NORTH WEST BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN NORTH WEST PROVINCE
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CONTENTS North West Business 2018 Edition.
Manufacturing39 Diversification is under the spotlight.
Foreword4 North West Business is a unique guide to business, investment and tourism in the province.
Education and training NWU is a leader in innovative research.
Banking and financial services New state banks are to be formed.
Development finance and SMME support 44 SMMEs in the North West are on a central supplier base.
Regional overview of North West Province 8 New investors will help to diversify the regional economy Rustenburg revival Rustenburg aims to build a new legacy.
The North West is becoming the conference destination of choice 14 Research and training in tourism give the province a competitive edge.
Economic sectors Mining28 Platinum assets are changing hands.
North West Local Government An overview of the North West local municipalities.
Reference Sector contents
Agriculture34 A solar-powered vegetable project is showing a new way.
Energy36 North West is researching new energy sources. Water38 New boreholes are being dug in rural areas.
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North West Provincial Government An overview of the North West provincial government departments.
North West locator map.
North West provincial map.
North West municipal map.
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North West Business
CREDITS Publisher: Chris Whales
A unique guide to business, investment and Tourism in the North West.
Publishing director: Robert Arendse
he 2018 edition of North West Business is the eighth 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 provinceâ€™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-to-business titles that cover all nine provinces as well as our flagship South African Business title.
Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Shanice Daniels Production: Lizel Olivier Ad sales: Sam Oliver, Gabriel Venter, Jeremy Petersen, Nigel Williams, Gavin van der Merwe, Shiko Diala, Sydwell Adonis, Joseph Gumbo, Vanessa Wallace, Reginald Motsoahae and Siya Sthunda Managing director: Clive During Administration & accounts:
Chris Whales Publisher, Global Africa Network Media Email: firstname.lastname@example.org
Charlene Steynberg and Natalie Koopman Distribution and circulation manager: Edward MacDonald Printing: FA Print
North West Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africaâ€™s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, 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: email@example.com | Website: www.gan.co.za ISSN 1996-1022
DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in North West Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.
COPYRIGHT | North West Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | 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.
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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 nationally to the South African Chamber of Commerce (SACCI) and the SBI (Small Business Institute). 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 future.
• Unite business leaders • Empower members and community • Lead and support economic growth strategies in RLM
• Share vision • Grow membership • Engage stakeholders
The Tlhabane Chamber has joined The Rustenburg Chamber Of Commerce as part of our new chapter. We have created and implemented a new section to the Chamber, called the Women in Mining, Management and business. Our first yearly conference was hosted on 29 September 2017. In this section of the chamber we focus on empowering local female business owners and employees to go from good to great.
Address: 223 Beyers Naude Drive, Rustenburg, 0299 | Tel: +27 14 592 9520 Email: firstname.lastname@example.org | Website: www.rcoc.co.za
A healthy community and business environment through sustainable economic growth.
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Regional overview of North West Province New investors will help to diversify the regional economy.
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he two key economic assets of the North West Province – mining and agriculture – remain vital to the region’s vitality but concentrated efforts are being made to attract investments in new sectors to diversify and strengthen the provincial economy. Tourism has been identified as an important driver of future growth and the investment by Sun International of more than R1-billion in the Sun City complex is helping to create momentum in a sector which has a proven track record of creating jobs. The
City of Rustenburg has started a planning process which looks forward to a time when mining’s role in the economy will be reduced, and sectors such as health and education might become more important. Renewable energy is another area where some preliminary work has been done. The fact that Rustenburg’s plans also include the creation of a Mining Supply Park point to the fact that mining’s influence is likely to continue to be a huge influence on the province for many years to come. This is also true of some of the plans to diversify the
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SPECIAL FEATURE province’s manufacturing base – they often rely on the base mineral that comes from mining anyway. Platinum prices may not be as strong as they were, but platinum group metals (PGM) have enormous potential in the energy field, and North West researchers and businesses are working on possibilities to exploit this. 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 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. The province’s other manufacturing strategy of boosting agriprocessing is in better shape now that the worst of a prolonged drought is over. The creation of district agri-parks is intended to boost primary production which in turn will increase the amount of raw material that can be processed. Companies making car seats within the province’s active automotive parts sector (mostly centred around the town of Brits) would be a ready market for treated hides from the huge provincial cattle herd. The Provincial Government of the North West has two main economic strategies: • the development of Villages, Townships and Small Dorpies (VTSD) • a focus on three key sectors: agriculture, culture and tourism (ACT).
The North West 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
Other areas of focus are: mineral beneficiation; renewable energy; retail and wholesale; ICT and the development of economic infrastructure.
Geography 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. NORTH WEST BUSINESS 2018
Town in the south to Zimbabwe and beyond in the north. Mining contributes 28% of the regionâ€™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 about 70% of the cityâ€™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 Africaâ€™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 large-scale
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SPECIAL FEATURE storage and logistics operations, particularly in Klerksdorp, Vryburg and Brits. Manufacturing capacity is concentrated in the larger towns in the north-east and eastern parts 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 (agri-processing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity. All of the big agricultural companies have storage and logistics operations and many of them are involved in agri-processing. Senwes is one of the biggest with extensive silo infrastructure while Suidwes has 17 retail outlets and MGK makes full-fat soy at its manufacturing plant. Lichtenburg-based NWK makes liquid fertiliser and animal feed, processes sunflower seeds and runs
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37 silos and three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week. There are several milling facilities in the province. The provinceâ€™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 provinceâ€™s three Technical and Vocational Education and Training (TVET) colleges and the well-respected North West University all have several campuses catering to a wide range of educational disciplines. The university has a strong reputation as a research institution.
SPECIAL FEATURE ZIMBABWE
North West NORTH WEST
Mpumalanga Gauteng SWAZILAND
NORTH WEST PROVINCE
Sun City/Lost City
Main Road Railway
Municipalities in North West Province
Kgetlengrivier MaďŹ keng Ratlou
Ngaka Modiri Molema
Ditsobotla JB Marks
Dr Ruth Segomotsi Mompati
Mamusa Greater Taung
Dr Kenneth Kaunda
Free State Metropolitan/District Municipality Boundary Local Municipality Boundary District Municipality Local Municipality
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Rustenburg revival Rustenburg aims to build a new legacy.
he North West’s biggest and busiest city is putting long-term plans in place to create a diverse and flexible economy. Today, Rustenburg derives about 70% of its economic activity from mining but strategies are being implemented to prepare for the days beyond mining. Price volatility, particularly in platinum group metals, has helped to concentrate the minds of local and regional government on the future of the city and the region. Rustenburg is a local municipality within the Bojanala Platinum District Municipality and the headquarters of both bodies are in the city of about 625 000 residents. The Integrated Master Plan (IMP) for Rustenburg 2040 is the blueprint for the project which aims to develop new economic sectors and further stimulate existing sectors through the clustering approach. Themes for clusters and hubs include medical, educational, mining supply and green technology. A comprehensive new public transport plan will link these hubs and help to break down the old spatial divides of the apartheid era.
adjacent to the 550km² Pilanesberg National Park and Game Reserve which has a small airport. The park lies within the crater of a volcano formed 1.2-billion years ago. Orbit TVET College has a campus in Rustenburg, Unisa has a regional office and the Agricultural Research Institute’s Industrial Crops Division is also located in the city. The Royal Bafokeng Sports Palace hosted five group matches in the 2010 World Cup. Platinum mining began in 1929 and has driven the city’s growth ever since.
Rustenburg CBD Legacy projects Mining and the beneficiation of mining products will continue to play a role in the economy of Rustenburg for many years to come, but a range of interventions will serve as growth catalysts. These range from activities which will build on existing sectors and services and improve the quality of life of residents, and newer initiatives which are aimed at attracting new investment. In terms of building and developing existing infrastructure, the following projects are planned: • Bus rapid transit system: Yarona (It is Ours), which
Rustenburg straddles the N4 “Platinum Highway” about 120km west of the cities of Pretoria and Johannesburg in the Gauteng Province, the economic hub of South Africa. The N4 stretches across South Africa from Mozambique in the east, to the Botswana border in the west and, as the Trans Kalahari Route, ultimately to Namibia. Rustenburg is 240km from Gaborone, the capital of Botswana, and less than 200km from the provincial capital of the North West Province, Mafikeng. At the foot of the Magaliesberg Mountain Range, Rustenburg is only 50km from one of the country’s premier tourist resorts, Sun City, which in turn is
Bafokeng Sports Palace.
Bafokeng Sports Palace NORTH WEST BUSINESS 2018
ently conducting se, the resulting developing the e a vision that transformation h, five key goals veable standard M which are as
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The secondary and tertiary sector, will be a major contributor to the economy. It is projected to provide about 130,00 jobs in manufacturing and 170,000 service-related jobs by 2040.
Guided by the goals and strategies developed by the Urban Sustainability Framework, two concept options are developed. They explore different directions for future physical development of the region, resulting in varying degree of investments, risks and returns.
Concept Option 1: Concept Option 2: aims to give residents safer, quicker and more efficient The ‘compact city’ concept looks at the opportunity to further The ‘city of cites’ concept looks at having several thematic access to various strengthen the existing urban areas and ensure a compact developments within RLM; and ensures a well distributed parts of the city urban growth that optimizes the existing key transit corridor. growth. The poly-centric growth will ensure more integration The growth will be organized along the 3 distinctive clusters. with existing communities and ensure jobs closer to homes. and to their places As Rustenburg grows by 2040 it will have of work. The municito accommodate more than a million palityThehas invested inhabitants. master plan seeks to meet this challenge and provide in improving roads high quality of life to all communities and and ensure is a world class city toto live working work and play. Rustenburg will be a anclean integrated well wards connected, and green city with variety of choices of lifestyles, transport network. affordable homes, ample parks and open spaces, • To w nentertainment s h i p venues d eand places to conduct business. The master Theto planvelopment: aims to provide opportunities create new iconic features for the city areas of Phatsima, while conserving its local character and identity. L eThet city h will a also b obe anleader g , in sustainable resource management, by T l h a b a n e , adopting new water, waste and energy management solutions. Boitek ong and Ultimately, the Integrated Monnakato will Master rePlans seeks to inspire the Rustenburg ceive todevelopment community further uplift their quality of life, creating a bright in some or all of the On September & November 2014, the vision and the two concept options were deliberated by the Steering Committee which expressed its and exciting future for city and its preference to Option 2 as the long-term concept option for future RLM surrounding areas. It compoaims to make following • Option 2 allows for decentralised growth and better integration with the various communities Rustenburg one of the most liveable mixed-income high-density housing; retailers a good point from which to sell • Provides for more distributed growth opportunities and access to facilities and jobscentral closer to home and is more inclusive citiesnents: in South Africa, which can attract and and retain global talent, while ensuring urban agricultural hubs; retail and business parks; and distribute. The selected planning concept option sets the macro planning directions and the regional structure of RLM. This concept, high quality of life for its people. however, is not cast in stone; a deeper planning• analysis will be undertaken the subsequent “Regional Structure Plan” to refine industrial hubs; multi-purpose centres; sporting Education hub:inthe creation of a precinct containthe concept before the Integrated Master Plan is finalised. ing a university and/or college campus, state and facilities. private schools with supporting amenities such • CBD upgrade: Partnerships with developers to as sports fields, student residences and retail build high-rise buildings for office space, shops facilities. and accommodation. This would be adjacent to • Medical facilities: the growing population of a proposed civic and cultural precinct. the city will create more demand for medical • Airport upgrade: The city has an airfield but there services. An opportunity to provide specialised is potential to develop this into a fully-fledged airport that can host scheduled flights. The tourism medical services has been identified. Additional industry is the most obvious potential partner. opportunities can be explored in terms of providing medical training and catering for medical New initiatives that could serve as catalysts include: tourists. • Logistics and industrial park: industries tar- • Special Economic Zone: An SEZ in Rustenburg geted include mining supplies, platinum group would build on existing industries, form a value metals (PGM) beneficiation, chemicals and chain with the industrial and agri-parks and promote newer sectors, such as the manufacture of pharmaceuticals. solar panels (green technology). • Agri-processing hubs: seven such hubs are planned for various sites across the city, in tradi- • Tourism hub: the city’s information visitor centre tional methods and new methods (hydroponics is being modernised and the Rustenburg showground has been identified for an upgrade, in and aquaponics, for example). This initiative is partnership with a private investor. A convention linked to green economy ideas such as biogas centre and the creation of a platinum themed park production and to the creation of a new Fresh are other ideas being discussed. Produce Market, which will give producers and These bold and strategic key moves embody the aspirations of Vision 2020 to develop resources, abilities and talents of individuals, opening up a new dimension of empowerment and self-sufficiency for the Rustenburg community.
City of Cities
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The North West is becoming the conference destination of choice Research and training in tourism give the province a competitive edge.
t used to be Sandton and Cape Town. Now it’s Sun City and Cape Town. The venues for the prestigious Investment Forum, that is. Held twice a year, the Investment Forum brings together South Africa’s top investment officers and portfolio managers. Securing this conference is feather in the cap of Sun City, and the North West. Even when a conference was held in Cape Town, as the Texas Symposium on Relativistic Astrophysics was in December 2017, the committee organising the conference was led by a North Wester, Professor Markus Bottcher! Another big event for the events industry in the North West province was the announcement that the SAFTAS, the South African Film and Television Awards, would also be held for the first time at Sun
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City in 2017. Sun International’s recent investment in its conference facilities at Sun City involved upgrades, expansion and investment in more environmentally friendly technologies. Venues available for hire range from a 12-seater Council Room to the Superbowl which can accommodate 6 000, and just about everything in between. No fewer than five types of accommodation support the conference and events side of things at Sun City. There are two five-star hotels (The Palace of the Lost City and the Cascades hotel), the four-star Soho hotel and Casino, the Cabanas hotel (three-star) and the Sun Vacation Club, a self-catering option. The Sun City resort adjacent to the Pilanesberg National Park and Game Reserve is the province’s biggest and best-known conference venue but Tourism North West, the province’s tourism agency, lists on its website a range of venues from small guesthouses with conference facilities in towns such as Rustenburg and Brits to lodges on the banks of the Hartbeespoort Dam. In the provincial capital, Mahikeng, there are several options: among them are the Mmbatho Palms Hotel Casino Convention Resort, which is 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. Gaming is controlled in South Africa and licences are restricted to certain operators. The Gambling Board falls under the provincial Department of Economy and Enterprise Development and it has approved 262 Limited Payout 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.
SPECIAL FEATURE Mahikeng also hosts the Protea Hotel and the Mmbatho Convention Centre (the main auditorium of which can seat 3 000 people). The Hotel School can accommodate up to 200 people. Most of the luxury lodges in the province can accommodate conferences, albeit on a smaller scale.
students: • BComm Tourism Management • BCom Tourism and Recreation Science • BA Tourism Management (Mahikeng). Prof Melville Saayman is often quoted in the national media when tourism issues are discussed, the result of a number of research papers and documents produced by units within the university department. The establishment of a specialised research unit on tourism came about in the 1980s. Several name changes later, and with the support of the National Research Foundation (NRF), TREES (Tourism Research in Economics, Environs and Society) came into existence as a research unit in 2015. Apart from published research, which makes decision-making for business and government a good deal better, the unit supports post-graduate studies in the field of tourism. TREES aims to extend its links to the international tourism research community.
Tourism training and research The North West Parks and Tourism Board is unique in South Africa in that it is the only provincial government entity that runs a hotel school. The Institute of Hotel and Tourism Management (IHTM) has two campuses, one in Mahikeng and one at Ga-Runkuwa outside Pretoria. The courses offered are approved by the Council for Higher Education and accredited with the relevant sector authority, THETA. Another institution that gives the North West province additional weight when it comes to the tourism sector is the Faculty of Economic and Management Sciences at the North West University, where Tourism Management is a popular course and the professors and researchers are at the top of their profession. Three courses are on offer for prospective
Strategies Three tourism strategies (Culture and Heritage; Events and an over-arching regional strategy) inform what the Premier of North West has called the Arts,
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SPECIAL FEATURE Culture and Tourism (ACT) developmental agenda for the province. In keeping with an emphasis on developing the economies of small towns and rural areas, a Rural and Social Tourism strategy is to be charted. The Department of Tourism in the North West has hosted a public meeting in the Bojanala District 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. 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 trans-national routes that would include sites such as Victoria Falls in Zimbabwe. Direct flights are being contemplated to BRICS countries. 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. Cultural villages in the North West include: South Africa’s oldest casino, under a new and customer-centric • Lesedi Cultural Village management, is turning 40! Mmabatho Palms Hotel Casino • Mphebatho Cultural Convention Resort is also North West’s favourite oasis with Museum (Bakgatla-Ba-Kgafela) something to cater to all your needs. Situated in the historic • The Lost City of Mogale town of Mafikeng, the capital city of the North West Province, • Buya Zulu Cultural Kraal the resort is perfect for business, weekend getaways and enter• Mapoch Ndebele Village tainment. The Casino Resort has invested a total of R8-million • Gaabo Motho Cultural in refurbishments. These will ensure that Mmabatho Palms Village continues to live up to its “Oasis Style Promise”. • Kortkloof Cultural Village The renovations include a revitalisation of the Leopard Conference (Tswana, Groot Marico) Room, the Smoking Gaming Floor and the inclusion of the Moo Anthropology comes to the fore Bar which is renowned for its cocktails, light snacks and sports at Taung, site of the first discovscreenings. These new additions will only enhance the existing ered fossil of Australopithecus 150-key Walmount hotel, Motswedi Restaurant, two swimming africanus. The North West pools, kiddies area and the exquisite Palms Retreat Wellness Spa. Development Corporation has Celebrate with Mmabatho Palms by visiting them for any of their an investment plan linked to this offers that tickle your fancy, be it their fun interactive promofamous site, involving a museum, tions, indoor and outdoor boma events, live entertainment at hotel and spa resort. Motswedi Restaurant, the new Moo Bar, conferencing, scrumpThe Treasure Route runs along tious buffet specials and much more Oasis-like entertainment the N12 highway and includes just for you. See you soon! wildlife, cultural, scenic, industrial
FOUR DECADES OF FUN
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Sun City – Conference with a Difference
un City boasts a unique and holistic offering not found anywhere else in South Africa. An iconic resort, it has so much to offer as a leisure, outdoor sports and conferencing destination. Sun City combines excellent accommodation, conferencing facilities, restaurants and leisure activities in an idyllic setting. It is where water sports and outdoor activities, wildlife, nightlife, golf, adventure, spas, vibrant casinos, four hotels, a vacation club and stateof-the-art conferencing combine in one exquisite location. The resort has prudently crafted its facilities and services to meet today’s business and leisure travellers. Taking its conferencing and conventions offering to the next level is the focus on providing consolidated conference experiences. Companies not only have access to a range of well-equipped meeting rooms and conference venues, but they can also build in morale building and leisure activities into their bespoke conference packages.
There are various accommodation options: the three-star Cabanas hotel, four-star Soho hotel, five-star Cascades hotel and The Palace – the epitome of luxury. If you want a no-fuss Sun City holiday with the convenience of self-catering facilities, then you should consider joining Sun Vacation Club or explore our Bush Bungalows – an ideal setting for nature lovers, boasting 14 chalets with an eclectic-style African experience, synonymous with a truly unique Sun City offering. From a food and beverage perspective, various spaces have been transformed to make way for more exciting options and visitors have over 30 restaurants to explore. NORTH WEST BUSINESS 2018
SPECIAL FEATURE and environmental tourist attractions. The treasure relates to the gold mines scattered along the route. The Vredefort Dome site (90km across) is not only a UNESCO World Heritage Site for its significance as the landing site of a meteorite many millions of years ago, but it is also one of the province’s best adventure tourism sites with numerous tour operators and accommodation facilities. 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.
LIVE IT UP 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 18-hole championship Leopard
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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 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 000ha 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
STYLE 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. 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
PEERMONT PROUDLY SUPPORTS THE NATIONAL RESPONSIBLE GAMBLING PROGRAMME.
PROBLEM GAMBLING COUNSELLING TOLL-FREE LINE 0800 006 008. PLAYERS MUST BE 18 YEARS OR OLDER. WINNERS KNOW WHEN TO STOP.
SPECIAL FEATURE more lucrative game-reserve option will bring considerable benefits. Pilanesberg National Park is in a giant extinct volcano complex, said to be the most perfect example of an alkaline ring complex. There are several Stone and Iron Age sites in the park. Because the park is situated in a transition zone between the semi-desert Kalahari and wetter Lowveld (or Bushveld) vegetation regions, many types of flora and fauna occur. As the fourth-largest park in South
Africa, Pilansberg covers an area of 55 000 hectares. Madikwe Game Reserve is even bigger, covering 75 000 hectares in the area north of Zeerust. In the Marico River Valley and near the Botswana border, the reserve is home to the Big Five. Experienced tour guides say that Madikwe is an excellent place to see white rhinos. There are 18 luxury game lodges in Madikwe. Royal Madikwe Luxury Safari Residence is a regular winner at the World Luxury Hotel Awards.
NORTH WEST BUSINESS 2018
SPECIAL SPECIALFEATURE FEATURE
South South African African economy economy at a glance Insight into the performance of the South African economy is provided through these graphical representations of key statistics. Insight into the performance of the South African economy is provided through these graphical representations of key statistics. ZIMBABWE ZIMBABWE
Limpopo Limpopo 0.9% 0.9%(7.1%) (7.1%)
North NorthWest West -3.6% -3.6%(6.5%) (6.5%)
Northern Cape Northern Cape 2.8% (2.1%) 2.8% (2.1%)
Mpumalanga Gauteng Gauteng Mpumalanga 2.7% 2.7% 2.1% 2.1% (7.5%) (7.5%) (34.3%) (34.3%) SWAZISWAZILAND LAND
Free FreeState State 1.8% 1.8% (5%) (5%) LESOTHO LESOTHO
KwaZuluKwaZuluNatal Natal 2.3% 2.3% (16.1%) (16.1%)
EasternCape Cape Eastern 1.0%(7.6%) (7.6%) 1.0% Western Cape Western Cape 2.0% (13.6%) 2.0% (13.6%)
SAGDP: GDP:Percentage Percentageofofgrowth growthper perprovince province(2014) (2014)and andpercentage percentage SA contributiontotonational nationalGDP GDP(figures (figuresininbrackets). brackets). contribution SOURCE: STATS WWW.STATSSA.GOV.ZA SOURCE: STATS SASA WWW.STATSSA.GOV.ZA
POPULATION(2015) (2015) POPULATION
916200 200 66916
168 966km 966km 168
817900 900 22817
129 825km 825km22 129
DavidMakhura Makhura David
13200 200300 300 13
18 178km 178km22 18
R1 R1 305.6 305.6
Pietermaritzburg Willies WilliesMchunu Mchunu Pietermaritzburg Stanley Stanley Limpopo Polokwane Limpopo Polokwane Mathabatha Mathabatha Mpumalanga Mbombela David Mabuza Mpumalanga Mbombela David Mabuza Supra Supra North West Mahikeng North West Mahikeng Mahumapelo Mahumapelo Northern Cape Kimberley Sylvia Lucas Northern Cape Kimberley Sylvia Lucas Western Cape Cape Town Helen Zille Western Cape Cape Town Helen Zille
10919 919100 100 10
94 361km 361km 94
5 726 800 5 726 800 4 283 900 4 283 900 3 707 000 3 707 000
125 754km 125 754km 76 495km2 76 495km2 104 882km2 104 882km2
R271.5 R271.5 R284.2 R284.2 R249.5 R249.5
1 185 600 1 185 600 6 200 100 6 200 100
372 889km2 372 889km2 129 462km2 129 462km²
R79.9 R79.9 R518.1 R518.1
Cape EasternCape Eastern
FreeState State Free Gauteng Gauteng KwaZuluKwaZuluNatal Natal
Phumulo Phumulo Bhisho Bhisho Masualle Masualle EliasSekgobelo Sekgobelo Elias Bloemfontein Bloemfontein "Ace"Magashule Magashule "Ace"
2 2 2 2
Snapshot of South Africa’s provinces Snapshot of South Africa’s provinces SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA SOURCE: INSTITUTE OF RACE RELATION’S SOUTH AFRICA SURVEY 2016 AS REPORTED ON BUSINESSTECH.CO.ZA
NORTH WEST BUSINESS 2017 NORTH WEST BUSINESS 2018
GRP BILLION GRP BILLION RAND RAND 2 2
How South Africaâ€™s economy performed in 2015. * * PRELIMINARY RESULTS | SOURCE: GROSS DOMESTIC PRODUCT, 4TH QUARTER 2015 | WWW.STATSSA.GOV.ZA
Gross Domestic Product by province, percentage contribution. SOURCE: STATS SA W W W.STATSSA.GOV.ZA/?PAGE_ID=735&ID=1
NORTH WEST BUSINESS 2018
OLD MUTUAL ENABLING POSITIVE FUTURES IN NORTH WEST PROVINCE
Old Mutual South Africa (OMSA) is a significant participant in the South African economy and committed to enabling positive futures for all our stakeholders, especially our customers. We offer a range of financial services that span investment, life assurance, asset management, banking, healthcare and general insurance. To ensure that we have our fingers on the pulse of each of our nine provinces, Old Mutual has established leadership boards in each province to serve as links between the province and the business. These Provincial Management Boards, or PMBs, are your primary point of contact with us. Together we can ensure that Old Mutual makes a positive impact on the future of this province and its people.
MEET ROBERTSON THEMBA North West Provincial Management Board, Chairperson ”Our success will be determined by how close we remain to our key stakeholders and our continued commitment to helping them to deliver on their objectives.“
As PMB Chairperson, I undertake to: Instill a culture of collaboration across all BUs, and ensure we strengthen relationships in strategic government departments, municipalities and in the communities that we serve.
Drive our retailisation strategy in all the identified corporate schemes in our province to improve retention and penetration through individual product offering.
Encourage staff volunteerism by recognising all staff members who participate in staff volunteerism,
and ensure that the leaders of all BUs participate in Payroll Giving so that they can influence their staff.
GET IN TOUCH: email NorthWestPMB@oldmutual.com
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider
OUR BEST ADVICE TO YOU IS: ADVICE MATTERS As custodians of the savings and investments of millions of South Africans, we know that ADVICE MATTERS when making financial decisions. How to choose the right financial adviser A good financial adviser is a professional who considers all your financial needs and goals, and has the knowledge, experience and support to give you Advice That Matters™. 1. Ask to see the adviser’s training credentials and FAIS accreditation. 2. Choose a financial adviser who represents a respected financial institution. 3. Look for a financial adviser who has access to a range of specialist support services.
NEED HELP WITH RETIREMENT AND RISK COVER OPTIONS FOR YOUR EMPLOYEES? Old Mutual Corporate provides industry-leading retirement fund solutions, pre and post retirement investments, group death, disability, critical illness and funeral cover as well as financial education and consulting services to a broad range of public and private businesses and institutions, from small businesses to large corporates. This can also be accessed via Old Mutual SuperFund, which provides a comprehensive employee benefit solution that is flexible enough to meet the needs of all types of businesses and their employees.
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short-term insurance. Our aim is to help our customers manage their finances and to plan and provide a better future for themselves and their loved ones.
NEED DIRECT CAR & HOME INSURANCE? Old Mutual iWYZE offers affordable and reliable insurance cover to protect everything you’ve worked for. The wide range includes car insurance, home insurance as well as value-added products such as iWYZE Scratch & Dent and iWYZE Tyre & Rim Cover. iWYZE, the wise insurance choice.
NEED FUNERAL COVER? With Old Mutual’s range of Funeral Plans (Care, Standard and Comprehensive+) customers can cover themselves, their spouse/partner, children, parents, parents-in-law and extended family members. We also have a plan for single parents to cover themselves and their dependent children without having to pay for a spouse they do not have. You can choose the amount of cover you need, who you’d like to cover and whether you’d like to add additional benefits. You can get funeral cover for up to R70 000.
NEED HELP WITH SAVING FOR BOTH LONG AND SHORT TERM? To make it easy for customers to save from as little as R170 a month, Old Mutual offers the innovative 2-IN-ONE SAVINGS PLANS. This product with its two pockets, allows customers to save for their long-term goals, like their children’s tertiary education, while they have access to their funds in emergencies.
NEED HELP WITH HOLISTIC FINANCIAL PLANNING AND SAVING? Old Mutual Personal Finance specialises in providing holistic financial planning - Advice That Matters™. We offer a wide range of wealth creation and protection products. For example: The Old Mutual Invest Tax-Free Savings Plan, which offers a low, entry level premium and refunds you 50% of admin charges when you reach your maximum premium limit in a year.
NEED LIFE AND DISABILITY COVER? Old Mutual Personal Finance marketleading risk protection range offers the most comprehensive illness range with clear claim definitions, including GREENLIGHT.
NEED TO PROTECT YOUR BUSINESS? Old Mutual Insure are experts in agriculture, engineering and marine insurance. We offer a range of insurance solutions to protect your business against everything from fire and theft to business interruption and legal liability costs.
NEED DEBT CONSOLIDATION AND TRANSACTIONAL BANKING? Through Old Mutual Finance you can gain access to: • My Money Plan, which enables you to consolidate your debt, and choose from a range of personal loans at a fixed interest rate. • Money Account, which links a transactional (SWIPE) account and an investment (SAVE) account so you automatically invest a set amount into a unit trust every time you make a purchase with your card. *(In association with Bidvest Bank Ltd)
NEED HELP WITH INVESTING? Old Mutual Wealth is a fully integrated, adviceled wealth management business. We have a personalised and integrated approach to grow and preserve your wealth over time. Our specialist capabilities include Private Client Securities, Old Mutual MultiManagers, Fiduciary Services and Offshore Investing. We partner with leading financial planners to provide you with a tailored lifetime wealth plan to help you achieve the best outcome in line with your objectives, goals and aspirations.
NEED A FINANCIAL PARTNER THAT MAKES A POSITIVE IMPACT ON SOCIETY? Old Mutual is deeply committed to playing a significant role in building a strong and financially inclusive South Africa. As a responsible business committed to caring for our communities, the Old Mutual Foundation addresses socio-economic challenges through investing in: • • • •
Small business development and entrepreneurship Youth unemployment through skills training Strategic education initiatives Caring for vulnerable communities
In 2016 alone the Old Mutual Foundation invested R25 686 172 in various community projects across our nation (actual grant funding payments made during 2016). In the North West Province the Old Mutual Foundation invested a total of R870 400 across its various community empowering portfolios in the region. Our staff are the hearts and hands of Old Mutual in the communities we operate in, and we support our staff volunteers through various programmes. In the North West province, 49 organisations have received a total R620 400 as a result of staff volunteering efforts.
ombds 8.2017 L10479.7
INVESTMENTS I SAVINGS I PROTECTION
Old Mutual is a Licensed Financial Services Provider
OLD MUTUAL FOUNDATION CASE STUDIES IN THE NORTH WEST PROVINCE Old Mutual understands the important contribution of our staff volunteers. In 2016, the Klerksdorp Old Mutual branch was recognised for its community engagement and willingness to go the extra mile. The branch staff chose Kediemetse Primary School, Klerksdorp, as their ongoing Care & Share Community project and provide regular assistance with the schoolâ€™s vegetable garden. Not only does Potchefstroom branch manager, Moses Matlawe, encourage and motivate his staff to do community projects, but he also finds time in his busy schedule to volunteer at the Tshwaraganang Day Care Centre, which is why he was honoured with the 2016 Best Manager supporting Staff Volunteerism Award.
The MASISIZANE FUND focuses on enterprise development and job creation to help alleviate poverty and improve food security in South Africa. This is achieved through encouraging entrepreneurship and capacity development and financing of micro, small and medium enterprises (SMMEs). Preference is given to SMMEs with 51% plus ownership by women, youth or people with disabilities. Masisizane Fund disbursed R147m worth of funds in 2016 through soft loans in the three high-impact sectors and facilitated the creation of 862 jobs against a target of 625 jobs.
MASISIZANE CASE STUDY IN THE NORTH WEST (CENTRAL REGION: NORTH WEST, FREE STATE, GAUTENG) Pick n Pay Spaza Township Economy Revitalisation Programme The programme was initiated by the Gauteng Department of Economic Development (GDED) following a township revitalisation roadshow that included a visit by the provincial government and its partners to 65 townships across Gauteng in 2014. The five new stores co-funded by Masisizane Fund (R6 118 733), Old Mutual Foundation (R2 000 000), and others are expected to create or retain a total of 75 jobs. Once phase one is fully implemented and proof of concept has been achieved, Pick n Pay is planning a national rollout. The next phase will target
additional stores in Gauteng and Western Cape. Masisizane Fund intends to further participate in the rollout, attracting other partners. Masisizane Fund Loan
Old Mutual Foundation Grant
Number of jobs
66 jobs facilitated
WANT TO HELP BUILD THE PLATFORM FOR FINANCIAL INCLUSION? Financial education is the gateway to financial inclusion. The Old Mutual Financial Wellbeing programmes promote financial literacy and awareness across market segments in line with the Financial Sector Charter. We offer highly effective financial education and support programmes to help South Africans take control of their finances. Between 2007 and end of 2016 more than 589 808 people were reached through face-to-face workshops held for communities as well as employees in the public and private sector. In 2016 more than 88 000 individuals participated in our On the Money workshops nationally, with 24 674 participating in our Fin360 programmes. In the North West Province 3 846 individuals were trained in our Old Mutual On the Money financial education programmes. For more information, contact Robertson Themba at NorthWestPMB@oldmutual.com
Overviews of the main economic sectors of the North West Mining 28 Agricuture 34 Energy
Water 38 Manufacturing 39 Education and training
Banking and financial services
Development finance and SMME support
Mining Platinum assets are changing hands.
here are nearly 300 active mines in the North West and the sector makes a big contribution to provincial GDP. However, that percentage is now below 30% and there are concerns about the global prices of minerals, especially platinum. About 18% of total employment in the province is in mining, with many support industries relying on the primary sector. Restructuring of operations has been under way for some time as mining companies adapt to the “new normal” in respect of prices. A number of sales have also taken place as mining houses adjust to new conditions. Rustenburg Platinum Mines Limited (including three mine shafts, two concentrating plants and on-site chrome recovery plant) has been sold by Anglo American. This is part of the diversified miner’s strategy to divest itself of many of its assets. The buying company, recently rebranded Sibanye-Stillwater, has been on a strong acquisitions drive since it was founded. Originally called Sibanye Gold, the company was renamed after the purchase of a US palladium producer, the largest in the world. Impala Platinum, the second biggest platinum company in South Africa, is selling its 65% share in Impala Chrome, an extraction business which is located in Rustenburg. The Implats mining complex comprises 13 shafts and concentrating and smelting plants. The base and precious metal refineries are in Springs, east of Johannesburg. Tolling throughput at Impala Refinery Services (IRS) showed a 35% increase in the 12 months to June 2017. IRS smelts and refines the concentrate and matte produced by the group’s other operations and third parties. The business also recycles auto catalysts. 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. Manngwe Mining has developed a new iron-ore mine near Brits. The Assen mine, which has a measured resource of about 20-million tons, will sell its product to ArcelorMittal South Africa. Anglo American Sefa Mining Fund supported Manngwe Mining’s exploration phase. The black-owned company wants to purchase iron-ore assets in neighbouring Limpopo.
Assets The North West Province is aligned with the Western Limb of the Bushveld Igneous Complex, a remarkably rich minerals formation. NORTH WEST BUSINESS 2018
SECTOR INSIGHT Impala Refinery Services increased tolling throughput by 35%.
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. The province’s 20 mines are on a reef running from Brits to Rustenburg. South Africa produces about 70% of the world’s chrome. Gold and uranium are found along the border of the province with Gauteng and the Free State (in Klerksdorp and Orkney). Diamonds are mined at Christiana, Bloemhof and Lichtenburg. Other minerals found in the North West include fluorspar, vanadium, rhodium, uranium, copper, limestone, slate, phosphate, manganese, coal and nickel. Limestone quarries run by G&W Base and Industrial Minerals in the Marico District are located next to a PPC cement factory. One of the last economically viable limestone deposits in South Africa is mined and processed by Sephaku Cement. Sephaku runs a 6 000-ton-per-day clinker facility located near Lichtenburg.
OVERVIEW AfriSam, PPC and Lafarge are active in the Mahikeng/Lichtenburg area, but Sephaku is confident that its clinker and cement-production facilities will be supported by raw materials for at least 30 years. 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.
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 several 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 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.
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 Mineral Resources: www.dmr.gov.za North West Development Corporation: www.nwdc.co.za South African Institute of Mining and Metallurgy: www.saimm.co.za
NORTH WEST BUSINESS 2018
Delivering opportunities in local communities Initiatives are making a tangible difference.
mplats believes that the sustainability of its mining activities depends on its ability to contribute to the wellbeing and prosperity of its host communities. Unemployment in South Africa, particularly amongst the youth, is one of the highest in the world and the country is faced with the challenge of limited and poor participation of young people in the economy. Young people are not acquiring the skills and work experience they need to assist in driving the economy forward, while it is also difficult for young South Africans to secure business opportunities to develop their own businesses without the necessary support from companies. Implats’ enterprise and supplier development activities focus primarily on supporting local and black businesses and are designed to ensure compliance with regulatory expectations, contribute to socio-economic development in neighbouring communities and build a more robust and competitive supply chain for the Group. Supporting local and black-owned businesses through preferential procurement is an important part of promoting transformation and Implats undertakes the following activities to develop entrepreneurial skills: • Seeking, identifying, supporting and promoting historically disadvantaged suppliers through sustainable procurement practices. • Leveraging the existing supplier base to unlock local employment opportunities, mentorship and investment in the value chain. • Nurturing an environment for partnerships and joint ventures between the existing supplier base and local entrepreneurs. • Striving to improve year-on-year BEE spend performance relative to the requirements of the Mining Charter, and reporting in parallel on B-BBEE performance as per the department of Trade and Industry’s Codes of Good Practice. Some key initiatives at Implats include: • A Supplier Development Programme that seeks to enhance the competitiveness of local small, medium and micro enterprises and black-owned businesses. • A Business Advisory and Development Service that helps local black entrepreneurs to grow and become part of the supply chain. • Supporting local and black-owned businesses through preferential procurement.
NORTH NORTH WEST WEST BUSINESS BUSINESS 20182018
Leveraging the existing supplier base to unlock local employment opportunities, mentorship and investment. • Nurturing an environment for partnerships and joint ventures between the existing supplier base and local entrepreneurs. • Enhancing procurement opportunities, specifically in neighbouring communities, is important in creating sustainable communities. Our preferential procurement practices and enterprise and supplier development activities make a tangible difference to the lives and families of emerging black entrepreneurs, and stimulate economic development in our host communities. To this end we spent R2.6-billion on procurement from local businesses (all >25% BEE), within the Bojanala district for Impala Rustenburg operations and the Greater Sekhukhune district at Marula (2016: R2.5-billion or 31%). Further, our investment in the accommodation and living conditions of employees is one pillar of Implats’ contribution to the wellbeing of its host communities. Our social investment strategy complements this by providing schools, clinics and other amenities. •
ENRICHING ENRICHINGLIVES LIVES
ByBy Empowering ourour People. Empowering People. People are the on which exceptional People are foundation the foundation on which exceptional performance is built and Implats are performance is built and Implats committed are committed to developing and and empowering these people. to developing empowering these people.
MMUNITIES THROUG HI L CO NF CA O RA L MMUNITIES THROUG HI NG AL CO N C FR LO A NG
R2.6 R2.6 billion billion
Recognised Recognised leaders in the leaders in the mining industry in in mining industry improving living improving living conditions conditions
EM P OEWMPO E R WE I RI
JointJoint ventures ventures withwith locallocal entrepreneurs entrepreneurs
spent at localatBEE spent local BEE compliant suppliers compliant suppliers in 2017 in 2017
IES NIT TU R O IES NIT TU OR
discretionary discretionary procurement spend spend procurement in 2017in 2017
LocalLocal SMMEs SMMEs and black-owned and black-owned businesses supported businesses supported by development by development and advisory and advisory programmes programmes
INABLE BBL USTASUSTAINAUSIENB ESUSSINES RS OP S OP FO FOR P T P EN
invested in in invested improving housing improving housing sincesince 20072007
VEDLEOVPELO UGH DGEH ING PING H R O H R OU TT TT TA TA EN EN L L M M Adopted and and Adopted developing 10 schools developing 10 schools into schools of excellence into schools of excellence through academic and and through academic sportsport initiatives initiatives
R548 R548 million million invested in skills invested in skills development development in in 20172017
Coole Adv 14086 Coole Adv 14086
LEADERSHIP ND TA EN ND LEADERSHIP TA EN
R4.1 R4.1 billion billion
We are committed We are committed to ensuring our our to ensuring people contribute people contribute to and benefit fromfrom to and benefit our our success success
CREATING AN ENV IRO NM CREATING AN ENV IRO NM
R6.7R6.7 billion billion
Apprenticeships Apprenticeships and learnership and learnership programmes & programmes & investment in the in the investment development of development of schools schools
OCIO-ECONO O C DMIC E & S & SOCIO-ECMOIN EV DE TUR TURE E L VE C U C OP LO R U P ST STR
NT ME NT
adult adult literacy literacy supported supported by ABET by ABET programmes programmes
HIV/Aids HIV/Aids counselling, testing counselling, testing andand wellness wellness programme programme
OUGH EDUCATION TH R NT ME OUGH EDUCATION TH R
EMP OWEMPO ER WE
Investment Investment and and development development of clinics of clinics
EMPEOMWPEORW MEERNM T ETNT HR TH R
LTH AND WELLB EI HEA GH LTH AND WELLB NG EIN OUH HEA G G OU
Promote Promote access to to access affordable andand affordable effective effective healthcare healthcare
Modi Mining Diverse mining service provider and supplier aims for the top.
he Managing Director of Modi Mining, Tshegofatso Samuel Molefi, outlines the company’s origins and current scope of operations.
Who founded Modi Mining?
BIOGRAPHY Sam Molefi is a mine engineer and entrepreneur with 22 years mining experience. He started with Gold Fields Academy and qualified as a mine engineer from Wits Technikon. Holding a mine manager’s certificate of competency, he has managed local and international projects, including an explosives manufacturing plant in Mali Republic. Sam provided technical support to Randgold Resources’ mines and done long-term planning with Anglo American Platinum. Other mines includes PTM Maseve, Crocodile River Mine and International Ferro Chrome. NORTH WEST BUSINESS 2018
Modi Mining is a 100% black South African-owned company founded and owned by mining engineer and entrepreneur Mr Samuel Molefi and female entrepreneur Ms Christina Motlapele Molefi. The company was established with the sole objective of rendering differentiated contract mining services and to be a supplier of choice to the mining industry. Modi Mining started operations in 2011. Where do you operate? We are operational in three provinces. In the North West we service the corporate mining houses in the platinum sector (RBPlats, Impala Platinum and Lonmin). In Mpumalanga Province we are currently servicing South32 in the coal sector. We also manufacture and supply products for mines such as Sibanye Gold, Gold 1 and Harmony Gold, which are based in Gauteng Province. What are the company’s goals?
Our vision is to pursue being the most preferred service provider and supplier in the mining industry. Our Mission: Through commitment, continuous improvement, feedback from our clients, skills development, health and safety compliance, and just-in-time delivery, we will achieve our vision. Please give an example of current projects. Current projects include: • Conventional mining • White area mining – stoping • Sweeping and vamping • Crushing and screening (coal and chrome ore) • Manufacture and supply of LDPE pipes, blasting barricades and load spreaders (head boards) • Open cast mining – top soil, overburden stripping and coal mining. We mine in strips of 100m x 50m face. We first strip the top soil as a free dig with excavators and hauling within a distance of 1-3km using ADTs to expose the second layer of overburden. Post blasting of overburden
INTERVIEW barricades. A detailed breakdown of our services is as follows: Underground mining services
Conventional mining method: stoping; developing; vamping and sweepings • Equipping and reclamation • Mechanised mining method: capital development (TMM); board and pillar • Hybrid mining method •
Open cast mining services
Top soil and overburden stripping Coal seam mining Rehabilitation, dump/stockpile management •
we load and haul it, exposing the coal seam that we mine and stockpile for the client. The same will be repeated where there is midburden.
Manufacturer and supplier of:
What services do you provide?
We are multifaceted company within the mining industry focusing on contract mining services (surface and underground), civil and bulk earth works, crushing and screening, load and haul, mine rehabilitation, manufacture and supply of blasting
LDPE blasting barricades and pipes
Civil services: • •
Civil and bulk earth works Screening and crushing Load and haul
NORTH WEST BUSINESS 2018
Agriculture A solar-powered vegetable project is showing a new way.
he SUNfarming Food and Energy project at Ikakeng next to Potchefstroom cultivates vegetables in coco fibre housed in sun-powered tunnels. The innovative project is a partnership between the Engineering Faculty of North West University and a German photovoltaic developer and operator, SUNfarming. The project is supported financially by the German government. The Provincial Government of North West wants to expand an existing programme to promote farming across all districts in the province. The Kgora Agricultural Institute in Ramatlabama, some 25km north of Mahikeng, trains small-scale farmers in raising animals and crop farming and works with young people to interest them in the opportunities that the sector has to offer. The idea is to establish centres such as Kgora all over the province. A weakness identified in the land claims process has been the absence of support for new farmers. But for the beneficiaries of a successful 4 500ha land claim on the De Paarl farm near Lichtenburg, things have been different. They have received tractors and equipment worth R6-million from the National Department of Rural Development and Land Reform. Support has also been given by Omnia Fertilisers. In the early stages of the project, a group of commercial farmers leased the land from the De Paarl Communal Property Association (CPA) and
Beneficiaries and workers of the NWU’s SUNfarming project busy nurturing their vegetables.
NORTH WEST BUSINESS 2018
SECTOR INSIGHT A successful land claim farm is doing well at Lichtenburg. passed on agricultural skills to the beneficiaries. The farm has maize, sunflowers, potatoes and a herd of cattle. The farm has created 20 permanent job opportunities while 40 locals are employed seasonally. Kokoana Farming Enterprise, the beneficiary-managed company which runs the farm, is in the process of devising a five-year plan for the future of the farm. Four district agri-parks are at the centre of a drive to establish sustainable agri-processing, to promote food security and to bring local black businesses into the mainstream economy. The provincial government set aside R75-million for the project in the 2017/18 budget. Each of the agri-parks will have a specific focus: • Springbokpan: grain (Ngaka Modiri Molema Distric t Municipality). • Vryburg: livestock, red meat (Dr Ruth Segomotsi Mompati District Municipality) • M o r e te l e / M a k a p a n s t a d t : red meat and horticulture (Bojanala District Municipality) • Maquassi Hills: pork and poultry (Dr Kenneth Kaunda District Municipality)
OVERVIEW 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 animal feed manufacturing plant.
NWK also deals in grain, runs several retail outlets and has a half-share (with Senwes) in CertiSure Brokers. The company deals in short-term insurance, crop insurance, financial planning, medical funds and funeral policies. The company has 37 silos with a capacity of 2.5-million tons. There are several milling operations in North West Province. Masilo Mills is located in Hanneman (where Papa Super Maize is ground) and Tau Roller Mills is in Wolmeransstad.
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. 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. The company runs five divisions and a plant that makes full fat soy, a component in animal feed. NWK is another company with manufacturing capacity. The Lichtenburg-based enterprise makes liquid fertiliser (up to 10 tons per month), animal feed (Opti Feeds), processes sunflower seeds (Epko), and runs three grain mills. Another subsidiary, Opti Chicks, has a capacity of 600 000 chicks per week.
North West’s distinct climatic regions are home to three very different types of agriculture. The dry western region is home to large beef-cattle herds, and this is where the growing game-ranching and hunting industry has its base. The eastern and north-eastern parts of the province receive relatively good rainfall and are suitable for the cultivation of crops. The North West has approximately 1.6-million beef cattle, representing 12% of South Africa’s herd. Major breeds include Simmental, Brahman, Bonsmara and Simbra, a cross between the Brahman and Simmental breeds. Kalahari Red and Boerbok goats are found in large numbers in the dry west. The number of goats for the province is estimated at 701 587, which is 12% of South Africa’s total. There are estimated to be 318 843 pigs, which is 20% of South Africa’s total drove. Nearly two-million hectares is planted with summer cereals, with about 50 000 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. 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.
ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Grain SA: www.grainsa.co.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 Potatoes SA: www.potatoes.co.za SA Grain Information Service: www.sagis.org.za
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Energy North West is researching new energy sources.
he mines and smelters around Rustenburg and the industrial plants in Brits use a lot of energy. They are served by Transnet Pipelines, which has recently made a big investment in the New Multi-Product Pipeline. The NMPP is built to pump threemillion litres of product per hour over a distance of 715km, from Durban to the industrial hub of the country. It is the single biggest project in Transnet’s capital expenditure investment portfolioand is one of the biggest of its kind in the world. Most of South Africa’s energy requirements are met by Eskom’s coal-fired power stations but the drive to start producing renewable energy is growing, and researchers and companies in the North West are investigating several options, from solar energy to hydrogen fuel-cells. North West Province has large reserves of platinum and there are exciting possibilities in potential energy applications for the mineral. In May 2012, Anglo Platinum, one of the province’s biggest companies, launched its first underground mining locomotive to be powered by a fuel cell. Platinum coating greatly enhances the hydrogen absorption capacity of fuel cells. Bioethanol, biodiesel and methane gas from waste and renewable resources are among the types of biofuels being investigated. Sunflower seeds and sweet sorghum are suitable for converting into biofuel and bioethanol. The South African Energy Resource Institute (Saneri) chair in biofuel research is held by a professor on the Potchefstroom campus.
ONLINE RESOURCES National Department of Energy: www.energy.gov.za South African Energy Resource Institute: www.saneri.org.za Southern African Bioenergy Association: www.saba.za.org South African Renewable Energy Council: www.sarec.org.za Southern African Alternative Energy Association: www.saaea.org
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SECTOR INSIGHT Transnet Pipelines has invested in a massive new pipeline. Silversands Energy is a North West company that produces ethanol fuel for an ethanol-powered bus made by Scania South Africa for the City of Johannesburg. The North West normally has about 300 days of sunshine per year, so solar power has great potential, and there is a programme aimed at converting bush that is encroaching onto arable land into biomass in the form of biocoal (TOR) or briquettes. The Engineering Department of North West University regularly competes in an international solar car challenge. In 2017 the Bridgestone World Solar Challenge started in Darwin and finished 3 000km away in Adelaide. 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 National Department of Science and Technology granted a chair in Nuclear Engineering to NWU.
Water New boreholes are being dug in rural areas.
partnership between the National Departments of Water and Sanitation and Public Works and the Provincial Government of the North West has delivered training in solar geyser installation and plumbing to 140 young people in Madibeng. Maintenance of water works is one of the most serious challenges facing municipalities in South Africa, with 71% of wastewater treatment plants being non-compliant. Infrastructure in some cases has not been serviced for some time, and leaks and skills shortages are problems. A Water and Sanitation campaign has been launched in the province to tackle this. The programme will provide training and monitoring. In response to the long-term drought, water tankers organised by the National Department of Water and Sanitation and the provincial government dug several boreholes to supplement supply. 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. The residents of Jericho village near Brits were delighted when new water infrastructure was delivered in 2016 by a partnership involving the provincial and national governments and the responsible water authority, Magalies Water. The Jericho Rural Water Supply project included new boreholes and pipes, and connecting the village to the main reservoir that serves the area. 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.
ONLINE RESOURCES Blue Drop Awards: www.ewisa.co.za National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Water Research Commission: www.wrc.org.za
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SECTOR INSIGHT Young people are learning plumbing skills.
Tlokwe is one of only three municipalities in the country that acts as a water-service authority and as a service provider. It has won awards for its levels of service. The biggest service providers active in the North West are: • Rand Water • Magalies Water • Sedibeng Water (including Botshelo Water, which has been incorporated into Sedibeng Water) • Midvaal Water Company supplies water to Matlosana (Klerksdorp). The city of Rustenburg has created the Rustenburg Water Services Trust (RWST), a special-purposes vehicle that runs the town’s relatively new water system.
Manufacturing The North West’s strong resource base could underpin a much bigger manufacturing sector.
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 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 nitrogen-based 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, 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. Wire-harness manufacturer Pasdec Automotive Technologies is one of several companies that has a facility in Brits. The sophisticated Bosch plant makes starters, alternators, braking systems and electroniccontrol units. Dubigeon Body and Coach assembles buses, coaches and special vehicles for a wide range of clients, including Iveco, MAN, Fiat, Mercedes-Benz and Volvo. The huge Bridgestone factory has received a R700-million upgrade. New staff have been employed and the plant has become one of only four in the world that is producing “runflat” tyres.
ONLINE RESOURCES Automotive Industry Development Centre: 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
SECTOR INSIGHT The Centre for Advanced Manufacturing at North West University specialises in extruder technology.
Some 800 people are employed at the plant. Klerksdorp is geared towards the mining industry, with a concentration of steel manufacturers, cable suppliers and engineering works. Potchefstroom has food and beverages, furniture manufacture and an ammunition plant. Aquasol is a niche manufacturer of water-soluble products. Rustenburg has a mixture of enterprises, the biggest of which are the mining-related smelters. Production of nonmetallic mineral products is concentrated around Lichtenburg and Mahikeng (cement), and Rustenburg (stone). 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.
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Education and training NWU is a leader in innovative research.
hether it’s astrophysics, tourism, solar energy or extruder technology, the North West University and its researchers are leaders in their fields. They are also busy: a research unit within the Faculty of Theology had 103 articles published in accredited journals in 2016 and Professor Melville Saayman of the Faculty of Economic and Management Sciences won NWU’s award as most productive researcher for his often-cited work on tourism. Professor of Astrophysics and Space Physics Markus Bottcher was given the prestigious task of chairing the organising committee of an international conference. Among the many research entities at NWU, there are five chairs allocated by the South African Research Chairs Initiative (SARChI): Astrophysics and Space Physics, Coal Research, Biofuels and other clean alternative fuels, Nuclear Engineering and Early Detection and Prevention of Cardiovascular Disease in Africa. The university’s faculties don’t limit themselves to pure research. Some of the Engineering Faculty’s partnerships illustrate this point. Partners include Sasol, Eskom, Denel Aviation, Telkom and SAPPI. Since 2012 the Engineering Faculty has been competing in solar car challenges. The 2017 challenge saw a car called Naledi travel from Darwin to Adelaide, powered purely by the sun. The project had no fewer than 26 partners and sponsors, including the Technology Innovation Agency and Growthpoint Properties. North West University (NWU) has more than 65 000 students, with about 26 000 studying by correspondence. The university's main campus is at Potchefstroom with satellite campuses at Mmabatho and Vanderbijlpark. The Centre for Text Technology (CTexT) conducts research and collects data on regional languages and is aiming to establish a discipline called Human Language Technology. The pharmaceutical faculty at the Potchefstroom campus of the North West University is regarded as a national leader. The University of South Africa (Unisa) has three branches in North West, at Rustenburg, Potchefstroom and Mmabatho.
Colleges Technical Vocational and Educational Training colleges teach skills that are relevant to the work place. In the North West, the mining NORTH WEST BUSINESS 2018
sector needs engineers and artisans. Mining companies provide some training in these disciplines, but TVET colleges bear the chief responsibility. The National Department of Higher Education and Training (DHET) declared the period starting in 2014 as "The Decade of the Artisan" with a goal of producing 30 000 per year by 2026. The current figure is about 13 000. North West has three TVET colleges with several campuses each. Vuselela TVET College has its headquarters in Klerksdorp, where there is also an accredited trade test centre. There are a further four campuses: Jouberton Centre for Engineering Studies; Matlosana Campus; Potchefstroom Centre for ICT; Taung Campus. Orbit TVET College has three sites, Rustenburg, Mankwe and Brits, with about 15 000 students overall. The Rustenburg campus of Orbit College hosts a Microsoft IT Academy while the Mankwe campus offers automotive training, the result of a partnership between the Manufacturing, Engineering and Related SETA (MersSETA), Lelethu Training and Ford South Africa. In 2016 Orbit TVET College took delivery of an electronics academy from sponsor Samsung. Located on the Mankwe campus, and in partnership with the MerSETA, the academy has eve-
OVERVIEW rything a trainee technician might want. Samsung Electronics South Africa will offer work experience to students after they graduate. The Taung Agricultural College has received a R13.4-million donation from Danish catalysis company Haldor TopsĂ¸e. The college had recently been re-accredited by the Council on Higher Education (CHE) to offer the NQF Level 6 Diploma in Agriculture specialising in Irrigation Technology. A graduation ceremony in November 2016 saw 169 students graduate from the Moruleng Community Project, an initiative of the Bakgatla-Ba-Kgafela Development Welfare supported by the Mining Qualification Authority and the Department of Higher Education and Training. The four-month programme offered carpentry, electrical, plumbing, bricklaying and entrepreneurship. A further 14 apprentices completed Level 4 Jeweller y Design and Manufacturing and will take up further artisan training.
Schools 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). While a hundred primary schools will receive smart-boards to improve mathematics instruction, the fact that the annual budget also includes items for installing sanitation at schools speaks of the magnitude of the challenges. 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. The opening of the PLG Hartbeespoort Academy in 2016 marked the first investment into the province of the Pembury Lifestyle Group. A campus generally comprises a pre-primary, primary and high school. Pupils at the Hartbeespoort Academy will write IEB exams when they reach matric. Curro believes it will be running 200 schools in South Africa by 2020, double its current number. There are four Curro schools (representing four brands) in the North West, in Rustenburg, Mahikeng and Klerksdorp (two).
ONLINE RESOURCES Mining Qualifications Authority: www.mqa.org.za North West Department of Education and Sport Development: www.nwdesd.gov.za 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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Banking and financial services New state banks are to be formed.
f poor people are to be helped by government and municipalities, then the budgets of those entities have to be efficiently administered. In the presentation of the 2016/17 budget of the Department of Finance, Economy and Enterprise, it was reported that the Provincial Government of the North West is improving with regard to audits, but that local municipalities are getting worse. Three provincial departments have been mandated to improve the financial performance of municipalities. Steps include monthly meetings between Treasury officials and mayors and standard contracts for managers. 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. Whereas the private sector is the biggest factor in the banking sector, there are growing moves by the state to become involved. Post Bank, a division of the South African Post Office, is far advanced in its application for a full banking licence and a further two state banks are planned: Ithala (currently an enterprise funder in KwaZulu-Natal) and a Human Settlements Development Bank, which will focus on housing
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SECTOR INSIGHT The North West is planning a R10-billion investment fund. â€˘ Municipalities will be assisted to achieve clean audits.
for poorer households and statefunded housing projects. This may have relevance for a province such as North West, which has a big rural population. The North West Provincial Government itself is planning to create a fund to stimulate investment. The planned Peopleâ€™s
OVERVIEW Economic Growth Agency (PEGA) is to be founded by the North West Development Corporation (NWDC) with the intention of attracting more than R10-billion for “strategic investments”. This will no doubt be in partnership with banks and other agencies. The North West University has been flagged as a strategic partner and areas of investment suggested are ICT, energy and solar geysers. All 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 documents such as payslips and benefit statements and preparations for retirement. Partners in the programme include the National Union of Mineworkers, Sanlam and Coronation. 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. 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 land reform 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 development-finance 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).
ONLINE RESOURCES Auditor-General of South Africa: www.agsa.co.za Association for Savings and Investment South Africa: www.asisa.org.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Services Board: www.fsb.co.za
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Development finance and SMME support SMMEs in the North West are on a central supplier base.
he Provincial Government of the North West is driving a policy to boost the economies of Villages, Townships and Small Dorpies (VTSD). The Finance, Economy and Enterprise Department (FEED) will roll out industrial laundries in VTSD areas, which will be linked to health and correctional services facilities. The agricultural supply chain can involve rural communities and entrepreneurs in business so a centralised supplier database has been established. The North West Development Corporation (NWDC) is the economic development agency of the province. The NWDC assists SMMEs gain access to funding, identify markets and provides infrastructure. The NWDC has found an innovative entrepreneur, making handmade toy cars which come equipped with solar panels and Bluetooth speakers. Thabang Khisane of Ganyesa, which is on the road from Vryburg to the Kalahari, has found a way of combining the traditional South African “wire car” with the latest in modern technology. The North West Innovation Competition 2017 turned up some other enterprising ideas among the winners, including a water-wise nursery and an animal reflector spray to make animals visible to cars at night. The winners received support from the organisers of the event, the NWDC, the Office of the Premier, Seda, North West University Technology Transfer Office and the National Department of Science and Technology. The National Department of Small Business Development (DSBD) has several programmes to assist SMMEs and co-operatives. including: • The Black Business Supplier Development Programme, a cost – sharing grant to promote competitiveness
ONLINE RESOURCES Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Department of Trade and Industry: www.dti.gov.za National Small Business Chamber: www.nsbc.org.za North West Development Corporation: www.nwdc.co.za
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SECTOR INSIGHT SMMEs and co-operatives are preferred for government contracts.
The Co-operative Incentive Scheme, a 100% grant.
The Small Enterprise Development Agency is an agency of the DSBD and gives non-financial support to entrepreneurs through training, marketing and creating business plans. The Seda Technology Programme (Stp) helps potential businesses become trading entities. The Industrial Development Corporation is a strategic lender and plays a strong role in supporting small and emerging enterprises in the North West province. Shanduka Black Umbrellas has an incubator in Mooi Nooi, near Marikana. Among the success stories from that area is Montamaisa Bosigo Transport, which does staff transport and courier services. The Afrikaansehandelsinstituut (AHI) has rebranded as the Small Business Institute. Representing over a hundred chambers, the SBI is a member of Business Unity South Africa.
Global Africa Network Promoting business, trade and investment in SAâ€™s nine provinces www.gan.co.za
Tel 021 657 6200 Email email@example.com Web www.gan.co.za
North West Provincial Government A guide to North West Provinceâ€™s government departments. Visit: www.nwpg.gov.za 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 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 Website: www.nwpg.gov.za/home.html
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/Public%20Works
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 MEC: Hoffman Galeng 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 Website: www.nwhealth.gov.za/dohnw NORTH WEST BUSINESS 2018
North West Local Government An overview of the North West municipalities
Naledi Local Municipality
BOJANALA PLATINUM DISTRICT MUNICIPALITY Tel: +27 14 590 4500 | Fax: +27 14 592 6085 Website: www.bojanala.gov.za
Tel: +27 53 928 2200 | Fax: +27 53 927 3482 Website www.naledilocal.co.za
Tel: +27 14 543 2004 | Fax: +27 14 543 2480 Website: www.kgetlengrivier.gov.za
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY Tel: +27 18 381 9400 Website: www.nmmdm.gov.za
Madibeng Local Municipality
Ditsobotla Local Municipality
Tel: +27 12 318 9203 | Fax: +27 12 318 9203 Website: www.madibeng.gov.za
Tel: +27 18 633 3800 | Fax: +27 18 632 5247 Website: www.ditsobotla.co.za
Moretele Local Municipality
Mahikeng Local Municipality
Tel: +27 12 716 1000 | Fax: +27 12 716 9999 Website: www.moretele.org.za
Tel: +27 18 389 0111 | Fax: +27 18 384 4830 Website: www.mahikeng.gov.za
Moses Kotane Local Municipality
Ramotshere Moiloa Local Municipality
Tel: +27 14 555 1300 | Fax: +27 14 555 6368 Website: www.moseskotane.gov.za
Tel: +27 18 642 1081 | Fax: +27 18 642 3586 Website: www.ramotshere.gov.za
Rustenburg Local Municipality
Ratlou Local Municipality
Tel: +27 14 590 3111 | Fax: +27 14 590 3006 Website: www.rustenburg.gov.za
Tel: +27 18 330 7000 | Fax: +27 18 330 7019 Website: www.ratlou.gov.za
DR RUTH SEGOMOTSI MOMPATI DISTRICT MUNICIPALITY Tel: +27 53 928 4700 | Fax: +27 53 927 2401 Website: www.rsmompatidm.gov.za
Tswaing Local Municipality
Kgetleng Rivier Local Municipality
Tel: +27 53 948 0900 | Fax: +27 53 948 1500 Website: www.tswaing.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 Tel: +27 53 994 9400 | Fax: +27 53 994 3917 Website: www.gtlm.gov.za Kagisano-Molopo Local Municipality
City of Matlosana Local Municipality
Tel: +27 53 998 4455 | Fax: +27 53 933 0035 Website: www.kmlm.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 JB Marks Local Municipality Tel: +27 18 299 5111 Website: www.jbmarks.co.za
Mamusa Local Municipality
Maquassi Local Municioality
Tel: +27 53 963 1331 | Fax: +27 53 963 2474 Website: www.mamusa.gov.za
Tel: +27 18 596 1067 | Fax: +27 18 596 1555
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INDEX Black Management Forum.........................................................................................................IBC Impala Platinum........................................................................................................................30-31 Mmbatho Palms Hotel Casino Convention Resort.....................................................................19 Modi Mining..............................................................................................................................32-33 Nedbank................................................................................................................................3; OBC Old Mutual................................................................................................................................22-25 Rustenburg Chamber of Business................................................................................................5 Sun International................................................................................................................IFC-1; 17 Transnet Pipelines.........................................................................................................................37
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Black Management Forum – North West: Developing leadership and advancing transformation Nela Mojanaga
Nela Mojanaga, Provincial Chairperson, shares the visionand goals of the BMF, North West.
Please could you outline the main objectives of the Black Management Forum. • • •
To develop managerial leadership To advance socio-economic transformation To be a thought leader on the above issues.
Are there particular areas that the BMF is focussing on right now?
BIOGRAPHY Nela Mojanaga qualified as a social worker at Fort Hare University and followed this up with post-graduate diplomas in community development, health management and facility management from various universities locally and internationally, including the National Institute of Public Health in Japan and the University of Cape Town. She worked as a social worker for a period of 12 years and is currently the Chief Director for the Department of Health in the Dr Kenneth Kaunda District.
The organisation is focusing on recruiting members. The BMF North West is also part of the District Moral Regeneration Committee. What are some of the most recent achievements of the BMF in the North West?
The organisation has successfully supported Bloyta Properties in developing youth in Ventersdorp and Matlosana. They are part of the Interactive Dialogue and have a permanent slot on the Robben Island Youth Development Programme. The BMF has also facilitated the Department of Health in the Dr Kenneth Kaunda District to develop and launch a Charter on Combating Sexual Harassment in the Workplace. How would you characterise the relationship between the BMF and civil society, labour unions and government?
The relationship between the organisation, local governments, the Department of Health and the local Business Chamber is good. The organisation partners with all of these organisations from time to time in their activities.
NORTH WEST BUSINESS 2018
I’M AN ENTREPRENEUR. AN INNOVATOR. AND A GAME CHANGER. NOW I JUST NEED BIG VALUE FOR MY SMALL BUSINESS.
You’ve got what it takes to succeed. All you need now is for your money to up its game for your business, with a business bundle from Nedbank. Save up to 40% on banking fees, get 35 free transactions a month, Greenbacks rewards, discount on your point-of-sale device, and a dedicated banker. All this and more for only R219 per month! For more information call 0860 116 400 or search ‘Business Bundle’ on nedbank.co.za.
SAVE UP TO
40% ON BANKING FEES
nedbank.co.za Terms and conditions apply.
see money differently Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
Published on Feb 28, 2013
Published on Feb 28, 2013
The 2018 edition of North West Business is the sixth edition of this highly successful publication that since its launch in 2008 has establi...