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2018/19 EDITION

NORTHERN CAPE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN THE NORTHERN CAPE PROVINCE

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CONTENTS

CONTENTS

Northern Cape Business 2018/19 Edition

Introduction Foreword5 The Northern Cape’s unique guide to business and investment.

Special features Regional overview  6 The Northern Cape’s clear and sunny skies are attracting astronomers and solar energy developers while the rugged beauty of the landscape draws increasing numbers of tourists. Plans for a Special Economic Zone and a harbour development offer new opportunities for economic growth. Boegoebaai Port and Rail Project  Harbour development to boost regional economy.

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Renewable energy  12 The Northern Cape is powering ahead of the field in solar and wind power generation. De Aar Logistics Hub  Centrally located hub will reduce costs.

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Investment opportunities

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Nine-point plan aims to attract investors to the Northern Cape. Upington Special Economic Zone

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More than 500 hectares of prime land availible for investors. Planned flash across the pan on track 22 The Bloodhound land speed record attempt is set for October. Square Kilometre Array Telescope Unimaginable amounts of data will be collected in this transformative radio telescope project in the Karoo.

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Sol Plaatje University 26 First graduates celebrate as impressive new campus garners design awards.

Economic sectors Agriculture34 Pecan nuts may be the next big thing. Grapes and wine 38 Northern Cape wine, grapes and raisins are exported all over the world. NORTHERN CAPE BUSINESS 2018/19

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Project Sheet

Boegoebaai Port Project 21 June 2018

Project Sheet

PROJECT INFORMATION

Harbour Project

21 June 2018

development to boost regional Boegoebaai Port and Rail Project economy.

Owner

Northern Cape Department of Transport, Safety and Liaison (NCDTSL)

Key stakeholders PROJECT INFORMATION

Transnet, National Department of Transport, Department of Public Enterprises, Treasury

Projectadvisor Transaction Owner Technical consultants

Boegoebaai Port and Rail TM and Nelutha Consulting JVProject (TM) Northern Cape Department PRDW, PSP Logistics, NAKO ILISOof Transport, Safety and Liaison (NCDTSL)

stakeholders ProjectKey status CAPEXTransaction advisor

Transnet, National Department of Transport, Department ofDecember Public Enterprises, The project is in FEL2 phase. Finalisation of FEL2 is planned for 2018. Treasury and Nelutha Consulting JV (TM) Port =TM ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50%

Technical consultants Estimated jobs to be created ProjectProject statusstatus

PSP Logistics, NAKO ILISO jobs 3 000PRDW, permanent and 18 000 indirect The projectstudy is in FEL2 Finalisation of FEL2 end is planned December 2018. PPP Feasibility at FELphase. 2 level to be completed of Aprilfor2019

CAPEX Port = ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50% PROJECT DESCRIPTION Estimated jobs to be created 3 000 permanent and 18 000 indirect jobs Project Sheet A greenfield, deep water port. Two berths; one dry bulk export Project PPP Feasibility study at FEL 2 level be2018 completed end of April 2019 21to June berth and onestatus break bulk berth supported by a rail line (550

kilometers). The port has the potentialPublic to accommodate Funding model Private Partnership to be adopted. Multi-tiered sub concessions PROJECT DESCRIPTION Capesize vessels. deep water port. Two berths; one dry bulk export A greenfield,

berth andINFORMATION one break bulk berth supported by a rail line (550 PROJECT Primary drivers forThe theport development include:to accommodate kilometers). has the potential Boegoebaai Port and Rail Project  Project Capitalizes on new economy, including: Capesize vessels. o Iron ore from junior miners,Northern creates Cape a catalyst for Owner Department of Transport, Safety and Liaison (NCDTSL) APrimary greenfield, deep-water port.constrained Two junior / development miners currently drivers for the development include: Key stakeholders Transnet, National Department of Transport, Department of Public Enterprises, Treasury high transportation costs and exclusion from  byCapitalizes on new economy, including: berths; one dry bulk export berth and Transaction advisor solutions i.e. TM and Nelutha Consulting larger logistic Sishen-Saldanha line for JV (TM) o Iron ore from junior miners, creates a catalyst one bulk berth supported a constrained rail Technical consultants PRDW, PSPby Logistics, NAKO ILISO o break Provides a more efficient logistic route junior / development minersmanganese currently o (550 Strategically capitalize fields line kilometres). Thetoport has the by highpositioned transportation costs andon exclusion from Project status The project isgas in poFEL2 phase. Finalisation of FEL2 is planned for December 2018. larger logistic Sishen-Saldanha o Services base for oil,solutions gas andi.e. offshore mining line tential vessels. CAPEX to accommodate Capesize Port = ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50% o Provides a more efficient logistic manganese route industry Estimated to an be Oil created permanent 18 000 indirect jobs o jobs Strategically positioned tobe capitalize on and gas fields o Potential of Refinery3to000 constructed close basefor for oil, gas offshorestudy mining Project PPPand Feasibility at FEL 2 level to be completed end of April 2019 toostatus theServices port Primary drivers the industry for the Northern Cape Province and  development Economic catalyst include: PROJECT o DESCRIPTION Potential of an Oil Community Refinery to be constructed close specifically the Richtersveld A greenfield, water port. Two berths; one dry bulk export todeep the  Reducing the costport of moving cargo economy, C apitalises onberth new Economic catalyst for the Northern Cape Province and berth and one break bulkfor supported by a rail line (550  Economic catalyst the Northern  Optimizing the cargo distribution within Cape the SAProvince port and kilometers). The port the potential to accommodate including: specifically the Richtersveld community specifically the has Richtersveld Community system vessels. Capesize  Reducing thefrom cost of moving Iron regional ore juniorcargo miners, creReducing the cost of moving cargo  Stimulating socio-economic development  Optimizing the cargo distribution within the SA port  Primary Securing a competitive advantage regionally ates a catalyst for junior/developOptimising the cargo distribution within the SA port drivers for the development include: for SA system ports  Capitalizes on newcurrently economy, including: Stimulating regional socio-economic development system ment miners constrained oSecuring Iron aore from junioradvantage miners, creates a catalyst PROJECT COMMODITY MIX competitive regionally for SA for by high transportation costs and Stimulating regional socio-economic development junior / development miners currently constrained ports Volume Commodity exclusion Commentadvantage regionally for SA ports by high transportation costs and exclusion from larger logistic solu-from Securing a competitive (mtpa) PROJECT COMMODITY MIX larger logistic solutions i.e. Sishen-Saldanha line Dry bulk – iron ore 5-10 New volume from junior miners tions ie Sishen-Saldanha line Volume o Provides a more efficient logistic manganese route Commodity Comment o Strategically positioned to(mtpa) capitalize on gascost fields Dry bulk Provides – manganese 2-5 Lower logistic solution a more efficient logistic o – iron Services base for oil, gas and offshore mining Dry bulk ore 5-10 New volume from junior miners Dry bulk manganese – lead and zinc route 1-2 Closest port to mines industry Dry bulk – manganese 2-5 Lower cost logistic solution Break bulk o Potential of an Oil Refinery 0.5 to be constructed Multi-purpose closecommodities, agricultural, mining and low container volumes Strategically positioned to capitalise Dry bulk – lead and zinc 1-2 Closest port to mines to the port FUNDINGon MODEL gas fields Break bulk 0.5 Cape Province Multi-purpose commodities, agricultural, mining and low container volumes  Economic catalyst for the Northern and specifically the Richtersveld Services base for oil, gasCommunity and offshore FUNDING MODEL  Reducing the cost of moving cargo mining industry  Optimizing the cargo distribution within the SA port system Potential of an oil refinery to be  Stimulating regional socio-economic development constructed close to the port  Securing a competitive advantage regionally for SA ports

Project description

• • • •

• • • •

PROJECT COMMODITY MIX Commodity Dry bulk – iron ore

Volume (mtpa) 5-10

Comment New volume from junior miners

Dry bulk – manganese

2-5

Lower cost logistic solution

Dry bulk – lead and zinc

1-2

Closest port to mines

Break bulk

0.5

Multi-purpose commodities, agricultural, mining and low container volumes

FUNDING MODEL

Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835 E-mail: mdichaba@ncpg.gov.za


CONTENTS Mining42 Mine revivals are under way in iron ore, zinc and copper. Water50 Two major bulk supply projects will open up economic opportunity. Tourism52 Five national parks and six provincial reserves offer an unrivalled experience of nature. Banking and financial services Agricultural companies have a strong suite in finance.

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Development finance and SMME support Many training opportunities are being offered to small business owners.

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Government Northern Cape Provincial Government

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A guide to the Northern Cape’s provincial government departments. Northern Cape Local Government

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An overview of the Northern Cape local municipalities.

References Key sector contents

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Index72 Maps Northern Cape municipal map.

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Northern Cape regional map.

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Northern Cape locator map.

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ABOUT THE COVER: The cover photograph was shot by Kevin Wright for Vedanta Zinc International. It shows a tailings thickener at the massive new Gamsberg zinc and lead project at Aggeneys between Springbok and Pofadder. Wright also photographed the panoramic view of the Gamsberg Mine which illustrates the Key Sectors introduction.

NORTHERN CAPE BUSINESS 2018/19

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FOREWORD CREDITS Publisher: Chris Whales Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Sydwell Adonis, Joseph Gumbo, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Siyawamkela Sthunda, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

Northern Cape Business A unique guide to business and investment in the Northern Cape.

T

he 2018/19 edition of Northern Cape Business is the eighth 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 several special articles which focus on transformative projects, such as the solar and wind farms rapidly coming on line and the massive potential represented by the Square Kilometre Array radio telescope, a multi-billion rand international project already taking shape in the vast open plains of the Karoo. 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 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 as our flagship South African Business title.

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

PUBLISHED BY

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

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

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 | Pictures supplied by: Abengoa Solar; Aurecon; Bloodhoundssc.com; Clayton Swart; Country Hotels; IDC; iStock; Khobab Wind Farm; Mulilo; Murray and Dickson Construction; Northern Cape Department of Agriculture, Land Reform and Rural Development; Northern Cape Tourism (experiencenortherncape.com); Planet Labs/ commons.wikimedia.org; Robertson Ventilation Industries (RVI); SKA

Africa (www.ska.ac.za); Small Enterprise Development Agency (Seda); South African Tourism/Flickr: Stefan Marjoram/Flickr; Quentin Broid Photography and Carpe Diem Group; Kevin Wright and Vedanta Zinc International.

ISSN 2074-0654

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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NORTHERN CAPE BUSINESS 2018/19


A REGIONAL OVERVIEW OF THE

NORTHERN CAPE PROVINCE

The Northern Cape’s clear and sunny skies are attracting astronomers and solar energy developers while the rugged beauty of the landscape draws increasing numbers of tourists. Plans for a Special Economic Zone and a harbour development offer new opportunities for economic growth.

W

hen the world’s best architecture came under the spotlight in 2017 at the Arena Berlin in Germany, only two South African projects received commendations, the Zeitz Museum of Contemporary Art Africa – and a multi-purpose building designed for the Sol Plaatje University in Kimberley. The Northern Cape province, previously known primarily for the huge quantities of iron

ore which it mines and its vast open landscapes, is now at the centre of innovation and technology in several fields. The creation of the new university was a chance to call on the country’s best designers and builders to create a stimulating new campus. The university’s striking library and resource centre also won an award, from the Concrete Society of South Africa. The first bachelor’s degrees were awarded


SPECIAL FEATURE by Sol Plaatje University in 2017, an exciting development for the education sector. The finest minds in science are gravitating to a project located in the Karoo, the Square Kilometre Array (SKA) radio telescope. This multi-billionrand project will run for many years and attract investment of many sorts. It is already opening vistas that young South Africans had never imagined. Four South African universities are partners in the SKA project. The other sector which is bringing technology and innovation to the Northern Cape is renewable energy. The Northern Cape is uniquely suited to exploit the latest technologies in solar energy and several international consortiums are using the latest photovoltaic and concentrated solar power (CSP) methods. CSP has the benefit of being able to store energy. The rise of the renewable energy sector has given the Northern Cape a chance to break its dependence on the mining sector, subject as it is to global price fluctuations. The Provincial Government of the Northern Cape has plans to further diversify the economy. It has identified three key clusters: mineral beneficiation; agri-processing; energy and technology. The planned Special Economic Zone (linked to the Upington International Airport) is intended as a site for solar-related manufacturing. The Industrial Development Corporation has spent R11.4-billion of its commitment to renewable energy so far in the Northern Cape. Part of the IDC’s role has been to take up a 20% stake in projects on behalf of local communities.

Largest province Despite these technical innovations and new developments, the Northern Cape still does big. Big landmass, big railway lines, big volumes, big skies. The Northern Cape is South Africa’s largest province at 372 889km², covering 30% of the country’s landmass on the dry western side of the country bordering the Atlantic Ocean, Namibia and Botswana. The Sishen-Saldanha ore export railway line is one of the mechanical wonders of the world. The line extends 860km and the trains sometimes extend beyond 3 500 metres and carry a load exceeding 41 000 tons. The Northern Cape produces more than 84% of South Africa’s iron ore. Kumba Iron Ore is the

The Sol Plaatje Library and Resource Centre, an award-winning example of innovation and excellence. Architects: designworkshop; construction: Murray and Dickson Construction; structural and civils design: Aurecon.

NORTHERN CAPE BUSINESS 2018/19

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SPECIAL FEATURE

country’s biggest iron-ore miner with two large two mines in the province (Sishen and Kolomela). 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 accounts for 13% of global demand. Vedanta Zinc International started work in 2015 on its huge new Gamsberg zinc project. The new mine, pictured above, is near to Vedanta’s existing Black Mountain mine and is the biggest current new mining project underway in South Africa. The province also has copper, lead, zinc, mineral sands, gypsum, granite, asbestos, fluorspar, semi-precious stones and marble. Some decommissioned mines are being put back to work by overseas investors, with Australian company Orion Minerals investigating the possibility of starting up operations at the old copper mine at Prieska. The Northern Cape is a big contributor to the national basket of exports in minerals and in agricultural products such as table grapes and raisins. The province hosts several big companies in the agricultural sector. The town of Douglas hosts GWK. In 2016 GWK invested R400-million in a wheat mill, pasta plant and biscuit factory in Modder River. Senwes is one of the country’s biggest agri-companies and its Northern Cape area of operation is mostly around the Vaalharts irrigation area. 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. KLK is based in Upington and is a specialist in karakul pelts, a luxury item which is exported to Europe. The company’s interests include 19 retail outlets, 12 petrol stations, four Build-it franchises and a strong auction division. About 45 000 people are employed in agriculture, which represents approximately 16% of employment. The province supports livestock farming (mainly goats and sheep with cattle in the north), table grapes, dates, cotton, and cereal crops and vineyards along the banks of the

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Orange River, and large varieties of crops including cotton, groundnuts, wheat and maize on irrigated lands. Pecan nuts are a major new crop. Thoroughbred horses are bred in the south-eastern parts of the province, especially around Colesberg. 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 falls into the category of semi-arid (apart from the coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold.

The Northern Cape has five district municipalities Frances Baard Dist ric t 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.

NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE 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, and produces maize, cotton, fruit, peanuts and wheat. Investment opportunities: • Sol Plaatje University • Kimberley International Diamond and Jewellery Academy (KIDJA) • Mining: diamonds and precious stones • Manufacturing: textiles, agri-processing. John Taolo Gaetsewe District Municipality 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. Almost half of the population in the Kgalagadi’s district live in rural villages. 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. Namakwa District Municipality Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay. The Namakwa district stretches from the north-western corner of NORTHERN CAPE BUSINESS 2018/19

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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, pictured. The mining and agricultural sectors provide most employment, while tourism and small-scale manufacturing are also present. The region’s economy gets a great boost every spring when tourists flock to see the veld in bloom. Major plans are being pursued to upgrade the harbour at Port Nolloth and exploit the province’s long coastline as part of a growing awareness of the potential of the maritime economy. 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 /A i /A i s / R i c h t e r s v e l d 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.


SPECIAL FEATURE Pixley Ka Seme District Municipality Towns: De Aar, Hanover, Carnarvon, Douglas, Marydale, 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. Star gazing is Carnarvon’s great claim to fame, and it will now host the Square Kilometre Array (SKA) radio telescope. 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: • 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. ZF Mgcawu District Municipality Towns: Upington, Kakamas, Kenhardt, Groblershoop, 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

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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 highspeed 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. The diamond mine at Finsch is Petra Diamond’s newest and largest acquisition. 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). NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE

Renewable energy The Northern Cape is powering ahead of the field in solar and wind power generation.

I

t has been said that one should never let a good crisis go to waste. Former Finance Minister Trevor Manual certainly wasn’t found wanting in terms of Winston Churchill’s famous maxim when the lights started going out all over South Africa in 2007. “Load shedding” provided a spur for Treasury officials to create a system for private companies to start selling power to the national grid, to keep electricity flowing to South African homes and factories. In the process, it kickstarted an industry that is transforming the Northern Cape landscape. Fully 60% of the projects so far allocated have been in the nation’s sunniest province. The system, which became known as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), has seen more than R200-billion committed to renewable energy projects across South Africa. It aims to add some 6 000MW to the national grid by 2020, and 13 225MW by 2025. In April 2018, new National Energy Minister Jeff Rabebe signed off on projects totalling R56-billion that will add 2 300MW to the national grid. NORTHERN CAPE BUSINESS 2018/19

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The signing also brought a sigh of relief to investors and manufacturers in the renewable energy sector because there had been a long delay as national utility Eskom argued against accepting more power purchase agreements while they had a surplus. Most of South Africa’s electricity comes from coal and Eskom is spending billions of rands building two huge coal-fired power stations. When a group of dignitaries gathered a month later to inaugurate a solar plant that covers 300ha in the Northern Cape, there was therefore a lot of optimism in


SPECIAL FEATURE the air. National government’s confirmation of its commitment to the REIPPPP will allow this booming sector to grow again. Xina Solar One is located at Pofadder on the N14 between Upington and Springbok. There has been mining in this area in the past and new mining operations are starting up again nearby, but Pofadder itself is a tiny town that has mostly been bypassed by trends. Not any more. The R9.4-billion Xina Solar One 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. The plant is Abengoa’s third in the Northern Cape. Kaxu Solar One is also near Pofadder but Khi Solar One is closer to Upington. All three use concentrated solar power (CSP) which reflects the sun’s rays during the day in to a molten salt storage system. The energy can be 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 photograph on the opposite page shows the tower surrounded by its reflective panels. (Image: Planet Labs/commons.wikimedia.org.) The support of two of South Africa’s biggest institutional investors, the IDC and the PIC, has been crucial in getting the renewable energy sector off the ground. According to Business Day, the PIC has so far invested in 16 unlisted projects and its total investment stands at R11-billion. The IDC’s 24 projects are valued at R14-billion and will contribute 1 100MW to the national power grid. The countries of origin of the companies investing in this new industry are varied. They include Vestas (Denmark), Enel Green Power (Italy), Scatec Solar (Norway), Globeleq (United Kingdom), Mainstream Renewable Power and Solar Capital (Ireland), Gestamp Renewable Energies and Abengoa (Spain), SunEdison and SolarReserve (USA), ACWA Power (Saudi Arabia), Tata Power (India), China Longyuan Power Group, (China), Genie (Gulf states), and juwi Group (Germany). Some

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of these investors are investment funds, some are utility companies expert in power generation, others specialise in renewable energy technology such as wind blades. Every project has a joint ownership consortium or joint venture that includes a local company and a community trust of some sort. 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 along the way. They are now

NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE • •

Selected Northern Cape projects, mentioned in this article. SOLAR PROJECT

LEAD COMPANY

AT OR NEAR

MW

Bokpoort CSP

ACWA Power

Groblershoop

50MW

De Aar 1 & 3

Solar Capital

De Aar

175MW

Jasper

ACWA Power/SolarReserve

Postmasburg

96MW

Kaxu Solar One

Abengoa Solar

Pofadder

100MW

Khi Solar One

Abengoa Solar

Upington

50MW

Lesedi

ACWA Power/SolarReserve

Postmasburg

75MW

Redstone

ACWA Power/SolarReserve

Postmasburg

100MW

Xina Solar One

Abengoa Solar

Pofadder

100MW

WIND PROJECT

LEAD COMPANY

AT OR NEAR

MW

Copperton

Gestamp

Prieska

102MW

De Aar Wind Power

Longyuan/Mulilo

De Aar

100MW

De Aar 2 North

Longyuan/Mulilo

De Aar

140MW

Garob

Juwi

Prieska

140MW

Kangnas

Mainstream

Springbok

140MW

Khobab

Lekela Power*

Loeriesfontein

140MW

Loeriesfontein

Lekela Power*

Loeriesfontein

140MW

Noblesfontein

Noblesfontein

Victoria West

73.8MW

Noupoort

Mainstream

Noupoort

80MW

Roggeveld

Building Energy

Matjiesfontein

147MW

* Joint venture between Actis and Mainstream Power.

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SPECIAL FEATURE

Wind turbine components being delivered for the Khobab Wind Farm in the Hantam region.

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 near Groblershoop has been running since the first quarter of 2016. The Bokpoort site covers an area of about 6 700ha, of which its facilities cover a total area of about 250ha. The Redstone project uses a method called Molten Salt Thermal Energy Storage. A dry cooling method also decreases the amount of water used to support the plant. ACWA’s technology partner in Redstone is the American company SolarReserve which holds the CSP tower proprietary rights and is invested in two other (photovoltaic) projects near Postmasburg: Jasper (96MW) and Lesedi (75MW). It has a similar project in the Free State province. SolarReserve is also active in Chile. ACWA wants to develop 5 000MW of renewable energy and conventional power in Southern Africa. This includes bidding for a coal project in Mpumalanga and involvement in South Africa’s natural gas to power programme. The biggest solar farm so far in South Africa was launched in March 2016 when Solar Capital presented its 175MW farm at De Aar. Formerly famous as the railway junction that combined the country’s two rail systems, De Aar is becoming better known as a renewable energy hub. About 200 jobs were created in the construction phase of this R4.8-billion project and 100 people are now employed in running the plant. Solar Capital, which is a subsidiary of the Phelan Energy Group, intends spending on Internet connections, arts training and building a community training centre in De Aar.

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Wind In the last months of 2017, several wind projects entered the commercial phase, showing what can be done when proper planning and hard work is matched to creative policy-making. In November, the 100MW De Aar Wind Power Project was successfully commissioned for the joint venture comprising Mulilo Renewable Energy and the China Longyuan Power Group Corporation. Debt financing was provided by Nedbank Limited via its Nedbank Capital Division, and the Industrial Development Corporation. In December, two Northern Cape wind farms began commercial operations, on time and on budget. Collectively, the wind farms will provide 280MW and potentially power 240 000 households. Loeriesfontein Wind Farm and Khobab Wind NORTHERN CAPE BUSINESS 2018/19


FOCUS Farm both have 61 wind turbines. The wind farms were developed by Lekela Power, a joint venture between Actis and Mainstream Renewable Power. There are several other partners and the respective communities are represented by a trust. 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 Loeriesfontein project is valued at R3.5-billion. Mainstream and various partners have won approved bidder status for wind and solar projects in each of the bidding windows. In the early bidding rounds, Mainstream’s three Northern Cape wind projects amounted to 360MW, including the 80MW Noupoort wind farm. Another 140MW project at Kangnas (Springbok) has subsequently been given the green light. The 147MW Roggeveld wind farm, which has 47 Nordex wind turbines and was developed by G7 and then taken over by Building Energy, was one of projects which was signed off in April. The Power Purchase Agreement (PPA) signing followed shortly after financial closure was reached. The project is expected to operate commercially in the first quarter of 2021. Altogether, Northern Cape has had 12 wind farms and one small (10MW) hydro-electric project on the Orange River approved in the REIPPPP process.

Community and government Investment by black people into the RE programme is not limited to community trusts. Pele Green Energy has been engaged for some time with a photovoltaic plant at Touwsrivier in the Western Cape as a shareholder and as a provider of construction management services. Once the facility starts generating power, Pele will operate and maintain the plant. In the Northern Cape, Pele Green Energy is involved with three wind farms and a CSP plant. The 102MW Copperton wind farm is located south-west of Prieska. The two other wind projects in which Pele is invested, Garob and Kangnas, will both generate 140MW. Most of the projects approved in the Northern Cape are on a large scale. The provincial government is giving attention to smaller ventures, in the 1.5MW range, with the aim of bringing local investors and communities on board. To support this goal, a Renewable Energy Conference was held in 2016. A concrete example of this on a small scale is the solar energy plant established at the rooibos tea factory in Nieuwoudtville by the Department of Agriculture, Land Reform and Rural Development. Any

NORTHERN CAPE BUSINESS 2018/19 2013

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excess power generated is sent on to the Hantam municipality. The Provincial Government of the Northern Cape is using clean energy production, supported by the procurement strategy of the REIPPPP, to boost economic growth and development. Green energy forms part of one of national government’s Strategic Infrastructure Projects (SIP 8), and the Northern Cape is actively participating in that. This includes the inclusion of green energy principles in the design of all major new buildings and the construction of major buildings. The provincial government is also participating in the Shared Water Efficiency Programme set up by National Public Works which will encompass 30 properties. T he Nor thern Cap e Provincial Government has applied to partner with the Central Energy Fund to roll out solar energy solutions at public schools across the province. Schools with poor electricity infrastructure will be prioritised. It is hoped that this will become a national pilot project. Another project, with the National Department of Energy, involves the second phase of the rollout of solar water heaters in the Sol Plaatje Municipality. Training of young people to maintain and repair the geysers will take place.


De Aar Logistics Hub Project Sheet 21 June 2018

Centrally located hub will reduce costs.

Project Sheet

PROJECT INFORMATION

21 June 2018

Project

De Aar Logistics Hub

Owner

Northern Cape Department of Transport, Safety and Liaison (NCDTSL) Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Treasury TM and Nelutha Consulting JV (TM)

Key stakeholders

PROJECT INFORMATION Transaction advisor Technical Project consultants

Ownerstatus Project CAPEX Key stakeholders Estimated project Transactionstart advisor development date Estimated to be created Technicaljobs consultants

Funding PROJECT model DESCRIPTION

PSP Logistics, Aurecon De AarFasken, Logistics Huband NAKO ILISO The project status Cape is at Feasibility Study of Stage. The next Safety steps will be Liaison to conduct a Study Tour and Investors Project Sheet Northern Department Transport, and (NCDTSL) Roadshow. Issue an RFQ in November 2018 21 June 2018 Transnet, National Logistics Hub = ~R2.5 billion Department of Transport, Department of Public Enterprises, National and Provincial

Treasury

Financial close and award estimated to be in March 2020 TM and Nelutha Consulting JV (TM) PROJECT INFORMATION 2 500 permanent and 15 000 indirect jobs and NAKO ILISO PSP Project Logistics, Fasken, Aurecon De Aar Logistics Hub

Public Private Partnership to be adopted. Multi-tiered sub concessions

The Owner project status is at Feasibility Study Stage. The next of steps will be to conduct a Study Tour and Investors Northern Cape Department Transport, Safety and Liaison (NCDTSL) Project status The development of a Logistics Hub in the town of DeIssue Aar that offer Roadshow. anwill RFQ in November 2018 Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Key stakeholders the following infrastructure to identified tenants: Treasury CAPEX Logistics Hub = ~R2.5 billion  Container Terminal which will act as a Trans- Shipment Inland Transaction advisor TM and Nelutha Consulting JV (TM) Estimated project (Dry) Port as well as consolidation point for Freight • Financial close and award estimated to be inFasken, MarchAurecon 2020 and NAKO ILISO Technical PSP Logistics, development startWarehouse date  Agricultural and Storage Facilitiesconsultants The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors • indirect  Vehicle Yard. Estimated jobsStorage to be created 2 500 permanent jobs Project status and 15 000 Roadshow. Issue an RFQ in November 2018 The objectives for the development include but are not limited to: CAPEX Logistics Hub = ~R2.5 billion PROJECT DESCRIPTION  Provide a sustainable transport network for the transportation project • will The development of a Logistics Hub inEstimated the town of De Aar that offer close and award estimated to be in March 2020 Financial freight/products by small miners and farmers start date development

Project description

Facilitate road-to-rail migration The development of a Logistics Hub in Provide a more efficient logistics route for manganese to the town of De Aar that will offer the folthe Port(s) of Export lowing infrastructure to identified tenants: Potential of a Fuel, Oil and Gas storage facility to identified tenants: • the following Container Terminal which willjobs actto beincreated Serving the Provideinfrastructure relief from road-based freight transportation the • Estimated 2 500 permanent andtransport 15 000 indirectand jobs logistics needs of the Renewable  Northern Container CapeTerminal which will act as a Trans- Shipment Inland • Energy market segment asRevitalize a Trans-Shipment Inland (Dry) PROJECT DESCRIPTION (Dry) Port as line welltoasand consolidation for Freight  the rail from De Aar point development of a Logistics the town of Decatalyst Aar that will for offer the Northern Cape Province and   Port Influence economic • Hub in Economic as well asdevelopment consolidation point Agricultural Warehouse andThe Storage Facilities   Ensure creation of jobs in the area.the following infrastructure to identified tenants: Storage Yard. specifically Pixley ka Seme District community forVehicle freight  Container Terminal which will act as a Trans-the Shipment Inland (Dry) Port as well as consolidation point for Freight to the above, the Inland Dry Port will: • Further Agricultural Warehouse and • Reducing the cost of moving cargo Theobjectives for the development include but are not limited to:  Agricultural Warehouse and Storage Facilities Facilitate road to rail migration network Vehiclefor Storage Yard. Provide a sustainable transport the transportation • Optimising the cargo distribution to the SA port system Facilities   Storage Provide a more efficient logistics route for manganese to the Port(s) of Export freight/products by small miners and farmers • Storage Yard. • Stimulating The objectives for the development include but are notregional limited to: socio-economic development   Vehicle Potential of a Fuel, from Oil and Gas storage facility transportation Provide relief road-based freight in the Provide a sustainable transport network for the transportation  Serving the transport and logistics needs of the Renewable • Securing a competitive advantage regionally for SA ports. Northern Cape freight/products by small miners and farmers Energy market segment  Revitalize the railthe line to and from De Aar relief from road-based freight transportation in the Provide The objectives forfor development Economic catalyst the Northern Cape Province and Northern Cape  specifically Influence development theeconomic Pixley ka Seme District Community envisaged impact on the economy in year one of operation include but are not limited to:  Revitalize the railThe line to and from De Aar Ensurethe creation of jobscargo in the area.   Reducing cost of moving Influence development  Provide Optimizing the distribution to transport theSA port systemeconomic • a cargo sustainable is estimated to be a minimum of R1.7-billion.  Ensure creation of jobs in the area.  Stimulating regional socio-economic development Further to the above, Inland Dry Port will: forthe the transportation ofports.   network Securing a competitive advantage regionally for SA Facilitate road to rail migration Further to the above, the Inland Dry Port will: freight/products by small miners  Provide a more efficient logistics route for manganese to the  Facilitate to rail migration The envisaged impact on the economy in Year 1 of Operation is road estimated  Provide a more efficient logistics route for manganese to the of Export andPort(s) farmers to be a minimum of R1.7 billion. Port(s) of Export  Potential of a Fuel, Oil and Gas storage facility • Provide relief from road-based  Potential of a Fuel, Oil and Gas storage facility  COMMODITY Serving the transport and logistics needs of the Renewable PROJECT MIX  the transport and logistics needs of the Renewable freight transportation in Serving the market Energy market segment Volume Energy segment Commodity Comment  Northern EconomicCape catalyst for(mtpa) the Northern Cape Province  Economic catalystand for the Northern Cape Province and Container Terminal specifically the Pixley ka Seme District Community specifically the Pixley400 ka000 Seme District Community • Agricultural railofline to cargo and Commodities 100 000  from Reducing the cost of moving cargo  Revitalise Reducing the the cost moving Break-Bulk 7 000  the cargo distribution to the SA port system  Optimizing the cargo 8distribution toOptimizing the per SA annum port system VehiclesDe Aar (Base data: 2015) development 500 Vehicles Stimulating regional socio-economic  Stimulating regional socio-economic development  Securing a competitive advantage regionally for SA ports. • Influence economic development  Securing a competitive advantage regionally for SA ports. • Ensure creation of jobs in area. Thethe envisaged impact on the economy in Year 1 of Operation is estimated to in be Year a minimum of R1.7 billion. The envisaged impact on the economy 1 of Operation is estimated to be a minimum of R1.7 billion.

The Inland Dry Port will:

PROJECT COMMODITY MIX Commodity

PROJECT COMMODITY MIX Commodity Container Terminal Agricultural Commodities Break-Bulk Vehicles

Volume (mtpa)

Comment

Container Terminal 400 000 Volume Comment Agricultural Commodities 100 000 (mtpa) 7 000 Break-Bulk 400 000 Vehicles Vehicles per annum (Base data: 2015) 8 500 100 000 7 000 8 500 Vehicles per annum (Base data: 2015)

Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835 E-mail: mdichaba@ncpg.gov.za


SPECIAL FEATURE

Investment opportunities Nine-point plan aims to attract investors to the Northern Cape.

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n economic colloquium will be held in the Northern Cape. This will serve as a preparation for a much larger investment conference. Northern Cape Premier Sylvia Lucas says, “The idea is to aggressively promote our mega projects for attraction of credible investment.” A nine-point project plan is in place, which includes promoting to investors: • a Special Economic Zone (SEZ) • development of a port at Boegoebaai • Square Kilometre Array radio telescope • Agri-parks for every district. This is over and above the massive renewable energy programme (wind and solar) which is covered in a separate article in this publication. In her 2018 State of the Province Address, Premier Lucas said, “Transforming the economy of the Northern Cape will entail the calculated mobilisation of all social partners, in particular the three spheres of government, as well as labour and business behind an economic growth plan.”

Infrastructure Work has started on a framework for future growth and development in the Northern Cape. The Provincial Growth and Development Plan (PGPD) Vision 2040 will outline the intended growth path for the province. Towards this goal, the province intends for decisions about land use to be located within the Office of the Premier, instead of with municipalities. A Provincial Infrastructure Strategy is to be developed after an audit has been conducted on the province’s infrastructure. The aim is to implement the Infrastructure Development Act. Two large bulk water supply projects are underway. These will not only mitigate drought conditions where they occur but promote new businesses and provide greater security for communities in affected areas.

Manufacturing clusters The Department of Economic Development and Tourism (DEDAT) intends using clusters to promote economic growth with a focus on mineral beneficiation, agri-processing, and energy and technology. NORTHERN CAPE BUSINESS 2018/19

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The rooibos tea processing plant supported by the Provincial Government of the Northern Cape.

Within these clusters, investors will find good infrastructure and other businesses in the same sector with whom they can trade. Three manufacturing clusters are planned for the Northern Cape: Metal manufacturing: John Taolo Gaetsewe District Municipality. The mining sector is strongly represented in this area. Main towns: Kuruman, Kathu, Hotazel. Clothing manufacturing: Frances Baard District Municipality. Main towns: Kimberley, Jan Kempdorp, Warrenton. The existing diamond beneficiation projects that exist in Kimberley were recently boosted by the signing of Memorandums of Understanding with Turkey and India for diamond cutting and polishing as well as jewellery manufacturing at the


SPECIAL FEATURE Kimberley International Diamond and Jewellery Academy (KIDJA). Agri-processing: ZF Mgcawu District Municipality. Wine, grapes and raisins, animal hides and abattoirs are among the existing processing operations already in existence along the Orange River. Main towns: Groblershoop, Kakamas, Upington. Dates, olives, citrus and rooibos tea are sectors with great growth potential. Plans include downstream manufacturing in items such as fibre sacks and cardboard cartons for packaging. Some of the existing areas of manufacturing could also increase volumes with the right kind of support. The Northern Cape already boasts a geographically diverse allocation of manufacturing facilities. Rooibos tea is made in Niewoudtville in the far south-west of the province and Upington is a hub for meat, skins and pelts, alongside grapes and raisins. Raisins and sultanas in very large numbers are produced at Safari’s plant at Upington. The Gordonia Mill and several meat processing plants are also in Upington. Further down the Orange River, at Kanoneiland, the Karsten Group is headquarted on the farm Roepersfontein from where it oversees a large operation encompassing livestock, apples, grapes and dates.

Southwards toward Kakamas lies Keimos, a centre for raisins, dried fruit and nuts produced by the Red Sun company. (South Africa produces about 40 000 tons of raisins every year.) There are six major processors along the river, receiving raisins from about 250 farmers. In the north, the irrigated Vaalharts district covers 38 000ha and is home to a variety of food producers and processors. One example, Olives South Africa at Hartswater has 200 000 trees and

produces a variety of oils for the local and foreign market. In the far east of the province, OVK oversees the Gariep Organic Meat Processors in Hopetown. The capital city of the province, Kimberley, has several food processing facilities that cater to the urban population.

TOURISM 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. The Northern Cape Department of Economic Development and Tourism (DEDAT) has prepared specific tourism investment packages and is looking for partners to take these opportunities to completion. 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.

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NORTHERN CAPE BUSINESS 2018/19


specifically relevant component manufacture, will form the core of the economic activity undertaken within the zone. Furthermore, skills training facilities situated within the SEZ will equip technicians and artisans to install solar-powered systems anywhere in the country.

SPECIAL FEATURE

The SEZ is being developed with ACSA as a project partner. This opens up a vast number of opportunities to benefit from the proximity of an international airport.

Upington Special Economic Zone

Location

Land adjacent to an existing industrial area north of Upington, one of the largest cities in More than 500 prime land available the Northern Cape,hectares has been of earmarked for the Upingtonfor SEZ.investors.

Industrial hub

Upington Special Economic Zone

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pington, the second-biggest town in the Northern Cape, is located along the banks of the Orange River and is a popular tourist destination with warm weather and long sunny days. The Northern Cape is ideally situated to serve the following industries: solar energy, mining, agricultural, aviation and other industries Upington in South Africa and internationally. Similarly to Special Economic Zones (SEZs) countrywide, the Upington SEZ has a geographically designated area set aside for specifically targeted economic activities in order to accelerate industrial development. In the heart of the Green Kalahari, right next to Upington International Airport, there is more than 500ha of prime land available to be utilised by investors (440ha for the Industrial Park and 85ha for the Aviation Park). Upington is situated 130km from the Namibian border post and about 350km from the border post with Botswana. Upington also has good access roads such as the N10 and the N14, effectively linking up Namibia and Botswana. Upington is 500km from Boegoe Bay’s Port Nolloth which is one of the ports that has been earmarked for the integrated planning of South Africa’s Oceans Economy under Operation Phakisa. The Dawid Kruiper Local Municipality (DKLM) has made the land available for the development of the Upington SEZ. The development will be divided into seven phases. The Environmental Authorisation has been received from the National Department of Environmental Affairs (DEA) for the approval of the development of the Upington SEZ and the Masterplan for the infrastructure is in place. The ZF Mgcawu District, in which Upington is situated, has a welldeveloped economy and active business community supported by government and government parastatals. NORTHERN CAPE BUSINESS 2018/19

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The main objective for the proposed Upington SEZ in the Northern Cape Province is to establish a world-class industrial hub to service the Southern African Development Community (SADC) region in the following sectors: • Renewable energy with the focus on solar component manufacturing • Aeronautics through the development of an Aviation Park for maintenance, repair and overhaul facility (MRO) for aircraft • Mineral beneficiation • Agro-processing • Astronomy exploration • High-value micro technology. The following key economic drivers underscore the viability of the Solar Farm and manufacturing facility at the Upington SEZ: the increasing and sustained demand for photovoltaic (PV) and concentrated solar power (CSP) systems within the South Africa and Sub-Saharan context; the above demand will in turn produce a number of assembly opportunities for PV panels and inverters as well as CSP in-field mirrors, structures and backward integration of manufacturing facilities, eg float glass and silicon wafers; the recent announcement by the Department of Energy of Renewable Energy Independent Power Producers (REIPP) with the majority in the Northern Cape, Upington vicinity; European and Chinese companies continue to express interest in establishing PV and


FOCUS CSP component manufacturing and assembly plant(s) in South Africa; the current heightened activities in the renewable energy industry in South Africa; and there is 72ha of land set aside for the development of a Solar Farm within the SEZ with a complete EIA and 440ha for industrial development. Upington International Airport The Upington International Airport has a number of characteristics that make it a particularly favourable location for the possible establishment of an MRO and aircraft storage facility. These include: • an arid climate that is not conducive to accelerated corrosion and deterioration of aircraft when stored in Upington • the availability of relatively low cost open surface area (land) for the storage of aircraft, as well as for the possible development of supporting industries in and surrounding the airport • Upington Airport has an unusually long runway (5km) that serves as a National Aeronautics and Space Administration (NASA) designated African landing site for its shuttles. The runway therefore can accommodate a large variety of aircraft • Upington is close to the northern border of South Africa and there its position is considered convenient and strategic from an African continental perspective • the remoteness of Upington renders it a fairly safe location in terms of security • there is a strong market for the establishment of an MRO facility in South Africa to serve both the European and African regional markets • the absence of any meaningful competition in this market on the African continent is another plus • there are 85 hectares for the development of an MRO with complete EIA for industrial development. The development of the MRO is spearheaded by

Airports Company South African (ACSA) which will become the anchor tenant of the Upington SEZ. Diverse drivers Mining is one of the key economic drivers in the Northern Cape. The province’s iron ore, manganese, zinc and copper mines open up possibilities in terms of the manufacturing and assembly of mining equipment, excellent to boost the country’s economy. Agriculture: the District ZF Mgcawu, in which Upington is situated, is well known for producing export-quality grapes, citrus, dried fruit such as raisins and other fruits, providing many investment opportunities in agro-processing – the processing of raw materials and products derived from agricultural activities and packaging. The Upington SEZ is perfectly located for astronomy-related logistics, assembly and warehousing. The SEZ aims to be an incubator for manufacturing and high-value micro technology in the Northern Cape. The SEZ will also be home to a number of warehouses where manufactured goods can be stored before being exported or distributed. Together with our partners, the Northern Cape Economic Development Trade and Investment Agency (NCEDA), the Northern Cape Department of Economic Development and Tourism, the National Department of Trade and Industry (dti) and Airports Company South Africa (ACSA), we invite all interested investors to contact us for more information.

NCEDA CONTACT DETAILS:

KEY CONTACTS: Contact: Mr Thobela Dikeni, Chief Executive Officer, Northern Cape Economic Development Agency Tel: +27 53 833 1503 and 060 997 7202 Ms Babalwa Mbobo Sector Specialist Upington SEZ Tel: +27 54 333 1136 and 071 016 5813

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Physical address: Templar Court Building, 2nd floor, cnr Bean and Clarence Streets, Kimberley 8301 Tel: +27 53 833 1503 Fax: +27 53 833 1390 Website: www.nceda.co.za

NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE

Flash across the pan on track

CREDIT: STEFAN MARJORAM/FLICKR

The Bloodhound land speed record attempt is set for October 2018.

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he countdown to October 2018 is on. The Bloodhound supersonic car that will be propelled across the sandy flats of Hakskeen Pan by a rocket, three jet engines and a V8 engine in pursuit of the world land speed record is set to blast off in that month. The Bloodhound team is still raising money for this expensive exercise, but indications are good. Countless tests have been done at the base of the Bloodhound project in the UK. One of them proved that the carbon fibre disk brakes can heat up to 1 000 degrees Celsius. Trials at Newquay Airport in Cornwall saw the 7.5-ton vehicle reach 322km/h but conditions in the UK don’t allow for the kinds of speeds that the Bloodhound team want to achieve on the even ground where the record attempt will take place, about 200km north of Upington. Further tests on the Northern Cape track will be done in the 800km/h range, before launching the final push for the record. The current land speed record of 1 227.98km/h was set in 1997 by the same man who wants to better it in 2018. Wing Commander Andy Green is a British Royal Air Force pilot and he wants to take the new record out to 1 600km/h. A 450kg rocket will fire the vehicle and the car will be fitted with a further three jet engines and a V8 motor vehicle engine: it will have power equivalent of 180 Formula 1 motor cars. Design tweaks that have been made along the way include a revised layout for the floor mounting system, testing of the best jet-start proceNORTHERN CAPE BUSINESS 2018/19

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dures, and making the electronics as robust as possible so that the cockpit messages are easy to read.

Legacy The Northern Cape Provincial Government has enrolled 50 schools in the Bloodhound Project, creating many opportunities for learning about science, mathematics, engineering and technology. The schools chosen include the province’s 17 Dinaledi schools, which already specialise in mathematics and science. In Britain, the project is linked to STEM schools (Science, Technology and Mathematics Schools). There are more than 500 sensors built into the supersonic car, sending out millions of pieces of


SPECIAL FEATURE data that is stored and analysed in search of optimal performance. All the work done by the engineers on the Bloodhound projects can be seen by the pupils and they can look at and try to solve some exciting problems in real-life engineering, science and mathematics. A concrete legacy of the Bloodhound project is the provision of water to the 10 000 residents of the municipality of Mier, a dry rural area. Rietfontein, the biggest of nine towns in the district, is about 280km north-west of Upington. The !Khomani San community live on the borders of Mier. The existing Kalahari East water pipeline is being extended in two phases, which will eventually extend to Rietfontein and Philanderbron. GWI Consulting is one of the firms involved in the project. Askham, Big Ant and Noeniput are among the other settlements that will receive piped water.

The track Hakskeen Pan is about 400km from Verneukpan where British daredevil Sir Malcolm Campbell made a similar attempt in 1929. The surface is not only flat, but also relatively hard for a sandy desert terrain. The sand allows for a softer ride but the ground is still strong enough to carry the leviathan. Several tracks will be prepared as the vehicle won’t be able to go over the same ground twice. A team of previously unemployed people in Loubos and Rietfontein have been assisting the Bloodhound team in making the site ready for the record. So far, they have removed 16 000 metric tons of stones to create a surface as flat and as safe as possible. This work was done as part of the Extended Public Works Programme (EPWP) and employed 315 workers who received the necessary equipment to do the work and appropriate clothing, including wide-brimmed hats: open pans in this part of the world can get very hot. The site will be divided into Trackside (to be controlled by the Bloodhound Project) and Landside (the Provincial Government of the Northern Cape). The logistics are complicated. Issues include: accommodation; RV parking and hook-up area; toilets, waste management; and emergency services; public viewing area alignment with the measured mile; transportation services between Hakskeenpan, Upington and

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Rietfontein airstrip; non-run day entertainments such as safari outings, astronomy classes, concerts; and potable drinking water. This is a long list, but it could present good opportunities for willing and able entrepreneurs. The huge technical team that will descend on the Northern Cape to support the project will boost the accommodation, food and beverage, and business support and engineering sectors. Television images of the unspoilt beauty of the Northern Cape will boost the efforts of the tourism authority to market the province’s assets. MTN has erected five 70m mobile phone towers in the area, which will enable three video feeds and 300 data channels to bring the attempt to the wider world. Flying movements over the area are going to be suspended for the duration of the land speed record attempt, with aeroplanes to be diverted to the airport at Upington or the airstrip at Rietfontein. NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE

Square Kilometre Array Telescope Unimaginable amounts of data will be collected in this transformative radio telescope project in the Karoo.

T

he data that the SKA will collect in a day would take two-million 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. These, and other similarly impossible-sounding statements, are the stock-in-trade of press releases and announcements about the Square Kilometre Array (SKA) South Africa. Its cost is vast, the scope of its investigations of the universe is huge, its footprint across Africa (and Australia) is immense. Nothing about SKA is ordinary. It is a transformative scientific scheme with wide-ranging implications for the province, for South Africa, and for the world and our understanding of how the world came to be. The SKA will be the world’s largest radio telescope, made up of thousands of antennae throughout Australia and Africa, centred on the area around Carnarvon in the Northern Cape. SKA will be tackling the big questions: What is dark matter? When did life begin? How are galaxies created? South Africa’s own 64-dish MeerKAT telescope, which will form part of the SKA, started coming on line in 2016. Once all 64 dishes are operational, a cellular phone signal from Saturn will be within the scope of this amazing set of instruments. A new body is to be established to oversee all astronomy in South Africa. The South African Radio Astronomy Observatory (SARAO) is to be classified as a National Research Facility. This is an effort by the National Research Foundation (NRF) and the Department of Science and NORTHERN CAPE BUSINESS 2018/19

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Technology (DST) to consolidate South Africa’s radio astronomy facilities. Sites to fall under SARAO include the MeerK AT and KAT-7 telescopes in the Karoo, the Hartebeesthoek Radio Astronomy Observatory (HartRAO) in the North West province, the African Very Long Baseline Interferometry Network (AVN) in nine African countries, as well as various training programmes and commercial enterprises arising out of projects. South Africa is one of only three countries to have passed legislation to create an Astronomy Reserve and this helped persuade the international decision-makers that South Africa should be the host (with Australia) of the SKA. There are 17 countries on the project, with the headquarters in


SPECIAL FEATURE Manchester, England. In Africa, a total of eight countries will host SKA antennae, including Kenya, Mozambique, Namibia and Zambia. The town of Sutherland, 245km south-west of the site of SKA, already hosts an array of telescopes with a long history of providing scientists with excellent data in clear skies above the flat and dry Karoo. Sectors in the Northern Cape to beneďŹ t include tourism and hospitality. A number of local firms have become involved through the provision of at least 75% of the components. To ensure that local contractors have access to some of the work, the Kareeberg and Karoohoogland Contractors’ Forum was established. Ten local contractors are receiving training in how to prepare to tender for projects, with a particular focus on the 80km road that links the town of Carnarvon to the SKA site.

Universities Four South African universities are members of the international organisation, Inter-University Institute Date Intensive Astronomy (IDIA). The departments of Physics at the universities of the Western Cape and Pretoria belong, as does the Astronomy Department of the University of Cape Town and the Centre for Space Research (North West University). Among the projects undertaken by IDIA are CyberSKA (a social networking function where scientists can put together research teams, collaborate on papers and plan projects), the African Research Cloud, which is testing models for dealing with large amounts of data, and a Data Intense Research Facility. The last of these provides for storage capacity that will accommodate post-processing algorithms, analytics and data mining. A new optical telescope was unveiled as part of the MeerKAT project at Sutherland in May 2018. The MeerLICHT telescope will take an optical image of the radio sky projected by MeerKAT every 60 seconds, which will then immediately be processed by the computers at IDIA. The MeerLICHT is a multinational project (South Africa, the Netherlands, the UK) involving scientists from six institutions and

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forming part of a broader National Department of Science and Technology multi-wavelength astronomy (MWA) strategy. The aim is to bring optical, gamma ray, radio and optical astronomy communities closer together and to use facilities across the three nations to best effect. Another project resulting from MeerKAT is MeerTRAP, which will be searching for fast transients and pulsars. MeerTRAP is funded by the European Research Council. A Big Data summer school was held in Cape Town in 2017. A partnership between Square Kilometre Array South Africa (SKA SA) and the South African Medical Research Council (SAMRC), the event exposed students from various academic backgrounds to the fundamentals of big data research. This included practical sessions in astronomy, bioinformatics and health sciences, and tackling the transfer of knowledge in the area of data science using a multi-disciplinary approach. The funding partner for the study programme is the Newton Fund through Development in Africa with Radio Astronomy (DARA). The Newton Fund is supported by the UK government.

NORTHERN CAPE BUSINESS 2018/19


SPECIAL FEATURE

Sol Plaatje University First graduates celebrate as impressive new campus garners design awards.

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n 2017, Sol Plaatje University celebrated the graduation of its first cohort of Bachelor of Education students. The first intake of students at the Kimberley campus in 2014 was 124. There are now more than 1 000 students enrolled in a range of degree and diploma courses. Thirty-four of the graduates were immediately offered permanent teaching posts by the provincial Department of Education. Approximately 60% of the students are enrolled in teacher training courses. The university has set itself a goal of catering to specific niches, such as heritage studies. The McGregor Museum in Kimberley is one of the most respected museums in the South Africa and heritage tourism is seen as a growth market, so university students concentrating on this area will have good support and good prospects. 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, commerce and arts. A diploma in retail business management (three years) and a one-year higher certificate in heritage studies completes the prospectus. Data science takes on extra relevance with the construction of the great radio telescope in the Northern Cape, the Square Kilometre Array. Astronomy-related courses are planned to dovetail with the SKA. The University of North West has a Centre for Space Research department and a campus in Mahikeng. An astronomical observatory has been located on the Mahikeng campus since 2015. The university is named after Solomon Tshekisho Plaatje, one of NORTHERN CAPE BUSINESS 2018/19

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South Africa’s great intellectuals. 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.

Building a great campus Chances to build university campuses from scratch do not come about often. So the opportunity to create something special was seized upon for Kimberley’s newest educational facility. A competition was held to choose the architects to work on


SPECIAL FEATURE

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 would be tasked with completing work on the campus over the three years to 2016: Activate Architecture; Savage + Dodd Architects; designworkshop:sa; Comrie Wilkinson Cape and Urban Studio JV; Wilkinson Architects in Joint Venture with Mashilo Lampbrechts Architects and GXY Architects. Sol Plaatje University Library and Student Resources Building, designed by designworkshop: sa, won the 2017 Fulton Concrete Awards for “Buildings Greater Than 3-Stories”. The construction work was done by Murray and Dickson Construction and Aurecon provided structural, civil, electrical, fire and wet services design for the project. Another striking building, designed by Savage + Dodd, was “highly commended” at the World Architecture Festival in 2017, along with only one other South Africa entry, Cape Town’s Zeitz Museum of Contemporary Art. The multi-purpose building (shown by day and night) encompasses a residence, offices, meeting spaces and retail space on the ground floor. The colourful, wind-driven louvres which act as sun shading were designed by Savage + Dodd Architects and executed by RVI Architectural Solutions. The project was a finalist in the Southern African Institute of Steel Construction (SAISC) awards.

Funding and skills The Provincial Government of the Northern Cape made 9 736 bursaries available in 2017, jointly funded by national government, SETAs and the Premier’s Trust Fund. The Mine Managers’ Forum has made R1-million available for university bursaries in the 2018/19 year. The Namaqua Maths and Science project (NaMaSci) is a partnership between the Northern Cape Department of Education and the University

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of Stellenbosch which aims to help students in the Namakwa district gain access to tertiary study. Tutors offer holiday classes in Springbok The provincial government wants researchers at Sol Plaatje University to conduct a provincial skills audit to find out what skills are most needed by the local economy. Technical Vocational Education and Training (TVET) colleges provide after-school skills training. The Northern Cape Urban TVET College comprises three campuses in Kimberley: City Campus and 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. In 2017 the College enrolled 2 340 students. 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 NORTHERN CAPE BUSINESS 2018/19


ADVERTORIAL

Nedbank’s new brand promise focuses on new clientbrand engagement Nedbank’s promise that will create a better understanding focuses on client engagement that ADVERTORIAL

Kevin de Beer, Nedbank Provincial General Manager in the willState create a better understanding Free and Northern Cape, explains how Nedbank Kevin de Beer, Nedbank Provincial General works with communities to deliver bankingManager solutions.in the Free State and Northern Cape, explains how Nedbank works with communities to deliver banking solutions.

locally and nationally. ‘Working with communities is entrenched in our 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,’ concludes De Beer.

Nedbank continues to build on its clientcentred strategy aimed at delivering distinctive experiences and channels of choice for businesses and clients in the Northern Cape. This has seen the bank simplify and enhance its product offering in line with its value-banking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives. Since 2012 Nedbank has launched several first-tomarket innovations, such as the award-winning Nedbank App Suite™, the home loans online digital channel and Market Edge™, as well as the ‘Branch of the Future’ concept in communities

This is a unique service for clients, with financial fitness training a key aspect of the offering. Our wide range of products and services include the Nedbank Ke Yona Plus transactional account, which comprises funeral cover, a personal loan facility, the JustSave Account and the Send-iMali money transfer solution, enabling clients to transact, borrow, save and take out cover. To encourage the youth to save and build their financial fitness from an early age the Nedbank 4me offering enables the youth to transact and save with the benefit of earning preferential interest. Nedbank 4me comprises a full transactional banking account with no monthly fees, free initial transactions and thereafter reduced pay-as-you-use pricing, free eNotes and self-service banking. Should you be interested in learning more about how Nedbank can assist you to grow your wealth and see money differently, for more information call +27 (0)51 400 5813 or visit www.nedbank.co.za.


ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Making it easier to do business with will create a better understanding Nedbank Whole-view Business Kevin de Beer, Nedbank Provincial General Manager in the ™ Banking Free State and Northern Cape, explains how Nedbank ADVERTORIAL

works with Nedbank communities to deliver banking solutions. Gary Long, Provincial BB Manager in the Free State and Northern Cape, explains how Nedbank can help business owners in the Northern Cape. At the core of Nedbank’s offering in the Northern Cape is a relationship-based model with a business manager dedicated to your business as the key entry point into the bank. ‘We encourage you to see money differently with Whole-view Business Banking™, explains Long. What does this mean to the client? It 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.

There is good news for Northern Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has 27 business managers located across the province specialising in commercial industries as well as the agricultural sector. They are ready to assist you with professional advice, industryspecific solutions and a comprehensive range of financial products and services. ‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,’ says Long.

‘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 you and your staff because we already know and understand your needs,’ says Long. With this in mind, Nedbank has seamless offerings for you, your employees and your household. Nedbank provides several communities, including individual and business clients, with access to products and services through Nedbank’s workplace banking offering through a dedicated banker. Should you be interested in taking your business to its next level and improving staff engagement, and for more information about Nedbank’s specialised service offering please call the Business Banking team on +27 (0)51 400 5700 or visit www.nedbank.co.za.


ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Expertise aimed will createin a small betterbusiness understanding at stimulating growth Kevin de Beer, Nedbank Provincial General Manager in the ADVERTORIAL

Free State and Northern Cape,ofexplains how Nedbank Nedbank’s Regional Manager Small Business Services, Kim works with communities to deliver banking solutions. Lawrence, explains how Nedbank is committed to partnering with businesses for growth.

The initiative calls on everyone to make a conscious decision to vote for small businesses through their hearts, feet and wallets; not only on Small Business Friday, but every day.

‘Small businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business 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,’ says Lawrence. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Small Business Friday, free small-business seminars and the SimplyBiz.co.za platform – all geared to support the small- and medium-sized enterprises sector. For example, the Small Business Friday initiative, in association with the National Small Business Chamber, seeks to encourage everyone in South Africa to rally behind and support small businesses.

Nedbank has recently launched its Business Bundle, a game changer for small enterprises, comparatively offering the best value for money when set against rivals, with exclusive benefits and personalised services for entrepreneurs. With the country’s challenging economic environment, the Nedbank Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees, contributing directly to the bottom line at a time when every cent counts. In line with Nedbank’s new brand proposition ‘see money differently’, the Business Bundle resonates with the bank’s commitment to using expertise for good in promoting small business enterprises. SimplyBiz.co.za is a free-to-join value networking portal designed especially for small businesses. The online portal helps small businesses improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas. Should you wish to tap into our small business expertise to help your business goals, why not get in touch with Nedbank’s Small Business Services, call Kim Lawrence +27 (0)51 400 5700 or send an email to kiml@nedbank.co.za.


ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Newcreate brandaproposition encourages will better understanding clients toNedbank ‘see Provincial moneyGeneral differently’ Kevin de Beer, Manager in the ADVERTORIAL

Free State and Northern explains Nedbank Lorraine McAnda, NedbankCape, Free State andhow Northern Cape works with communities deliver banking solutions. Regional Manager, BusinesstoBanking, explains how the new brand values build on the expertise of the bank to benefit clients.

almost two years of research and client engagement that revealed that people want to work with purpose-driven institutions they can trust. They want a professional financial partner that balances expertise with a genuine commitment to do good. The public will see a number of changes in the next few months as the bank evolves its corporate identity, advertising and communication campaigns, as well as its products, services and channels. All these changes are designed to inspire clients and society to see money differently and partner with the bank to achieve their goals.

Nedbank officially launched its new brand repositioning during the first day of the world’s largest design festival – the 2017 Design Indaba on March 1. The bank’s new tagline challenges clients and society to ‘see money differently’. One of the solutions from Nedbank is Whole-view Business Banking™, which provides a bird’s-eye view of clients’ businesses. It is aimed at business owners who believe that they need the best-of-breed of financial institutions. The new brand positioning is built on Nedbank’s purpose: to use financial expertise to enable individuals, families, businesses and society to do good. Our new brand proposition was born after

Our new brand proposition is not just a marketing initiative but a reflection of the continuing business evolution at Nedbank. As a bank we want to ensure that our clients experience our brand in a way that is aligned with our brand promise. It is common knowledge that we live in a volatile socioeconomic environment, so it is even more important for us to intensify our commitment to improve on our skill in enabling clients to navigate challenges and meet their goals. If you would like to explore further how Business Banking can help take your firm to the next level, and for more information about Nedbank Business Banking Services call Lorraine McAnda on +27 (0)51 400 5745 or send an email to LorraineMc@nedbank.co.za.

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

SPONGE 5556

see money differently


CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)

KEY SECTORS Overviews of the main economic sectors of the Northern Cape

Agriculture

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Grapes and wine

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Mining 42 Water

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Tourism

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Banking and financial services

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Development finance and SMME support

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OVERVIEW

Agriculture Pecan nuts may be the next big thing.

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SOURCE: SAPPA

he Vaalharts Irrigation Scheme (pictured above) is one of the biggest systems of its kind in the world. Ranging over more than 38 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. Some analysts believe that the Northern Cape could become a global centre for pecan nut production. Figures released by the South African Pecan Nut Producers Association (SAPPA) suggest that huge increases in production and the extent of land planted to nuts is already underway.

NORTHERN CAPE BUSINESS 2018/19

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SECTOR INSIGHTS The province has a Climate Change Adaptation Response Strategy. • Trout fishing has great potential in the province. Production of pecan nuts grew from 5 000 tons in 2010 to 10 500 tons in 2015, and the figure continues to rise as world markets react positively to the South African product. At one time it was thought that pecan nuts were better suited to tropical and subtropical climates, but the consensus is now that the Northern Cape is ideal for the cultivation of the versatile and healthy nut. Hot summers and short, cold winters are perfect, together with the dry air which has made areas


OVERVIEW like Prieska, Upington, the Orania district and the Vaalharts area the site of many new groves. SAPPA says that 90% of the new plantings in South Africa are happening in the drier, western parts of the country. Farmers have to be patient, however, because the nut takes a long time to grow. Consulting firm Aurecon was involved in doing a feasibility study and compiling a business plan for the rehabilitation and upgrading of the irrigation scheme and agribusiness development in the Vaalharts and Taung areas, a major concern of the Northern Cape Department of Agriculture, Land Reform and Rural Development (DALRRD). The aim is to anchor the project in Ganspan. Another goal is to establish black pecan nut farmers in the area. Another new area where the DALRRD is involved is issuing permits and licences for trout production at the Vanderkloof Dam. This would open up a new stream of food production, reduce anxiety related to food security, and create jobs. Other priority projects include: • implementation of Agri-parks across the five districts of the province. Business plans are with municipalities for their approval. R33.9-million was set aside for this project in the 2017/18 budget • Fetsa Tlala Food Production programme, which supports smallholder farmers in growing their production volumes • the Namakwa Irrigation Development project with Onseepkans as the anchor • rooibos development project using rooibos extract and aroma as value-added products • development of the ostrich industry in the Pixley ka Seme District. The Agri-parks initiative is designed to promote inclusivity in agriculture and to grow agri-processing, particularly closer to where farmers farm. The concept brings together farmers, traders and agri-processors (such as abattoirs) in convenient sites within each district municipality. Within these parks, support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market. The Agri-park intends to provide a network for farmers and manufacturers. There will also be training available. The provincial department has a programme to place unemployed agricultural graduates at land reform farms in the province to make sure that the farms are run well, at the same time giving the graduates hands-on experience.

Overview 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.

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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 economy 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% 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. 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. NORTHERN CAPE BUSINESS 2018/19


OVERVIEW

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 it 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 at the abattoir. The karakul-pelt industry is one of the most important in the Gordonia district of Upington. Agri-company KLK is the only organisation that handles these pelts in South Africa, which are sorted in Windhoek before being sent to Copenhagen for auction.

Niches Two of the Northern Cape’s most exclusive products are distributed via the capital of Denmark and the Italian fashion capital of Milan. Copenhagen is the site of the two auctions of karakul pelts that are held annually, karakul being a speciality of the Upington district. Glove-makers 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 in the agricultural landscape of the Northern Cape is horse stud breeding. This is 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”.

Rooibos Health trends around the world are helping the sales of rooibos tea, most of which is farmed and processed in the Western Cape and Northern Cape provinces. NORTHERN CAPE BUSINESS 2018/19

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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. In 2014, South Africa finally won “geographic indicator” status for rooibos, putting it in the same category as France’s “champagne” and Portugal’s “port”. About 6 000 tons of tea is now exported to more than 30 countries and domestic consumption is about 8 000 tons. In several coffee shops in London, Red Espresso has replaced the traditional doubleshot of pure coffee, and a more recent use of the tea is to spruce up cocktails. The country’s biggest private producer, Rooibos Ltd, is based in the Western Cape town of Clanwilliam on the edge of the Cedarberg Mountains. About an hour’s drive further north, in the Northern Cape town of Nieuwoudtville, a newly developed rooibos factory is providing an outlet for small-scale farmers. An initiative of the Northern Cape Department of Agriculture and Land Reform which started operating in 2008, 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. The Rooibos Council states that more than 5 000 people are employed in the rooibos industry. Only the leaves of the Aspalathus linearis (a legume


OVERVIEW 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. Fair Cape Dairies has a product called Rooiboost.

Aquaculture and mariculture The Northern Cape’s 313km-long coastline carries great economic potential, even beyond the various land and sea-based mining operations that have been carried on along the coast for many years. The Northern Cape is well placed to take advantage of growing global demand for abalone. The aquaculture consultancy Sustainable Environmental Aquaculture Services (SEAS) helped create an abalone farm at Kleinzee which will produce 200 tons of product per year when it is at full capacity. The Western Cape company Tuna Marine is contracted to buy abalone from the Kleinzee facility, which is owned by Ponahalo Holdings (the empowerment partners of De Beers Consolidated Mining South Africa). With food security an important consideration, the provincial government has committed to supporting small-scale fishers. The Premier of the Province, Sylvia Lucas, announced in her 2016 State of the Province address that a feasibility study for a deep-water harbour has identified a site 70km north of Port Nolloth, Boegoebaai. If this

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Agri SA: www.agrisa.co.za Dorper Sheep Breeders Association of South Africa: www.dorpersa.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za National Department of Science and Technology: www.dst.gov.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Rooibos Council: www.sarooibos.co.za Rooibos Route: www.rooibos-route.co.za South African Pecan Nut Producers Association: www.sappa.za.org Thoroughbred Breeders Association of South Africa: www.tba.org.za

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project is undertaken, it will significantly boost the maritime sector in the Northern Cape. Forty farmers have signed up for a Catfish Project in the Vaalharts area. The scheme lies in the Phokwane Local Muncipality, north of Kimberley, which falls under the Frances Baard District Municipality. A joint venture by the National Depar tment of Science and Technology (DST) and HIK Abalone is running an abalone project in Hondeklip Bay with the intention of producing 120 tons of abalone for sale. This seaside town is very well known for its kelp. The coastline of the Northern Cape has 2 000 hectares of kelp beds. There is a growing domestic and international demand for kelp. The old John Ovenstone factory in Port Nolloth is now the site of small scale hatcheries for abalone and oysters. Premier Fishing has a lobster-processing plant in Port Nolloth. NORTHERN CAPE BUSINESS 2018/19


OVERVIEW

Grapes and wine Northern Cape wine, grapes and raisins are exported all over the world.

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he 466 families of Bloemsmond, Currieskamp and Soverby who created the Blocuso Trust in 2010 are starting to see good returns. The success of the grape and raisin farming co-operative is good news for land reform and agricultural enterprise development. The initial purchase of the land on the Orange River came through a grant facilitated by the Northern Cape Department of Agriculture Land Reform and Rural Development (DALRRD) and the department has continued to support the project via investment in infrastructure and in training and planning. Blocuso is affiliated to the wine and raisin commodity groups and the co-operative receives technical and marketing support from Orange River Wine Cellars (OWK) and Pioneer Foods (SAD). Wine and juice for Rabat are cultivated at Blocuso, a unique selling point, along with the grapes that become Villard Blanc and Chenin Blanc. In 2017 the Villa Blanc harvest was 900 tons. Expansion into Colombard cultivation is planned. On a provincial level, 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 which will be implemented by the DALRRD, the National Agricultural Marketing Council, the Land Bank, Distell, Winetech and Orange River Wine Cellars. NORTHERN CAPE BUSINESS 2018/19

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SECTOR INSIGHTS A community trust is reaping good returns near Keimoes. • Colombard plantings do very well in the Northern Cape.

Almost a third of South Africa’s table grape crop is produced in the fertile Orange River region of the Northern Cape. The South African table grape industry has been investing in some new varietals which produce a better yield. Seventy percent of the Sultana grapes grown in the Lower Orange River Region are used for vine-fruit products. There are 1 250 Sultana grape growers in the province, producing three Sultana-type


OVERVIEW 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. The following vine-fruit products are produced in the Northern Cape: Sundried Thompson Seedless Raisins; Dipped Orange River Sultanas; Golden Sultanas; Muscat Raisins; Monuca Raisins. An example of successful Sultana-grape production in the province is the SAD Vine Fruit (Pty) Ltd, which owns the largest dried-vine fruit processing and packaging plant in South Africa. The Upington-based firm employs more than 350 people when in full production. As much as 80% of vine fruit grown in South Africa is exported, primarily to Europe. Diversified agri-company KLK recently purchased a half share in Carpe Diem Raisins, an exporter of high-quality raisins. The raisin factory has a production capacity of 12 000 tons and the company packages and sells about 22% of South African raisin production. All of the products in the Carpe Diem Group, including the table grapes being displayed by farm workers in the photograph opposite, and pecan nuts, are certified organic. With about 135ha under production, the farm lies 10km east of Upington The South African Table Grape Industry Partnership promotes South Africa in international markets.

Wine According to SA Wine Industry Statistics, the Orange River region has about 5% of the total hectares under wine grapes in South Africa, and just over 3% of the total number of vines. New vineyards are being planted. Warm to hot conditions, coupled with the nutrient-rich land on the banks of the Orange River and sharply contrasting temperatures at times, combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm, but the eastern part of the region from Kanoneiland to Groblershoop have been receiving more than their due in recent seasons. The Northern Cape’s Orange River wine region accounts for 25.6%

ONLINE RESOURCES Blocuso Agricultural Co-operative: www.blocusoagri.co.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Orange River Cellars: www.orangeriverwines.com 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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of South Africa’s Colombard vines and 10% of Chenin Blanc. The focus is on Colombard and Hanepoot grapes. Orange River Wine Cellars (ORC) is a large co-operative with six wineries. Grapes are collected from 749 farmers. OWC has a winery at its head office in Upington and 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 supplies wine to Tops at Spar which has more than 700 stores across the country and makes Tops’ private label “Carnival”. ORC has also been selling wine in China, the USA and Europe for a number of years through its Norweco division. Unique labelling aims to capture local markets, so ORC wines are called “Star Tree” in the US and “Goddess” in Denmark. 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 Cellars 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. NORTHERN CAPE BUSINESS 2018/19


PROFILE

South African Table Grape Industry South Africa: Preferred Country of Origin for the world’s best-tasting grapes.

jobs. Several downstream industries are also supported. The harvesting of table grapes in this region takes place from about early November until early February.

Mission SATI represents growers in key government and industry initiatives aimed at creating more opportunities in the sector, from ownership to accessing new markets in a sustainable way. SATI assists growers with crucial industry information, transformation, statistics, research, technology and technical transfer as well as training and education with the aim of establishing South Africa as the Preferred Country of Origin for the world’s best-tasting grapes. There are five major table grape-growing regions in South Africa. The difference in soil and climate enables growers to supply the markets from November to May. The early season is dominated by varieties from the Northern Provinces and the valleys of the Orange and Olifants River. The Northern Cape has one of the biggest table grape-growing regions, known as the Orange River region, represented by the Orange River Producer Alliance (ORPA), chaired by Willie du Plessis. This table grape region, with more than 5 688 hectares of vines planted, stretches from Upington to Kakamas, Augrabies and Blouputs. The table grape industry is a key industry in the Northern Province, contributing to direct employment in the order of 1 415 permanent and 12 415 seasonal

Vision South Africa is the Preferred Country of Origin for table grapes and will provide every table grape producer as wide a choice as possible with profitable markets.

SATI’s key areas of intervention • Technical market access • Research and technology transfer • Information and knowledge management

CONTACT INFO

• Transformation • Communication and stakeholder

Manager: Communications: Clayton Swart Email: clayton@satgi.co.za Chairperson ORPA: Willie du Plessis Email: willie@omdraai.co.za Physical address: 63 Main Street, Paarl 7624 Tel: +27 21 863 0366 | Fax: +27 21 863 3039 Email: info@satgi.co.za Website: www.satgi.co.za

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SATI delivers service excellence to create a progressive, equitable and sustainable industry.

engagement

• Human capacity and skills development

• Technical support. These interventions are aimed at assisting producers to Gain, Retain and Optimise (GRO) market access.

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OVERVIEW

Mining

CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)

Mine revivals are under way in iron ore, zinc and copper.

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frimat, a listed construction materials supplier and industrial minerals group, has added open-pit mining to its portfolio with the R322-million acquisition of the Diro mine, which had been in business rescue. Production was on track for the target of one-million tons per year, but a problem on the railway line that delivers iron ore to the port of Saldanha led to production being scaled down. Afrimat had a transport deal with Transnet and is selling iron ore in China. The Diro mine has proven run-of-mine reserves of 10-million tons. Aggeneys, in the Namaqualand region of the Northern Cape, is responsible for approximately 93% of South Africa’s lead production, and 12% of all world lead exports. Zinc is less abundant, but the province is still responsible for about 43% of South Africa’s overall zinc production.

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SECTOR INSIGHTS Vedanta’s massive Gamsberg zinc project is ramping up. • Afrimat has bought an iron-ore project near Kathu. • Ntsimbintle Mining is receiving good dividends. The Black Mountain mine run by Vedanta can produce 30 000 tons of concentrate annually, 7 000 tons of copper, 50 tons of silver


OVERVIEW and 40 000 tons of lead. Almost a third of the mine’s concentrate output is exported through Saldanha on the West Coast. Vedanta Zinc International’s nearby Gamsberg zinc and lead project is the biggest current mining project in South Africa. The mine, on the road between Springbok and Pofadder, has resources and reserves of 214-million tons. The mine is already having a significant impact on employment for nearby communities. Construction is ramping up in expectation of production beginning in the course of 2018. In the first phase, 4Mtpa of ore will be mined, producing 250 000tpa of zinc concentrate. The mine’s tailing thickener is shown on the left in this May 2018 photograph. The site is a diversity “hotspot” (one of seven in South Africa) so a lot of work has to be done. Vedanta is working with International Union for the Conservation of Nature (IUCN) and a biodiversity offset agreement has been signed. South African government officials, including the Deputy Minister of Mineral Resources, have visited Vedanta’s Indian headquarters and there are hopes of partnership in fields such as copper smelting zinc beneficiation and captive power generation. Local engineers are expected to travel to India for training as part of the Vedanta global leadership programme. Australian miner Orion is putting considerable resources into investigating the possible revival of the Prieska Zinc-Copper Project. A maiden mineral resource estimate was published in February 2018 and 14 drill rigs (above and below ground) are at work looking in to the site’s prospects. The Prieska Copper Mine was active from 1971 to 1991. Several large wind and solar projects are operational in the area. There is a connection to power and water supplies, good roads, a landing strip and a railway siding on the Sishen-Saldanha railway line is less than 50km away. The Northern Cape Provincial Government is working on helping historically disadvantaged individuals (HDIs) get access to the mining sector. Grants from the Cooperative Incentive Scheme are being given to co-operatives to help them buy mining equipment. The Office of the Premier, in partnership with the National Department of Mineral Resources, has held a workshop for artisanal mine workers on how to conduct legal mining operations. The Swedish International Housing Company is another partner in identifying possible land on which artisanal miners can legally start sustainable mining operations. Land owned by municipalities at Prieska, Niekerkshoop, Marydale and Griekwastad is the focus of these initiatives. Most of the area’s mineral riches are processed outside the province so there are good prospects for investors interested in establish-

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ing value-adding beneficiation plants in a wide range of minerals, from iron ore and manganese to copper and limestone. The National Yo u t h Development Agency (NYDA), the provincial government and Mintek are collaborating on the Prieska Loxion Hub (PLH), which beneficiates tiger’s eye for jewellery and stone cutting products. The Northern Cape provincial government has estimated that procurement by the large mining houses exceeds R18-billion annually. Mining companies have corporate social investment plans but recent engagements such as a Provincial Mining Summit and a meeting between provincial government and mine managers aim to see more benefits accruing to communities. This would involve an increase in the percentage of localised procurement (parts, consumables and services), directing work to companies owned by black people and women, and investment in skills training.

Production Petra Diamonds has recently been reporting increases in production and revenue. Expansion continues at the firm’s Northern Cape property at Finsch and at the Cullinan mine in Gauteng province. Fullyear rough diamond production in 2017 reached 4Mcts (an 8% increase) and the company has a stated goal of getting to about 5.3-million carats by FY 2019.

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Vedanta Zinc International’s Gamsberg project has created a whole new town. New houses for staff were added in 2018.

Petra also recently entered into a joint venture, Kimberley Ekapa Mining Joint Venture. KEM JV comprises Petra, Ekapa Mining (jointly owned by Petra and Ekapa Mining) and a third party, Super Stone Mining. Rockwell Diamonds is listed on the TSX and JSE. The company’s assets in the Northern Cape lie between Prieska and Douglas, southwest of Kimberley: Wouterspan, Nieuwejaarskraal, Remhoogte and Saxendrift. Away from the underground kimberlite pipes and fissures, river and coastal deposits 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) completed its production plant at Mitchells Bay at the end of 2016 and started mining in 2016. Trans Hex, with a 40% shareholding in WCR, will manage the mine and market the diamonds produced from it. The National Department of Trade and Industry (dti) owns 20%

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of WCR. By 2020 the project intends creating 686 jobs. By May 2016 there were 166 permanent employees and 24 part-timers working at Mitchells Bay. In 2018, Trans Hex sold two mines to LOR Diamonds, a blackowned company led by women, but will continue to mine the property as an independent contractor.

Assets Mining contributes 23.4% to the Northern Cape economy and makes up nearly 7% of South Africa’s total mining value.

CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)

OVERVIEW


OVERVIEW Whatever cyclical ups and downs affect the sector, it remains a most important component of the provincial economy. The mineral resource of the province is wide-ranging and impressive with significant deposits of iron ore, manganese, zinc, copper, lead, titanium, pig iron, zircon and gypsum. The overwhelming majority of the world’s manganese comes from the Postmasburg and Kalahari regions of the Northern Cape. The province is responsible for 25% of the world’s exports of the mineral. Assmang has two manganese mines in the province: Nchwaning and Gloria. The Northern Cape produces more than 84% of South Africa’s iron ore. The province has two major iron belts, from Postmasburg to Hotazel, and running through Sishen and Kathu. Sishen is the most important iron-ore mine in South Africa, where operations include extraction and four beneficiation plants. The availability of natural resources, labour and infrastructure (including the Sishen-Saldanha railway line) make Sishen the ideal location. Kumba Iron Ore has the huge Sishen facility at Kathu and Kolomela. Assmang, a joint venture comprising African Rainbow Minerals and Assore, mines at Khumani. After initially saying that it wanted to get rid of everything outside its core assets (copper, platinum group metals and diamonds), Anglo American has backtracked somewhat in the light of the recovery of iron ore and other mineral prices. (Anglo does not have diamond assets in the Northern Cape.) Assuming that it will go ahead with disposals, the sale of Anglo’s 69.7% shareholding in Kumba Iron Ore will have the biggest impact. South32 is very active in the Northern Cape. Hotazel Manganese Mines is made up of two mines, Wessels (underground) and Mamatwan (open cut), and the Metalloys manganese smelter. The company has 30% of the product from its mines processed at the smelter where a managese alloy is made. South32 produced 8% more manganese in the six months to December 2017 than it did in the corresponding period, a trend which all South African miners mirrored.

ONLINE RESOURCES Geological Society of South Africa: www.gssa.org.za Minerals Council South Africa: www.mineralscouncil.org.za Mining Qualifications Authority: www.mqa.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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Hotazel is also the site of a relatively new manganese mine, Tshipi é Borwa. Tshipi e Ntle Manganese Mining (Tshipi) is a joint venture between Pallinghurst Co-Investors (led by Brian Gilbertson) and a black empowerment company representing several groups called Ntsimbintle Mining. A number of non-governmental organisations (NGOs) such as the Black Sash have a 2.2% stake in the mine through Ditikeni Investment Company. Indications are that Tshipi can produce about 2.2-million tons of ore per year, for about 60 years. Engineering News reported in 2017 that Ntsimbintle celebrated a R300-million dividend payout in July, with a further R500million agreed on for disbursement in September. The Northern Cape is responsible for around 18% of South Africa’s total copper production, with the two most prominent mines located in Nababeep and Aggeneys. The Carolusberg Mining Complex has copper reserves of 37.5-million tons, while the Nigramoep deposit has 15-million tons. Galileo’s initial tests at their Concordia Copper project near Okiep suggest that prospects are good what it calls “large-scale copper targets”. Tungsten has also been found in the area. In 2016 Horomela Investments received prospecting rights for its property near Aggeneys. The only 100% black-owned and black-managed base metals mining company in South Africa, Horomela will be mining for lead, silver, copper and zinc.

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Here’s to the Future! Zero Harm and Sustainable Environments

Petra Diamonds and Ekapa Mining, with their empowerment partners, are proud to be associated with Kimberley and the Northern Cape through their Joint Venture, Kimberley Ekapa Mining. The synergies created by pooling and sharing resources such as Tailing Mineral Resources, processing facili�es and underground opera�ons opened the window for extending the life of diamond mining opera�ons in Kimberley significantly, thus ensuring a con�nued contribu�on to the local economy. Inves�ng heavily in people, infrastructure and capital development projects, successfully combining very diverse business units into one cohesive team with all the resources needed to make a success of the extended life of the opera�ons, gears Kimberley Ekapa Mining JV to make a success of the opportuni�es created.

Kimberley Ekapa Mining JV


Who is Petra Diamonds?

Who is Petra Diamonds?

Petra Diamonds is a leading independent diamond mining group and an increasingly important supplier Petra Diamonds is ainterna�onal leading independent diamond mining grouphas andinterests an increasingly supplier of rough diamonds of rough diamonds to the market. The Company in siximportant producing mines: three to the international market. The(Finsch, companyCullinan, has interests in five producing mines: underground in South Africa underground mines in South Africa Koffiefontein) and onethree open-pit mine mines in Tanzania (Finsch, Cullinan, efontein) one open-pit mine in Tanzania (Williamson), as the well as, via its Joint Ventureand Partnership (Williamson), as well as, Koffi via its Joint and Venture Partnership with Ekapa Mining, extensive tailings withopera�ons Ekapa Mining, the extensiveIttailings and underground operationsprogramme in Kimberley. in It also maintains an exploration underground in Kimberley. also maintains an explora�on Botswana. programme in Botswana.

Petra has grown rapidly in recent years, and plans to steadily increase annual produc�on to 5.3 million Petra has grown rapidly inhas recent years, and plans to base steadilyinincrease production 5.3 million carats fast by FY 2019. carats by FY 2019. The Group a major resource excessannual of 300 milliontocarats. Petra's The group has a major resource base in excess of 300 million carats.quoted Petra’s fast development has established theits company development has established the Company as London's largest diamond mining group and as London’s largest quoted diamond mining group and its exceptional growth profi le positions the group as a unique excep�onal growth profile posi�ons the Group as a unique investment opportunity within the sector. opportunity sector. This makes Petra one of the few producers offer a significant This makesinvestment Petra one of thewithin fewthe mid-�er diamond producers to mid-tier offer adiamond significant andto growing growing production This growth in output places the company in a strong position to benefifrom t from the the positive produc�onand profile. This growthprofi in le. output places the Company in a strong posi�on to benefit long-term fundamentals for thefor diamond industry, where demandwhere is forecast to outpace posi�ve long-term fundamentals the diamond industry, demand is supply. forecast to outpace supply. Petra conducts all operations according to the highest ethical standards and will only operate in countries which are

members the Kimberleyaccording Process. Petra quoted with aethical premiumstandards listing on the the London Petra conducts allofopera�ons to isthe highest andMain willMarket only of operate in Stock Exchange and is a constituent of the FTSE 250 Index. countries which are members of the Kimberley Process. Petra is quoted with a premium lis�ng on the Main Market of the London Stock Exchange and is a cons�tuent of the FTSE 250 Index.

Petra recognises the need to conduct our operations in an environmentally sustainable manner by using resources

responsibly, protecting and restoring environments where we operate and mitigating the impacts of our operations. sustainable Petra recognise the need to conduct our the opera�ons in an environmentally are committed implementing protec�ng rigorous environmental management processes, developing manner byWe using resourcestoresponsibly, and restoring the environments wherelong-term sustainable and meetingthe international practice. we operatepractices and mi�ga�ng impacts best of our opera�ons. We are commi�ed to implemen�ng rigorous environmental management processes, developing long-term sustainable prac�ces Three of Petra’s Diamond Mines have successfully transitioned from ISO 14001 (2004) to ISO 14001 (2015) standard and mee�ng interna�onal best prac�ce. certification. Recognition goes to Petra’s Operational Leadership and Environmental teams for their concerted efforts in

gainingDiamond this achievement. Three of Petra's Mines have successfully transi�oned from ISO 14001 (2004) to ISO 14001 (2015) standard cer�fica�on. �ecogni�on goes to Petra's Opera�onal Leadership and Petra Diamonds andefforts theinNorthern Cape Environmental teams for their concerted gaining this achievement. With interest in three operations in the Northern Cape, Petra is proud to be part of the future of this province, which can Petra Diamonds and the Northern Cape

be regarded as the birthplace of the modern diamond industry. Petra’s philosophy is that its operations should benefit the

With interest in three opera�ons in the Northern Cape, Petra is proud to be part of the future of this communities in which its mines are, and therefore these local communities are regarded as high priority and the mines’ Province, which can be regarded as the birthplace of the modern diamond industry. Petra's philosophy principal stakeholders. is that its opera�ons should benefit the communi�es in which its mines are, and therefore these local communi�es are regarded as high priority and the mines' principal stakeholders.

Apart from creating employment, with local recruitment receiving preference, investment by Petra is expected to extend the lives of these operations, thereby contributing to the local economy and ensuring that optimal benefit will accrue to Apart from crea�ng employment, with local recruitment receiving preference, investment by Petra is their local communities.

expected to extend the lives of these opera�ons, thereby contribu�ng to the local economy and ensuring that op�mal benefit will accrue to their local communi�es.

Petra is committed to being a good corporate citizen. This not only includes disposing responsibly of the commitments imposed Petra is commi�ed to being a good corporate ci�zen. This not only by its mining licences, such as contribution to development includes disposing responsibly of the commitments imposed through its Social and Labour Plans, and caring for the by its Mining Licenses, such as contribu�on to development environment through its Environmental Management through its Social and Labour Plans, and caring for the Plans, but also striving to go beyond what is expected environment through its Environmental Management to make a positive impact in communities whenever possible.

Plans, but also striving to go beyond what is expected to make a posi�ve impact in communi�es whenever possible.

For more information, visit our website at www.petradiamonds.com For more informa�on, visit our website at www.petradiamonds.com


PROFILE

Superfecta Trading Electro-mechanical specialists.

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

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

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

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

Professional Services

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

Our Vision

Our Mission

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

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

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• Replacement and new installation of steel pipe works

• Supply and installation of pumps

• Supply and hire of tube-

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

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

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


OVERVIEW

Water Two major bulk supply projects will open up economic opportunity.

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he Vaal Gamagara and Namakwa bulk water supply projects respectively hold the key to boosting the mining sector and laying the foundation for expansion in outlying districts of the province. Although the Orange River flows through the province, many parts of the province are dry. The bulk water supply projects will give additional security to mines, businesses and households in the target areas. The provincial budget for 2018/19 allocates R762-million to regional bulk infrastructure and R454-million to water supply and sanitation (including drought interventions). In additional measures, the Northern Cape Provincial Government has adopted a Climate Change Adaptation Response Strategy and is taking part in a National Department of Public Works programme known as the Shared Water Efficiency Programme.

Projects 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 2018/19

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SECTOR INSIGHTS ELB Group is laying a water pipe from the Orange River to the new mine at Gamsberg. • The Eye of Kuruman is an oasis-like spring.

The town of Springbok has been plagued by water supply problems for several years, with pipes failing on a regular basis. The copper mining company that used to see to water delivery operations in the area has closed down. The Namakwa water project will deliver water to about 11 000 households and should be completed in 2019. Work is being done on pump stations and sand filters and a new pipeline is to be laid.


OVERVIEW Twenty-two villages in six municipalities will benefit from the Vaal Gamagara Refurbishment and Upgrading Project. The existing scheme, run by Sedibeng Water, supplies about 22-million m3 of water to industry, mines, agricultural enterprises and domestic users, but demand is growing. Existing manganese and iron ore mines near Hotazel and Kathu are heavy water users and if any new mines are to be considered in the area, a reliable water supply is needed. The same applies to the creation of any new infrastructure such as solar power plants, although obviously to a lesser degree. A 430km pipeline is to be constructed from Delportshoop to Black Rock and upgrades will be done on existing pump stations and water treatment plants. The cost of the project, which falls under the National Department of Water and Sanitation is R18-billion. Sedibeng Water has been selected as the implementing agent for the project and they will work with the Kgalagadi Joint Venture. Once the project is complete, the scheme will be able to deliver water to neighbouring country, Botswana.

Assets 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. North of Kimberley, the confluence of the Vaal and the Harts rivers encompasses one of South Africa’s most intensely irrigated areas. The Vaalharts 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 Vaalharts) 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. But many parts of the province are dry with sections of the north and north-west classified as semi-arid and arid. The southern Kalahari Desert does receive rain (sometimes a lot of rain in a very short space of time) but the fact that mining is a primary economic activity in the dry regions of the province presents particular challenges. The town

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

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of Kuruman is an exception in that it has a natural and prolific spring, the Eye of Kuruman. The National Department of Water and Sanitation is consolidating the country’s water boards into nine regional water utilities. Some boards have merged to create new entities while others have extended their area of supply. Sedibeng Water now offers water supply services across three provinces, including most of the Northern Cape. Sedibeng Water has absorbed the old Namkwa Water Board which means it is responsible for towns such as Okiep, Concordia, Nababeep and Springbok, and the mines in that part of the province. The Pelladrift board (serving Pofadder) has also been incorporated. Sedibeng Water’s Central Laboratory, based at Balkfontein near Bothaville, is a SANAS ISO/ IEC 17025-accredited facility. The laboratory has the advantage of being on the site of a water-treatment plant, enabling it to process as many as 3 000 chemical and 1 700 bacterial analyses every month. Bulk water and reticulation monitoring are both conducted by the laboratory which also conducts internal and external training for staff in the water and sewage treatment field. 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. When the laboratory gains SANAS accreditation, it will be the first in the province to have such a rating. NORTHERN CAPE BUSINESS 2018/19


OVERVIEW

Tourism Five national parks and six provincial reserves offer an unrivalled experience of nature.

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ssets unique to the Northern Cape include wonderful spring flower displays, spectacular arid areas and brilliantly clear night skies for sky-gazers. Heritage tourism is another important niche. SteamNet 2000 and the Railway Museum at Kimberley Station maintain and protect fascinating rail assets. A Northern Cape Steam Rail tourism route might be an attractive opportunity for the right investor. There are no fewer than six national parks and five provincial reserves in the province, each showing off 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. The Kgalagadi Transfrontier Park (with Botswana) encompasses 3.7-million hectares, making it one of the biggest conservation areas in the world. The Kalahari Red Dune Route is a network of guesthouses, reserves and farms to guide the visitor to the great park. The rushing waters of the Augrabies Falls National Park provide another popular attraction. 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 new route under development in the region is the Heritage Route tracing the footprints of the early missionaries to Southern Africa and will include Kimberley and surrounds, Kuruman and surrounds and the Robert Moffat Mission. Hunting is a lucrative subsection of the tourism sector that is proving extremely popular in this region and brings valuable NORTHERN CAPE BUSINESS 2018/19

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SECTOR INSIGHTS A public-private partnership is boosting employment. • Rev amped municipal resorts aim to attract domestic visitors. • Horse racing has come to the Northern Cape. economic development to these 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 on this route where you can visit the graves, Burgher monument and Boer trenches. The town of Kimberley is a popular attraction and offers fine examples of Victorian architecture and the world-class McGregor Museum, Sol Plaatje Museum and the famed William Humphrey Art Gallery.


OVERVIEW 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. The latter is especially of importance as home to SKA. The Namakwa region is famous for its flowers, 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. The decision by UNESCO to inscribe the Richtersveld Cultural and Botanical Landscape as a World Heritage Site has great significance for the tourism industry in the Northern Cape, and for the prospects for ecotourism in general. This 160 000-hectare landscape lies on the border between South Africa and Namibia.

EVENTS CALENDAR March/April: Diamond and Dorings Music Festival, Kimberley AfrikaBurn, Tankwa Karoo National Park Hantam Mountain Bike Race, Niewoudtville May: Calvinia to Ceres: Tankwa Camino, Calvinia July: NC Motorsport Spinning, Kimberley. Gemsbok Rally, Upington August: Fraserburg Logan Drama Festival, Fraserburg. Hantam Meat Festival, Calvinia September: Williston Winter Festival, Williston Gariep Arts Festival, Kimberley. Kamiesberg Flower Trail Run, Kamiesberg. Deser t Knights Motorbike Adventure, Richtersveld Transfrontier Park Kalahari Desert Festival, Witdraai near Askham. Pella Cultural Festival, Pella October: Barney Barnato Amateur Golf Championship, Kimberley. Ghaap River XTreme Festival, Douglas. Kalahari Augrabies Extreme Marathon, Augrabies Falls National Park. BoekBedonnerd X, Richmond November: The Munga Race, Rolfontein. Nature Reserve Aggeneys Fees, Aggeneys. December: Richtersveld Liggies Festival, Port Nolloth. SA Jazz, Kimberley MetroFM Heatwave, Kimberley

New initiatives The Northern Cape has long been known as a prime destination for horse breeding, but horse racing has arrived on the provincial calendar with a bang. The inaugural Kgalagadi Bush Horse Race took place in Kuruman in 2017 and attracted participants from Johannesburg and the Free State. A joint effort by the Northern Cape Department of Economic Development and Tourism, the Department of Sports, Arts and Culture and the Kgalagadi Municipality, the event gave local small, medium and micro-enterprises a chance to showcase their products and to sell food and drinks to visitors and participants. Kimberley also hosted its own “July” in 2017 with the running of the Flamingo Horse Race. Fifteen horses took part in 10 races on the Flamingo Horse Race Park, a 2 000m sand oval track. Smart fashions were on show and the event is flagged to become an annual event. A Tourism Imbizo held at the Mittah Seperepere Convention Centre in March 2018 tackled opportuni-

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OVERVIEW ties in the sector for SMMEs, youth and women and was an opportunity for government, NGOs and the Northern Cape Tourism Authority to interact with community members. The imbizo followed a hospitality youth programme graduation ceremony. A partnership between the Northern Cape Department of Economic Development and Tourism (DEDAT) and Open Africa has created employment for nearly 1 000 people, the majority of whom are black and female. Open Africa is a social enterprise which works with local communities to open up tourism routes. A long-term collaboration with the South African National Parks has seen facilities at many of the province’s parks improved, and the development of six tourism routes. The National Department of Tourism worked together with DEDAT and the Kai Garib Municipality to build a campsite at Keimoes on the Orange River. There are six national parks and five provincial reserves in the province, each showing off distinct features. The Northern Cape Tourism Authority (NCTA) is the official marketing agency for the Northern Cape. Culture, nature and adventure are the three big themes that future visitors are promised.

Hotels Country Hotels has invested heavily in the province. Demand for beds has risen because of concerted campaigns by the tourist authority and on the back of investment inflows in the mining and renewable energy sectors. Spanish and Chinese engineers are now a common sight in Northern Cape towns, to such an extent that local supermarkets are stocking spices such as saffron for fragrant paellas. R40-million has been invested by Country Hotels in the new Kathu Inn and R50-million will see the Springbok Inn become a smart 100room hotel with a further 250 beds available in a backpackers lodge and 25 sites available at an associated campsite. The Orange River Rafting Lodge has an obvious purpose while the Namastat Lodge and Caravan Park caters to travellers on the N7. What used to be known as the Hantam Hotel in Calvinia is now the refurbished Calvinia Hotel and Tankwa Lodge offering 25 air-conditioned rooms and easy access to flower-spotting and the Tankwa Karoo National Park. The riverside town of Upington has a large number of guesthouses and bed-and-breakfast establishments, together with a 90-room Protea Hotel by Marriott. The Protea Hotel by Marriott Kimberley has 117 rooms and three suites and is located right next to the Big Hole. Also near the capital city’s biggest attraction is the historic Kimberley Club Boutique Hotel. Tsogo Sun has two properties in Kimberley: a 135-room Garden Court and a 64-room budget hotel, SUN1. The Flamingo Casino is run by Sun International and offers gaming tables, slot machines and conference facilities. NORTHERN CAPE BUSINESS 2018/19

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Conferences and events The NCTA has increasingly been focusing on adventure sports and the organisation and promotion of events, including festivals. The opening of the 2 500-seater Mittah Seperepere Convention Centre was a boost to the Northern Cape events and conferences industry. It is located near the Big Hole in the centre of Kimberley. The Convention Centre makes it much easier to sell the provincial capital as a meetings, incentives, conference and events (MICE) destination. The Northern Cape has its fair share of annual festivals. AfrikaBurn is now a regular in the Tankwa Karoo National Park, attracting fun-lovers determined to do their thing off the grid. The Vleisfees (meat festival) has been held in Calvinia in the Hantam region since 1990. The successful book festival called BoekBedonnerd celebrated its 10th anniversary in Richmond in 2016. Shelf upon shelf in room upon room of books are available in the Karoo town’s extraordinary bookshops. Located on the N1, it holds the title of “Booktown Richmond” (there are about 20 “Booktowns” in the world). Richmond also hosts the JM Coetzee and Athol Fugard Festival at which the South African Independent Publishers awards are announced. Fugard himself was in attendance in 2015. Upington is the venue for the popular Kalahari Kuier (Visit) Festival. More than 30 000 people have been known to attend


OVERVIEW the event, providing a welcome boost for the local economy. Kuruman hosts the Kgalagadi Jazz Festival. The Tankwa Trek (mountain trails) traverses the southern part of the Great Karoo through the Bokkeveld and Witzenburg 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 which carries a first prize of R50 000. The first Orange Descent Canoe Marathon attracted 55 participants from the Northern Cape, KwaZulu-Natal, Free State, Eastern Cape, Western Cape and Gauteng, as well as from Namibia. The Orange River provides lush landscape in which the grapes of the several hundred producers of Orange River Wine Cellars prosper. The rushing water of the Augrabies Falls National Park provides another popular attraction.

NATIONAL PARKS IN THE NORTHERN CAPE

Explore the Routes of the Northern Cape

Central Reservations: South African National Parks: +27 12 428 9111 Augrabies Falls National Park: +27 54 452 9200 | Ai | Ais/Richtersveld Transfrontier Park: +27 27 831 1506 Kgalagadi Transfrontier Park: +27 54 561 2000 Mokala National Park: +27 53 204 8000 Namaqua National Park: +27 27 672 1948 Tankwa Karoo National Park: +27 27 341 1927 Provincial Nature Reserves Doornkloof Nature Reserve: +27 51 753 3006 Goegap Nature Reserve: +27 27 718 9906 Rolfontein Nature Reserve: +27 53 664 0900 Oorlogskloof Nature Reserve: +27 27 218 1159 Witsand Nature Reserve: +27 83 234 7573

The website of Northern Cape Tourism is: experiencenortherncape.com Each of the province’s five regions features a route experience that will capture the imagination. The incredible year-round experiences coupled with the warm hospitality, the peace and tranquility offered by off-the-beaten track towns and villages and space as far as the eye can see will allow you to rediscover life-changing experiences and ensure unforgettable holiday memories but more importantly, time to recharge and reconnect with each other.

Kokerboom Food and Wine Route The quiver tree is one of this region’s most arresting botanical symbols. Stretching along the Gariep, the Quiver Tree Food and Wine Route includes towns such as Upington, Kakamas, Augrabies,

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OVERVIEW

Kanoneiland, Kenhardt and Riemvasmaak. Highlights of the route includes the impressive Augrabies Falls, the relaxing hot springs at Riemvasmaak, river rafting, fly fishing, kayaking and river cruises on the mighty Orange River, numerous 4x4, hiking and mountain-biking trails and excellent bird watching. Food fundis will be delighted with the restaurants and road stalls along the route. The Orange River Wine Cellars is the biggest wine co-operative in the southern hemisphere. Stop in at Bezalel and Die Mas cellars as well. Information and bookings +27 (0)84 244 4408

Kalahari Red Dune Route Golden dunes, wide-open skies and flat-topped acacia trees symbolise the Kalahari Red Dune Route. Stretching from Upington right to the Namibian border we pass the unique towns of Ashkam, Groot and Klein Mier, and Rietfontein. Chances are you’ll spot magnificent oryx with their rapier horns if you cross into the Kgalagadi Transfrontier Park. You might also encounter martial eagles, wildebeest and a black-maned lion proclaiming its territory from a high dune. Home to the massive Hakskeen Pan where the Bloodhound Supersonic land speed record is to be attempted, it also offers dune hikes at dawn, eagle-owl encounters, sand duning and surfing in the red sand and guided walks with the San Khomani. Comfortable lodges, rustic bush camps, traditional San villages and hospitable guest farms dot the arid wilderness. Contact +27 (0)82 492 3469

Richtersveld Route The Richtersveld is South Africa’s only mountain desert and the route will take you on rugged gravel roads to quaint villages and towns, or take the more challenging 4x4 routes in the /Ai/Ais-Richtersveld Transfrontier Park or in the Richtersveld World Heritage Area. This route is definitely for the adventurous and best explored in a well-equipped SUV or bakkie. Throw in some comfortable hiking boots, extra water and guidebooks on plants, birds, reptiles and geology and set out along the 600km Namaqua Eco 4x4 Route. The Orange River offers river rafting and superb wilderness fly-fishing. The Richtersveld is a mountain biker’s dream. In the villages the locals will entertain guests with storytelling and traditional Nama step dancing upon request. Great restaurants and a fine hotel await you in Port Nolloth, but unpretentious community-owned guesthouses are found in almost every village. Contact +27 (0)78 874 1515

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Namaqua Coastal Route In spring, hordes of tourists flock to Namaqualand to see the spectacular fields of wild flowers. The dry and dusty plains are transformed from dull browns to a kaleidoscope of colour. Springbok is the main centre and the route includes notto-be-missed gems, places like Garies, Kamieskroon, Hondeklip Bay, Koiingnaas and Kleinzee. There are dozens of adventure and leisure options, including the Namaqua National Park, nature reserves, hidden coastal hamlets and some of the most remote hiking and 4x4 trails you could envision. Hike the Silversands Trail on the edge of the icy Atlantic or pedal among oryx within the Goegap Nature Reserve. Star-gazers, history boffins and soul searchers will all feel welcome here. Go succulent sleuthing with a botanical guide or hike the Springbok Klipkoppie for a dose of Anglo-Boer War history or visit Namastat, a traditional matjies-hut village. Contact +27 (0)27 672 1752

Karoo Hoogland Route The route is situated in the southern part of the province and covers the small Karoo towns of Nieuwoudt ville, Calvinia, Williston, Sutherland, Fraserburg, Carnarvon, Loxton and Victoria West and forms the heart of the Great Karoo. The Karoo is the home of peace and tranquillity. The Khoi and San


OVERVIEW

people, who left their legacy as art on the rocks, gave the Karoo its name. The Route offers culture, adventure and incredible natural beauty with unique experiences such as star-gazing at the world’s largest astronomical observatory at Sutherland, Carnarvon’s Square Kilometre Array (SKA) radio telescopes, Karoo architecture and corbelled houses, Anglo-Boer War sites, rock art, ancient Palaeo surfaces, farm stays and great Karoo Cuisine featuring Karoo lamb and warm hospitality. Contact +27 (0)84 709 0218.

Cape Namibia Route

ONLINE RESOURCES AfrikaBurn: www.afrikaburn.com BookBedonnerd: www.richmondnc.co.za Gariep Arts Festival: www.gariepfees.co.za Hantam Vleisfees: www.hantamvleisfees.co.za Kalahari Kuier Fees: www.kalaharikuierfees.co.za Northern Cape Tourism Authority: www.northerncape.org.za Open Africa: www.openafrica.org Richtersveld: www.richtersveld-conservancy.org South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net

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The route meanders away from the N7 highway and includes small towns, each with its own local flavour and a story to tell. Visitors will encounter towns capturing the Nama heritage of the province where they can appreciate the unique stories of the people of Garies, Kamieskroon, Springbok and Steinkopf. The distinctive and enormous megalithic boulders carry the names of early Namakwa travelers and are aptly called the letter stones. During spring time, this route takes visitors into the core of the floral kaleidoscope that is the Namakwa floral season. Contact +27 (0)53 833 1434

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OVERVIEW

Banking and financial services Agricultural companies have a strong suite in finance.

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ost 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. This provides real competition for the retail banks, most of which have specialised agricultural desks. 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 in companies such as Red Sun Dried Fruit (shown above), is another important player. The established banks have specialists in the province and dedicated units such as Nedbank Agribusiness. Focus areas for this unit are agronomy (grain, oil seeds, sugar and cotton), livestock (including game farming), horticulture (fruit and vegetables, for example), and secondary agriculture which covers agricultural processing and storage. Nedbank has a total of 27 business managers in Nedbank Business Banking for the province and the neighbouring Free State, whose brief includes agriculture. GWK is one of the biggest agricultural firms, with the GW standing for Griqualand West. Despite the name, the company has its roots in the Northern Cape province and its headquarters in the town of Douglas near to the confluence of the Vaal and Orange rivers. GWK has six NORTHERN CAPE BUSINESS 2018/19

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SECTOR INSIGHTS Capitec has entered the insurance market. units within its Corporate Services division and these mostly relate to finance: Finance, Financing, Risk Management, and Financial Agricultural Advice. Farmers have a wide choice of products to choose from: production loans for the cultivation of products, livestock production loans, buyers accounts, auction accounts and instalment agreements for buying equipment, vineyard establishment and livestock.


OVERVIEW Senwes is another big agricultural company active in the Northern Cape, although its headquarters are in Klerksdorp, North West, and it is active across South Africa. It offers many products within its Credit division, including asset financing in collaboration with Wesbank. In 2017 Senwes and its holding company Senwesbel became the first new stocks to be listed on the country’s new stock exchange, the ZAR X. Upington-based KLK Landbou has insurance and medical cover products while OVK offers insurance and financing options. Kaapagri has three offices in the Northern Cape where farmers can consult on financial matters.

With 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 very high percentage of independent power producers which have won the right to build power plants, especially in solar power sector.

New banks

Improving access

The first new banking licence in nearly two decades was issued in 2017, to TymeDigital by Commonwealth Bank SA. The bank will have no physical branches although Tyme’s Money Transfer product, which it launched in 2016, is available at Boxer and Pick n Pay. African Rainbow Capital is the venture’s BEE partner. The banking licence is the first to be issued since Capitec was granted a licence by the South African Reserve Bank in 1999. 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 being part of a Big Five and it announced in 2018 that it would partner with Centriq Life to enter the insurance market. Capitec has no fewer than 21 branches in the Northern Cape. The fact that it has four branches in Kuruman, one more than its Upington footprint, suggests that Capitec has sold its low-cost banking model well to mine workers. In a province with a high proportion of rural citizens such as the Northern Cape, the prospect of Postbank being upgraded to a full-service bank is positive news. The current Postbank focusses on taking deposits and savings accounts. Postbank has secured a R3.7-billion loan to enable it to open its own loan book. The large geographical footprint of the Post Office will make the bank easily accessible to even remote parts of the country.

Nedbank has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. Nedbank also has partnerships with shops such as Boxer Stores and Pick n Pay where customers can have access to financial services in previously unserviced areas. Some of Nedbank’s other innovations include Home Loans Online Digital Channel and Market Edge, together with the Nedbank App Suite™. The Nedbank@Work product offers targeted service to employees of companies that bank with Nedbank, including free advice. The Keyona Plus account includes funeral cover, a loan facility and a method of transferring money. The Nedbank4me account is tailored to the youth market. Among innovations designed to reach the unbanked are Teba Bank allowing customers to deposit at supermarkets, Absa’s mobile banks and FNB’s mobile branches. Standard Bank’s community-banking initiative offers a low-cost cellphonebanking service. Retailers can act as agents for the bank, even in remote rural areas.

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 Financial Services Board: www.fsb.co.za Institute of Bankers in South Africa: www.iob.co.za Office of the Ombudsman for Banking Services: www.obssa.co.za

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OVERVIEW

Development finance and SMME support

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provincial local economic development (LED) forum was held on 13 September 2017 where the focus was on finance and commercial banking. The offerings for small businesses from three major commercial banks (Nedbank, Standard Bank and Absa) were laid out and delegates were referred to the bank’s supportive websites for more information and guidance. The opportunities for small, medium and micro-enterprises (SMMEs) were explained with regard to funding and support from the National Empowerment Fund (NEF) and Petra Diamonds’ various supplier development and training programmes were detailed. Petra Diamonds, through the local Kimberley Ekapa joint venture (KEMJV), aims to assist potential businesses in the vicinity of its mine to become sustainable suppliers of goods and services. A local supplier development programme offers local SMMEs business training to assist and identifies opportunities for SMMEs to pitch for business within the mine’s supply chain. Nedbank’s SimplyBiz website gives guidance on finding more customers, managing finances, staff and administration, and it gives business owners the chance to share their stories and perhaps find a mentor on the network. Absa has developed a very practical website where buyers can find empowered companies who are available to do work. The Supply Chain Network has “what” and “where” search functions and offers bulletins on tenders. NORTHERN CAPE BUSINESS 2018/19

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SECTOR INSIGHTS Petra Diamonds has a local supplier development programme. • A skills development roundtable was held in October 2017. The Standard Bank BizConnect website tagline is “Expert knowledge to help turn your business into a powerhouse of tomorrow”. It offers practical advice, expert insights and tips and tools in areas such as strategy, innovation and creating growth. Another important meeting was held in October 2017 in Kimberley, when a pledge to promote skills development was signed by a wide range of institutions which the provincial government is working with. TVET col-


Advancing socio-economic transformation

INTERVIEW

Provincial Chairperson Dr Tshego Gopane outlines the priorities of the Black Management Forum Northern Cape. Please outline the main objectives of the Black Management Forum. Dr Tshegofatso Gopane

The three strategic objectives are: the development of managerial leadership; advancing socio-economic transformation in Southern Africa and beyond; thought leadership through advocacy. What is your current focus? The Young Professionals Development Programme is targeted at entry-level professionals with supportive mentorship. The Duke Women in Leadership Programme aims to ensure women are accelerated in positions of leadership. A Transformation Masterplan was born to address challenges identified by a research project (Transformation Barometer). The Masterplan is still a work in progress. What are the challenges facing business in the Northern Cape?

BIOGRAPHY Among Dr Tshegofatso Gopane’s qualifications are an MBChB (UKZN) and a postgraduate business diploma from UNISA SBL. She is currently pursuing a Master’s in Public Health. Through her company Tshela Bophelo Wellness Solutions, she has overseen large-scale social impact projects in health and education while maintaining her medical practice. She serves on various bodies involved in transformation and development, including the provincial Human Resource Council and the South African Medical and Dental Practitioners Association Council.

They are different for big and small business. Mining declined sharply as commodity prices fell in late 2015 which saw the mining industry facing severe constraints. This, and policy uncertainty, has resulted in the reluctance of the mining industry to further invest. For small business there is a constant battle to access the value chain of the big industries (mining, agriculture and solar). They ought to be creating viable SMMEs as part of their backward linkages. There is a perceived limited effort by big business to ensure that small business develops. Lack of access to capital is a consistent challenge. Which sectors are looking up? The three sectors with growth potential remain agriculture, mining and solar. The building of secondary and tertiary industries locally remains a high possibility to increase economic activity and create sustainable small and medium business such as manufacturing of components used in machinery, safety equipment, tyres, workshops for the maintenance of heavy vehicles, and agri-processing. How is your relationship with other stakeholders? The BMF has a cordial relationship with all stakeholders, be they government, civil society and various business formations. The BMF is represented in NEDLAC. With government we have a mutually beneficial relationship. The BMF has been able to drive its transformation agenda and make significant contributions that have driven legislative changes.

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OVERVIEW

leges and universities have the initial responsibility to impart skills, but the province and various sector education training authorities (SETAs) has committed to finding work placement for 1 000 graduates. This is line with prioritising youth development. An integrated youth development strategy is to be developed for the province, in order to bring together and coordinate disparate programmes. The aim is to have targeted interventions to tackle youth unemployment. A programme run at Grootdrink trained more than 100 young people in plumbing, plastering and bricklaying. This was part of the National Youth Brigade Programme with training accredited by the National Home Builders Regulatory Council (NHBRC) and supported by the National Youth Development Agency (NYDA). Another useful programme that is imparting skills (and tackling water shortages) is the “war-on-leaks” programme, where 717 young people are learning and training at mines and municipalities. The provincial government supports small enterprises, rural enterprises and co-operatives through business and financial management training and procurement of goods from SMMEs. In partnership with the Small Enterprise Development Agency (Seda), cadets receive training before receiving work places at various municipalities. Kleinzee Café is a business that has received support from Seda. Owner Anette Burgees is shown in the main photograph on the previous page. Other steps taken by the provincial government to support co-ops and SMMEs include: • trading spaces allocated at Kimberley Diamond Cup • stalls allocated at Southern African International Trade Exhibition for Retail Products • preferential procurement from state-owned enterprises such as Eskom or Transnet • training for clothing and textile manufacturing • hosting of national Technology for Women in Business awards • hosting of Provincial Youth in Business Summit • participation in Entrepreneurs’ Day (TVET students). The Research and Development Unit within the Policy, Research and Innovation Programme of the Department of Economic Development NORTHERN CAPE BUSINESS 2018/19

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and Tourism hosts events that bring together support agencies, government and private companies such as Petra Diamonds and Anglo American. The DEDAT’s Knowledge Management and Innovation Unit keeps up to date with the latest innovation and technology that can help small businesses, such as a Laptop Trolley, which it has showcased to business owners. Specific investment opportunities that are being encouraged with the SMME sector will see funds allocated to: • a guest farm in the Pixely Ka Seme District (women, people with disabilities and youth) • a motor-focused business (tyres, shocks) to be run by young people in Noupoort • a youth business entity to acquire equity in a company manufacturing toilet paper and a company that bottles water. There is a plan to create a Provincial Incubation Strategy and planners are also looking into creating a specialist Renewable Energy Incubator to support smaller entrants into that growing sector. Many of the programmes in the Northern Cape that support small, medium and micro enterprises focus on agricultural production and food security.

Partnerships There are a number of active organisations in the Northern Cape, many of whom are in partnership with organs of the


OVERVIEW provincial government, and one another. The Gazelles programme falls under the National Department of Small Business Development. In the Northern Cape the focus will be aligned with the cluster approach to key sectors: renewable energy; mining; agriculture and agri-processing. Seda is also a partner in the Kimberley incubation hub related to the Kimberley International Diamond and Jewellery Academy. KIDJA has trained 45 students who now qualify to work in the diamond industry. Training is offered in technical skills related to jewellery manufacture and also in the skills relevant to starting a new business. Seda runs 49 incubators around the country. There are six branches of Seda in the province. The Northern Cape has a satellite office of the Seda unit known as the Zenzele Technology Demonstration Centre, offering technical and research support to small-scale mining and mineral-related enterprises. The Company and Intellectual Property Commission (CIPC) is to set up a service point within the relevant provincial department, making it easier for SMMEs to register.

Funding The National Empowerment Fund is assisting in the setting up of a provincial Enterprise Development Fund. An allocation of R5-million has been made to seed the fund, and private sector investors are expected to cooperate in creating a useful fund for new ventures. The small town of Kathu is not the first place one would think of in terms of tourism investment. Yet this is where entrepreneur Beyers Myburgh located his Urban Hotel. The commodity cycle that has reduced global demand for iron ore and other minerals means that the accommodation boom of a few years ago has tapered off, but business travellers still make their way to the Northern Cape, some of

ONLINE RESOURCES Absa Supply Chain Network: wwwscnet.co.za Bizconnnect: www.bizconnect.standardbank.co.za Department of Trade and Industry: www.dti.gov.za Department of Small Business Development: www.dsbd.gov.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Empowerment Fund: www.nefcorp.co.za Nedbank SimplyBiz: www.simplybiz.co.za Northern Cape Economic Development Agency: www.nceda.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za

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them in search of opportunities in the renewable energy sector. Myburgh’s first Urban Hotel is in Bloemfontein. Backing him as a 51% investor is the Industrial Development Corporation (IDC). Most of the hotel’s clients are business travellers and 24 jobs have been created. The IDC is better known as an investor in mega-projects but support is available, as in the case of Urban Hotels, for smaller investments that can create jobs. The biggest investment of the IDC in the Northern Cape is through its stake in a new manganese mine and sinter plant located near Hotazel. The IDC also has a 36.5% shareholding in Karsten Group Holdings, a diversified agricultural and exporting company with a primary focus on dates and table grapes. Karsten employs more than 4 000 people on a seasonal basis. Through the ID C’s Tr a n s f o r m a t i o n and Entrepreneurial Scheme, a black economic empowerment project is underway at Kakamas, where emerging farmers are planting citrus. Vaal Community Citrus should create 1 330 jobs. The IDC is heavily invested in a large number of solar-power projects that have been approved in the province. The Masisizane Fund makes loan financing available in sectors such as agriculture and agri-processing, commercial, supply chain and manufacturing. It also offers training and technical support and funding to help businesses to comply with legislation. NORTHERN CAPE BUSINESS 2018/19


PROFILE

Northern Cape Chamber of Commerce and Industry Your ultimate business connection.

Our heritage in brief

• Promotes and encourages the pursuit of a high standard of business ethics

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.

• 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 business-people 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 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

Membership advantages A Chamber assesses and evaluates the needs of the local business community, especially regarding 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

From the left: Hannes van Niekerk, Super Armature Winding; Martha van Zyl, Sanlam; Rustum Norman, Kimberley Ekapa Mining JV (back row); Pieta Serfontein, Hancor (front row); Samantha Lawrence, Duncan & Rothman; Riaan Vorster, GW Rugby Union and 1st Vice-President (back row); Jan van Vuuren, Bishops Lodge (back row); Charlene Zondagh, Halsted and 2nd Vice-President; Johan Theron, Standard Bank and NOCCI Treasurer; Jaime Goncalves, KEW. Absent: Barend Olivier, Garden Court Kimberley and Marie Parsons, Parsons Home Appliances and NOCCI President.

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PROFILE Through affiliation with national organised business structures, the “Voice of Business” is representative as memberships grows. The “Voice of Business” is a binding force combining the skills and influences of men and women engaged in all forms and sectors of business.

EXPO AND TRADE FAIR Hosted by NOCCI in association with OFM KIMBERLEY: 2 - 4 AUGUST 2018 MITTAH SEPEREPERE CONVENTION CENTRE

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. Thousands of successful businesspeople can testify to the enrichment of their own skills and the development of a network base through active participation in the Chamber affairs. If you are a businessperson with vision, you cannot afford not to join the Chamber movement.

Face -to-face interaction is the best way to build business relationships with suppliers and peers. Who will attend? Corporate managers, engineers, sales managers, plant managers, the public, research/ development and purchasers.

Executive Committee of NOCCI

What NOCCI Expo and Trade Fair offers NOCCI offers you the keys to gaining a competitive edge. In a single trip, you can visit all your vendors. You have a chance to source new suppliers, get ideas from other industries and pursue professional development. No other show in the Northern Cape offers so much.

President: Marie Parsons (Parsons Home Appliances) 1st Vice-Chairperson: Riaan Vorster (GW Rugby Union) 2nd Vice-Chairperson: Charlene Zondagh (Halsted) Treasurer: Johan Theron (Standard Bank) Executive members: Barend Olivier (Garden Court Kimberley), Hannes van Niekerk (Super Armature Winding), Martha van Zyl (Sanlam), Rustum Norman (Kimberley Ekapa Mining JV), Jaime Goncalves (KEW Foundries), Samantha Lawrence (Duncan & Rothman), Pieta Serfontein (Hancor), Jan van Vuuren (Bishops Lodge) Staff: Sharon Steyn (CEO), Pravashini Kika (PA to CEO), Beverley Deke (Marketing/PRO)

Stands The Expo has grown from 62 stands. In 2018 a total of 180 stands are expected to be sold. Stands are located in the auditorium of the convention centre. Seize this amazing opportunity and BOOK YOUR STAND NOW.

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

Nocci Members: R6 500 Non-members: R8 500 Contact Beeda on Cell No: 083 279 2929

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NORTHERN CAPE BUSINESS 2018/19


LISTING

Northern Cape Provincial Government A guide to the Northern Cape’s provincial government departments. Visit www.northern-cape.gov.za. Office of the Premier Premier: Sylvia Lucas

Department of Environment and Nature Conservation MEC: Tiny Chotelo

JW Sauer Building, 6th Floor, cnr Roper and Quinn streets, Kimberley 8301 Tel: +27 53 838 2600 / 2900 | Fax: +27 53 838 2690 Website: www.northern-cape.gov.za

90 Long Street, Kimberley 8301 Tel: +27 53 807 7300 | Fax: +27 53 807 7328

Department of Agriculture, Land Reform and Rural Development MEC: Norman Shushu

Department of Roads and Public Works MEC: Mxolisi Sokatsha

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

162 George Street, Kimberley 8301 Tel: +27 53 838 9100 / 087 630 0887 | Fax: +27 53 831 4685 / 3635 Department of Cooperative Governance, Human Settlements and Traditional Affairs MEC: Alvin Botes

Department of Social Development MEC: Gift van Staden

JS du Plooy Building, 9 Cecil Sussman Road, Kimberley 8301 Tel: +27 53 830 9422 | Fax: +27 53 831 4832 / 4308 / 2904 Website: www.coghsta.ncpg.gov.za

Mimosa Complex, Barkley Road, Homestead, Kimberley 8301 Tel: +27 53 874 9100 Fax: +27 53 871 1062 Website: www.socdev.ncpg.gov.za

Department of Economic Development and Tourism MEC: McCollen (Mac) Jack

Department of Sport, Arts and Culture MEC: Bongiwe Mbingo-Gigaba

14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Tel: +27 53 839 4000 | Fax: +27 53 832 6805 Website: www.northern-cape.gov.za/dedat

32 Abbatoir Road, Kimberley 8301 Tel: +27 53 807 4700 Fax: +27 53 807 4600

Department of Education MEC: Martha Bartlett

Department of Transport, Safety and Liaison MEC: Pauline Williams

156 Barkley Road, Homestead, Kimberley 8301 Tel: + 27 53 839 6500 | Fax: +27 53 839 6580 Website: www.ncdoe.ncpg.gov.za

Cnr Lennox and Sydney Roads, Kimberley 8301 Tel: +27 53 839 1700 Fax: +27 53 839 1773

Department of Health MEC: Lebogang Motlhaping

Provincial Treasury MEC: McCollen (Mac) Jack

144 Dutoitsta Road, Kimberley 8301 Tel: +27 53 830 2100 Fax: +27 53 833 4394

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

NORTHERN CAPE BUSINESS 2018/19

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LISTING

67

NORTHERN CAPE BUSINESS 2018/19


LISTING

Northern Cape Local Government A guide to district and local municipalities in the Northern Cape Province. FRANCES BAARD DISTRICT MUNICIPALITY Physical address: 51 Drakensberg Avenue, Carters Glen, Kimberley 8301 Postal address: Private Bag X6088, Kimberley 8300 Tel: +27 53 838 0911 | Fax: +27 53 861 1538 Website: www.francesbaard.gov.za

NAMAKWA DISTRICT MUNICIPALITY Physical address: Van Riebeeck Street, Springbok 8240 Postal address: Private Bag X20, Springbok 8240 Tel: +27 27 712 8000 | Fax: +27 27 712 8040 Email: info@namakwa-dm.gov.za Website: www.namakwa-dm.gov.za

Dikgatlong Municipality

Hantam Municipality

Tel: +27 53 531 6500 | Fax: +27 53 531 0624 Website: www.dikgatlong.co.za

Tel: +27 27 341 8500 | Fax: +27 27 341 8501 Website: www.hantam.gov.za

Magareng Municipality

Kamiesberg Municipality

Tel: +27 53 497 3111/2/3 | Fax: +27 53 497 4514 Website: www.magareng.gov.za

Tel: +27 27 652 8000 | Fax: +27 27 652 8001 Website: www.kamiesbergmun.co.za

Phokwane Municipality

Karoo Hoogland Municipality

Tel: +27 53 474 9700 | Fax: +27 53 474 1768 Website: www.phokwane.org.za

Tel: +27 53 391 3003 | Fax: +27 53 391 3294 Website: www.karoohoogland.gov.za

Sol Plaatje Municipality

Khâi-Ma Municipality

Tel: +27 53 830 6911 / 6100 | Fax: +27 53 833 1005 Website: www.solplaatje.org.za

Tel: +27 54 933 1000 | Fax: +27 54 933 0252 Nama Khoi Municipality

JOHN TAOLO GAETSEWE DISTRICT MUNICIPALITY Physical address: 4 Federal Mynbou Street, Kuruman 8460 Postal address: PO Box 1480, Kuruman 8460 Tel: +27 53 712 8700 | Fax: +27 53 712 2502 Website: www.taologaetsewe.gov.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

Gamagara Municipality

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

Tel: +27 53 723 6000 | Fax: +27 53 723 2021 Website: www.gamagara.gov.za Ga-Segonyana Municipality

Tel: +27 53 712 9300 | Fax: +27 53 712 3581 Website: www.ga-segonyana.gov.za

Emthanjeni Municipality

Joe Morolong Municipality

Tel: +27 53 632 9100 Fax: +27 53 631 0105 Website: www.emthanjeni.co.za

Tel: +27 53 773 9300 | Fax: +27 53 773 9350 Website: www.joemorolong.gov.za NORTHERN CAPE BUSINESS 2018/19

68


LISTING Kareeberg Municipality

Umsobomvu 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

Renosterberg Municipality

Siyancuma 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 53 298 1810 | Fax: +27 53 298 3141 Website: www.siyancuma.gov.za

Dawid Kruiper Municipality

Siyathemba Municipality

Tel: +27 54 338 7001 Fax: +27 54 531 0019 Website: www.dkm.gov.za

Tel: +27 53 663 0041 | Fax: +27 53 663 0180 Website: www.renosterbergmunicipality.gov.za

Tel: +27 53 353 5300 | Fax: +27 53 353 1386 Website: www.siyathemba.co.za

Kai! Garib Municipality

Thembelihle Municipality

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

Kgatelopele Municipality

Ubuntu Municipality

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

!Kheis Municipality

Tel: +27 54 833 9500 | Fax: +27 54 833 0690 Website: www.kheis.co.za

Motorway

NORTHERN CAPE PROVINCE

Main Road Railway

N

Tsantsabane Municipality

BOTSWANA

Union’s End

Tel: +27 53 313 7300 Fax: +27 53 313 1602 Website: www.tsantsabane.gov.za

North West N18

Rietfontein

NAMIBIA

Van Zylsrus Askham

Vryburg

Hotazel

N14

Kuruman

Upington

Alexander Bay

N14

Vioolsdrif

Port Nolloth

Steinkopf

Pofadder

R31

Campbell Groblershoop N10

Kenhardt

N14

Marydale

Nababeep

Barkly West R64

N8

Hopetown

Free State

N12

Strydenburg

N7

Kamieskroon

Brandvlei

Hondeklipbaai Garies

Van Wyksvlei Vosburg

Nieuwoudtville Vredendal

De Aar

Williston

R27 Calvinia Vanrhynsdorp

R63

Loxton

Victoria West

Clanwilliam

N12

Eastern Cape

R75

Western Cape

Willowmore

N7

Worcester

R44

CAPE TOWN

Graaff-Reinet

Somerset East

Western Cape Paarl

N1

Stellenbosch N2

Caledon Hermanus

N15

KwaZuluNatal

LESOTHO

N9

Eastern Cape N1

R27

NORTHERN CAPE

Middelburg R63

Beaufort West

Sutherland

Saldanha

Noupoort

N1

Three Sisters

N7

R45

Free State

N1 N9

Richmond

Fraserburg

Mpumalanga Gauteng SWAZILAND

R48

Colesberg N10

Hanover

N12

R63

North West

Petrusville

Britstown

Carnarvon

Loeriesfontein

NAMIBIA

KIMBERLEY Ritchie

Douglas

Prieska

Okiep Kleinsee Springbok

Limpopo

N12

Ulco

Postmasburg

Keimoes Kakamas

BOTSWANA

WarrentonChristiana

N14

N10

Onseepkans Augrabies

ZIMBABWE

Hartswater

MOZAMBIQUE

R31

Sishen

Oudtshoorn R62

N9

George

N2

Knysna Mossel Bay

Uitenhage

PORT ELIZABETH

Jeffreys Bay

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NORTHERN CAPE BUSINESS 2018/19


PROFILE

Frances Baard District Municipality Frances Baard District Municipality is the smallest district in the Northern Cape; however, it accommodates the largest proportion of the population of the province.

Vision To be a municipality with a clear developmental focus, providing quality services to its people.

Economic profile

Ms Buyiswa Ximba, Executive Mayor.

Frances Baard District Municipality is the strongest economic region in the province, accounting for 36% of the provincial gross domestic product (PGDP). The economy of the district consists of the primary (agriculture and mining), secondary (manufacturing, electricity and construction) and tertiary (trade, transport, financial and social services) sectors.

The municipality has a mandate to: • Provide a democratic and accountable government for local municipalities • Ensure the provision of services to communities in a sustainable manner • Promote a safe and healthy environment • Encourage the involvement of communities and community organisations in the matters of local government. The district municipality has been assigned level one and two accreditation in terms of the housing function. Level-two accreditation status gives municipalities the responsibility to approve and manage housing-construction programmes and ensure technical quality assurance.

Mandate The Frances Baard District Municipality (FBDM) is an open, transparent and accountable organisation, providing sound governance, stable financial viability and prudent leadership. Administration remains focussed on the Council’s priorities and set targets for delivery to provide the performance and results that drive the municipality. The FBDM strives to promote sound financial management and good governance in order to perform its developmental role. The municipality follows a practice of sound, conservative budgeting aimed at enhancing financial resources.

Geography Frances Baard District Municipality is the smallest district in the Northern Cape and has a geographical area of 13 518.19km2. However, it accommodates the largest proportion of the population of the province, giving it the highest population density. The municipality is located in the far eastern portion of the province. It shares its northern borders with the North West Province and its eastern border with Free State Province. Kimberley, which is where the

An effective governance framework, systems, policies and structure are absolutely crucial to the proper functioning of a district municipality such as Frances Baard. Good governance is a concept that describes the process through which the municipality sets priorities, makes decisions, strengthens accountability and engages in constructive interaction with the public and other institutions. NORTHERN CAPE BUSINESS 2018/19

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PROFILE district municipality is located, is less than 500km away from Johannesburg in the north and less than 1 000km away from Cape Town in the south and the Port of Durban in the east. It compromises the four local municipalities of Dikgatlong, Magareng, Phokwane and Sol Plaatje. The main towns are Kimberley, Hartswater, Jan Kempdorp, Barkly West and Warrenton.

field in the district and exposes the graduates to business opportunities. The district municipality assists new co-operatives with registration and acts as liaison for them to increase accessibility to incentive schemes and other government incentives.

Tourism for development

Tourism

A key focus is the development of a tourism route in the Frances Baard District. The project aims to enhance and promote tourism attractions along the N18 between Warrenton and Hartswater, which will disperse visitors in the district and create new product development opportunities.

Although predominantly a mining and agricultural region, Frances Baard District Municipality also offers rich experiences in terms of culture and history. Two of the largest rivers, the Orange and Vaal, flow through the district. Kimberley is the capital city of the Northern Cape. It is situated in the centre of South Africa. Kimberley offers visitors a plethora of fascinating tourist attractions such as: the William Humphrey Art Gallery, the Duggan Cronin Gallery, which holds a collection of early photographs of Africans, various old buildings and monuments dating back to 1899, Flamingo Casino, game farms, Kamfers Dam (flamingo-breeding island), Ghost Tours and the “Big Hole” Tram Route.

Another priority is the development of the river banks close to the Gong-Gong Waterfall in Dikgatlong Municipality as a safe, attractive and durable tourist destination that also promotes the significant cultural and historical attractions in the area.

Key facts and figures Local municipalities: Dikgatlong Municipality, Magareng Municipality, Phokwane Municipality, Sol Plaatje Municipality Major towns: Kimberley, Barkly West, Warrenton, Jan Kempdorp, Hartswater Main roads: N12, N18, R29, R47 Airports: Kimberley Airport Area covered: 13 518.19km²

Local economic development Ongoing focus areas in terms of LED are the strengthening of SMME development by providing individuals and cooperatives with, among other things, training about tender processes and regulations, pricing strategies and how to implement and determine the correct price. SMMEs are also assisted to take part in events such as arts festivals to expose them to the competitive environment in order for them to find suitable markets for their products.

CONTACT INFO Executive Mayor: Buyiswa Ximba Speaker: McDonald Silingile Municipal Manager: Mamikie Bogatsu Tel: +27 53 838 0911 | Fax: +27 53 861 1538 Email: gerline.roman@fbdm.co.za Physical address: 51 Drakensberg Avenue, Carters Glen 8301 Postal address: Private Bag X6088, Kimberley 8300 Website: www.francesbaard.gov.za

The district municipality is running a youth entrepreneurial development programme with the aim to support local municipalities and young graduates. The training of the graduates in LED helps to increase competent practitioners in this

71

NORTHERN CAPE BUSINESS 2018/19


INDEX

INDEX Black Management Forum (BMF)�������������������������������������������������������������������������������������������������������������������61

Frances Baard District Municipality���������������������������������������������������������������������������������������������������������������70

Nedbank������������������������������������������������������������������������������������������������������������������������������������������������������������������28

Northern Cape Chamber of Commerce and Industry (NOCCI)������������������������������������������������������������64

Northern Cape Department of Economic Development and Tourism��������������������� IFC, 3, 17, OBC

Petra Diamonds����������������������������������������������������������������������������������������������������������������������������������������������������46

SA Airlink��������������������������������������������������������������������������������������������������������������������������������������������������������������� IBC

South African Table Grape Industry (SATI)��������������������������������������������������������������������������������������������������40

Superfecta Trading�����������������������������������������������������������������������������������������������������������������������������������������������48

NORTHERN CAPE BUSINESS 2018/19

72


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Promotion of Economic Growth and Economic Development in the Northern Cape Province Physical: Metlife Towers, 13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309 Postal: Private Bag X6108, Kimberley, 8300 Tel: 053 839 4000 | Fax: 053 832 6805 Web: http://economic.ncape.gov.za Email: dedat@ncpg.gov.za

Northern Cape Business 2018/19  
Northern Cape Business 2018/19  
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