to produce bet ween 42-million and 43-million tons but sell 44-million tons, drawing on reserves. NORTHERN CAPE BUSINESS 2020/21
The improved services of TFR, noted above, contributed to better sales. The National Youth Development Agency (NYDA), the provincial government and Mintek is collaborating on the Prieska Loxion Hub (PLH), which beneficiates Tiger’s Eye for jewellery and stonecutting products.
Mining assets The Northern Cape Department of Economic Development and Tourism’s “Economic and Investment Profile” reports that the province is responsible for: • 95% of South Africa’s diamond output. • 97.6% of alluvial diamond mining. • 13.4% of world lead exports. Aggeneys, in the Namaqualand district produces approximately 93% of South Africa’s lead. • 80% of the world’s manganese resource. • 25% of the manganese used in the world. • 100% of South Africa’s Tiger’s Eyes. • Largest national production of sugilite (a semi-precious stone). Super-conductors, X-ray machines, nuclear batteries and PETscan detectors are just some of the technologies that rely on rare earth elements (REEs) such as promethium, thulium and holmium. China controls 95% of the world’s supply of REEs and the search is on for alternative sources. Two sites have attracted investors’ attention: Zandkopsdrift (Northern Cape) and in the adjoining province of the Western Cape, Steenkampskraal. Away from the underground kimberlite pipes and fissures, river and coastal deposits of diamonds are also present in the Northern Cape. Diamonds have been recovered along the Orange, Buffels, Spoeg, Horees, Groen, Doom and Swart rivers in the province, while coastal deposits have been found from the mouth of the Orange River to Lamberts Bay. Diamond mining company West Coast Resources (WCR) has a production plant at Michells Bay. Trans Hex, with a 40% shareholding in WCR, manages the mine and market the diamonds produced from it. The National Department of Trade, Industry and Competition (dtic) owns 20% of WCR. The Kimberley International Diamond and Jewellery Academy provides training with a total of 406 graduates having so far passed through the academy. In a recent development, De Beers Sightholder Sales South Africa awarded KIDJA an amount of R500 000 for bursaries. ■
Online Resources Minerals Council of South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za Northern Cape Department of Economic Development and Tourism: www.economic.ncape.gov.za South African Mining Development Association: www.samda.co.za
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Engineering Fast cars and superfast data are set to break records. Sector Insight The South African Institute of Electrical Engineers has launched a branch in Kimberley.
Photo: SARAO; NRAO/AUI/NSF
ost engineering work in the Northern Cape is done on or around mines. But the construction of a new university from scratch, a landspeed record attempt and a vast international radio telescope project are putting advanced engineering at the forefront of activity in the province. The bulk of the new structures for the Sol Plaatje University were subject to a competition. From a total of 59 entries, nine architectural firms were selected to enter the second round of the competition with five firms chosen as winners to complete different aspects of the project. The Sol Plaatje University Library and Student Resource Centre earned Aurecon an award at the 2018 CESA Aon Engineering Excellence Awards. The building on South Africa’s newest campus in Kimberley also won a Fulton Concrete Award. It was designed by designworkshop: sa, the construction work was done by Murray and Dickson and Aurecon’s brief was structural, civil, electrical, fire and wet services design. Another striking building, designed by Savage + Dodd, was “highly commended” at the World Architecture Festival. The multi-purpose building encompasses a residence, offices, meeting spaces and retail space on the ground floor. The long-anticipated attempt on the world landspeed record moved a step closer with tests conducted early in 2020 at Hakskeenpan. The flat stretch of dusty land chosen for the attempt by a team called Bloodhound is not far from Verneuk Pan, where Sir Malcolm Campbell failed to go beyond the record of 370.4km/h in the Blue Bird in 1929.
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The record now stands at 1 227.9km/h and the feat of engineer ing required to propel Andy Green (who holds the record) past that speed is awesome. Speeds above 1 000km/h were achieved during tests, but the focus was on how the car reacted to desert conditions. The car has been described as a combination of a rocket, a Formula 1 car and a jet aircraft. An extensive local project, in which 317 members of the Mier community cleared the track, was funded by the Provincial Government of the Northern Cape. High-level science and engineering underpin the Square Kilometre Array Radio Telescope (SKA). Unimaginable amounts of data are set to be collected in this transformative radio telescope project that is centred on Carnarvon but has global reach. The data that the SKA will collect in a day would take twomillion years to play back on an iPod. The radio telescope’s image-resolution quality will exceed that of the Hubble Space Telescope by a factor of 50. The SKA will be the world’s largest radio telescope, made up of thousands of antennae
OVERVIEW throughout Australia and Africa. In 2019, 15 countries involved in the SKA project gathered in Rome for the signing of the international treaty establishing the intergovernmental organisation that will oversee the delivery of the world’s largest radio telescope. This is the Square Kilometre Array Observatory (SKAO), which is tasked with delivering and operating the SKA. In South Africa, the South African Radio Astronomy Observatory (SARAO), a facility of the National Research Foundation, manages all radio astronomy initiatives and facilities, including the MeerKAT radio telescope in the Karoo. To maximise the return on South Africa’s investment in radio astronomy, SARAO is managing programmes to train people in radio astronomy science and engineering research and is building the technical capacity to support site operations. Some of the Large Survey Projects (defined as requiring more than 1 000 hours of telescope time over five years) being undertaken via MeerKAT are the hunt for dynamic and explosive radio transients (ThunderKAT) and observations of nearby galactic objects (Mhongoose). Great results were achieved in December 2019 when rare, bright “starburst” galaxies never previously observed in radio light were observed by MeerKAT. A composite photograph is shown on the previous page. The Renewable Energy Independent Power Producer Pro c u re m e n t Pro gr a m m e
(REIPPPP) has created an entirely new industry in less than seven years, with investment of about R200-billion in solar parks and wind farms. This has created many opportunities for engineers, many of which are in the Northern Cape.
Photo: Charlie Sperring
New spark in Kimberley The South African Institute of Electrical Engineers (SAIEE) has launched a new branch in Kimberley. The SAIEE Northern Cape Centre will attend to the needs of members and hold events of interest related to electrical or electronic engineering. SAIEE has 6 500 members around the country and is registered as a non-profit voluntary association with ECSA (Engineering Council of South Africa). An important body in the South African context is the Institute of Municipal Engineering of Southern Africa (IMESA), which has more than 1 000 individual and company members. A key focus for the body is to provide training in sustainable infrastructure asset management, something that has proved a challenge for many municipalities. Engineers continue to be critical to the work of the mining industry in the Northern Cape. Aveng company Moolmans reported good results in 2019, partly on the back of renegotiating the contract to work on the Gamsberg zinc project. ELB Group’s Engineering Services division employs more than 1 000 people and the company is currently working full-time on the vast Gamsberg zinc project. Manganese, iron ore and coal are other mining sectors where ELB is active. ■
Online Resources Consulting Engineers South Africa: www.cesa.co.za Institute of Municipal Engineering of Southern Africa: www.imesa.org.za South African Institute of Electrical Engineers: www.saiee.org.za South African Radio Astronomy Observatory: www.sarao.ac.za Southern African Institution of Civil Engineering: www.civils.org.za
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Tourism The stars are aligned for Northern Cape tourism. Sector Insight Coastal regions have a chance to shine.
stro-tourism could be the next big thing. The Northern Cape has always attracted star-gazers with its wide-open skies and superb facilities for astronomical observation at Sutherland. But two pupils at Carnarvon High School have seen how this sector could reap huge benefits for the province on the back of the allocation of the Square Kilometre Array (SKA) project. Amy Lee Visage and Chrislin De Koker won a national tourism competition for their project on the benefits of astro-tourism. Northern Cape Tourism has organised a number of initiatives to ensure that local communities can be part of the growing sector. Tourist maps have been produced for walking trails at Carnarvon, Fraserberg, Sutherland and Williston. A visitors’ centre, the Carnarvon SKA Exploratorium, is planned as a key piece of tourism infrastructure around which to plan other activities. The Department of Economic Development and Tourism reports that in 2018/19 training was provided to 86 tourism entrepreneurs, 43 of whom were young people. By giving financial support to some businesses, 20 permanent and 30 temporary jobs were created. The province is aiming to broaden its offering to include coastal towns and regions. The suggested new brandings include beach experiences, coastal experiences and marine experiences. Another thrust is to put increased emphasis on existing assets
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in the social and cultural field such as events and festivals and cultural, historical and mining experiences. An existing event combines elements of adventure with wide open spaces. The Tankwa Trek traverses the southern part of the Great Karoo through the Bokkeveld and Witzenberg areas to “star-gazer’s Central” at Sutherland. It is a mountain bike trail marathon over 265km that typifies the adventure tourism of the province’s brand. Tough sportsmen and women take to mountain bikes and canoes to take part in the Desert Knights Tour through the Richtersveld Transfrontier Park and on the Orange River. The river is also the venue for the 73km Orange Descent Canoe Marathon.
National parks There are no fewer than six national parks and five provincial reserves in the province, each with distinct geographical and biological features. Most of the province lies in the Nama-Karoo Biome and the annual display of spring flowers is spectacular. The north-western portion of the province is known as the Green Kalahari, much of which is taken up by national parks.
OVERVIEW The Kgalagadi Transfrontier Park (with Botswana) encompasses 3.7-million hectares, making it one of the biggest conservation areas in the world. The Kalahari in the north-east is home to many of the province’s biggest mines, but also to great numbers of raptors, vultures and owls. A specialist raptor route has been developed. Birders can look out for 50 species, including the Booted Eagle, the Pygmy Falcon and the Bateleur. Tours of the area’s vast open-cast mining operations can be arranged. A proposed Heritage Route traces the footprints of the early missionaries to Southern Africa and will include Kuruman and the Robert Moffat Mission. Hunting is a lucrative subsection of the tourism
sector that brings valuable economic development to rural communities. The Diamond Fields region contains the spectacular Big Hole, the Mokala National Park and portions of the famed South African War or Battlefields Route. The Magersfontein War Memorial is an iconic attraction. The town of Kimberley is itself an extremely popular attraction. The Karoo region encompasses the south-eastern portion
of the province. While most of the region is dry, the Vanderkloof Dam is a major tourism asset. Many of the region’s small towns are geared to cater to tourists drawn to the magic of the Karoo’s open spaces and features famous Karoo towns such as De Aar, Britstown, Hanover, Victoria West and Carnarvon. Other attractions are the unique Karoo architecture, rock art, ancient Paleo surfaces, farm stays and the famous Karoo lamb. The Namakwa region is famous for its flowers, such as those that surround the church at Kamieskroon (pictured), but it also hosts the South African Astronomical Observatory, several historic mission settlements, the Namaqua National Park (on the West Coast) and the awe-inspiring Richtersveld Transfrontier Park. Springbok and Calvinia are the two major towns in this huge district, which is also the only Northern Cape region with a coastline and soon to be the home of a new small harbour. The Richtersveld Cultural and Botanical Landscape is a UNESCO World Heritage Site. This 160 000-hectare landscape lies on the border between South Africa and Namibia.
Investment opportunities General opportunities for investors in the tourism sector include: • Nature and game reserves • Adventure tourism • Upgrading of accommodation facilities • New attractions and entertainment features (theme parks) • Improve air transport networks. Adventure sports at Kimberley: the possible establishment of an adventure sports resort in the Big Hole Precinct, Kimberley. Steam train: reviving steam train tourism (“Gems on Track” is the working title) could be done along a variety of routes including routes out of Kimberley to Belmont and from De Aar to Victoria West. Eco-resort at Boesmansput: development of a diver training facility would form part of the plan at this popular fresh-water cave-diving site. An eco-lodge is envisaged and a conference facility. Wildebeest Rock Art Centre: more than 400 pieces of rock art would form the cornerstone (together with the nearby Nooitgedacht Glacial Paving) of a world-class heritage and archaeological site. Developments would include the creation of a performance arena (for the depiction of San Bushman culture) and facilities for game viewing and photographic safaris. ■
Online Resources Gariep Arts Festival: www.gariepfees.co.za Northern Cape Tourism Authority: www.northerncape.org.za Orange Descent Marathon: www.orangedescent.co.za Richtersveld: www.richtersveld-conservancy.org South African National Parks: www.sanparks.co.za
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Education and training Enrolment at Sol Plaatje University is rising.
he two big events that stand out in the Northern Cape education sector in recent times are the opening of Sol Plaatje University and the establishment of one of the world’s great scientific ventures within the province’s boundaries, the Square Kilometre Array radio telescope project. But there is another development that should not be ignored: the selection as provincial premier of Dr Zamani Saul. Already the holder of a PhD in law, two Master’s degrees and a BProc, Dr Saul is studying towards a second PhD. On his watch, the province’s various bursary programmes have been consolidated in the Premier’s Bursary Fund, with a total spend in the 2019/20 year of about R36-million. A further R7-million was allocated by the Office of the Premier to youth skills development with a focus on portable skills such as basic refrigeration and air-conditioning maintenance and security. Speaking at the AGM of the Fund, Saul said, “At the heart of a modern, growing and successful province is education. We won’t be able to modernise the province if we do not place emphasis on the education of our children.” At the time that Saul took office, 97% of all schools in the Northern Cape had Internet connectivity (542 out of 556) for teaching and learning purposes and he promised a renewed effort to connect the remaining 14 schools. The project has drawn praise for the fact that the public and private sectors are working together to achieve agreed goals. The Namaqua Maths and Science project (NaMaSci) is a partnership between the Northern Cape Department of Education and the University of Stellenbosch which aims to help students in the NORTHERN CAPE BUSINESS 2020/21
Sector Insight Carnarvon High School’s Lego Robotics team won gold in Uruguay. Namakwa district gain access to tertiary study. Tutors offer holiday classes in Springbok. The Provincial Government of the Northern Cape has several skills programmes, including the Artisan Construction Programme, a three-year incubation programme aimed at young people, the Phakamile Mabija Apprenticeship (artisan incubation programme) and the S’hamba Sonke Contractor Development Programme.
Big data Carnarvon is the physical focus of the SKA, but the province as a whole and the new university
OVERVIEW in Kimberley will benefit from its broadband connectivity, highperformance computing, big data and data analysis. With support from SKA, Carnarvon High School is the only school in the area offering maths and science. As of 2019, 15 matriculants from the school have been awarded university undergraduate bursaries. Five schools in the area participate in Lego Robotics programmes and a team of eight from Carnarvon High won a gold cup for “inspiration” at the 2019 International Lego League competition in Montevideo, Uruguay. Artisan training has also benefitted from the presence of SKA in Carnarvon. The new technical training centre has trained 84 students as electricians, fitters and turners, in instrumentation, diesel mechanics, in IT and boilermaking, as well as in carpentry, plumbing, bricklaying and welding. Image: NCDOE
After years of lobbying for a university, the Northern Cape now has its own place of higher learning, Sol Plaatje University, named after the great intellectual, writer and advocate
for equal rights, Sol Plaatje. One of his books, Native Life in South Africa, tells the story in harrowing detail of how black South Africans were thrown off their land as a consequence of the 1913 Land Act. He was also a novelist, a translator and one of the founding members and first Secretary-General of the South African Native National Congress (SANNC), which became the ANC. Kimberley is part of the Sol Plaatje Local Municipality. The first intake of students at the Kimberley campus in 2014 was 124. At the 2019 graduation ceremony, 319 students were congratulated and when classes began for the 2020 academic year, over 700 first-time students enrolled. Approximately 60% of the students are enrolled in teacher training courses. A group of students from the university (Team Dumela) has already made waves at national level, being awarded second place at the National ITWeb Security Summit. The academic programme is housed in four schools: Education; Humanities; Natural and Applied Sciences; Economic and Management Sciences. Bachelor’s degrees are offered in education, science, science in data, ICT, heritage studies, commerce and arts. A diploma in retail business management (three years) and a one-year higher certificate in heritage studies completes the prospectus. The provincial government is implementing its Northern Cape Information Society Strategy in partnership with the university. Astronomy-related courses are planned for the future to dovetail with the Square Kilometre Array. The Northern Cape Urban TVET College comprises three campuses in Kimberley: City Campus, Moremogolo Campus and Phatsimang Campus where teacher training is done. At City Campus, students have access to three departments: business studies, engineering studies and a business unit that organises short courses in partnership with various public and private partners. At Moremogolo Campus students are offered courses in either the business studies or skills departments. The Northern Cape Rural TVET College has campuses at Kathu, Upington, De Aar, Kuruman and Namakwaland. These colleges offer students courses in finance, economics and accounting; engineering; IT and computer science; management; hospitality; marketing; and tourism. NCRTVET College has a variety of part-time programmes and short skills programmes delivered in the form of learnerships, internships or apprenticeships. This enables adults and employed people to study after hours or to do enrichment courses. ■
Online Resources Northern Cape Department of Education: http://ncdoe.ncpg.gov.za Northern Cape Rural TVET College: www.ncrtvet.com Northern Cape Urban TVET College: ww.ncutvet.edu.za Sol Plaatje University: www.spu.ac.za Square Kilometre Array: www.ska.ac.za
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South Africa’s newest university is making an impact Sol Plaatje University, with award-winning buildings on a growing campus in Kimberley, is responding to local needs as enrolment rises.
n developing its academic disciplines, Sol Plaatje University took into account the unique needs and characteristics of the Northern Cape region. This approach led to the current focus areas of teacher education, ICT, heritage studies, data science and creative writing in African languages. The university is named after Solomon Tshekisho Plaatje, one of South Africa’s great intellectuals. He was a novelist, a translator and one of the founding members and first Secretary-General of the South African Native National Congress (SANNC), which became the ANC. In 2014 Sol Plaatje University, in its inaugural intake, enrolled just 124 students, Enrolments have been growing steadily ever since and in 2020 it exceed 2000 students. The fifth graduation ceremony in the university’s young history was held in December 2019 for 319 graduates from across its four schools. It now has over 700 successful graduates. Judge Steven Majiedt, the Chancellor, presided over the ceremony in the Taberna Dei Hall in New Park and the keynote address was delivered by outgoing Vice-Chancellor and Principal Professor Yunus Ballim. Professor Andrew Crouch, a distinguished full professor of chemistry with extensive research and educational experience, took up the position of Vice-Chancellor and Principal from 1 April 2020.
Building beautifully More than one philosopher has noted the link between beautiful surroundings and a good educational experience, so when it was decided to create a new university in Kimberley, every effort was made to create an atmosphere conducive to learning. A competition was held to choose the architects to work on the new university. From a total of 59 entries, nine firms were selected in 2013 to enter the second round of the competition. Ultimately, five firms were chosen as winners, and they were tasked with completing work on the campus. In terms of infrastructure, the jewel in the crown is the Central Campus, where the bulk of the academic operations are situated. The site of the historic William Pescod School and adjacent land parcels are now beyond recognition as state-of-the-art building after building have sprung up, with more being built as this article is written. The flagship Moroka building which houses student accommodation, NORTHERN CAPE BUSINESS 2020/21
academic offices, teaching and seminar rooms, an examination hall and academic offices, has been joined by the customised Teaching Practice Building, the Humanities Building, the Natural Science Laboratories Building and the iconic and prize-winning Library and Resource Centre Building. Currently under construction are the laboratory building for the applied sciences and a further academic science building. The Library and Student Resource Centre (see the advert opposite), designed by designworkshop: sa, won the 2017 Fulton Concrete Awards for “Buildings Greater Than 3-Stories”. In 2019, the building design received the International Architecture Award. The Library and Resource Centre was designed as the functional and physical centrepiece of university life, including a state-of-the-art library, teaching study and social space. It is a social space where people make themselves available to wide-ranging incidental and planned interchanges in the course of daily life, both in the physical space and online, with and without books, collectively and in solitude, directed and enabled by mentors and among themselves. ■
Energy A hybrid wind and solar plant could power a new zinc mine.
Photo: ACWA Power
enewable energy is cleaner and rapidly becoming cheaper than conventional power, but security of supply is still a problem. Getting a reliable power supply to a remote mining destination in the Northern Cape presents its own challenges, and this makes the collaboration between Orion Minerals and juwi Renewable Energies particularly interesting. The suggested solution is a hybrid system combing wind and solar energy. The juwi Group has experience with hybrid systems, having delivered a 10.6MW solar hybrid system to a mine in Australia, which integrated with an existing 19MW diesel-fired power plant. The study will look into supplying the Prieska Zinc Copper Project with 35MW of electricity from a site less than 20km from the mine, therefore allowing for a dedicated feed via overhead power transmission lines. The energy company reports that the region already has 190MW of solar power plants in operation and 240MW of wind power under construction adjacent to the project. After a lengthy planning period and many years after it was first announced, the giant solar park that national utility Eskom wanted to build in the Northern Cape has been cancelled. The concentrating solar power (CSP) plant would have generated 100MW. Eskomâ€™s debts make any large expenditure risky, although it is also true that the companyâ€™s
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Sector Insight Eskom has scrapped its solar park plan. reliance on coal is itself a risky calculation. A Renewable Energy Directorate is to be established by the Provincial Government of the Northern Cape. The brief of the directorate is to assist local and district municipalities to create revenue streams related to renewable energy. Concern has been expressed at provincial government level that developers of wind and solar projects are not doing as much as they could in terms of developing local skills
OVERVIEW and employing local people in good jobs. Industry associations claim that benefits are indeed being shared with local communities. Figures released by the South African Wind Energy Association (SAWEA) showed shareholding for local communities reached an estimated net income of R29.2-billion for projects initiated nationally since 2012. Some 14 000 new jobs are expected to be created, mostly in rural areas, and more than R30-billion has been spent on Black Economic Empowerment (BEE) in the construction phase. In less than a decade, an entirely new sector has been created through legislation that invited local and foreign investors to bid for and then b u i l d re n e w a b l e e n e rg y generation plants. South Africa’s National Development Plan (NDP) requires 20 000MW of renewable energy by 2030. That will be achieved mainly through the Renewable Energy Independent Power Producer Pro c u re m e n t Pro gr a m m e (REIPPPP). The wind and solar parks now spreading over the vast spaces of the Northern Cape indicate that renewable energy has well and truly arrived. Approximately 60% of the projects so far allocated have been in the nation’s sunniest province. Projects such as Kathu Solar Park, a concentrating solar power (CSP) project, and the Roggeveld Wind Farm are indicative of the large scale of most of the energy generation that is being rolled out.
Xina Solar One is located at Pofadder on the N14 between Upington and Springbok. The R9.4-billion project is a joint venture between Spanish energy firm Abengoa Solar, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and a community trust representing the local population. Kaxu Solar One is also near Pofadder but Khi Solar One is closer to Upington. All three plants use concentrated solar power (CSP) which reflects the sun’s rays during the day in to a molten salt storage system. The energy is then slowly released during the night. The 205m tower that collects the rays at the Khi Solar One site is one of the tallest structures in South Africa. The Northern Cape is the natural home for the generation of solar power. Long-term annual direct normal irradiance (DNI) at Upington is 2 816kWh/m2, according to a survey done for Stellenbosch University by Slovakian company GeoModal Solar. South Africa’s national average is among the best in the world. Stellenbosch University’s Solar Thermal Energy Research Group has six sites monitoring irradiation levels. The small towns of Postmasburg and Groblershoop lie between Upington and Kimberley. They are modest settlements which have ticked along in support of surrounding farmers with some diamond mining and wine cultivation. They are now the centre of some of the world’s most advanced technological innovation in concentrated solar power. Saudi Arabian electricity group ACWA Power has won approval for the 100MW Redstone project near Postmasburg and the 50MW Bokpoort CSP plant (pictured on previous page) near Groblershoop is in operation. Large wind projects are also winning approval in the Northern Cape. The commissioning of the 100MW De Aar Wind Power Project brings together Mulilo Renewable Energy and the China Longyuan Power Group Corporation. Commercial operations have begun on Khobab Wind Farm and Loeriesfontein Wind Farm, collectively providing 280MW via 61 wind turbines. The projects were developed by Lekela Power, a joint venture between Actis and Mainstream Renewable Power. Noblesfontein was one of the earliest wind farms to be constructed in the Northern Cape, about 40km from Victoria West. Spanish company Gestamp Wind was an early investor. The 147MW Roggeveld Wind Farm, which has 47 Nordex wind turbines and was developed by G7 and then taken over by Building Energy, will operate commercially in the first quarter of 2021. ■
Online Resources IPP projects: www.ipp-projects.co.za National Energy Regulator of South Africa: www.nersa.org.za South African Photovoltaic Industry Association: www.sapvia.co.za South African Renewable Energy Council: www.sarec.org.za South African Wind Energy Association: www.sawea.org.za
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Banking Solar projects are attracting financial backing.
ith the renewable energy sector booming in South Africa, a whole new sector in need of project funding has opened up for banks. The Northern Cape has attracted a high percentage of independent power producers which have won the right to build power plants. The other new sector is astronomy as represented by the Square Kilometre Array project. The education sector has received an investment by way of Absa Bank which has given R4.5-million to Sol Plaatje University to develop the field of Data Science.
The Northern Cape is also taking an interest in the activities of the newly-formed BRICS Development Bank. Of particular interest is the bank’s initiative in developing an infrastructure roadmap and a SADC Industrialisation Strategy. News that a mutual bank in Limpopo had been hollowed out by corrupt practice put the spotlight on banking practice in South Africa. Despite this experience, the appetite for mutual banks is strong, given the nature of the South African market. The Young Women in Business Network (YWBN) intends applying for a mutual bank licence and Bank Zero will use the mutual model. Other new entrants such as TymeBank (free transactional accounts) and Discovery Bank are introducing innovations to the South African banking sector. South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province. Relative newcomer, Capitec, is rapidly moving towards
Online Resources Association for Savings and Investment South Africa: www.asisa.org.za Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co.za
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Sector Insight New banks are shaking up the sector. being part of a Big Five and it has announced that it will partner with Centriq Life to enter the insurance market. Capitec has no fewer than18 branches in the Northern Cape. The fact that it has four branches in Kuruman, one more than in Upington, suggests that Capitec has successfully sold its low-cost banking model to mine workers. The established banks have dedicated units such as Nedbank Agribusiness. Focus areas for this unit are agronomy, livestock, horticulture and secondary agriculture which covers agricultural processing and storage. Nedbank has a total of 27 business managers in Nedbank Business Banking for the province and the neighbouring Free State. The Land and Agricultural Development Bank of South Africa (Land Bank) is a major participant in the Northern Cape financial sector and the Industrial Development Corporation (IDC), as an equity investor, is another important player. Most agricultural companies in the Northern Cape have financing and services divisions, as one would expect in a province with a strong and varied agricultural sector which exports much of its produce. ■
Development finance and SMME support Local businesses are thriving in support of mining.
pportunities for building and civil engineering contracts are hard to come by in Danielskuil, population 13 597. The tiny town, which lies north-west of Kimberley, falls within an area rich in mining and for father and son Paul and Marvin Oss, that spelt opportunity. With access to work at Kolomela Mine through Kumba Iron Ore’s inclusive procurement project, P&E Artisans (pictured) now has a staff complement of 35 with plans to grow to 100 in five years. Work on the mine included making brackets and erecting steel structures. In 2017 Kumba Iron Ore spent R36-billion through its inclusive procurement and enterprise development initiatives. The province’s biggest new mine, the Vedanta Zinc International mine at Aggeneys, spends generously on corporate social responsibility, of which supplier development forms a large part. Some 45 black-owned businesses have so far been supported on the project, with the 12 new businesses created having tripled in value since 2015. The Provincial Government of the Northern Cape is focussed on two sectors for SMMEs, agriculture and tourism. The intention is to link 80 young agricultural graduates for in-service training with commercial operations for two years. These young people would then be expected to start small businesses. Tourism is seen as a sector where the barriers to entry are low, and the growth of options in the heritage tourism sector should provide further opportunities for small operators to begin or grow their businesses. SMMEs will be catered for in the planned Kathu Industrial Park which is being supported by the Industrial Development Corporation (IDC) and companies in the mining sector. The focus of the park will be metals. The park’s infrastructure will enable smaller companies to be
Online Resources Department of Small Business Development: www.dsbd.gov.za Industrial Development Corporation: www.idc.co.za Northern Cape Economic Development Agency: www.nceda.co.za Small Enterprise Development Agency: www.seda.org.za
Sector Insight Agriculture and tourism are good sectors for SMME growth. in a position to tender for supply contracts to mines. The Industrial Development Corporation is one of the biggest development finance operators in the Northern Cape. As part of national government’s renewable energy programme which aims to get private investors into the sector, the IDC has approved funds for 12 renewable energy projects in the province, including Abengoa’s Khi Solar One concentrated solar power farm near Upington and the Kakamas Hydro-Electric Power plant on the Orange River. The Small Enterprise Development Agency (Seda) is a partner in the Kimberley incubation hub related to the Kimberley International Diamond and Jewellery Academy. The Kimberley Diamond and Jewellery Incubator (KIDJA) helps establish SMMEs, supports existing business and trains students. There are six Seda branches in the province and a satellite office of the Seda unit known as the Zenzele Technology Demonstration Centre, offering technical and research support to small-scale mining and mineralrelated enterprises. ■ NORTHERN CAPE BUSINESS 2020/21
LISTING Kareeberg Municipality
Tel: +27 53 382 3012 | Fax: +27 53 382 3142 Website: www.kareeberg.co.za
Tel: +27 51 753 0777/8 | Fax: +27 51 753 0574 Website: www.umsobomvumun.co.za
Northern Cape Local Government
A guide to district and local municipalities in the Northern Cape Province. Renosterberg Municipality ZF MGCAWU DISTRICT MUNICIPALITY Tel: +27 53BAARD 663 0041DISTRICT | Fax: +27MUNICIPALITY 53 663 0180 FRANCES Website: Physicalwww.renosterbergmunicipality.gov.za address: 51 Drakensberg Avenue,
Physical address: Cnr Nelson Mandela Avenue and Upington Road, NAMAKWA DISTRICT MUNICIPALITY Upington Physical8801 address: Van Riebeeck Street, Tel: +27 54 3378240 2800 | Fax: +27 54 337 2888 Springbok Website: www.zfm-dm.co.za Postal address: Private Bag X20, Springbok 8240 Tel: +27 27 712 8000 | Fax: +27 27 712 8040 Dawid Kruiper Municipality Email: email@example.com Tel: +27 54 7001 Website: 338 www.namakwa-dm.gov.za Fax: +27 54 531 0019 Website: www.dkm.gov.za Hantam Municipality
Carters Glen, Kimberley 8301 Siyancuma Municipality Postal address: Private Bag X6088, Kimberley 8300 Tel: 298838 18100911 | Fax:| Fax: +27 53 29853 3141 Tel:+27 +275353 +27 861 1538 Website: www.siyancuma.gov.za Website: www.francesbaard.gov.za Siyathemba Municipality Dikgatlong Municipality Tel: +27 53 353 5300 | Fax:| +27 35353 1386 Tel: +27 53 531 6500 Fax:53 +27 531 0624 Website: www.siyathemba.co.za Website: www.dikgatlong.co.za
Tel: +27 27 341 8500 | Fax: +27 27 341 8501 Kai! Garib Municipality Website: www.hantam.gov.za Tel: +27 54 461 6400 / 6700 | Fax: +27 54 461 6401 Website: www.kaigarib.gov.za Kamiesberg Municipality
Thembelihle Municipality Magareng Municipality Tel: +27 53 203 0008/5 | Fax: +27 53 203 0490 Tel: +27 53 497 3111/2/3 | Fax: +27 53 497 4514 Website: thembelihlemunicipality.gov.za Website: www.magareng.gov.za
Tel: +27 27 652Municipality 8000 | Fax: +27 27 652 8001 Kgatelopele Website: www.kamiesberg.gov.za Tel: +27 54 384 8600 | Fax: +27 53 384 0326 Website: Karoowww.kgatelopele.gov.za Hoogland Municipality
Ubuntu Municipality Phokwane Municipality Tel: +27 53 621 0026 | Fax: +27 53 621 0368 Tel: +27www.ubuntu.gov.za 53 474 9700 | Fax: +27 53 474 1768 Website: Website: www.phokwane.org.za
Tel: +27Municipality 53 391 3003 !Kheis Fax: +27 53 391 3294 Tel: +27 54 833 9500 | Fax: +27 54 833 0690 Website: www.karoohoogland.gov.za Website: www.kheis.co.za
Sol Plaatje Municipality Motorway
NORTHERN CAPE830 PROVINCE Tel: +27 53 6911/6100 | Fax: +27 53 833 1005 Website: www.solplaatje.org.za BOTSWANA N Main Road Railway
Khâi-Ma Municipality Tsantsabane Municipality Tel:+27 +275354 Tel: 313933 73001000 Fax:+27 +275354 Fax: 313933 16020252 Website: www.khaimai.gov.za Website: www.tsantsabane.gov.za
JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY North West Physical address: 4 Federal Mynbou Street, Kuruman 8460 NAMIBIA Postal address: PO Box 1480, Kuruman 8460 Tel: +27 53 712 8700 | Fax: +27 53 712 2502 Website: www.taologaetsewe.gov.za Rietfontein
R27 Calvinia Vanrhynsdorp
Western Cape Saldanha Morolong Municipality
Tel: +27 53 712 9300 | Fax: +27 53 712 3581 Website: www.ga-segonyana.gov.za
Mpumalanga Gauteng SWAZILAND
Okiep Kleinsee Springbok
Barkly West R64
Tel: +27 53 723 6000 | Fax: +27 53 723 2021 Website: www.gamagara.gov.za
Gamagara Municipality Alexander Bay
Tel: +27 53 773 9300 | Fax: +27 53 773 9350 PORT ELIZABETH CAPE TOWN Website: www.joemorolong.gov.za Worcester
Knysna Mossel Bay
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Nama Khoi Municipality
ZF MGCAWU DISTRICT MUNICIPALITY Physical address: Cnr Nelson Mandela Avenue and Upington Road, Upington 8801 Tel: +27 54 337 2800 | Fax: +27 54 337 2888 Website: www.zfm-dm.co.za
Tel: +27 27 718 8100 | Fax: +27 27 712 1635 Website: www.namakhoi.gov.za Richtersveld Municipality Tel: +27 27 851 1111 | Fax: +27 27 851 1101 Website: www.richtersveld.gov.za PIXLEY KA SEME DISTRICT MUNICIPALITY Physical address: Culvert Road, Industrial Area, De Aar 7000 Tel: +27 53 631 0891 | Fax: +27 53 631 2529 Website: www.pksdm.gov.za Emthanjeni Municipality Tel: +27 53 632 9100 | Fax: +27 53 631 0105 Website: www.emthanjeni.co.za Kareeberg Municipality Tel: +27 53 382 3012 | Fax: +27 53 382 3142 Website: www.kareeberg.co.za
The offices of the ZF Mgcawu District Municipality are in Upington.
Renosterberg Municipality Tel: +27 53 663 0041 | Fax: +27 53 663 0180
Dawid Kruiper Municipality
Siyancuma Municipality Tel: +27 53 298 1810 | Fax: +27 53 298 3141 Website: www.siyancuma.gov.za
Tel: +27 54 338 7000 Fax: +27 54 338 7350 Website: www.dkm.gov.za
Kai! Garib Municipality
Tel: +27 53 353 5300 | Fax: +27 53 353 1386 Website: www.siyathemba.co.za
Tel: +27 54 461 6400 / 6700 | Fax: +27 54 461 6401 Website: www.kaigarib.gov.za
Tel: +27 53 203 0008/5 | Fax: +27 53 203 0490 Website: thembelihlemunicipality.gov.za
Tel: +27 54 384 8600 | Fax: +27 53 384 0326 Website: www.kgatelopele.gov.za
Tel: +27 53 621 0026 | Fax: +27 53 621 0368 Website: www.ubuntu.gov.za
Tel: +27 54 833 9500 | Fax: +27 54 833 0690 Website: www.kheis.co.za
Tel: +27 51 753 0777/8 | Fax: +27 51 753 0574 Website: www.umsobomvumun.co.za
Tel: +27 53 313 7300 | Fax: +27 53 313 1602 Website: www.tsantsabane.gov.za
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Northern Cape Provincial Government A guide to the Northern Capeâ€™s provincial government departments. Office of the Premier Premier: Dr Zamani Paul JW Sauer Building, 6th Floor, cnr Roper and Quinn streets, Kimberley 8301 Tel: +27 53 838 2600 / 2900 | Fax: +27 53 838 2626 Website: www.northern-cape.gov.za
Department of Environment and Nature Conservation MEC: Nomandla Bloem 90 Long Street, Kimberley 8301 Tel: +27 53 807 7300 | Fax: +27 53 807 7328 Department of Roads and Public Works MEC: Abraham Vosloo 9-11 Stockroos Road, Square Hill Park, Kimberley 8301 Tel: +27 53 839 2100 | Fax: +27 53 839 2291 Website: www.ncrpw.ncpg.gov.za
Department of Land Reform, Agriculture and Environmental Affairs MEC: Nomandla Bloem 162 George Street, Kimberley 8301 Tel: +27 53 838 9100 / 087 630 0887 Fax: +27 53 831 4685 / 3635 Website: www.agrinc.gov.za
Department of Social Development MEC: Barbara Martha Bartlett Mimosa Complex, Barkley Road, Homestead, Kimberley 8301 Tel: +27 53 874 9100 | Fax: +27 53 871 1062
Department of Cooperative Governance, Human Settlements and Traditional Affairs MEC: Bentley Vass JS du Plooy Building, 9 Cecil Sussman Road, Kimberley 8301 Tel: +27 53 830 9400 | Fax: +27 53 831 2904 Website: www.coghsta.ncpg.gov.za
Department of Sport, Arts and Culture MEC: Bernice Sinexve 32 Abbatoir Road, Kimberley 8301 Tel: +27 53 807 4700 Fax: +27 53 807 4600 Website: www.dsac.ncpg.gov.za
Department of Economic Development and Tourism MEC: Maruping Matthews Lekwene 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Tel: +27 53 839 4000 | Fax: +27 53 831 3668 Website: www.northern-cape.gov.za/dedat
Department of Transport, Safety and Liaison MEC: Nontobeko Eveline Vilakazi Cnr Lennox and Sydney Roads, Kimberley 8301 Tel: +27 53 839 1700 Fax: +27 53 839 1773 Website: www.northern-cape.gov.za/dtsl
Department of Education MEC: McCollen (Mac) Jack 156 Barkley Road, Homestead, Kimberley 8301 Tel: + 27 53 839 6500 | Fax: +27 53 839 6580 Website: www.ncdoe.ncpg.gov.za
Provincial Treasury MEC: Maruping Matthews Lekwene 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Tel: +27 53 830 8200 Fax: +27 53 831 4235 Website: www.ncpt.gov.za
Department of Health MEC: Galerekwe Mase Manopole 144 Dutoitsta Road, Kimberley 8301 Tel: +27 53 830 2100 | Fax: +27 53 833 4394 NORTHERN CAPE BUSINESS 2020/21
Image courtesy Paul Chinguion
Airlink is the largest privately-owned regional feeder airline in southern Africa, connecting you from Cape Town and Johannesburg to Upington. We continue to operate more than 5,600 flights per month across our network, comprising of more than 55 routes in southern Africa and St Helena island, with an on-time performance consistently at 95%.
Promotion of Economic Growth and Economic Promotion of Economic Economic Growth Growthand andEconomic Economic Development in the Northern Cape Province Development in the Northern Northern Cape CapeProvince Province
Promotion of Economic Growth and Econo Physical: Metlife Towers, Development in the Northern Cape Provin Physical: Metlife Towers, 13th Fl, Cnr Stead &Physical: Knight Sts, Kimberley, 8309 Physical: Metlife Towers, Metlife Towers, 13th Cnr Stead Knight Sts, Kimberley, 8309 Postal: Private BagSts, X6108, Kimberley, 8300 13th &&&Knight Kimberley, 8309 13thFl,Fl, Fl,Cnr CnrStead Stead Knight Sts, Kimberley, 8300 Postal: Bag X6108, Postal: Private Bag X6108, 8300 Tel: 053 839 4000Kimberley, |Kimberley, Fax: 053 8300 832 6805 Postal:Private Private Bag X6108, Kimberley, 8301 Tel: 839 4000 053 832 6805 Tel: 053 839 4000 || Fax: 053 832 6805 Web: http://economic.ncape.gov.za Tel:053 053 839 4000| Fax: Fax: 053 832 6805 Web: Web: http://economic.ncape.gov.za Email: firstname.lastname@example.org Web:http://economic.ncape.gov.za http://economic.ncape.gov.za Email: email@example.com Email: firstname.lastname@example.org Email: email@example.com
Physical: Met 13th Fl, Cnr Stead & Knight Sts, Kimb Postal: Private Bag X6108, Kimb Tel: 053 839 4000 | Fax: 05 Web: http://economic.nc Email: dedat@n
The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, es...
Published on Apr 1, 2020
The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, es...