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2017 EDITION

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

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Let the NWDC assist your business to be first!

T

he vision of the North West Development Corporation is to be the cornerstone of sustainable economic development and job creation in the Bokone Bophirima (North West) Province. The Province is an ideal investment destination due to its array of valuable resources and business opportunities.

During 2013 an enlarged and improved North West Development Corporation came into being with the incorporation of trade and investment promotion agency, Invest North West, as well as the Mahikeing Industrial Development Zone into its ranks. All the services offered by the former bodies such as Invest North West have been retained and amplified in the NWDC.


The NWDC has 10 branches across the North West Province and its surrounding areas such as Babelegi and Ga-Rankuwa in Gauteng and the Northern Cape, offering an extensive range of services. These services include: • Property rentals (Industrial, retail and residential) • Exporter support • Investor assistance • Industry development • Small business development • Loan/finance facilitation and; • CIPC (company) registrations The NWDC also owns the Dirapeng tourism subsidiary which holds the resorts of Bakgatla and Manyane in the Pilanesberg Game Reserve, the Christiana All Seasons Resort and the Madikwe River Lodge. Within its basket of services offered, the NWDC is committed to assisting producers and manufacturers of exportable products to grow as exporters to become export-ready. In doing so, the NWDC assists these exporters to identify and secure export markets, and also facilitates international exposure through various platforms such as trade shows and international expos. In addition, the NWDC manages a number of special projects aimed at growing the local economies of the province’s villages, townships and small dorpies. Operational projects include an Alternative Building Material Factory, bakeries and a laundry. The NWDC is committed to showcasing the firstmover advantage of investing in the Bokone Bophirima Province.

Contact us to explore the myriad opportunities available by: • Visiting our website www.nwdc.co.za • Following us on social media; we have presence on Facebook, Twitter and LinkedIn or • Contacting our Head Office in Mahikeng on 018 381 3663/7 NWDC - We assist you to be first!


CONTENTS

CONTENTS North West Business 2017 Edition.

Introduction

Water35 The City of Tlokwe is a water award-winner.

Foreword5 North West Business is a unique guide to business, investment and tourism in the province.

Manufacturing36 The North West’s strong resource base could underpin a much bigger manufacturing sector.

Special features

Education and training The North West education sector covers high-level research to training for technicians and artisans.

37

Banking and financial services Financing for agricultural products is a big sector in the North West.

38

Message from the Premier6 The Premier outlines the vision and strategy for inclusive growth. Regional overview of North West Province 8 The assets of the North West Province are many and varied.

Development finance and SMME support 42 Public and private sector funding is available for entrepreneurs.

Villages and small dorpies are in focus Plans are in place to boost economic growth in the North West’s smaller towns.

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Tourism a destination overview Tourism is a key pillar of the North West economy.

16

Government 46

South African economy at a glance Insight into the performance of the South African economy.

22

North West Provincial Government A guide to the province’s government departments. North West Local Government A guide to the district and local municipalities.

47

Economic sectors

Reference

Mining28 The platinum province is also rich in many other minerals.

Index48 Maps

Agriculture32 Grain and beef farming is done on a large scale in the North West. Energy34 Generation and manufacturing hold great potential. NORTH WEST BUSINESS 2017

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North West regional map

11

North West municipal map

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UIF SAVING JOBS

THROUGH SOCIALLY RESPONSIBLE INVESTMENTS

The National Development Plan is a blueprint serving as a guideline to government departments and state entities on how they can play a role in government wide efforts of creating decent work, reducing unemployment and poverty. The Unemployment Insurance Fund is among the leading state entities in the implementation of the provisions of the NDP to address the slow economic growth, unemployment and poverty in South Africa. The UIF social investment mandate ensures that, additional to earning good financial returns, investments must be supportive of long term economic, social and adhere to sustainable environmental outcomes. The investments must also yield a good social return for the country. These investments have sustained 6 860 jobs of which 3 024 are permanent, 3 836 are temporary/seasonal and 195 are new jobs created during the financial year ending in March 2016.

UIF INVESTMENTS IN RENEWABLE ENERGY The UIF investments are contributing to the energy requirements of South Africa and the investments in the renewable energy sector provides a total capacity of 192 megawatt of electricity of which 117 megawatt is solar energy and 27 megawatt is wind generated electricity. The De Aar project is a shining example of the UIF energy investments and this project produces 90 megawatt of electricity and was completed in April 2016. The solar plant in the area generates enough electricity to power 15 000 houses. Another mainstay project is the Phakwe Group ran projects undertaken in the Northern and Eastern Cape.

INVESTMENT IN FOOD SECURITY The UIF investments in this regard are undertaken under the banner of the UIF Agri-Fund in partnership with Futuregrowth and Day Breaker Poultry Project. The UIF Agri-Fund has invested in 4 farms situated in Mable Hall in Limpopo. One of the farms is a cash crop farm spanning 450 hectares. The farm in the last financial year produced 235 hectares of white maize, and cotton was planted in an area covering 28 hectares. A further three farms are located in the Saron area in the Western Cape. In this project a total of 178 hectares has been used to plant grapes, 37 hectares has been used to pant citrus fruit. Furthermore, there is potential to plant an additional 92 hectares of grapes. The Daybreaker Poultry project operates in Gauteng, Limpopo and Mpumalanga and the combined projects have facilities to grow 1.6 million broiler chickens.

INVESTMENTS IN HEALTH CARE FACILITIES The UIF concluded two investments in this regard that include a BEE hospital manager, Busamed to build a private hospital in Modderfontein and Fund Manager Razorite Heatlhcare that focus on the provision of affordable heathcare facilities that include rehabilitation and sub-acute centres. The Modderfontein hospital is a 220 hospital bed with subacute facilities. This hospital is under construction. While the RH Fund Manager has concluded seven investments that include: • Busamed with four hospital facilities • HealthMed with two facilities

INVESTMENTS IN EDUCATION UIF has invested in three investments that play a role to unlock access to education. The investments were concluded with Eduloan – an organisation that provides financial support to tertiary students and South Point and Educor organisations that provide student accommodation. By March 2016, Eduloan had disbursed about R446 986.64 benefiting 34 047 students, whiles South Point provided about 10 000 student with accommodation.

UIF INVESTMENTS IN ENTERPRISE DEVELOPMENT The UIF has concluded two investments with the aim of supporting small and medium enterprises. In this regard the PIC on behalf of UIF has concluded investment deals with Musa Capital and TOSACO. The investments will support more than 250 SMMEs across various sectors inclusive of agriculture and affordable housing. Musa Capital for example has a supply chain of over 250 SMME’s that have facilitated the creation of 2 500 jobs. TOSACO investments is planning to advance capital to young black entrepreneurs who aspire to own and manage Total Filling stations around the country.

For more information: Call: 0800 843 843 or visit: www.labour.gov.za


FOREWORD

North West Business

CREDITS Publisher: Chris Whales Publishing director: Robert Arendse

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

 T

he 2017 edition of North West Business is the seventh issue of this highly successful publication that, since its launch in 2009, has established itself as the premier business and investment guide to the North West Province. North West Business includes news and analysis of the most important economic sectors and interviews with some of the province’s active business leaders and investors. To complement the extensive local, national and international distribution of the print edition of the journal, the full content can also be viewed online at www.northwestbusiness.co.za. Updated information on the North West is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-tobusiness 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

Online editor: Christoff Scholtz Art director: Brent Meder Design: Colin Carter Production: Lizel Olivier Ad sales: Sam Oliver, Gabriel Venter, Jeremy Petersen, Nigel Williams, Gavin van der Merwe, Shiko Diala and Sydwell Adonis Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution and circulation manager: Edward MacDonald Printing: FA Print

DISTRIBUTION

PUBLISHED BY

North West Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, trade and investment agencies, airport lounges, 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 ISSN 1996-1022

COPYRIGHT | North West Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | COVER: Philip Mostert. Pictures supplied by flickr. com, Madikwe Game Reserve, Sunimages, Anglo American, Wikimedia Commons, Mapio, Elverma Nutritions, SATourism, North West Tourism, and Pixabay.

NORTH WEST BUSINESS 2017

Editor: John Young

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

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Wesvaal Chamber of Business First Annual Conference on Manufacturing and Renewable Energy Date: 3-4 November 2017 | Venue: Protea Hotel, Klerksdorp

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 he Wesvaal Chamber of Business is proud to announce that it will host the first annual regional conference on Manufacturing and Renewable Energy in Klerksdorp in November 2017. As the City of Matlosana moves into the post-mining era, the possibilities of the vibrant and growing renewable energy sector are being explored. The City aims to be a Smart City and present itself as an industrial precinct which is attractive to local and international investors. The conference aims to attract investors into the region. The KOSH area (Klerksdorp, Orkney, Stilfontein and Hartbeesfontein) already has significant manufacturing capacity and a workforce with experience in mining, engineering and related fields. The provincial development agency is keen to attract manufacturers of solar panels to the North West: this

conference will provide an opportunity to explore these and other options. Access to good schools and colleges presents opportunities for research and development and the closeness of the area to the big markets of South Africa’s economic powerhouse, Gauteng Province, provides obvious advantages. Distinguished speakers will address topics such as: • Energy Efficiency • Funding for Development • Manufacturing Incentives • The Renewable Energy Manufacturing Sector • Solar Power: regional impact For more information about this conference view: www.wesvaalchamber.org

The Wesvaal Chamber of Business was founded in 1898 and is one of the oldest Chambers in South Africa. It is affiliated to the South African Chamber of Commerce & Industry (SACCI). Member companies can advertise through the Wesvaal Chamber Network, obtain certificates of origin and credit reference checks and attend regular seminars and workshops. A new initiative is the CEO Bosberaad. This meeting provides a chance for business leaders to exchange business opportunities and explore ways to create a conducive climate for investment in the KOSH area.

Contact details: Telephone: +27 18 468 3750 | Website: www.wesvaalchamber.org

Rustenburg Chamber of Commerce Striving towards a healthy community and business environment, economic stability and growth, and becoming a truly world-class city. The Rustenburg Chamber of Commerce serves as the voice of business in the Rustenburg area, strives to create an environment for business to thrive and offers talks and networking events for members. The RCOC is affiliated provincially to the North West Business Forum (NWBF) and the Noord Wes Afrikaanse Handelsinstituut, and nationally to the South African Chamber of Commerce and INDUSTRY (SACCI) and the Afrikaanse Handelsinstituut (AHI). Representation on both provincial and national bodies enables the RCOC to escalate important matters to higher levels when necessary and distribute important regional, provincial and national trends and information to our members. This will require a strong focus on positioning the Rustenburg business community to meet the challenges of a changing landscape in and around Rustenburg and the North West Province now and in the future.

Vision A healthy community and business environment through sustainable economic growth Strategy • Unite business leaders • Empower members and community • Lead and support economic growth strategies in Rustenburg Local Municipality Plan • Share vision • Grow membership • Engage stakeholders The Tlhabane Chamber has joined the Rustenburg Chamber Of Commerce as part of our new chapter. The first event for the chamber in 2017 was a networking and expo event at Rustenburg Kloof in February at which the guest speaker was the Chief Financial Officer of Sibanye Platinum, Mr Justin Froneman.

Address: 223 Beyers Naude Drive, Rustenburg 0299 Tel: +27 72 171 3686 | Email: info@rcoc.co.za | Website: www.rcoc.co.za


MESSAGE

Premier outlines vision and strategy for inclusive growth Premier Supra Obakeng Ramoeletsi Mahumapelo

Industrialisation Strategy calls for new factories, private partners are sought for an ambitious irrigation policy and a major convention centre upgrade, the Mahikeng Airport Logistics Hub strategy is attracting interest from foreign investors, and vast amounts of minerals are yet to be quantified in the province.

“V

isionary leadership is envisaged VTSD Preferential Procurement Act. (VTSD is a strategy designed the ability to use les- to improve the economies of Villages, Townships and Small Dorpies.) sons of the past to act Current geological information illuminates vast amounts of minerals in the present such that are yet to be quantified. These include the salt fields that span that there is broad convergence Delareyville, the limestone that covers Taung, through Mothibi to of thought and action in deter- Severn as well as the Morokweng and Lichtenburg, the tigers eye that mining future history.” spans Mothibi, Severn and Vorstershoop, the untapped alluvial and In celebrating the centenary alluvial diamond fields, as well as manganese and iron ore. anniversary of the birth of Oliver These initiatives will be coordinated by the Office of the Premier Tambo, we draw inspiration from working together with the national Department of Mineral Resources Oliver Tambo’s fearlessness and through: focus on the task of dismantling • Expanding small-scale mining apartheid and its remaining • Mining beneficiation legacy of poverty, inequality and • Mining procurement unemployment. We call upon all • New venture mining. the people of Bokone-Bophirima Province to recommit ourselves to the project of increasing the pace of constructing the National The North West Development Corporation working with the Rural, Democratic Society whose foun- Environment and Agricultural Department (READ) will implement the dation Oliver Tambo guaranteed. following strategic mandates: The North West Development • Acceleration of VTSD Agro-Businesses to build small scale agro-hubs Corporation (NWDC) will be repo- • Establishment of Special Economic Zones in addition to the existing sitioned to serve as our Provincial one, the Platinum Valley SEZ Mining Agenda Implementer to • Implementation of the Mahikeng Airport Logistics Hub strategy will be intensified through strategic partnerships. New interest has ensure that mining procurement been shown by investors from United Arab Emirates takes place in line with the new

New interest from investors

T O G E T H E R W E M O V E B O K O N E B O P H I R I M A F O R WA R D

NORTH WEST BUSINESS 2017

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MESSAGE Implementation of the VTSD Industrial Hubs in strategic areas Finalisation and implementation of the Provincial Industrialisation Action Plan.

Agriculture, Culture and Tourism (ACT) represents the first and the core concrete plan, support• ed by mining as a tributary, to drive the economic policy development and approach of BokoneBophirima Province. Our Industrialisation Strategy will use the allocation Government is engaging with stakeholders in for learner support materials to set up a stationery the public and private sectors with a view to raismanufacturing factory in the province to supply ing about R5-billion to implement the Provincial all schools and government departments, working Irrigation Strategy. Taung College of Agriculture is together with existing retailers. In addition, we will: the only college in the country accredited to of• Accelerate the establishment of the People’s fer a National Diploma Qualification in Irrigation Economic Growth Agency (PEGA) through Management. smooth integration of existing State-OwnedThe office of the Premier through the North Enterprises West Development Corporation has collaborated • Work with the construction industry with a view with the North West University and the National to establishing a provincial construction hard- Technology Innovation Agency to host the first ware factory with VTSD branches to support Provincial Innovation competition in the province. small enterprises through the housing budget We are engaging with the ICT industry and vari• Coordinate Local Economic Development efforts ous stakeholders who have an appetite to contribute across all municipalities in order to build strategic towards the socio-economic transformation of our partnerships with the private sector. province. As part of this process, we will be hosting the 1st Annual Energy, Science and ICT Lekgotla in The Executive Council has mandated the NWDC to Tlokwe in March 2017. proceed with the implementation of core elements A new human settlement delivery approach is of the Mahikeng Rebranding, Repositioning and being introduced, called the “Bietjie-Bietjie maak Renewal Programme, the Government Precinct meer” within the context of the VTSD preferential and Stadium projects and plans to upgrade the procurement strategy. There will be a flexible cap of Mmabatho Convention Centre to international sta- 50 units per developer, directed specifically at small tus. Discussions are at an advanced stage to secure contractors at levels 1-4. Appointed developers will a strategic partner to invest R10-billion in these be encouraged to employ local people, including projects. subcontracting with the objective of transferring skills. •

Investment index book

Road partnerships

The Premier of Bokone-Bophirima will visit all 18 municipalities in 2017 to engender the culture of entrepreneurship with special focus on Villages, Townships and Small Dorpies. This will be done in partnership with other social partners, Dikgosi, Business, Labour, NGOs, CBOs, development finance institutions, FDIs, the Department of Mineral Resources, etc. These visits will culminate in the launch of an Investment and Economic Development Index Book which will contain full investment and economic development potential of each village, township and small dorpie in Bokone-Bophirima.

We are exploring possible Public Private Partnerships to deal with the effects of mining haulage or heavy mining transport machinery on our roads network. We have to redouble efforts to secure private-sector funding for the building of roads. No contractor in the province will be allocated a road tender which is more than 20km with effect from the beginning of 2017/18 financial year. The Adjusted Provincial Allocation for Infrastructure in the current financial year is R5.8-billion. People of this province want progress and are positive about the direction the province is taking.

T O G E T H E R W E M O V E B O K O N E B O P H I R I M A F O R WA R D

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NORTH WEST BUSINESS 2017


A REGIONAL OVERVIEW OF

NORTH WEST PROVINCE The assets of the North West Province are many and varied. From fantastic mineral wealth and sophisticated commercial agriculture to manufacturing, the province is also strategically located very close to the nation’s biggest markets.

K

nown variously as the Platinum Province or South Africa’s ‘Texas’ because of its big beef herds, the North West province makes up 6.8% of the population of South Africa (3.6-million), 8.7% of the land mass (105 076km²) and accounts for 5.8% of economic output in terms of gross value added. The provincial government of the North West has adopted the name Bokone Bophirima Province for the provincial entity which is bordered on the west by the Republic of Botswana and on the east by Gauteng province, the engine of the South African economy. The big four sectors of the provincial economy are mining, agriculture, manufacturing and tourism. The Vaal River runs along the province’s southeastern border with the Free State, and the province also shares borders with the Northern Cape to the south and Limpopo in the north. The province’s strategic location goes beyond its proximity to Gauteng: the major roads linking trade on an east-west axis pass through the province, as does the major railway line which runs from Cape Town

in the south to Zimbabwe and beyond in the north. The Mahikeng Airport connects the capital city of Mahikeng to Johannesburg and the major tourism hub at Pilanesberg Airport. There are smaller airports at centres such as Klerksdorp and Rustenburg. Mining contributes 31% of the region’s gross domestic product. The mineral reserves that still lie beneath the ground in the province are enormous. Platinum group metals predominate but there are significant deposits of gold, uranium, diamonds, copper, vanadium, fluorspar and nickel. Stone and limestone are also found in rich quantities. Mining beneficiation takes place at many places, with Rustenburg being particularly strong in this sector. The economy of the town is closely linked to the fortunes of platinum mining, with the sector contributing 77% of the city’s gross geographic product. The North West is a major producer of maize and sunflower seeds and many other agricultural products. About 20% of South Africa’s maize comes from the province, as does 15% of its wheat. The dry western part of the province is home to beef cattle, game ranching and hunting. The normally well-watered eastern and north-eastern regions can carry many kinds of crops, many of which find themselves on the tables of the citizens of the nearby urban centres of Johannesburg and Pretoria. The agricultural sector also generates largescale storage and logistics operations, particularly in Klerksdorp, Vryburg and Brits.


Manufacturing capacity is concentrated in the larger towns in the north-east and eastern regions of the province. Automotive components firms are clustered in Brits, which in turn is very close to the automotive manufacturing hub in Rosslyn (Pretoria) in Gauteng. Towns like Klerksdorp (agriprocessing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity. The province’s other great assets include big tourist attractions such as Sun City, the Pilanesberg National Park and associated game reserves and the Hartbeespoort Dam. Two UNESCO World Heritage Sites are located at Vredefort Dome (where a meteorite hit the earth about two million years ago) and Taung, where the discovery by an archaeologist of a skull in 1924 is regarded as one of the most significant of all time. The province’s three Technical and Vocational Education and Training (TVET) colleges and the well-respected University of the North-West all have several campuses catering to a wide range of educational disciplines. The university has a good reputation as a research institution.

Assets While the North West province enjoys tremendous advantages in terms of agricultural and mineral assets, and it has fine infrastructure in some aspects of the first economy, it is also true that much of the population is still rural and remains unconnected to economic opportunity. Much of the planning of the provincial government, development agencies and financing bodies is aimed at finding ways of helping small businesses thrive in poorer communities. Some of the institutions involved in this process are the Small Enterprise Development Agency (seda), the Industrial Development Council (IDC) and the development agency of the provincial government, the North West Development Agency. Measures include: • financial support for small, medium and microenterprises (SMMEs) • building infrastructure in rural areas

• finding ways of expanding the value chain in mining and in agriculture

• directing tourists to new sites which will benefit communities The possibility also exists that a totally new sector, renewable energy, will help to transform the lives of previously excluded communities. This is already taking place to a small extent in that the province’s first solar plant is partly owned by the community in which it operates. There is much more scope for this kind of partnership, but there is also tremendous scope for the development of a manufacturing sector to support the renewable energy sector. A start has been made to attract solar panel manufacturers to the Platinum Special Economic Zone in the Bojanala District Municipality.

Principal towns Mahikeng The capital city of the North West Province lies on the banks of the Molopo River. Situated in the north-west sector of the province near the Botswana border, the city has a strong services sector and a population of approximately 300 000. The Mahikeng International Airport is served by SA Express. Flights to and from OR Tambo International (Johannesburg) and Pilanesberg Airport (Sun City/Pilanesberg National Park) link the city with the main economic hub of the region and to the most visited tourist area. The city’s main growth sectors are financial services, services, transport and trade. The Garona District houses the North West parliament and government buildings. The administrative headquarters of the BaRolong tribe are located in the city. The arts are promoted by the Mmabana Cultural Centre, while the North West Institute of Hotel and Tourism Management is one of three tertiary institutions in the city. North-West University’s Graduate School of Business and Government Leadership is located in Mahikeng, and Unisa has a presence. Other institutions are the Taletso TVET College and the International School of South Africa. The town is well served by hotels such as the Mmabatho Palms, Hotel and Casino Convention


SPECIAL FEATURE an important regional centre and the town where several important companies’ headquarters are located. These include Senwes, through whose silos a large proportion of South Africa’s grains move every year, and a number of engineering enterprises which serve the mining industry. Matlosana is situated on the N12 Treasure Route and is marketing itself as a potential logistics hub. An intermodal facility based in the town’s airport has been developed. The city council has set aside land for the development of industrial and commercial enterprises. Break-bulk facilities, storage space and distribution centres are needed, offering concrete opportunities for investors in those fields.

Resort. Mahikeng Game Reserve has white rhino and giraffe among its fauna. Tlokwe (Potchefstroom) The city of Potchefstroom is administered by the Tlokwe Local Municipality. A large campus of NorthWest University and its business school is located in the city, as is the Vuselela TVET College and the Potchefstroom College of Agriculture. More than 120 000 people attend the Aardklop Festival every year. The city has a population of about 173 000. The sports facilities of North-West University are world class and have been the base for Spain’s soccer team and Australia’s cricket team in world cups. Tlokwe is a hub for the strong commercial agriculture of the region and has several food and beverage manufacturers. Nestlé has recently invested. Some of the bigger enterprises include fertiliser companies such as Kynoch, munitions manufacturers, and food processors like King Food. An army base contributes to the economy, and the airfield formerly used by the military is now run by the municipality. The N12 Treasure Route passes through the city and holds potential for further development of tourist highlights such as Boskop Dam and the Mooi River on which the town is located.

Bloemhof Bloemhof is a centre of maize growing and cattle raising on the southern boundary of the province, and DairyBelle has a large milk-production facility in the town. The Bloemhof Dam is one of the three large dams on the Vaal River that supply bulk water to surrounding areas. The Bloemhof Bonanza is the biggest and most lucrative inland-angling event in South Africa, with more than 2 000 anglers trying to win R1.5-million in prize money. The nearby SA Lombard Nature Reserve has a fine herd of black wildebeest.

Rustenburg Rustenburg is close to platinum mines and Sun City, two of the economic jewels in the crown of North West Province. The town is also near beautiful parts of the bushveld, the Magaliesberg Mountains and the Pilanesberg National Park. Rustenburg has a varied manufacturing sector, although most of it is mine-related. Large-scale platinum smelters operate in Rustenburg. One of Orbit TVET College’s campuses is in Rustenburg, Unisa has a regional office, and the Agricultural Research Institute’s industrial crops unit and the Seda Platinum Incubator are located in the city. Health facilities are good in the city, with Netcare and Life Healthcare having a presence, in addition to the provincial hospital. Rustenburg’s population is about 596 000.

Naledi (Vryburg) Vryburg is the principal town of the Dr Ruth Segomotsi Mompati District Municipality. Cattle auctions held several times a year are among the biggest and best supported in the country. Auction time boosts the town’s population very considerably, from the norm of about 70 000. The Theiler Agricultural Museum and Cattle Centre is an important research centre for the livestock sector. Tiger Kloof Combined School, situated south of Vryburg, is a Dinaledi school, whereby extra interventions are made to improve mathematics and science teaching. It is also one of a handful of schools identified for upgrading by the national Historical Schools’ Restoration Project. Notable past pupils include Sir Seretse Khama and Dr Ruth Mompati. The Leon Taljaardt Nature Reserve has white rhino, buffalo and zebra.

Klerksdorp (City of Matlosana) With a population of over 400 000, Klerksdorp is NORTH WEST BUSINESS 2017

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SPECIAL FEATURE NORTH WEST PROVINCE

Vaalwater

N Thabazimbi

Limpopo Bela-Bela

R49

BOTSWANA

Sun City/Lost City N4

Zeerust Swartruggens

Moloporivier Vorstershoop

Groot-Marico

Mmabatho

MAHIKENG

R30

Westonaria Ventersdorp

N14

Stella

Coligny

Delareyville

Potchefstroom Klerksdorp

R 49

Ottosdal

Vryburg

Lykso Kuruman

N18

Sasolburg R57

N1

R30

R82

Heilbron

Taung

Reivilo Sishen

R59

SchweizerReneke

N14

N3

Vereeniging Parys

Wolmaransstad

R31

N1

Carletonville

N12

Orkney

R34

Hotazel

Gauteng

JOHANNESBURG

R52

Sannieshof

Hartbeespoort Mooinooi

Magaliesburg

Lichtenburg

R49

PRETORIA

Brits

Rustenburg Koster

Kathu

Free State

Kroonstad

Bloemhof

N12

Northern Cape

Wesselsbron

Reitz

Motorway

Christiana

Main Road Railway

Welkom

Warrenton

Ventersburg Postmasburg

Bultfontein

Ulco

Municipalities in North West Province

Limpopo

BOTSWANA

Moses Kotane

Ramotshere Moiloa

Bojanala

Madibeng

Moretele

Rustenburg

Molopo

Kgetlengrivier MaďŹ keng Ratlou

Ngaka Modiri Molema Ditsobotla

Kagisano

Dr Ruth Segomotsi Mompati

Ventersdorp

Gauteng Merafong City

Dr Kenneth Kaunda

Tswaing

Tlokwe Matlosana

Naledi

Maquassi Hills

Mamusa Greater Taung

Northern Cape

Lekwa-Teemane

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

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Bojanala Naledi

NORTH WEST BUSINESS 2017


SPECIAL FEATURE

Villages, townships and small dorpies are the focus of development Plans are in place to boost economic growth in the North West’s smaller towns and areas previously neglected.

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he provincial government of the North West has announced that one of its five major priorities will be to boost economic development in villages, townships and small “dorpies”. In every sector where government influence can be brought to bear, consideration must be given to how policy will improve lives in VTSD (villages, townships and small dorpies). This scheme is one of five major initiatives which form part of the larger “Rebranding, Repositioning and Renewal of Bokone-Bophirima”, the Setswana name for North West. The other four are ACT (Agriculture, Culture and Tourism); RHR (reconciliation, healing and renewal); Setsokotsane (comprehensive and integrated service delivery campaign) and Saamwerk-Saamtrek (call for unity of purpose above race divisions). Village development plans are to be created for each one of the 767 in the North NORTH WEST BUSINESS 2017

West. The process has begun across the province’s municipalities. Creating links within the agricultural economy is likely to be the best way of making a significant impact, and the VTSD strategy acknowledges this. Agriculture is one of the strongest sectors in the North West economy, so creating added value along the agricultural chain is an easier task than creating an entirely new sector. An initiative to create community bakeries has already kicked off, with Transnet and the National African Federated Chamber of Commerce (NAFCOC) supporting the programme. Another project, which will also go some way to improving food security and reducing hunger, involves the setting up of warehouses in each of the province’s districts. These warehouses would make available to local entrepreneurs basic foodstuffs at a good price that can then be sold on through tuckshops.

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SPECIAL FEATURE Another way of saying that opportunity must be created along the value chain is to state that better linkages must be created between towns and rural areas. Prospective businesses in rural areas (or small dorpies) often have no access to finance, find transport costs prohibitive and struggle to connect to the relevant market. Improved infrastructure can be part of the problem, whether that is simply providing better roads, but it can also be the establishment of food markets in smaller areas, and the building of public abattoirs and silos so that small traders and entrepreneurs don’t have to carry those heavy costs. The agri-park scheme that is being implemented in each of the province’s four districts plays into that theme. With proper storage facilities, areas for trading and even some training available, farmers and traders can both benefit from the centralisation of some functions and exposure to

which looks to support small businesses within the mining company’s supply chain. The provincial government has its own development agency, the North West Development Corporation, which has been tasked with seeing to it that qualifying co-operatives and SMMEs get loan financing in the R1 000 to R1-million bracket. The NWDC can also provide infrastructure (offices or factory space) to help new enterprises. The provincial government has also committed to making it easier to do business with government, in terms of tenders, impact assessment, licensing and doing away with restrictive by-laws. Electrification plans are set to focus more on rural areas and small villages in the years ahead, with 13 422 new households in 104 villages getting access to electricity in 2016. VTSD will also receive priority in terms of the allocation of public housing. Zoning in all villages, townships and small dorpies is to be amended, so that there is a clear area where business can take place. It is hoped that this will do away with the costly re-zoning process that can limit start-up enterprises. A concrete way for the provincial government to boost VTSD is to buy its goods and services, where possible, from VTSD vendors. The aim is to procure 70% of goods and services from such sources in 2016/17. A start was made in 2016, with R2.5-billion or 41.6%t being spent in VTSD. Provincial government is not the only state entity that can assist in VTSD strategy. The South African National Defence Force (SANDF) has several facilities in the North West (artillery, training, intelligence, infantry, etc) and all of these units spend a lot of money on resources: the VTSD strategy wants to see some of that money spent in villages, townships and small dorpies. Similarly, the tourism sector is expected to align its strategy to promote areas that have not received significant income in the past. A focus on cultural tourism would allow for a greater focus on some rural areas that can offer beadworks and pottery or places like the Mphebatho Cultural History Museum in Moruleng. The nearby Manyane Resort (in the Pilanesberg National Park) has recently been refurbished and should provide local communities with employment opportunities.

a broader market. The same principle applies to clothing and retail. The province wants to see designers given an opportunity to show their garments, even if they themselves don’t have a shop front, either in retail outlets or on some other public platform. Loan funding for small, medium and micro-enterprises is something that several agencies are tasked with, including the Small Enterprise Development Agency (Seda) and the Industrial Development Corporation (IDC). Seda has a focus on four sectors: agri-processing, community tourism and protected areas, mining and mineral beneficiation, and trading. All of these are highly relevant to the VTSD strategy of the North West There are also private initiatives such as the Masisizane Fund (Old Mutual), the Shankuka Black Umbrellas and Anglo American’s Zimele initiative

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NORTH WEST BUSINESS 2017


PROFILE

Madibeng Local Municipality The strategic location of Madibeng Local Municipality supports a wide range of economic activities and attracts thousands of tourists to Hartbeespoort Dam.

The Madibeng Local Municipality lies within the Bojanala Platinum District between Rustenburg to the west and Pretoria in the Gauteng province directly to the east. The main economic activity in Madibeng is mining but the town of Brits has significant manufacturing capacity, particularly in the automotive component sector. Hartbeespoort Dam is a major tourist attraction and there are many farms in the Municipality that produce quality vegetables and fruit for the Tshwane market.

Executive Mayor – Cllr Jostina Mothibe.

Governance

Madibeng LM is well located in that regard. Being close to Gauteng’s big cities (including Johannesburg and Krugersdorp) allows for good access to these large consumer markets and also makes it easy for local residents to find potential employment in those centres.

Madibeng Local Municipality is one of five municipalities in the Bojanala Platinum District. It is categorised as a Category B Municipality. An Executive Mayoral System is in place. Forty-one wards are represented by 81 councillors (10 of whom are members of the Mayoral Committee), with a full-time Speaker, Chief Whip and Executive Mayor.

Madibeng can be reached by train and has an airport for light aircraft. Lanseria Airport is located 40 kilometres from Brits.

The Municipality has implemented a Performance Management System whereby performance is monitored through conducting performance assessments on a quarterly, mid-year and annual basis.

Geography The Madibeng Local Municipality extends over 3 839km² on the eastern edge of the North West Province. It lies between the Magaliesberg and the Witwatersrand, 60km from Rustenberg and 50km north of Pretoria. The Magalies and the Crocodile rivers feed Hartbeesport Dam, an important source of water for the province and a very popular tourist spot. The main towns are Brits, Hartbeespoort, Marikana and Mooinooi. NORTH WEST BUSINESS 2017

Acting Municipal Manager – Energy Manaka.

Performance audits are conducted by both the Internal Auditors and Auditor General and performance reports are also published in the Annual Report. On the service delivery front the Municipality continues to implement service delivery projects such as the paved cluster roads in areas of Oukasie,

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PROFILE

Tourism Madibeng Local Municipality straddles the Heritage Route which links the Cradle of Humankind (a World Heritage site in Gauteng) with the Pilanesberg and Madikwe Game Reserves. Hartbeespoort Dam is one of the most visited places in South Africa, with a wide range of activities being offered nearby. More tempting is the diversity and scenic beauty of the Hartbeespoort Dam, the Madibeng tourism hub, with a magnificent view of the Magaliesberg mountains, a globally recognised biosphere reserve. Mothotlung, Hebron, Kgabalatsane and Letlhabile through the Municipal Infrastructure Grant (MIG). The Municipality has also upgraded provincial gravel roads to tar surfaces in areas like Rasai and Fafung. Water supply infrastrastructure projects are currently under construction in the eastern parts of the Municipality such as Itsoseng and Klipgat. More homes in the areas of Regorogile, Oskraal and Kgabalatsane have been electrified with the assistance of Eskom.

Other fun outings can be had to a Cheetah Centre, a Bush Babies Monkey Sanctuary, a Chameleon Village Reptile Park, the Hartebeespoort Snake & Animal Park, the Hartebeespoort Dam Aquarium, the Inyoni Estate Crocodile Farm, The Elephant Sanctuary and The Ukutula Lodge & Lion Centre. The aerial cableway at the dam is very popular, as is hot-air ballooning. There are any number of adventure tourism activities on offer. These include: • zip-lining • combat paintballing • horse-riding • quad-biking • helicopter flights • jet-boat cruises • adventure camps. Fishing is another very popular pastime and arts and crafts are very well catered for in the area.

The Municipality in conjunction with the National Water and Sanitation Department is working around the clock to address the challenge of water supply with the expansion of the Brits Water Purification Plant. The current plant produces 60ML per day while the newly refurbished plant will produce 80ML per day.

Economy A diverse economy has mining, manufacturing and tourism as the main employers and contributors to regional gross domestic product. A third of the world’s chrome comes from this area and there is a huge resource of platinum group metals that is mined by several large companies.

CONTACT INFO Key personnel: Executive Mayor – Cllr Jostina Mothibe | Acting Municipal Manager – Energy Manaka Key contact person: Tumelo Tshabalala Address: 53 Van Velden Street, Brits 0250, South Africa Postal Address: PO Box 106, Brits 0250, South Africa Phone: +27 12 318 9100 | Fax: +27 12 318 9203 Email: customercare@madibeng.gov.za Website: www.madibeng.gov.za

In Brits there are several automotive components manufacturers, like Bosch, who run a sophisticated plant that makes starters, alternators and braking systems. Bridgestone make tyres at a recently upgraded factory and Giflo Engineering and cable producer, CBI Electric are other companies in the sector.

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NORTH WEST BUSINESS 2017


DESTINATION OVERVIEW

Tourism Tourism is a key pillar of the North West economy.

SECTOR INSIGHT Sun City has spent R1-billion on upgrades. • Cultural tourism is a new focus area for the province.

 T

ourism has been identified by the North West Provincial Government as a “key pillar” of the economy. In addition to promoting the already popular game reserves, Hartbeespoort Dam and Sun City, the provincial planners are targeting the cultural sector as a potential growth market. The Mahika-Mahikeng Cultural Festival is expected to grow in significance to the regional economy as it expands, having been started in 2015. Arts and culture development centres (Mmabana Centres) are found in three of the province’s districts. Twelve public museums have been identified together with 400 heritage sites as part of a census on the province’s cultural assets. The long and interesting history of the Batswana people provides rich scope for commemorations, memorials, song and dance. Three tourism strategies (Culture and Heritage; Events and an overarching regional strategy) are set to inform what the premier of North West has called the Arts Culture and Tourism (ACT) developmental agenda for the province. In keeping with the emphasis on small towns and rural areas, a Rural and Social Tourism strategy is to be charted. Among other provincial plans is a publication to be produced by the Department of Tourism to market the province, particularly to attract potential tourists in SADC countries, in other parts of Africa and in BRICS countries like China, India, Russia and Brazil. Related to the SADC theme, is a scheme to develop transnational routes NORTH WEST BUSINESS 2017

18

that would include sites such as Victoria Falls in Zimbabwe. Direct flights are being contemplated to BRICS countries. The Department of Tourism in the North West hosted the Bojanala District lekgotla (public meeting) where discussions were held about the way forward for tourism in the province. There is a strong belief that the industry can become a major creator of jobs and wealth within communities, if the correct strategies and products are developed. Anthropology comes to the fore at Taung, site of the first discovered fossil of Australopithecus africanus. The North West Development Corporation (NWDC), has an investment plan linked to this famous site, involving a museum, hotel and spa resort. The NWDC is also offering investors the opportunity to expand the terminal building at Pilanesberg Airport. The Treasure Route runs along the N12 highway and includes


DESTINATION OVERVIEW wildlife, cultural, scenic, industrial and environmental tourist attractions. The “treasure” relates to the gold mines scattered along the route. A highlight is the Vredefort Dome, an enormous 300km crater left when a meteorite struck the earth about two-billion years ago. It is a UNESCO World Heritage Site. Adventure sports is a growing section of the tourism sector. Hot-air ballooning over the Pilanesberg mountains is a popular pursuit, as is quad-biking among the foothills. Canopy tours in the Magaliesberg are on offer, with many opportunities for water sports of every kind on the province’s many water bodies. Hartbeespoort Dam is the biggest of these, but there are ample opportunities for water -lovers at Bloemhof Dam, Boskop Dam (north of Potchefstroom) and Vaalkop Dam (north of Brits). Each of these dams has great birdlife, with up to 250 species living at or visiting the dams.

Hotels, casinos and resorts One of South Africa’s highestprofile entertainment complexes, Sun City Resort, was relaunched in 2016 after a R1-billion refurbishment by Sun International. Between 2014 and 2016 the project created more than 2 000 new jobs. The Sun City Hotel has been re-branded as the Soho Hotel which comes with a party zone designed to evoke Las Vegas. A new events space called Sun Park offers outdoor and indoor options

for hosting festivals, events and launches. A new Sporting Hall of Fame has been added to the popular water features and the famous Gary Player Golf Course. In recent times the format of the annual Nedbank Golf Challenge was expanded to include a bigger field of players with more global significance because points won at the event counted for international rankings. The provincial capital, Mahikeng, has its own resort in the Mmabatho Palms Hotel Casino and Convention Resort. As part of the Peermont group, which has hotels and casinos in six of South Africa’s provinces, the Mmabatho Palms offers eight gaming tables and slot machines. The Gambling Board falls under the provincial Department of Economy and Enterprise Development and it has approved 262 Limited Pay-out Machines and six new bingo operations. North West’s other casinos are at Sun City and the Morula Casino and Hotel at Mabopane (both run by Sun International) and Klerksdorp (Rio Hotel Casino and Convention Resort), another Peermont property. The provincial government has applied to national government to have a fifth licence granted in the province.

Nature and game reserves The strategy of the North West Parks and Tourism Board (NWPTB) includes ramping up investment in the province’s 12 smaller parks with a view to creating jobs in the second economy. This presents an opportunity for private investors to become involved. An investment of R43-million has been made in the Manyane Game Lodge in Mahikeng in partnership with the national Department of Tourism. Another project is in the form of an ambitious plan to create a mega-park in the north-western sector of the North West, the Heritage Park. The idea is to link the existing parks of Madikwe (on the Botswana border) and the Pilanesberg National Park (a provincial park). Nearly 20 000 hectares of land is being prepared for incorporation, which is intended in a later phase to become a transnational park. With much of the targeted land being currently used for marginal cattle farming, it is expected that the transference of this to the potentially more lucrative game-reserve option will bring considerable benefits. As the fourth-largest park in South Africa, Pilansberg covers an area of 55 000 hectares.

ONLINE RESOURCES North West Development Corporation: www.nwdc.co.za South African National Parks: www.sanparks.co.za Tourism North West: www.tourismnorthwest.co.za

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NORTH WEST BUSINESS 2017


PROFILE

Mmabatho Palms is an entertainment oasis The destination of choice for gaming and conventions in Mafikeng.

South Africa’s and the North West’s favourite oasis resort experience, Mmabatho Palms Hotel Casino and Convention Resort, is conveniently located in the historic town of Mafikeng, the capital city of the North West Province. Perfect for business, weekend getaways and entertainment, the resort is located adjacent to the Leopard Park Golf Course. The elegant four-star Peermont Walmont hotel is dressed in classic style with every modern comfort and features 150 rooms and suites. The resort encapsulates an entertainment oasis with its central swimming pool shaded by the fronds of Motswedi Palm trees. A host of other entertainment options are also available including an additional swimming pool, mini-golf, tennis, a children’s play area and the 18-hole championship Leopard Park Golf Club next to the resort. flexible configuration capacities and state-of-the-art technology, making them suitable for a variety of functions from board meetings to team-building or from weddings to conferences.

The Motswedi Terrace Restaurant is a chic à la carte restaurant with a distinctive African theme and offers a full breakfast and internationally flavoured cuisine. Guests can also relax at the Motswedi Terrace Bar next to the pool with a refreshing drink or exotic cocktail. Gaming at the Mmabatho Palms casino is an exciting affair with a variety of 155 slots in various denominations and eight gaming tables offering Roulette, Blackjack and Poker games.

Mmabatho Palms is conveniently located near to a range of must-see sites, nature parks and birding hot spots. The Botsalano Game Reserve is a short drive to the west of the city and hosts more than 200 bird species in wide grasslands and Acacia and Karee woodlands. One of the world’s oldest volcanic craters extends through the park into Botswana. Mafikeng Game Reserve is much closer, being on the city boundary. It is known as “The Home of the White Rhino”.

The Palms Retreat Wellness Spa is a full beauty centre offering a variety of luxurious treatment options. The spa has seven treatment rooms and a separate couples’ treatment room to provide the most private and comfortable of settings. The world-class convention facilities include four conference rooms which can accommodate up to 300 guests. There is also the Boma, perfect for outdoor events with a seating capacity of up to 120 guests. Venues offer NORTH WEST BUSINESS 2017

With everything under one roof, Mmabatho Palms is the perfect destination for a family break, corporate event, golfing getaway or romantic rendezvous. Website: www.mmabathopalms.co.za

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Break away to Mmabatho Palms Hotel Casino Convention Resort in the historic town of Mafikeng. This beautiful retreat has something for everyone, with a four star 150-key Walmont hotel, an exciting casino, the Motswedi Terrace Restaurant, two swimming pools and loads of fun activities for children. The exquisite Palms Retreat Wellness Spa offers a variety of luxurious beauty treatments in peaceful and relaxing surroundings and the 18hole championship Leopard Park Golf Club is easily accessible from the resort. Outdoor sporting and entertainment events are a regular feature of the full sized soccer field and the convention centre can accommodate up to 300 delegates in a variety of rooms as well as the outdoor boma. Live it up, Oasis Style at Mmabatho Palms.

FOLLOW US

To book your stay, call PEERMONT CENTRAL RESERVATIONS on 0860 777 900 (SA only) or +27 (0)11 938 1928 or book online at www.mmabathopalms.co.za P E E R MO N T P R O U D LY S UPPO RTS T H E NAT IO NAL R ES PO NSI BLE GAM BLI NG PROGRA M M E .

PROBLEM GAMBLING COUNSELLING TOLL-FREE LINE 0800 006 008. PLAYERS MUST BE 18 YEARS OR OLDER. WINNERS KNOW WHEN TO STOP.


INTERVIEW

Strong growth on North West route CEO of SA Express Inati Ntshanga talks about the operating environment for the airline.

Inati Ntshanga

What is the size of the commercial airline sector in the North West?

Currently, SA Express is the only carrier that flies into Pilanesberg and we have grown our operations to include Mahikeng. We fly direct from OR Tambo International on Mondays, Wednesdays and Fridays and from Cape Town International on Mondays and Fridays. We have built partnerships with several establishments in the area to offer competitive and comprehensive packages for passengers flying SA Express. We have seen strong growth on this route and our expectation is this trend will continue. Since being appointed CEO of SA Express, what have been the primary challenges of running the airline?

BIOGRAPHY Inati Ntshanga was appointed BIOGRAPHY

as the Chief Executive Officer of SA Express in September 2010. A Harvard University Economics graduate, Inati has over 18 years aviation experience as well as senior management and executive experience in the private sector. As CEO of the airline, he also serves as Executive Director on the SA Express Board of Directors and in 2015 was appointed as the Chairperson of the Airlines Association of Southern Africa. NORTH WEST BUSINESS 2017

External factors such as fluctuating exchange rates, volatile oil prices and ever-increasing competition mean that as an airline, SA Express needs to remain relevant by being dynamic and innovative. Economic factors such as recessions mean that flying is not viewed as a more of a luxury service. The industry has definitely become more competitive over the last five years. This is not only been on the major domestic routes, we have seen new entrants on secondary routes as well. This has led to reduced yield for the airline, although this has been offset somewhat by market growth. Key challenges remain living up to our customers’ expectations and remaining a viable entity in a competitive trading environment. Which routes are likely to deliver the most growth for your airline in the next few years?

What we have seen in some markets, is the stimulation of new market segments by new entrants and this excites us. We intend to grow our product offering to incorporate this trend. This will primarily be on our domestic network, although we expect our regional routes to benefit from a degree of organic growth as well. This is primarily driven by connecting traffic through our partnership with South African Airways and our membership of the international Star Alliance.

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We Fly North West! Discovering the best of Bokone Bophirima is now only a flight away. As an airline of choice to North West Province, we now oer weekly flights from Johannesburg and Cape Town to Pilanesberg, and from Johannesburg to Mahikeng, all at your convenience. Because We Fly for You.

Visit www.flyexpress.aero for domestic flights to Bloemfontein, Port Elizabeth, East London, Kimberley, Hoedspruit, George, Johannesburg, Richards Bay, Cape Town, Mahikeng, Pilanesberg, Durban and regional flights to Lubumbashi, Gaborone, Walvis Bay, Lusaka and Harare.


SPECIAL FEATURE

South African economy at a glance Insight into the performance of the South African economy is provided through these graphical representations of key statistics. ZIMBABWE

MOZAMBIQUE

BOTSWANA

Limpopo 0.9% (7.1%)

NAMIBIA

Gauteng Mpumalanga 2.7% 2.1% (7.5%) (34.3%) SWAZI-

North West -3.6% (6.5%)

LAND

Free State 1.8% (5%) Northern Cape 2.8% (2.1%)

LESOTHO

KwaZuluNatal 2.3% (16.1%)

Eastern Cape 1.0% (7.6%) Western Cape 2.0% (13.6%)

SA GDP: Percentage of growth per province (2014) and percentage contribution to national GDP (figures in brackets). SOURCE: STATS SA WWW.STATSSA.GOV.ZA

PROVINCE

CAPITAL

POPULATION (2015)

AREA

GRP BILLION RAND

6 916 200

168 966km2

R289.9

2 817 900

129 825km2

R189.1

David Makhura

13 200 300

18 178km2

R1 305.6

Pietermaritzburg Willies Mchunu

10 919 100

94 361km2

Eastern Cape

Bhisho

Free State

Bloemfontein

Gauteng

Johannesburg

KwaZuluNatal

PREMIER

Phumulo Masualle Elias Sekgobelo "Ace" Magashule

R610.1

Stanley Mathabatha David Mabuza Supra Mahumapelo

5 726 800

125 754km

4 283 900

76 495km2

R284.2

3 707 000

104 882km2

R249.5

R271.5

Limpopo

Polokwane

Mpumalanga

Mbombela

North West

Mahikeng

Northern Cape

Kimberley

Sylvia Lucas

1 185 600

372 889km2

R79.9

Western Cape

Cape Town

Helen Zille

6 200 100

129 462km

R518.1

Snapshot of South Africa’s provinces SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA

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2

2


SPECIAL FEATURE

How South Africa’s economy performed in 2015. * * PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA

SECTOR

LP

MP

GP NW KZN

FS

NC

EC

WC

2.5

2.8

0.4

2.1

3.8

4.3

6.0

7.5

3.5

29.4

24.9

3.3

33.6

1.9

13.3

26.7

0.2

0.3

Manufacturing

2.5

11.5

13.5

4.4

15.8

8.5

2.1

12.2

11.8

Electricity

2.8

5.4

2.4

1.4

2.5

3.1

3.0

1.4

2.0

Construction

2.5

3.3

4.3

2.6

3.0

2.0

1.6

2.1

4.3

Wholesale

10.8

10.3

14.2

9.3

15.5

12.3

9.9

14.7

17.0

Transport

5.4

5.8

8.3

6.1

11.9

7.1

7.8

7.9

9.1

Finances

14.0

10.9

22.8

11.1

16.5

14.2

11.6

18.6

26.6

Personal Services

3.8

4.3

3.6

7.0

5.8

10.2

8.1

9.1

5.1

Government Services

16.0

10.5

17.0

12.1

13.3

14.7

12.8

22.0

10.2

Taxes

10.3

10.3

10.1

10.3

10.0

10.3

10.2

10.2

10.0

Agriculture Mining

Gross Domestic Product by province, percentage contribution. SOURCE: STATS SA WWW.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1

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FOCUS

Nedbank partnering with business for good Kevin de Beer, Nedbank Regional General Manager, Branch Networks, explains how Nedbank works with communities to deliver banking solutions.

N

edbank continues to build on its client-centred strategy aimed at delivering distinctive experiences and channels of choice for businesses and clients in the North West. 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. Nedbank has also placed greater emphasis on client engagement to better understand the diverse and individual client needs across its personal and business banking base. “Innovation is an integral component of a holistic approach that encompasses our systems and processes. It is an enabler in delivering distinctive client experiences. Despite the tough economic environment, Retail and Business Banking has delivered value to our shareholders while significantly improving client experience. Through these milestones we are well geared to weather the persisting macroeconomic environment, and highly competitive business conditions,” says De Beer. Since 2012 Nedbank has launched several first-to-market 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 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 has also invested in innovative alternative distribution outlets through its strategic partnership with Pick n Pay and Boxer stores. These partnerships, which span over 15 years, enable communities to get access to financial services every day of the week, even Sundays and public holidays. 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. 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 NORTH WEST BUSINESS 2017

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Kevin de Beer, Nedbank Regional General Manager

Keyona Plus transactional account, which comprises funeral cover, a personal loan facility, the Just Save 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 Nedbank4me offering, enabling the youth to transact and save with the benefit of earning preferential interest. For more information call +27 51 400 5813 or visit www.nedbank.co.za.


FOCUS

Zooming into Nedbank’s small business interventions Nedbank’s Regional Manager, Small Business Services, Kim Lawrence, explains how Nedbank is committed to partnering with businesses for growth.

 “ R

ecognising that small businesses are the mainstay of the economy and arguably the best remedy for the country’s unemployment challenges, 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. Apart from its name, the initiative calls on everyone to make a conscious decision to vote small businesses through their hearts, feet and wallets; not only on Fridays, but every day. Supporting small businesses can lead to more sustainable economic growth, social upliftment and job creation. The biannual Nedbank Small Business Seminars are free and provide practical advice and solutions for small-business owners. Inspired emerging entrepreneurs who attend the seminars benefit from invaluable insight shared by small-business experts. The seminars are rolled out across the country and topics include issues such as cashflow planning and turning strengths and weaknesses into more sales and profits. SimplyBiz.co.za is a free-to-join value networking portal designed especially for small businesses. It seeks to help small-business owners facing unique challenges with valuable insights from other entrepreneurs and our seminars. Moreover, the online portal helps small businesses to improve their business administration

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Kim Lawrence, Regional Manager Small Business Services skills, keep up with the latest trends, network with other small businesses and share ideas. For more information about Nedbank’s Small Business Services call Kim on +27 51 400 5772 or send an email to KimL@nedbank.co.za.

NORTH WEST BUSINESS 2017


FOCUS

Nedbank Whole-view Business Banking™ Willie Chavalala, Nedbank Regional Business Head, Pretoria & North West, explains how they are making the bank relevant to business owners in the North West.

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here is good news for North West business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has 11 business managers located across the province specialising in key industries such as retail, commercial, industrial, manufacturing and the agricultural sector, among others. They are ready to assist you with professional advice, industry-specific solutions and a comprehensive range of financial products and services. “At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,” says Chavalala. At the core of Nedbank’s offering in the North-West is a relationship-based model with a business manager dedicated to your business as the key entry point into the bank. Each business manager is supported by a team – comprising a credit manager, credit analyst and services manager with a thorough understanding of the regional economy and business market, and a genuine interest in the success of each individual business. “When you do business with us, you deal with people who know the area, understand its nuances and are familiar with the various industries operating here. We encourage you to see money differently with Whole-view Business BankingTM,” explains Chavalala. An additional benefit of banking with Nedbank Business Banking is that your business and your personal financial needs can be managed in one place. “Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions, better advice and a hasslefree service to you and your staff because we already know and understand your needs,” says Chavalala. Nedbank provides several communities, including individual and business clients, with access to products and services through NORTH WEST BUSINESS 2017

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Willie Chavalala, Regional Business Head Nedbank’s workplace banking offering through a dedicated banker. This is a unique service for clients, with financial fitness training a key aspect of the offering. For more information about Nedbank’s specialised service offering please call the Business Banking team on +27 12 436 7740 or visit www.nedbank.co.za.


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WHOLE-VIEW BUSINESS BANKING

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With Whole-view Business Banking™ from Nedbank, there’s one bank with one view across your business, allowing us to create unique business and financial solutions together. You’ll get partnership advice from a dedicated local client service team, supported by a team of specialists. By having the full picture we’ll have a deeper understanding of your business, which will take it further than ever before. Sometimes, a change in approach can change everything. Partner with Nedbank today. Search Whole-view Business Banking.

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


OVERVIEW

Mining The platinum province is also rich in many other minerals.

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here are nearly 300 active mines in the North West and the sector contributes 31.3% of regional gross domestic product. A large number of families rely on the income earned on mines, with about 18% of total employment in the province coming from mining. The North West Province is aligned with the Western Limb of the Bushveld Igneous Complex, a remarkably rich mineral formation. Mines in the province produce 50% of the platinum produced in the world, and 65% of South Africa’s platinum group metals. Chromite is the other major mineral mined throughout the province, and there are several ferrochrome smelters and other processing plants. Gold and uranium are found along the border of the province with Gauteng and the Free State (in Klerksdorp and Orkney). Diamonds are mined at Christiana, Bloemhof and Lichtenburg. Lichtenburg is also the centre of the cement industry. Other minerals found in the North West include fluorspar, vanadium, rhodium, uranium, copper, limestone, slate, phosphate, manganese, coal and nickel. There are also significant stone and granite operations. Volatility in global markets has led to the price of platinum dropping very steeply, leading to large-scale lay-offs at some mines, but analysts believe that the price will recover in 2017. AngloGold Ashanti, which has five gold mines on the border of North West and the Free State provNORTH WEST BUSINESS 2017

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SECTOR INSIGHT A platinum special economic zone is being established to attract investors. • S e p h a k u C e m e n t ’s Lichtenburg clinker plant produces 6 000 tons per day. • There are new owners for platinum and chrome assets. ince, and employs nearly 25 000 across all its operations in South Africa, is considering reducing its workforce. All companies operating in South Africa are expected to register with the Unemployment Insurance Fund (UIF) so that


OVERVIEW workers who suffer retrenchment will receive a pay-out to support them while they look for new employment. The overall picture for platinum group metals (PGM) looks rather better, with chrome in particular rallying in the second half of 2016. Palladium and rhodium have also increased in price. The results produced by Royal Bafokeng Platinum (RBPlat) in 2016 reflected how things have changed since the platinum boom of a just a few years ago. RBPlat (originally a joint venture between Anglo American Platinum and Royal Bafokeng Holdings) turned a profit of nearly R600-million in 2014 but the lower prices have pushed back the construction of the company’s Styldrift I Project and led to reduced production at the Bafokeng Rasimone mine, resulting in a loss in 2015. Royal Bafokeng Holdings is the investment vehicle of the 100 000 members of the S et s w ana - sp eak in g R oy al Bafokeng Nation who live in the Rustenburg valley. Another partnership with a community is the Sedibelo Platinum mine, where the local Bakgatla traditional authority has a 26% stake on behalf of the community (in the Moses Kotane Municipality of the Bojanala district). Main community projects concentrate on water supply, roads and bursaries for local students. A hydroponic farm and a brickworks have been initiated. Sedibelo (formerly Platmin), which received investments

from the Industrial Development Corporation (2012) and Pallinghurst (2014), has a 100-Moz PGM resource base.

Buying and selling • •

Impala Platinum is selling its 65% share in Impala Chrome, an extraction business which is located in Rustenburg. The Evraz Group has sold its 78.8% in Brits-based Vametco, a mine and plant that produces vanadium. Bushveld Minerals, which is listed on the Alternative Investment Market in London, is the buyer. Rustenburg Platinum Mines Limited (including three mine shafts, two concentrating plants and on-site chrome recovery plant) has been sold by Anglo American to Sibanye Gold. This is part of the broader Anglo American strategy to divest itself of a number of its assets, and also points to a strong acquisitions strategy that Sibanye Gold has embarked on since it was established in 2012. With some other acquisitions, Sibanye now controls about 800 000 ounces of platinum and uranium as a by-product of its gold production. With the possibility that it will also buy coal mines, Sibanye Gold will likely change its name in the near future as it looks more like a resources company.

SEZ and SPI The Platinum Valley Special Economic Zone (SEZ) is to be established at Mogwase in the Bojanala District, north of Rustenburg and east of Sun City. When fully developed, 200ha of land will be given over to three infrastructure facilities comprising Logistics, Light Manufacturing and Heavy Manufacturing. Areas of investment that are expected to grow fastest include fuel cell technology (in which platinum is a vital component), machinery for mining, energy generation and renewable energy component manufacturing. A range of incentives will be available to potential investors via the national Department of Trade and Industry (dti). By way of example, the 121 Tax Allowance Incentive offers capital investment allowances and training support up to R900-million for new or existing industrial projects. There are a number of other incentives specific to investors in an SEZ. The Seda Platinum Incubator (SPI) is an initiative of the Platinum Trust of South Africa and is funded by the Small Enterprise Development Agency (Seda) through its Seda Technology Programme (Stp) with the support of the North West Provincial Government and private companies. Located in Rustenburg, the SPI trains people through the making of jewellery, chiefly the design and manufacture of platinum group

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OVERVIEW metal (PGM) jewellery. Small PGM jewellery-manufacturing enterprises and individuals are located at the centre or supported by email correspondence. A three-year period of incubation is offered to small businesses.

Chrome There are 20 chromite mines in North West Province. The mines are located along a reef running from Brits to Rustenburg and they are serviced by several ferrochrome smelters. South Africa produces about 70% of the world’s chrome, with most of that originating in North West Province. Most chromite is processed into ferrochrome, a vital component in the making of steel. South Africa produces 40% of the world’s ferrochrome.

Diamonds Diamonds are found in several parts of the North West: Lichtenburg, Koster and Ventersdorp near the centre, and Christiana and Bloemhof further south. Rockwell Diamonds sold its Tirisano mine near Ventersdorp in 2015, to a group of royalty miners who had been working on the site.

Gold Several major companies are active in the area where the provinces of Gauteng, Free State and Gauteng meet: Anglogold Ashanti, Harmony and DRD. AngloGold Ashanti’s Tau Tona operation is located in North West.

ONLINE RESOURCES Chamber of Mines of South Africa: www.chamberofmines.org.za Geological Society of South Africa: www.gssa.org.za Industrial Development Corporation: www.idc.co.za Mining Qualifications Authority (MQA): www.mqa.org.za National Department of Energy: www.energy.gov.za National Department of Mineral Resources: www.dmr.gov.za National Department of Trade and Industry: www.dti.gov.za North West Development Corporation: www.nwdc.co.za South African Institute of Mining and Metallurgy: www.saimm.co.za

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In 2015, Chinese company Heaven-Sent acquired the gold mine of Village Main Reef, Tau Lekoa near Klerksdorp. (Buffelsfontein gold mine closed in 2013.) Harmony Gold has two mines in the province: Kal Gold and Kusasalethu (formerly Elandsrand). The company has announced an employee share-option plan (ESOP) where about 33 000 employees across Harmony operations will take up ownership of just less than 3% of the company. South Africa’s thirdbiggest gold miner calculates that a qualifying employee might be paid out R10 000 for 100 ordinary shares after five years.

Limestone and cement Limestone quarries run by G&W Base and Industrial Minerals in the Marico District are located next to a PPC cement factory. One of the last economically viable limestone deposits in South Africa is mined and processed by Sephaku Cement. Sephaku runs a 6 000-ton per day clinker facility located near Lichtenburg. AfriSam, PPC and Lafarge already have a significant presence in the Mahikeng/Lichtenburg area, but Sephaku is confident that its clinker and cement-production facilities will be supported by raw materials for at least 30 years. Granite and slate are found in good quantities in the province, as is dimension stone. There are more than 20 quarry operations in the province, with Rustenburg being the centre of granite mining.


Wesizwe honours commitments made in social and labour plan as part of social license to operate

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art of Wesizwe’s strategy in building good stakeholder relations with the host community is supporting the development of small medium and micro enterprises (SMMEs) and continuous engagements with stakeholders. The company creates strategic partnerships that support infrastructure development for basic services and needs, such as education, skills development and health. The main focus is on ensuring that the company enables, empowers and supports the host community.

contribute to the creation of informal settlements while

Currently, the largest SLP project so far undertaken by the company is the housing project for employees. The objective of this project is in line with the mining charter requirements on housing. The organization has taken proactive action in ensuring that the mine does not

Kotane Local Municipality.

the company steps up the provision of formal housing. The focus is on developing a 2-phased housing scheme: Phase 1: 801 units and Phase 2: 1 504 units. This will be an integrated human settlement and to achieve this Wesizwe has forged strategic partnerships with North West Department of Local Government and Human Settlements and the Social Housing Regulatory Authority (SHRA) in order to fund the development and Moses

Wesizwe Platinum is a public company incorporated in the Republic of South Africa with its shares listed on the JSE Securities Exchange (JSE).

For more information on Wesizwe Platinum, visit the website – www.wesizwe.com


OVERVIEW

Agriculture Grain and beef farming is done on a large scale in the North West.

SECTOR INSIGHT Four district agri-parks will underpin the creation of processing plants and agribusinesses. • A Bonsmara bull was sold for R90 000 in 2016.

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concerted effort to establish sustainable agri-processing, to promote food security and to promote local black businesses is being made through the establishment of four district agri-parks across the North West. The North West Department of Rural Environment and Agricultural Development (READ) is working together with national departments to implement the project: Rural Development and Land Reform, Agriculture Forestry and Fisheries and Department of Cooperative Governance and Traditional Affairs. Each of the agri-parks will have a specific focus: • Springbokpan, grain (Ngaka Modiri Molema District Municipality). The silo at this site has been renovated and is ready for use. • Vryburg: livestock, red meat (Dr Ruth Segomotsi Mompati District Municipality) • Moretele/Makapanstadt: red meat and horticulture (Bojanala District Municipality) • Maquassi Hills: pork and poultry (Dr Kenneth Kaunda District Municipality) Various agri-processing plants are under consideration for the city of Mahikeng: a feedlot and a meat processing plant, including an abattoir and packaging facilities. In Taung the plan is to establish an animal feed manufacturing plant.

Variety North West’s distinct climatic regions are home to three very different types of agriculture. The dry western region is home to large beefNORTH WEST BUSINESS 2017

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cattle herds, and this is where the growing game-ranching and hunting industry has its base. An Absa Agribusiness study shows that a R5-million investment in cattle over six years makes a 4.8% return, against 27.7% for buffalo and 45.2% for sable. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops.

Grains Nearly two-million hectares is planted with summer cereals, with about 50 000 hectares given over to winter cereals. The North West produces about 20% of South Africa’s maize and about 15% of its wheat. The central and southern sections of the province are dominated by maize and wheat farming. North West’s average contribution to the national maize crop over the six years to 2015 was about


OVERVIEW 20%. The total yield in 2014 was 14.2 million tons, an exceptionally good return, but then the drought brought yields down. Fully 31% more maize was planted for the 2017 harvest than had been possible in 2016. This amounted to 2.54-million hectares and represents good news for consumers. The very bad national drought had resulted in maize having to be imported which caused food prices to rise; the better planting should improve things. However, at the time of going to print there were concerns about an armyworm which had been detected in several parts of South Africa. Early detection may head off threats to the crop. The South African market consumes about 10.5-million tons of maize.

companies like McCain (potatoes), South African Breweries (barley) and Cotton South Africa (cotton) have standing orders with small-scale farmers. This water supply will also allow for the cultivation of highyield crops such as pecan nuts, paprika and olives.

Livestock The western reaches of the province are sometimes called “South Africa’s Texas” with extensive cattle herds roaming on big farms. The North West has approximately 1.6-million beef cattle, representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Auctioneers Proveld Bonsmara achieved an average price of R34 000 for bulls at its November 2016 auction. One prize bull was sold for R90 000. A national initiative is promoting Nguni cattle. Vryburg is the centre of the beef-cattle breeding industry. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The goats numbers for the province is estimated at 701 587 which is 12% of South Africa’s total goats. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove.

Companies Other crops When it comes to sunflower seed, North West is responsible for 33% of South Africa’s stock, and 23% of the nation’s groundnuts. The North West supplies 5.4% of South Africa’s potatoes, but parts of the Kalahari are ideally suited to the cultivation of seed potatoes. The province produces about 11% of South Africa’s cotton harvest, which has been getting smaller for many years. There are plans to grow the sector again, particularly in small-scale farming sector. There are cotton operations near Sun City in the north of the province and in the Taung district in the far south. The Taung Irrigation Scheme covers about 36 000 hectares, and

One of South Africa’s biggest agricultural companies is Senwes. The company specialises in the storage and handling of grains and oilseeds. Its extensive silo infrastructure extends across the interior. Its headquarters are in Klerksdorp. Despite very challenging conditions, the Senwes Group had a turnover for 2015/16 of R9.2-billion. Suidwes is based south of Klerksdorp in Leeudoringstad. More than 90% of the shares in the company are held by farmers. Grain handling is the main business and there are divisions for retail (17 outlets and one animal-feed depot), mechanisation, finance and research and agricultural economics (Terratek). Brits is the location of the headquarters of the MGK Group, formerly Magaliesberg Graan Kooperasie. Tau company runs five divisions and a plant that makes fullfat soy, a component in animal feed.

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za National Department of Agriculture and Forestry: www.daff.gov.za North West Department of Agriculture, Conservation, Environment and Rural Development: www.nwpg.gov.za/agriculture

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OVERVIEW

Energy Generation and manufacturing hold great potential.

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he sun shines in the North West, on average, 300 days of the year. In addition, the province mines more platinum than any other place on earth. These two facts combine to present a suite of opportunities for energy generation and for the manufacture of equipment for the energy sector. A start has been made, but the potential for investors is massive. The provincial unit of the Industrial Development Corporation is in discussion with the German manufacturer of solar panels who go beyond simply making the panels, they allow for horticulture under the farms. In this way, the installation of a solar farm can create 35 jobs per megawatt, instead of the usual average of 1.6 jobs per megawatt, and make a contribution to tackling food security. RustMo1, a 7MW solar farm at Buffelspoort, is already producing energy. Local company Momentous Energy, in partnership with a community trust (representing Lapologang and Tsakane) are behind the project which was installed by German company, juwi Renewable Technologies. This project is part of the national programme, the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) which aims to add some 6 000MW to the national grid by 2020 (and 13 225MW by 2025). An opportunity for solar panel market manufacturers is being promoted by the North West Development Corporation at Mahikeng. Investors are sought to manufacture and supply panels to farms, housing schemes, the mining industry and government. The Potchefstroom campus of the North West University is home to HySA Infrastructure Centre for hydrogen production, storage and delivery. onal strategy designed to make use of hydrogen and fuel cell technology, particularly arising from platinum group metals (PGM). South Africa’s nuclear-research centre is located at Pelindaba near Hartbeespoort Dam, and is run by the South African Nuclear Energy Corporation. The Nuclear Engineering Department at North West University (NWU) is the only one of its kind in the country, and the

ONLINE RESOURCES National Department of Energy: www.energy.gov.za North West Development Corporation: www.nwdc.co.za

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SECTOR INSIGHT Fuel cell technology is an important field of study. • Manufacturers of solar panels are showing interest in investment.

National Department of Science and Technology granted a chair in Nuclear Engineering to NWU. Bioethanol, biodiesel and methane gas from waste and renewable resources are among the types of biofuels being investigated. As a grain-producing area, North West Province is obviously well suited to supplying feed stock for biofuel projects, but a new set of national government guidelines has seen the emphasis in this nascent industry shift towards finding fuel stock from crops that are less likely to affect food security. These crops include sugar cane, sugar beet, canola and sunflower seeds. A debate is under way about changing national policy to allow surplus grain to be used for energy production. Sunflower seeds are very suitable for converting into biofuel, and the North West has an abundance of this crop. Sweet sorghum is a possible feedstock for processing into bioethanol.


OVERVIEW

Water The City of Tlokwe is a water award-winner.

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he good rains that finally fell in the interior of South Africa in late 2016 came as a great blessing after a long and painful drought. But in the North West province the rains came even later than in most places, putting extra strain on agriculture, towns and businesses. South Africa is a water-scarce country and water management is critical to economic planning. The western part of North West Province is particularly dry. In the eastern part of the province, national government has sent water tanks to some parts, and has upgraded the treatment plants upstream from the Hartbeespoort Dam. Infrastructure in some cases has not been serviced for some time, and leaks and skills shortages in some municipalities are a problem. Three of South Africa’s six major catchment areas are located in the province: the Limpopo, the Orange and the Vaal. Within these catchment areas, only the Vaal River has a strong-enough flow to allow for significant amounts of water to be taken from it directly to support irrigation or industry. There are four water-management areas in the province, three of which are linked to the Vaal River. Water is imported into the provincial system through transfers between water basins. The province has 83 sewage-treatment plants, and the national Blue Drop award system has found most of them need a lot of improvement. In the period from 2009-2014, the municipalities found to have the best water systems were City of Tlokwe (Potchefstroom), Rustenburg, and the City of Matlosana (Klerksdorp). In that period Tlowe averaged 97/100 but several water authorities struggled to make improvements. Tlokwe is one of only three municipalities in the country that acts as a water-service authority and as a service provider. The biggest service providers active in the North West are: • Rand Water • Magalies Water • Sedibeng Water (including Botshelo Water)

ONLINE RESOURCES Blue Drop Awards: www.ewisa.co.za National Department of Water and Sanitation: www.dwa.gov.za

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SECTOR INSIGHT Rustenburg has introduced a digital data management system to control its services. • The village of Jericho received piped water in 2016. Midvaal Water Company supplies water to Matlosana (Klerksdorp). The city of Rustenburg has created the Rustenburg Water Services Trust (RWST), a specialpurposes vehicle that runs the town’s relatively new water system. It was formed with Magalies Water acting as the public partner and operator, with Rustenburg Consulting Consortium (led by Bigen Africa) providing expertise. Hartbeespoort Dam is a significant factor in the water sector of the North West province. It receives water from the Crocodile, Jukskei and Magalies rivers. It also receives a lot of waste from the surrounding areas. The storm water that flows into the dam includes fertiliser and animal waste. Degraded river banks and wetlands in the catchment areas contribute to the problem. The result has been a build-up of phosphates in the dam, and various projects have been launched to tackle the problem–with variable success rates. •

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OVERVIEW

Manufacturing The North West’s strong resource base could underpin a much bigger manufacturing sector.

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rits, Rustenburg, Tlokwe (Potchefstroom), Matlosana (Klerksdorp) and Mahikeng account for more than half of the total manufacturing capacity in North West Province. Mining beneficiation, automotive components and food and beverages play important roles in the sector, but there is scope to massively increase the scope for manufacturing in a wide range of other fields. The provincial government has pointed out that the share of manufacturing to the Growth Value Add (GVA) of the province is only 5% – a figure that must grow if employment is to grow along with the expanding economy. A provincial Integrated Manufacturing Strategy has been compiled. One of the report’s findings was that because North West is strategically located near to the industrial hub of Gauteng, has low input costs, lies on established trade routes and has easy access to natural resources, it should make the development of the chemical processing sector a good bet. This is especially true for phosphate and nitrogenbased fertilisers. Another provincial priority is to improve the link between rural and urban economies, something which a strong focus on agri-processing will achieve. As one of the country’s biggest producers of livestock, the North West’s automotive industry could profitably source hides for car seats locally. It is this sort of value-added tie-up that economic planners are looking at, as they aim to get more value out of the agricultural sector. The Industrial Development Corporation (IDC) is one of the bodies that is helping the province to expand (and maintain) the diversity of its manufacturing sector. The IDC sometimes gives loans

ONLINE RESOURCES Automotive Industry Development Centre (AIDC): www.aidc.co.za Centre for Advanced Manufacturing: www.cfam.co.za Consumer Goods Council of South Africa: www.cgcsa.co.za: National Department of Trade and Industry: www.dti.gov.za North West Development Corporation: www.nwdc.co.za

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SECTOR INSIGHT The North West is encouraging phosphate and nitrogenbased fertiliser manufacturers to invest. • The Centre for Advanced Manufacturing at North West University specialises in extruder technology. to help businesses weather bad times, at other times it extends loans (sometimes in exchange for equity) to new enterprises in new sectors. The Centre for Advanced Manufacturing (CFAM) is housed at North West University. The centre specialises in extruder technology, an important component in the food-manufacturing process. CFAM works with Gaborona Consulting, the Vaal University of Technology, Thripp (a dti technology programme) and ChemCity, a Sasol initiative.


OVERVIEW

Education and training The North West education sector covers high-level research to training for technicians and artisans.

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ery advanced research can be found in the laboratories of North West University into subjects such as astrophysics and applied molecular modelling. At the same time, provincial education authorities are trying to overcome huge challenges at rural schools. An important part of the latter process is the expansion of boarding schools, to which an amount of R500-million has been allocated in the medium-term framework. The North West Provincial Government’s broader policy aimed at uplifting rural areas will see the Department of Education and Sport Development directing more resources to schools in the villages, townships and small dorpies (VTSD). There are 1 465 primary and high schools in the state sector in the North West. Spending on new infrastructure and on renovations is set to continue for many years, offering many opportunities to contractors. South Africa has more private or independent schools than ever before. The opening of the PLG Hartbeespoort Academy in 2016 marked the first investment into the province of the Pembury Lifestyle Group. PLG has 19 schools on seven campuses, mostly in Gauteng. PLG intends listing on the Alternative Exchange of the JSE in order to raise capital for further expansion. Curro believes it will be running 200 schools in South Africa by 2020, double its current number. In the North West there are three Curro schools, in Rustenburg, Klerksdorp and Mahikeng.

University North West University (NWU) had 67 000 students registered in 2015, with about 26 000 of studying by correspondence. The university’s main campus is at Potchefstroom with satellite campuses at Mmabatho and Vanderbijlpark.

ONLINE RESOURCES National Department of Basic Education: www.education.gov.za National Department of Higher Education and Training: www.dhet.gov.za North West University: www.nwu.ac.za

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SECTOR INSIGHT A new private school has opened in Hartbeespoort. • Taung Agricultural College received R13.4-million from a Danish company.

Colleges North West has three large TVET colleges. Vuselela TVET College has its headquarters in Klerksdorp, where there is also an accredited trade test centre. There are a further four campuses: Jouberton Centre for Engineering Studies; Matlosana Campus; Potchefstroom Centre for ICT; and Taung Campus. Orbit TVET College has three sites, Rustenburg, Mankwe and Brits and in 2015, the total headcount of students was 15 012. In 2015, the Taung Agricultural College received a R13.4-million donation from Danish catalysis company Haldor Topsøe The college had recently been reaccredited by the Council on Higher Education (CHE) to offer the NQF Level 6 Diploma in Agriculture specialising in Irrigation Technology.

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OVERVIEW

Banking and financial services Financing for agricultural products is a big sector in the North West.

SECTOR INSIGHT Miners are getting help to deal with debt. • Postbank’s full licence is imminent.

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ll of the country’s major banks and financial institutions are represented in the North West. Financial services are available even in small towns, although the bigger cities like Potchefstroom, Rustenburg and Klerksdorp have a greater concentration and diversity. Financial services extend beyond advising rich people on how to invest their assets, or balance their portfolio. In a province where there has been some real financial distress brought about by bad times and retrenchments, something is being done to address this. A long strike in 2012 created tough conditions for some workers in the platinum sector. Anglo American Platinum has teamed up with Summit Financial Partners to help miners manage their debt and plan their finances better through a scheme called Nkululeko. Garnishee orders went down among the Nkululeko group by 80% between 2011 and 2016. In 2016, Summit won a Constitutional Court judgement to the effect that the judiciary must keep an eye on emolument attachment orders (garnishees) to make sure they are fair. It had earlier been found by a High Court that some orders were grossly unfair and exploitative. Summit has an office in Hartbeespoort. The Association for Savings and Investment South Africa is behind another initiative called Project Qaphela, a financial literacy programme aimed at workers in the mining sector. The curriculum covers budgeting, saving, borrowing, understanding NORTH WEST BUSINESS 2017

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documents such as payslips and benefit statements and preparations for retirement. Partners in the programme include the National Union of Mineworkers, Sanlam and Coronation. In 2015, 822 workers attended 29 workshops in Gauteng, Limpopo, Mpumalanga and North West. Ubank is owned by a trust that is managed by the Chamber of Mines and the National Union of Mineworkers (NUM). It has several branches in the North West. The Chartered Institute for Government Finance, Audit and Risk Officers trains and rewards entities such as city councils for clean audits. Dr Ruth Segomotsi Mompati District Municipality won an award in 2016 for risk management. In a province with a high proportion of rural citizens such as North West, the prospect of Postbank being upgraded to a full-service bank is positive news. In 2016 the bank (part of the South African Post Office, SAPO) received a first-level


OVERVIEW licence. Once a board of directors has been appointed and a company formed, the Reserve Bank is likely to grant the full licence. 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. Finscope’s 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remarkable eight-million people were connected to the financial system in some way. Overall, the “financially included” reached 31.4-million (up from 17.7-million in 2004). In a category called “formally served” which includes services other than formal banks with branch networks, the percentage of South Africans so served grew from 50% to 80%; in the “banked” category (more traditional but including new devices), the percentage grew from 46% to 75%. With agriculture being such an important part of the North West economy, each of the Big Four banks has 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.

Standard Bank has a R500-million black economic empowerment agricultural fund designed to connect farmers who have received farms in landreform projects to agri-businesses that will buy their produce. Another source of funding for farmers is the Land and Agricultural Development Bank of South Africa (Land Bank), a developmentfinance institution that falls under the national Ministry of Finance. The large agricultural companies all have finance divisions. CertiSure is a joint venture between NWK and Senwes that offers short-term insurance, crop insurance, financial planning, medical funds and funeral policies. Senwes Credit is a registered credit provider which offers asset financing in collaboration with Wesbank. Temo Agri (a division of Brits-based Magalies Graan Korporasie) and Noordwes Korporasie (Lichtenburg) have received the backing of the Industrial Development Corporation (IDC) to enable them to roll out agricultural credits to emerging farmers. The Royal Bafokeng Nation, a community of about 150 000 people living on platinum-rich land north-west of Rustenburg, is a shareholder in a large banking group and several of South Africa’s insurance companies through its investment company, Royal Bafokeng Holdings (RBH). South Africa’s “stokvel” (savings club) market is worth about R44-billion: Sanlam is developing products to tap into that market. Among innovations designed to reach the unbanked were Teba Bank’s allowing customers to deposit at supermarkets, Pick n Pay Go Banking (a division of Nedbank), 70% of Absa’s new ATMs (400 in one year) in poorer areas and Absa launched two mobile banks, FNB also created mobile branches and most of Standard Bank’s new sites were planned for townships. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers can act as agents for the bank, even in very remote rural areas. Nedbank has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone.

ONLINE RESOURCES Auditor-General of South Africa: www.agsa.co.za Association for Savings and Investment South Africa: www.asisa.org.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 Public Investment Corporation: www.pic.gov.za South African Reserve Bank: www.resbank.co.za

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NORTH WEST BUSINESS 2017


INTERVIEW

Building the economy and communities of the North West Provincial Head Retail and Business Banking Standard Bank North West, Mr Trevor Holtman, outlines what drives the bank and its staff in serving their clients in the province.

Trevor Holtman

What is Standard Bank’s purpose in South Africa? Standard Bank Group purpose is “Africa is our home, we drive her growth”. This is a phenomenal purpose that binds all Standard Bankers together; it talks about us as a bank and bankers being interwoven into the fabric of the continent. It shows that we are very clear in our understanding that we need to be instrumental in building the economies of Africa and helping the people of Africa reach their dreams and aspirations. We are very proud that we have a brand and a heritage that extends beyond 153 years and a unique presence in Africa and beyond – this has earned us our legitimacy and has earned us the trust of the communities and nations we serve. In the North West Province, where I serve, this is no different. North West is our home, and as a consequence we purposefully place ourselves in a position where we are instrumental in her growth, the growth of the communities within North West and the growth of our people that we serve. This is our unifying purpose. What is your footprint beyond South Africa?

BIOGRAPHY Trevor Holtman is the current Provincial Head of Standard Bank in the North West Province. His 23 years of banking experience began at the very bottom, and has included various senior roles in Retail Banking and Business Banking. His belief in people and that an organisation wins when its people are inspired to win has been the cornerstone of his leadership. NORTH WEST BUSINESS 2017

Our footprint in Africa is very extensive; we are represented in 17 countries, which makes us the bank to talk to about Africa. Furthermore, we are also represented in Hong Kong, China, Brazil, Isle of Man, Jersey, Mauritius, United Arab Emirates, United Kingdom and the United States. In your role of Provincial Head Retail and Business Banking, what is your strategy regarding Standard Bank’s business in the region?

Our strategy in the North West Province aligns to the Group Strategy, at the core of which are some building blocks. One building block is our Vision. Our vision is to be the leading financial services organisation in, for and across Africa, delivering exceptional client experiences and superior value. This is what we endeavour to execute in the North West Province. We do so by ensuring that we hold ourselves to the highest standards when it comes to service, and by ensuring that management and leadership of the province are accessible to our customers and stakeholders. Most significantly, we do so by ensuring that we

42


INTERVIEW

provide our customers with solutions and services that meet their needs and help them to reach their aspirations and dreams.

addressing a need. Where we are extremely satisfied is that we are able to show our customers tangible appreciation for choosing to partner with us with respect to their banking needs. Ucount means exactly that: You! Our customers, count.

“WE NEED TO BE INSTRUMENTAL IN BUILDING THE ECONOMIES OF AFRICA AND HELPING THE PEOPLE OF AFRICA REACH THEIR DREAMS AND ASPIRATIONS.”

What sectors are you finding to be the most active when it comes to clients requesting loans to start or expand businesses?

The sectoral activity in the North West Province is rather spread, and rightfully so, and we are finding activity in hospitality, transportation, suppliers to Provincial Government, retail and franchising, agriculture, construction, etc. Is agriculture a focus area for Standard Bank in the North West?

The farming community is very important to us in the North West Province and as a bank we work very closely with this community. We have the necessary agricultural expertise, support and infrastructure within the province to assist our agricultural customers with all of their farming needs and requirements. We are represented throughout the province and are readily available to discuss farming and how we can assist as a bank.

Has Standard Bank introduced any new products and services recently?

We are extremely excited to offer the business community in the North West Province Ucount for business. This is our latest offering geared towards the SME segment. Members can collect rewards by using their Standard Bank Business Credit, Cheque or Debit Card to pay for the everyday running of their operations. We also have another new excit- Contact person: Trevor Holtman ing offering for our Private Banking clients where Postal address: PO Box 46, Rustenburg, 0300 they will have access to Café Blue, Library Lounge Physical address: 2nd Floor, Barongwa and Connection Hub, which are our own spectacular Building, cnr Nelson Mandela and Bosch Street, airport lounges at OR Tambo domestic airport. This Rustenburg 0299 is just to mention a few. The take up in the province, Tel: 014 591 6184 although in its infancy, suggests that this offering is Email: Trevor.Holtman@standardbank.co.za

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NORTH WEST BUSINESS 2017


OVERVIEW

Development finance and SMME support Public and private sector funding is available for entrepreneurs.

SECTOR INSIGHT Businesses in the agricultural chain are popular. • Elvema Nutritions is exporting tons of porridge.

S

mall, medium and micro-enterprises are a key element of plans to involve more South Africans in the economy. SMMEs drive growth and create employment. In the North West, the agricultural supply chain is seen as one of the best ways of involving rural communities and entrepreneurs in the world of business, and a number of strategies are being implemented by government and private enterprise to make this happen. A centralised supplier database has been established in the North West and the provincial government wants small businesses to get registered so they can tender for work. The North West Development Corporation and the provincial Department of Finance have held workshops to inform small business owners about what help is available to them. There are plans for government to provide surety for stock in warehouses so that tuckshop entrepreneurs can more easily get supplies. This plan is linked to trying to fight hunger and poverty, with the stock available being basic foods. A possible partner in this is the National African Federated Chamber of Commerce and Industry (NAFCOC) because it has a good footprint across many areas. NAFCOC and Transnet have teamed up with the provincial government to help set up 15 community bakeries, most of which are run by women. NORTH WEST BUSINESS 2017

44

The premier of North West, Mr Supra Mahumapelo, has committed to a number of measures to enhance small businesses, especially in rural areas. He noted the need for following in the State of the Province address in 2016: • getting rid of restrictive by-laws • faster awarding of tenders • f as ter EIA application processes • government offices to be closer to places where businesses operate • improved infrastructure and government coordination. Agribusiness and agri-processing are among the three sectors that are targeted by the Masisizane Fund for loan financing. The others are franchising/ commercial and supply chain/ manufacturing. Over and above loans that are available, some training is offered through a Business Accelerator Programme. The Industrial Development Corporation is a strategic lender and plays a strong role in


OVERVIEW supporting small and emerging enterprises in the North West province. The Kgatelopele Wellness Centre in Mahikeng has not only became a viable business, employing 100 people, but provides a critical service ranging from therapy to the treatment of acute ailments. An initial loan of R34million from the IDC helped and advised a local clinical psychologist in successfully teaming up with the hospital management group CareCure. Jobs that have been created range from porters and nursing staff to occupational therapists. PrimaBake makes eight kinds of biscuits in Potchefstroom. The IDC’s initial investment in construction costs, machinery and delivery vehicles for this bakery was strategic in the sense that the biscuit market is somewhat dominated by a few big companies. The IDC has also played an advisory role for the company. The Booth Suite Hotel is a family project that drew the support of the IDC for a self-catering facility aimed at the business traveller in Mahikeng. The Bootha siblings, Shaah, Farzeen and Saffiyah, two of whom are chartered accountants, qualified for the Gro-E Youth scheme which supports young entrepreneurs. T he Bio -manuf ac turing Industry Development Centre (BIDC) is a unit of the Council for Scientific and Industrial Research (CSIR) which is helping innovators and entrepreneurs get their products to market. Elvema Nutritions instant porridges and power shakes are made by

entrepreneur Makekele Somo-Tladi at her plant near the Hartbeespoort Dam. With the help of the BIDC, 31 employees have shipped 500 tons of porridge to other countries in Southern Africa and a further 250 tons in South Africa. She also makes oils and teas, 300 tons of which has already been produced. The Small Enterprise Development Agency (Seda) is a subsidiary of the National Department of Trade and Industry (dti) and is one of the most active agencies in supporting entrepreneurs. The Seda Technology Programme (Stp) helps potential businesses become trading entities. Seda has initiated a programme designed to make co-operatives and jointly owned enterprises stronger. The four key sectors are: agriprocessing, community tourism and protected areas, mining and mineral beneficiation, and trading. The agency supports businesses across a range of sectors, from transport to jewellery design and manufacture. The North West Development Corporation (NWDC) is the economic development agency of the province. Among the NWDC’s services is helping SMMEs gain access to funding and providing the infrastructure (offices or factory space) to help them succeed. The NWDC also helps start-up businesses identify markets and opportunities. A private initiative that is creating employment is Anglo American’s Zimele: it has launched more than 900 businesses across the country with a combined annual turnover approaching R2-billion. There are small business hubs at Rustenburg, Mogwase and Thabazimbi. Royal Bafokeng Platinum is supporting a project to boost the business skills of entrepreneurs. The Micro Enterprise Development Organisation (Medo) is sending a mobile office to 29 villages within the Royal Bafokeng Nation. Shanduka Black Umbrellas has an incubator in Mooi Nooi, near Marikana. One of the success stories from that area is Montamaisa Bosigo Transport, which has expanded his business beyond being a taxi and now does staff transport and courier services. The business owner credits the training given him by Shanduka for his progress.

ONLINE RESOURCES Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National African Federated Chamber of Commerce and Industry: www.nafcoc.org.za National Department of Small Business Development: www.dsbd.gov.za National Department of Trade and Industry: www.dti.gov.za National Empowerment Fund: www.nefcorp.co.za North West Development Corporation: www.nwdc.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za

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NORTH WEST BUSINESS 2017


INTERVIEW

Focussed funding on youth-owned businesses is a strategic priority David McGluwa

Regional Manager for the Industrial Development Corporation (IDC) in the North West, David McGluwa, expands on the diversity of projects funded by the corporation, from tourism and mining, to renewable energy, manufacturing and agro-processing. Most people associate the North West with mining but the regional economy is in fact quite diverse. Where should entrepreneurs be looking for opportunity?

BIOGRAPHY Having obtained qualifications in commerce, finance and executive management, culminating in a Masters in Business Leadership, David McGluwa worked in various financial fields including trade, debt and international financing. He has led the North West office since 2008 and is a member of a national infrastructure commission, Strategic Project 8 (Green Industries). NORTH WEST BUSINESS 2017

Mining remains the key driver of economic growth and job creation in the Province. However, there are many other sectors that provide opportunities for investors and entrepreneurs in the North West. The tourism sector arguably provides the biggest opportunities, with prominent National Parks Pilanesberg and Madikwe being home to the big five. Other tourism key points include Hartbeespoortdam, Sun City, Bloemhof Dam, the Taung Skull and Taung Dam as well as the city of Mahikeng. In the manufacturing sector there are opportunities worth pursuing in automotive components, mining supplies, the localisation of imported goods and cultural artefacts. Agriculture is a big feature of the North West’s economy and there are good prospects in processing (sunflower, feed and vegetables) and in various schemes such as the Taung Irrigation Scheme and the new concept of Agri-Parks, which will create opportunities for storage and trade. Both the green economy and waste management offer business owners a chance to run sustainable businesses while at the same time contributing to cleaner energy provision and cleaner communities. Photo-voltaic solar units can be manufactured and the opportunities for waste collection, baling, processing and recycling will always be with us. What sort of projects has the IDC supported in the course of funding 52 projects?

We have a diverse portfolio of projects ranging from mining, tourism,

46


INTERVIEW

agriculture, manufacturing and healthcare. Youthowned businesses in the province have recently received IDC funding of R124-million, which created 109 direct jobs. We also funded a sub-acute hospital, Care Cure Thaneze in Mahikeng, which is majority owned by black women, and it is doing extremely well. IDC also funded Momentous Energy, a solar farm outside of Rustenburg, 17% of which is owned by the community around Marikana. Are there opportunities for entrepreneurs to get involved in the beneficiation of mining products?

The Platinum Valley Special Economic Zone (SEZ) will certainly boost beneficiation initiatives in the province. Hydrogen South Africa (HySA), based at the North West University’s Potchefstroom Campus, is working on exciting game-changing initiatives that will further boost beneficiation. The province is also host to the country’s only platinum incubator, the Seda Platinum Incubator (SPI) which has produced many entrepreneurs in jewellery manufacturing. The IDC is involved in all of these important initiatives, the SEZ, HySA and SPI. What is the North West branch doing to empower youth, women and blackowned businesses in the province?

finance youth-owned enterprises in South Africa, with R1-billion of that being offered at the very attractive lending rate of prime less 3%. In the last two years we have approved R124million to youth-owned entities. We have an intentional and focussed strategy to fund many more youth-owned entities in the North West. The IDC also funded 13 projects in the province where women have a significant stake and we intend to disburse R23billion to black industrialists over the next five years. Black empowered companies in the North West Province currently receive R5.6-billion (90%) of IDC funding.

“THE IDC INTENDS TO DISBURSE R23-BILLION TO BLACK INDUSTRIALISTS OVER THE NEXT FIVE YEARS.” What levels of funding will flow from the IDC in the near future?

The IDC plans to disburse R100-billion over the next five years into the South African economy. There is no set amount allocated per province, it is the responsibility of each provincial office to ensure that their province gets its equitable stake. The North West currently contributes 6% to the SA GDP and I am confident that we can disburse a significant amount of funding into the North West economy over the next five years.

The IDC recently set aside R4.5-billion to

47

NORTH WEST BUSINESS 2017


LISTING

North West Provincial Government A guide to North West Province’s government departments. Visit: www.nwpg.gov.za Department of Local Government and Human Settlements MEC: Fenny Gaolaolwe 3366 Bessemer Street, Telkom Building, Industrial Site, Mahikeng 2735 Tel: +27 18 387 4065 Fax: 086 586 9597 (SA only) Website: www.nwpg.gov.za/HumanSettlements/Site

Office of the Premier Premier: Supra Obakeng Mahumapelo 3rd Floor, Garona Building, Dr James Moroka Drive, Mmabatho 2735 Tel: +27 18 388 2448 | Fax: +27 18 388 2008 Website: www.nwpg.gov.za Department of Community Safety and Transport Management MEC: Dr Mpho Motlhabane Safety House 31-34, Molopo Road, Mahikeng 2735 Tel: +27 18 381 9187 Website: www.nwpg.gov.za/public-safety/new

Department of Public Works and Roads MEC: Madoda Sambatha Ngaka Modiri Molema Road, Old Parliament Complex, Provincial Head Office, Mmabatho 2735 Tel: +27 18 388 1454 Fax: +27 18 388 1819 Website: www.nwpg.gov.za/publicworks

Department of Culture, Arts and Traditional Affairs MEC: Ontlametse Mochware 2nd Floor, Gabomotho Building, James Maroka Drive, Mmabatho 2735 Tel: +27 18 388 2809/10 | Fax: +27 18 388 1907 Website: www.nwpg.gov.za/dcata

Department of Rural, Environment and Agricultural Development MEC: Manketsi Tlhape Ground Floor, Agricentre Building, Cnr Dr James Moroka Drive and Stadium Road, Mmabatho 2735 Tel: +27 18 389 5056 Fax: +27 18 384 2679 Website: www.nwpg.gov.za/agriculture

Department of Education and Sport Development Sello Lehari 2nd Floor, Garona Building, Dr James Moroka Drive, Mmabatho 2735 Tel: +27 18 388 2562/2564 | Fax: +27 18 388 384 5016 Website: www.nwdesd.gov.za

Department of Social Development Acting MEC: Fenny Gaolaolwe Provident House Building, University Drive, Mmabatho 2735 Tel: +27 18 388 2476 Website: www.nwpg.gov.za/dsdwcpd

Department of Finance, Economy and Enterprise Development MEC: Wendy Nelson 2nd Floor, Garona Building,Dr James Moroka Drive, Mmabatho 2735 Tel: +27 18 388 1363 | Fax: +27 18 388 1704 Website: www.treasury.nwpg.gov.za

Department of Tourism MEC: Desbo Mohono 1st Floor, NWDC Building, Cnr Provident Street and University Drive, Mmabatho 2735 Tel: +27 18 387 7995 Website: www.nwpg.gov.za/Tourism

Department of Health MEC: Dr Magome Masike National Health Office Park, Cnr 1st Street and Sekome Road, Building, Mahikeng 2745 Tel: +27 18 391 400/1 | Fax: 086 692 9553 (SA only) Website: www.nwhealth.gov.za/dohnw NORTH WEST BUSINESS 2017

48


LISTING

North West Local Government BOJANALA PLATINUM DISTRICT MUNICIPALITY Tel: +27 14 590 4500 | Fax: +27 14 592 6085 Website: www.bojanala.gov.za

NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY Tel: +27 18 381 9400 Website: www.nmmdm.gov.za

Kgetleng Rivier Local Municipality

Ditsobotla Local Municipality

Tel: +27 14 543 2004 | Fax: +27 14 543 2480 Website: www.kgetlengrivier.gov.za

Tel: +27 18 632 5051 | Fax: +27 18 632 5247 Website: www.ditsobotla.co.za

Madibeng Local Municipality

Mahikeng Local Municipality

Tel: +27 12 318 9100 | Fax: +27 12 318 9203 Website: www.madibeng.gov.za

Tel: +27 18 389 0111 | Fax: +27 18 384 4830

Moretele Local Municipality

Tel: +27 18 642 1081 | Fax: +27 18 642 3586 Website: www.ramotshere.gov.za

Ramotshere Moiloa Local Municipality

Tel: +27 12 716 1000 | Fax: +27 12 716 9999 Website: www.moretele.org.za

Ratlou Local Municipality

Moses Kotane Local Municipality

Tel: +27 18 330 7000 | Fax: +27 18 330 7019 Website: www.ratlou.gov.za

Tel: +27 14 555 1300 | Fax: +27 14 555 6368 Website: www.moseskotane.gov.za

Tswaing Local Municipality

Rustenburg Local Municipality

Tel: +27 53 948 0900 | Fax: +27 53 948 1500 Website: www.tswaing.gov.za

Tel: +27 14 590 3111 | Fax: +27 14 590 3006 Website: www.rustenburg.gov.za DR RUTH SEGOMOTSI MOMPATI DISTRICT MUNICIPALITY Tel: +27 53 928 4700 | Fax: +27 53 927 2401 Website: www.rsmompatidm.gov.za

DR KENNETH KAUNDA DISTRICT MUNICIPALITY Tel: +27 18 473 8016 Fax: +27 18 473 2938 Website: www.kaundadistrict.gov.za

Greater Taung Local Municipality

City of Matlosana Local Municipality

Tel: +27 53 994 9400 | Fax: +27 53 994 3917 Website: www.greatertaung.gov.za Lekwa-Teemane Local Municipality Tel: +27 53 441 2206 | Fax: +27 53 441 3735 Website: www.lekwateemane.co.za

Tel: +27 18 487 8000 | Fax: +27 18 464 2318 Website: www.matlosana.gov.za Maquassi Hills Local Municipality Tel: +27 18 596 1067 | Fax: +27 18 596 1555 Merafong Local Municipality

Mamusa Local Municipality

Tel: +27 18 788 9500 | Fax: +27 18 786 1105 Website: www.merafong.gov.za

Tel: +27 53 963 1331 | Fax: +27 53 963 2474 Website: www.mamusa.gov.za

Tlokwe Local Municipality

Kagisano-Molopo Local Municipality Tel: +27 53 933 0029 | Fax: +27 53 933 0035

Tel: +27 18 299 5111 | Fax: +27 18 297 0477 Website: www.tlokwecitycouncil.co.za

Naledi Local Municipality

Ventersdorp Local Municipality

Tel: +27 53 928 2200 | Fax: +27 53 927 3482 website www.naledilocal.co.za

Tel: +27 18 264 8500 | Fax: +27 18 264 8567 Website: www.ventersdorp.co.za

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NORTH WEST BUSINESS 2017


LISTING

INDEX

Industrial Development Corporation (IDC)................................................................ 44, OBC

Madibeng Local Municipality................................................................................................ 14

Mmabatho Palms Hotel Casino Convention Resort........................................................... 18

Nedbank......................................................................................................................... 24 - 27

North West Development Corporation (NWDC)................................................................ IFC

Office of the Premier............................................................................................................... 6

Rustenburg Chamber of Commerce...................................................................................... 5

Standard Bank.............................................................................................................. 40, IBC

SA Express............................................................................................................................. 20

Unemployment Insurance Fund (UIF).................................................................................... 3

Wesizwe Platinum.................................................................................................................. 31

Wesvaal Chamber of Business............................................................................................... 5

NORTH WEST BUSINESS 2017

50


The NWDC has 10 branches across the North West Province and its surrounding areas such as Babelegi and Ga-Rankuwa in Gauteng and the Northern Cape, offering an extensive range of services. These services include: Standard Bank understands that as a business owner, you would • Property rentals (Industrial, retail and prefer to free up your time and focus on running your business. Its residential) online banking solutions allow you to do that. • Exporter support • Investor assistance • Industry development e understand that to manage your business you cannot • If you already have access to • Small business development be restricted by banking hours. We also understand that the app, you can use the same • Loan/finance facilitation and; affairs online can be daunting. managing your financial login details to sign in to online • CIPC (company) registrations banking At Standard Bank we have a range of online banking solutions that enable you as the business owner to do your everyday The NWDC also owns Dirapeng tourism banking, everywhere youthe are. Online banking is convenient, cost effecsubsidiary whichYou holds resorts ofofBakgatla and you transact online. • A smartphone, tablet, laptop tive and secure. canthe have peace mind when Manyane in the Pilanesberg Game Reserve, the or desktop computer • You must be the director or Christiana All Seasons Resort and the Madikwe owner of your business River Lodge. • You have a card and PIN linked Within its basket of services offered, the NWDC to your business account is• committed to assisting producers It saves you time, allowing you to focus onand running your business • It helps you to maintain controltoofgrow all activity on your manufacturers of exportable products business accounts as exporters to become export-ready. In doing • the It allows you to bank everywhere so, NWDC assists these exportersyou to are identify • Access is free and secure export markets, and also facilitates • Account management fees, international exposure through various platforms transactional fees and subsuch as trade and international expos. or invoices • Pay peopleshows and companies, that is, suppliers scription fees are as per the Transfer funds to and from your business accounts annual Standard Bank pricing In• addition, the NWDC manages a number of • View account balances and download statement’s history schedule special projects aimed at growing the local • Top-up on prepaid services economies of the province’s villages, town-

Banking for your business

W

What do I need?

How does online banking help you manage your business?

What are the costs?

What can I do on online banking?

ships and small dorpies. Operational projects include an Alternative Building Material Factory, bakeries and a laundry. • Yes. As the business owner, you will maintain complete oversight The over NWDC is committed showcasing the firstall activity on the to business account mover of investing the Bokone • Youadvantage are notified every time yourinonline banking profile is accessed • Your confi rmation is required (One Time PIN) before beneficiaries Bophirima Province. are added or when you change your profile • You are notified when funds leave your account (email or SMS notification) and you always know your latest balance Contact usmanage to explore the myriad opportunities by: • You can transactions limits (Electronic Accountavailable Payment and • Visiting our websiteyour www.nwdc.co.za ATM limits), minimising online exposure while giving you control

Is it secure?

• •

More info

To find out more about online banking, contact us anytime via the BizDirect Response Centre on 0860 109 075, via email bizdirect@standardbank.co.za or via WeChat (BB_Entrepreneur). Visit our website to see our security tips and terms and conditions for using Standard Following us on social media; we have presence on Facebook, Twitter LinkedIn or Bank digital and channels.

Contacting our Head Office in Mahikeng on 018 381 3663/7

How do I sign up? •

We assist you toapp bestore first! www.standardbank.co.za Register online or download theNWDC Standard- Bank app form your


FCB10021862JB/E

Financing businesses across South Africa’s industrial landscape

The IDC is committed to inclusive and sustainable industrial development. We finance existing or emerging businesses that are set to benefit South Africa’s economy and facilitate the creation of jobs for its people. If you’re an entrepreneur and have a business plan that is relevant to an industry that the IDC supports and require business finance of R1 million or more. Call us on 0860 693 888 or visit idc.co.za to enquire about the financing criteria for the sectors that the IDC supports.

North West Business 2017  

The 2017 edition of North West Business is the sixth edition of this highly successful publication that since its launch in 2008 has establi...

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