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2016/17 EDITION

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

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WWW.NORTHERNCAPEBUSINESS.CO.ZA Upington Special Economic Zone


Physical: Metlife Towers, 13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309 Postal: Private Bag X6108, Kimberley, 8300 Tel: 053 839 4000 | Fax: 053 832 6805 Web: http://economic.ncape.gov.za Email: dedat@ncpg.gov.za


Helping to deliver sustainable in the Northern Cape through Mainstream Renewable Power (Mainstream) has been awarded almost 850 megawatts (MW) of wind and solar power plants through the South African Government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), many of which are located in the Northern Cape. We have delivered 318 MW into operation, are currently building a further 280 MW and expect to start building an additional 250 MW by the end of this year or early next year. Mainstream is committed to contributing to sustainable community growth through financial and non-financial community development initiatives. We do this by contributing a percentage of total project revenue earned to the community; through Socio-Economic Development (SED), Enterprise Development (ED), and the establishment of a Community Trust. The types of Socio-Economic Development projects include but are not limited to health programmes (HIV and AIDS, vulnerable children programmes), infrastructure development, women development, youth upliftment – sports and education support programmes, including early childhood development, as well as numeracy and literacy interventions at a primary school level. Enterprise Development initiatives include but are not limited to assisting and accelerating the sustainability of local enterprises and often consider supporting emerging farmers or other suitable economic activities in the area.

www.mainstreamrp.co.za Noupoort wind farm


community growth renewable energy


CONTENTS

CONTENTS Northern Cape Business 2016/17 Edition

Introduction Foreword

7

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

Special features Regional overview of Northern Cape Province

8

Huge investments in renewable energy projects and the launch of Kimberley’s first university are creating opportunities throughout the Northern Cape. Renewable energy

14

The Northern Cape is attracting huge investments in solar and wind power. Nearly R200-billion is set to transform the energy landscape. Upington Special Economic Zone

22

400 Hectares have been identified for the development of a Special Economic Zone. Square Kilometre Array Radio Telescope (SKA) A multi-billion-rand international astronomy project is unfolding in the Karoo desert. NORTHERN CAPE BUSINESS 2016/17

4

28


CONTENTS Firing for fastest

32

The Bloodhound project, which aims to break a land-speed record, could spell opportunity for Northern Cape entrepreneurs. Deep sea port for West Coast

34

Exciting harbour plans for the West Coast are set to boost the provincial economy.

Economic sectors Agriculture

44

The agricultural sector in the Northern Cape has been significantly affected by drought but it remains an important contributor to the economy. Wine and grapes

48

Almost half of the country’s grapes are produced in the Northern Cape. Aquaculture and mariculture

50

The Northern Cape is well placed to take advantage of the growing global demand. Mining

52

The Northern Cape has vast mineral resources. Engineering

58

Renewable energy projects need sophisticated engineering. Transport

60

Vast distances make good transport infrastructure vital for the economy of the Northern Cape. Construction and property development

62

Investment in renewable energy projects is driving growth in both sectors. Banking and financial services

64

Agricultural finance is an important part of the financial services sector.

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NORTHERN CAPE BUSINESS 2016/17


CONTENTS

Development finance and SMME support

66

Tourism and renewable energy offer opportunities for entrepreneurs. Tourism

69

The Rough Guide rates the Richtersveld in its Top Ten.

Government South African Government

74

An overview of South Africa’s national government departments. Northern Cape Provincial Government

78

A guide to the province’s government departments.

Motorway

NORTHERN CAPE PROVINCE

Main Road Railway

N 83

Northern Cape Local Government

BOTSWANA

Union’s End

A guide to the district and local municipalities.

North West N18

Rietfontein

Reference

NAMIBIA

Van Zylsrus Askham

Vryburg

Hotazel

N10

Sector contents

42

Nababeep

Index

Onseepkans Augrabies

R31

Steinkopf

Pofadder

N14

Garies

13

Northern Cape regional map.

13 84 Saldanha

Brandvlei

Douglas

KIMBERLEY

Ritchie

Hopetown

Prieska

Vosburg

R63

Nieuwoudtville Calvinia Vanrhynsdorp

Williston

De Aar

Victoria West

Fraserburg

N1

Three Sisters

N7

Clanwilliam

Paarl

CAPE TOWN

N1

Worcester

Stellenbosch N2

Caledon Hermanus

N15

R62

N1 N9

Noupoort

Richmond Middelburg R63

N9

Graaff-Reinet

Eastern Cape

Somerset East

N1

N7

Colesberg

Beaufort West

Sutherland

Western Cape

R45 R27

R48

N10

Hanover

N12

R63

Loxton

N8

Free State

Petrusville

Britstown

Carnarvon

R27

R44

6

Van Wyksvlei

Loeriesfontein

Vredendal

Northern Cape municipalities map.

N12

Barkly West R64

N12

Kamieskroon

Northern Cape locator map.

Groblershoop N10

Strydenburg

N7

Maps

WarrentonChristiana

Ulco

Campbell

Marydale

88

Hartswater

R31

Postmasburg

Kenhardt

Okiep Kleinsee Springbok Hondeklipbaai

N14

Upington Keimoes Kakamas

N14

Vioolsdrif

Alexander Bay

Port Nolloth

NORTHERN CAPE BUSINESS 2016/17

N14

Kuruman Sishen

N12

R75

Willowmore

Oudtshoorn George

N9 N2

Knysna Mossel Bay

Uitenhage

PORT ELIZABETH

Jeffreys Bay


FOREWORD

CREDITS

Northern Cape Business

Publisher: Chris Whales

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

Publishing director: Robert Arendse Editor: Simon Lewis Writing: John Young, Suzana Savvi and Simon Lewis Art director: Brent Meder Design: Colin Carter Production: Lizel Oliver Ad sales: Sam Oliver, Gabriel Venter, Jeremy Petersen, Nigel Williams, Veronica Dean-Boshoff and Sydwell Adonis Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution and circulation manager: Edward MacDonald Printing: FA Print

N

orthern Cape Business 2016/17 is the sixth edition of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide to the Northern Cape Province. Officially supported and utilised by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the Northern Cape. A range of complementary online features has also been introduced to give participants in and readers of the journal a wider range of communication options. These include the ebook at www.northerncapebusiness. co.za, the monthly newsletter and a live feed for up-to-date news and announcements. Global Africa Network Media (www.gan.co.za), the publisher of Northern Cape Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

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

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

COPYRIGHT | Northern Cape Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd. PHOTO CREDITS | Cover image: Nouwpoort Wind Farm courtesy of Mainstream Renewable Energy. Pictures supplied by flickr.com, Anglo American, Wikimedia Commons, Masisizane Fund, Old Mutual, Scatec Solar, Le Roux Consulting, MediaclubSouthafrica, De Aar Solar, and Pixabay.

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

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

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NORTHERN CAPE BUSINESS 2016/17


A REGIONAL OVERVIEW OF THE

NORTHERN CAPE Huge investments in renewable energy projects in the Northern Cape are mitigating, to some extent, a downturn in mining activity due to reduced global demand. The opening of a first university in Kimberley is a positive sign of an optimistic spirit in this very large and sparsely populated province. By John Young

T

he Northern Cape is South Africa’s largest province, covering 30% of the country’s landmass on the dry western side of the country bordering the Atlantic Ocean, Namibia and Botswana. The provincial population of just over a million represents 2.2% of the country’s population and the principal languages are Afrikaans (54%) and Setswana (33%). The San people live in the arid regions of the north. The province is well served in transport and communications, despite its vast size (361 830 square kilometres). Airports at Kimberley and Upington are quite substantial and many smaller towns, mines and game reserves have landing strips. The road network is extensive. The Northern Cape does not have a major port, although Port Nolloth serves as an adequate fishing harbour. The creation of a deep-sea port is being investigated. Mining and agriculture are the province’s most important sectors, but renewable energy is growing very fast indeed. NORTHERN CAPE BUSINESS 2016/17

In the nationally run process to encourage the private sector to invest in renewable energy, fully 60% of the projects so far approved have been allocated to the Northern Cape. This represents 66% of the billions of rands invested to date in bringing new power to the national grid. The Northern Cape is particularly well-suited to solar energy installations and both of the main technologies (photovoltaic and concentred solar power or CSP) are being installed all over the province. The towns of Upington and De Aar are seen as possible future hubs for the further development of solar power-related industry. The Orange River is the most important geographical feature of the province, providing irrigation to support a thriving grape, sultana and wine industry. One small hydro-electric power scheme has been approved, but the potential for more such schemes is surely huge. Other crops such as lucerne, cotton, wheat, peanuts and maize are grown in the Orange River Valley

8


SPECIAL FEATURE GDP (StatsSA). However, only 7% of the population gains employment from the sector, as fully 31% are employed in the community services sector. Iron ore and manganese are the two main minerals, with the Sishen-Saldanha rail line being one of the longest and most technically advanced logistics links in the world.

Exports and schemes Both the iron ore and manganese sectors experienced terrific growth in the years to 2014, but reduced global demand (mainly from China) has put a dampener on exports. The Northern Cape is a big contributor to the national basket of exports, not only in minerals but in agricultural products such as table grapes and raisins. The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand. The figure in manganese is even more impressive –25% (DEDAT, Northern Cape). This reliance on an export economy has its risks, as has recently been seen with the laying off of workers at iron-ore mines. There has been a big change in diamond-mine ownership in the Northern Cape in recent years, with Petra Diamonds buying many of De Beers’ assets. In the Namaqualand area, Trans Hex h as acquired former De Beers properties. The province also has copper, lead, zinc, mineral sands, gypsum, granite, asbestos, fluorspar, semiprecious stones and marble. Several large schemes in the Northern Cape that have either been started or are in the planning stage: • Sol Plaatje University. After years of lobbying for a university, the Northern Cape now has its own place of higher learning, meaning that students from the province no longer have to incur the expense of travelling to other centres to further their education. The first buildings in Kimberley have already been constructed for the province’s first university, named after Sol Plaatje, the great intellectual, writer and advocate

and in other irrigation scheme areas such as the Vaalharts Irrigation Scheme in the eastern part of the province. Sheep and goats are the most popular livestock, and horse-breeding is a lucrative activity. The Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site, while the natural spring flower show that appears in Namaqualand is one of the wonders of the world. In 2016 the well-respected international tourist book, Rough Guide, elected the stark beauty of the Richtersveld on to its Top Ten list of places to visit. Most of the province falls into the category of semi-arid (apart from the coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold. The western parts of the province are famous for spectacular displays of flowers in spring. Mining has long been a mainstay of the provincial economy, contributing 27.6% of provincial

9

NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE

• • • • •

for equal rights. Degrees in education and data science are on offer, together with diploma courses in retail management, heritage and information technology. Astronomy-related courses are planned for the future to dovetail with the Square Kilometre Array project (SKA). SKA is a multi-billion-rand joint international venture located in the Northern Cape town of Carnarvon. This radio telescope is a highly sophisticated piece of astronomical equipment which will give scientists vast amounts of information about space. Work is underway at the site, details of which are carried in another article in this publication. There will be significant spinoffs for a large number of sectors within the Northern Cape and throughout South Africa. Planning for a deep-water harbour on the Atlantic coast of the province has entered the second phase. A separate article deals with this project. The Ibubhezi gas field off the west coast holds huge potential for a number of industries, including oil/gas and logistics. Eskom is looking into creating a mega-solar park for Upington and there are plans for a Special Economic Zone. There is an opportunity to develop a fivestar hotel to support the Mittah Seperepere Convention Centre. A rail cargo hub is envisaged at De Aar, one of the most centrally located sites in South Africa. A group of very fast Britons is beating a path along a very straight road laid out in the Karoo, north of Upington. The Bloodhound Project aims to break the world land-speed record. The project is also raising awareness about science and engineering through a schools’ programme.

NORTHERN CAPE BUSINESS 2016/17

10


SPECIAL FEATURE

The Northern Cape is divided into five district municipalities

Kuruman is the headquarters of local government in this region. The local spring produces 20-million litres of water every day. Most of the district is situated on the Ghaap Plateau, over 1 000 metres above sea-level, where it can experience extreme temperatures. Most agricultural activity is limited to grazing and boer goats are a popular breed among farmers, although game hunting is increasing. Kathu has a well-developed CBD with shopping malls that arose when iron demand was high. The Sishen iron-ore mine outside Kathu is a vast undertaking, providing employment for thousands of people. Samancor’s Mamatwan and Wessels manganese mines and plants are situated at Hotazel. Almost half of the population in the district live in rural villages.

Frances Baard District Municipality Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp. The district is the smallest but, with a population of approximately 325 500, it is the most densely populated. Although Kimberley is historically renowned for diamond mining, its economy is now driven by its role as the administrative headquarters of the province. Strategically located and with good infrastructure, Kimberley is the leading centre in the province for retail, financial services, education, commerce and light industry. The Mittah Seperepere Convention Centre and the newly opened Sol Plaatje are in Kimberley. Mining and agriculture are found in rural municipalities. Agriculture in the region comprises crop cultivation and stock and game farming. The Vaalharts Water Scheme is the largest irrigation project of its kind in the southern hemisphere, and produces maize, cotton, fruit, peanuts and wheat.

Namakwa District Municipality Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay. The Namakwa district is situated in the north-western corner of the province, and the country, bordering Namibia and the Atlantic Ocean. The district is sparsely populated, and predominantly rural.

John Taolo Gaetsewe District Municipality Towns: Kuruman, Kathu, Hotazel.

11

NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE

The mining and agricultural sectors provide most employment, while tourism and small-scale manufacturing are also present. The climate and soil support certain niche crops, and the sites and sights are unique to the region, offering opportunities in agriculture and tourism. Niewoudtville is the site of a rooibos tea factory. The /Ai/Ais/Richtersveld Transfrontier Park, the Namakwa National Park and the Tankwa Karoo National Park all have the potential to grow as travel destinations, as does the western coastline. Pixley Ka Seme District Municipality Towns: De Aar, Hanover, Carnarvon, Douglas, Marydale, Prieska, Hopetown, Richmond, Noupoort, Norvalspont, Colesburg. The district covers 102 000 square kilometres in the central Karoo and has four national roads passing through it. De Aar, the site of the municipal headquarters, has national significance as a railway junction. Star-gazing is Carnarvon’s great claim to fame, and it will now host the Square Kilometre Array radio telescope. The district is home to three of South Africa’s major dams. Agricultural production includes wheat, maize, peanuts, grapes, beans, potatoes, nuts and sheep farming. Pixley Ka Seme is the largest woolproducing district in South Africa, but most of what NORTHERN CAPE BUSINESS 2016/17

12


SPECIAL FEATURE

Siyanda District Municipality Towns: Upington, Kakamas, Kenhardt, Groblershoop, Postmasburg. The Orange River supports a thriving agricultural sector and a growing tourism sector. The investment climate is ripe for tourism along the Orange River and around unique physical attractions such as the Augrabies Falls. Mining activities take place in Kgatelopele, where diamonds and lime are found. Together with sheep and cattle farming, mining provides most of the employment to be found in Siyanda. The diamond mine at Finsch is Petra Diamonds’ newest and largest acquisition. Most of the population of the //Khara Hais Local Municipality lives in Upington. The town is one of the economic hubs of the Northern Cape: it has an airport and good infrastructure. Agriculture is a prominent feature of the local economy, as well as wholesale and retail services in and around the town. The processing of wine and dried fruit represents one of the biggest manufacturing activities in the province.

ZIMBABWE BOTSWANA Limpopo NAMIBIA Mpumalanga Gauteng SWAZILAND

North West

KwaZuluNatal

Free State

NORTHERN CAPE

MOZAMBIQUE

is produced is processed in the Eastern Cape. As a consequence, opportunities exist for the establishment of a cotton mill, a tannery and a facility to add value to semiprecious stones. Horse breeding is a valuable contributor to the regional economy.

LESOTHO

Eastern Cape Western Cape

Motorway

NORTHERN CAPE PROVINCE

Main Road Railway

N

BOTSWANA

Union’s End

North West N18

Rietfontein

NAMIBIA

Van Zylsrus Askham

Vryburg

Hotazel

N14

Kuruman R31

Sishen

Upington Onseepkans Augrabies Alexander Bay

Port Nolloth

Steinkopf

Pofadder

R31

Campbell Groblershoop N10

Kenhardt

N14

Marydale

Nababeep Okiep Kleinsee Springbok

N12

Ulco

Postmasburg

Keimoes Kakamas

N14

Vioolsdrif

Hartswater WarrentonChristiana

N14

N10

Douglas

Barkly West R64

KIMBERLEY

Ritchie

Hopetown

Prieska

Free State

N12

Strydenburg

N7

Kamieskroon

Brandvlei

Hondeklipbaai Garies

Van Wyksvlei Vosburg

Nieuwoudtville Vredendal

De Aar

Williston

R27 Calvinia Vanrhynsdorp

R63

Loxton

R48

Colesberg N10

Hanover

N12

R63

Petrusville

Britstown

Carnarvon

Loeriesfontein

Victoria West

Fraserburg

Middelburg R63

Beaufort  West

Sutherland

Somerset East R75

Willowmore

N7

Paarl

13

N12

Western Cape Worcester

R44

CAPE TOWN

N9

Graaff-Reinet

Eastern Cape N1

R45

Noupoort

N1

Three Sisters

Clanwilliam

R27

N1 N9

Richmond

N7

Saldanha

N8

N1

Stellenbosch N2

Caledon Hermanus

N15

Oudtshoorn R62

N9

George

N2

Knysna Mossel Bay

Uitenhage

PORT ELIZABETH

Jeffreys Bay

NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE

Renewable energy The Northern Cape is attracting huge investments in solar and wind power. Nearly R200-billion has been pledged to transform the energy landscape.

T

he Northern Cape is rapidly becoming the home of South Africa’s burgeoning renewable energy sector. With four rounds of bidding finished in 2016, South Africa’s programme to encourage private power producers to bid for and build renewable energy plants has led to 92 projects being approved. Fully 48 of those are situated in the Northern Cape. The majority of the projects (28) are using the solar photovoltaic method, with seven employing the concentrated solar power (CSP) technology. The first of these essentially uses many panels to capture the sun’s rays, while the latter normally uses a tower to concentrate the sun’s rays. CSP offers better storage potential. The Northern Cape is also home to 12 approved wind farms and one small (10MW) hydroelectric project on the Orange River. Most of these projects are quite large-scale, with big investors who are obliged to give a percentage of the project or joint venture to local communities, normally in the form of trusts. In the future, the provincial government will be giving attention to smaller ventures, in the 1.5MW range, with the aim of bringing local investors and comNORTHERN CAPE BUSINESS 2016/17

munities on board. To support this goal, and to grow the renewable energy sector as a whole, a Renewable Energy Conference was held in May 2016. The national programme is known as the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) and it aims to add some 6 000MW to the national grid by 2020 (and 13 225MW by 2025). The speed at which the programme is progressing means that accurate data has to be carefully dated. The Department of Energy produced a “snapshot” of the state of renewable energy in GWh 70 000 60 000

2014 2015

50 000 40 000 30 000 20 000 10 000 0 Province WC EC NC FS KZN NW GP MP LP

Total electricity delivered by Eskom to provinces.

14


SPECIAL FEATURE Power Group, (China), Engie (Gulf states), and juwi Group (Germany). Some of these investors are funds putting in money, others are utility companies expert in the power generation field, others again specialise in renewable energy technology such as wind blades. Every project has a joint ownership consortium or joint venture that includes a local company and a community trust of some sort.

A hub for renewable energy The provincial government of the Northern Cape is using clean energy production, supported by the procurement strategy of the REIPPP, to boost economic growth and development. The province aims to show that climate change can be mitigated through the deployment of renewable energy at the same time as promoting socio-economic growth, increasing incomes, creating jobs and enhancing human welfare. Growing low-carbon business investment is mutually beneficial to both the economic and social objectives set out for the province, and will provide energy security. The province’s comprehensive road network provides a good platform for the establishment of new power infrastructure under the procurement programme and for the diversification of the economy, particularly solar energy. The Northern Cape Province is connected to Namibia via the Kalahari and Orange River Basin Corridors, strengthening trade and transport linkages between the two countries. The electrical energy that will become available from the investments made in renewable energy in the Northern Cape to date equate to more than 100% of its own electrical power needs, effectively making it a net exporter of electricity to other

South Africa in a document that was published in September 2015. It shows that progress in the Northern Cape has been remarkably quick. At the end of the fourth window, it was calculated that R192-billion had been invested into South Africa through the REIPPP, with R53-billion of that being supplied by foreign investors. The countries of origin of the companies investing in this new industry are very varied. They include Vestas (Denmark), Enel Green Power (Italy), Scatec Solar (Norway), Globeleq (United Kingdom), Mainstream Renewable Power and Solar Capital (Ireland), Gestamp Renewable Energies and Abengoa (Spain), SunEdison (USA), ACWA Power (Saudi Arabia), Tata Power (India), China Longyuan NORTHERN CAPE

SMALL HYDRO

MEGAWATTS

ONSHORE WIND

CONCENTRATED SOLAR POWER

PHOTO-VOLTAIC (SOLAR)

Projects approved

48

1

12

7

28

MW capacity procured

3 566

10

1 459

600

1 497

MW online, September 2015

835

10

74

100

651

Renewable energy projects in the Northern Cape SOURCE: State of Renewable Energy in South Africa, 2015, DoE.

15

NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE provinces. This is in keeping with the Northern Cape’s Renewable Energy Strategy.

Wind The first experiments in wind energy in South Africa were carried out on the windy West Coast in the early 2000 when Eskom started a demonstration farm at Klipheuwel and the DoE’s predecessor did the same at nearby Darling. The Danish government assisted South Africa to create a wind atlas, showing where and how strongly different kinds of wind blow in the country. Since the REIPPP was announced, investors have shown a keen appetite to build wind farms. Loeriesfontein is a small town north of Niewoudtville and Calvinia, but it was famous for its connection with wind even before foreign investors came calling: Loeriesfontein is the home of South Africa’s only windpump museum. Windpumps, such a prominent feature on farms everywhere in the country, are sometimes incorrectly called windmills. Now the two dozen or so old pumps will have much bigger company in the surrounding veld–61 turbines are going up, each of them towering 99m above the ground. The facility will deliver 140MW. Loeriesfontein (valued at R3.5-billion) is owned by a consortium led by Lekela Power, a joint venture between Actis, a private equity company, and Mainstream Renewable Power. Mainstream and various partners have won approved bidder status for wind and solar projects in each of the windows. In the early bidding rounds, Mainstream’s three Northern Cape wind projects amounted to 360MW (Loeriesfontein and Khobab in the Namakwa District Municipality, also 140MW, and Noupoort wind farm, 80MW). In June 2015 another 140MW project proposed at Kangnas (Springbok) got the green light. One of the earliest wind farms to be constructed in the Northern Cape was at Noblesfontein, about 40km from Victoria West. Spanish company, Gestamp Wind, was an early investor in South African renewable energy when it got behind the Noblesfontein project. There are 41 Vestas NORTHERN CAPE BUSINESS 2016/17

V100 turbines on the farm of the Roux family, one of whose sons went by the name of “Mannetjies” and used to run rings around opponents for the Springboks on the rugby field. His son Francis now runs Sarge (South African Renewable Green Energy) which facilitates energy projects. Chinese power producer China Longyuan Power Group is developing two wind farms near De Aar.

Solar The Northern Cape is the natural home for the generation of solar power. Long-term annual direct normal irradiance (DNI) at Upington is 2 816kWh/ m2, according to a survey done for Stellenbosch University by Slovakian company GeoModal Solar. CSP Today reports a national average that is among the best in the world. Stellenbosch University’s Solar Thermal Energy Research Group has six sites monitoring irradiation levels. The biggest solar farm so far in South Africa was launched in March 2016 when Solar Capital presented its 175MW farm at De Aar. Formerly famous as the railway junction that combined the country’s two rail systems, De Aar is becoming better known as a renewable energy hub. About 200 jobs were created in the construction phase of this R4.8-billion project and 100 people are now employed in running the plant. Solar Capital, which is a subsidiary of the Phelan Energy Group, intends spending on Internet connections, arts training and building a community training centre in De Aar.

16


SPECIAL FEATURE In the first round of submissions, Mainstream South Africa put in bids for 100MW of solar power: both projects came in on time and on budget in 2014: Droogfontein and De Aar Solar Power. The company has built 170 000 solar panels on the land owned by the Droogfontein Community Property Association, which has taken a 4% stake in the energy company. Mainstream SA is a joint venture between Mainstream Renewable Power (Ireland) and Genesis Eco-Energy (SA), and it has also established a consortium that includes Absa Capital, Globeleq, Thebe Investment Corporation and Siemens Energy Southern Africa, which it hopes will play a role in turning South Africa into a renewable energy hub. The 86MW Mulilo-Sonnedix-Prieska photovoltaic (PV) solar plant project, situated 50km south-west of Prieska in the Northern Cape, is on schedule, within budget and nearing completion, according to independent power producer Sonnedix, which has undertaken the project with minority partner, local renewable energy developer Mulilo. The project has had an impact bigger than itself. More than 500 jobs were created for the local population during the building phase. The 125ha solar PV project, valued at R1.3-billion, is set to connect to the grid in the third quarter of 2016. The main contractor on the project was juwi Renewable Energies, the South African subsidiary of the large German company, the juwi Group, which has won several contracts to build solar farms over the four bidding windows of the REIPPP. BioTherm Energy is another renewable energy company that has used juwi’s construction skills on several of its projects in the province. BioTherm has developed solar projects near Kenhardt and Pofadder. Gulf power company Engie (formally known as GDF SUEZ) is a major investor in the 100MW Kathu Solar Park project, a CSP project which is also backed by the Public Investment Corporation (PIC), Investec Bank and the Sishen Iron Ore Company Community Development Trust. Engie is listed on the stock exchanges of Paris and Brussels. Norwegian company Scatec Solar is involved in the design of a 75MW scheme being built at Kalkbult. In the Namakwa District lies the small town of Pofadder. Like Timbuktu, the name “Pofadder”

is used to represent somewhere very remote, far away and out of the mainstream. The surrounding districts are sparsely populated, rugged and picturesque. There is little in the way of cropping and local farmers run sheep or goats for a living. Pofadder had the distinction of being the chosen site of the first Concentrated Solar Power (CSP) plant in South Africa, named KaXu Solar One. The region’s KaXu Solar One will be a catalyst for economic development in the Khai Ma Municipality. Spanish company Abengoa has already started the construction of another CSP project, Xina Solar One, a 100MW parabolic trough plant. A 50MW CSP plant (Khi Solar One) at Upington connected to the grid in January 2016, but the fate of Abengoa (which controls 51% of the project) hung in the balance as it fought off bankruptcy. Solar power is a huge business in Spain but apparently Abengoa grew too dependent on subsidies and struggled to adapt when subsidies were cut. Saudi Arabian company ACWA Power is one of the entities behind the 100MW Redstone Thermal Power project (also a CSP project) being developed near Postmasburg, near two solar projects that use the other major technology, photovoltaic. The three projects together comprise a capacity to generate 217MW. The Bokpoort CSP project launched in March 2016 by investment company ACWA Power is a 50MW CSP plant, which incorporates a molten-saltenergy storage facility, which will provide about 9.3 hours of thermal energy storage. This system provides nine hours of power after dark, which means that it gives baseload power through the peak demands of night-time. The site covers an area of about 6 700ha, of which its facilities cover a total area of about 250ha. The facility could serve the equivalent of about 21 000 households and offset 230 000t/y of carbon emissions. ACWA Power is aiming to expand its Southern African portfolio to 5 000MW by 2025.

Small hydro The Orange River has been useful to farmers for decades. They have grown their crops along its

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NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE Upington Special Economic Zone (SEZ)

banks, using its water and fertile soil to produce citrus, grapes and other cash crops. But in modern times, the river’s use has been extended beyond the agricultural sector and into green industries. Electrical engineers are now using its waters to generate and supply electricity. The Neusberg Hydro Electric Power Project is run by Kakamas Hydro Electric Power (Pty) Ltd (KHEP), a consortium comprising HydroSA, Hydro Tasmania, Old Mutual and the Kakamas Community Trust. The project makes use of the river’s kinetic energy to generate 10 megawatts of electricity. The project is a run-of-river design that is constructed at the existing Neusberg Weir, which feeds water to the Neusberg Power Plant. Neusberg is the first run-ofriver small hydro to achieve commercial operation. It has been feeding onto the local grid since January 2015, stabilising electricity supply around the town of Kakamas.

Rietfontein

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The Northern Cape has been earmarked as a manufacturing zone for solar components. Currently solar panels are imported. A good opportunity exists to increase local content and the creation of a Northern Cape Special Economic Zone (at Upington) will promote this goal, while also providing opportunities for companies with business interests outside of the solar industry. With a large number of solar projects already under way in the province, stated interest from several investors, and sufficiently high solar radiation intensity to support such investment, the prospects are good. In the budget speech of the South African Department of Energy in May 2016, Minister Tina Joemat-Peterson, officially announced the procurement of the Northern Cape Solar Parks Programme. Studies and some planning has already been done continued on page 20

Van Zylsrus

John Taolo Gaetsewe

Askham

Kuruman

ZF Mgcawu Sishen Upington

Alexander Bay

Port Nolloth

Vioolsdrif

Onseepkans Augrabies

Steinkopf

Pofadder

Marydale

Douglas

Van Wyksvlei

Brandvlei

1 2

Vosburg

Williston

Calvinia

Namakwa

Loxton

Petrusville

De Aar

Pixley Ka Seme

Nieuwoudtville

KIMBERLEY

Ritchie

Britstown

Carnarvon

Loeriesfontein

Frances Baard

Hopetown

Prieska

Strydenburg

Kamieskroon Garies

Campbell Groblershoop

Kenhardt

Nababeep Okiep Kleinsee Springbok Hondeklipbaai

Postmasburg

Keimoes Kakamas

5 4

Hanover

Victoria West

Richmond

6

Fraserburg

Three Sisters

Sutherland

Noupoort

5

6

Wind energy projects in the Northern Cape (existing and scheduled).

NORTHERN CAPE BUSINESS 2016/17

3

1 2 3 4

18

Khobab Wind Farm Loeriesfontein Wind Noupoort Wind Longyuan Mulilo Green Energy De Aar 2 Wind Energy Facility Longyuan Mulilo De Aar Maanhaarberg Wind Energy Facility Nobelsfontein Phase 1


Global Africa Network Promoting business, trade and investment in SA’s nine provinces www.gan.co.za www.southafricanbusiness.co.za www.easterncapebusiness.co.za www.freestatebusiness.co.za www.gautengcompanies.co.za www.kwazulunatalbusiness.co.za www.limpopobusiness.co.za www.mpumalangabusiness.co.za www.northerncapebusiness.co.za www.northwestbusiness.co.za www.westerncapebusiness.co.za Tel Email Web

021 657 6200 sales@gan.co.za www.gan.co.za


SPECIAL FEATURE continued from page 18 on this, but the cabinet go-ahead is significant in that it equates to another round in the REIPPP. The IPP office in the DoE has called for expression of interest from the private sector (for this and a 600MW gas plant at one of South Africa’s ports) to be a strategic partner to the relevant state-owned companies. No precise figure was given as a target for the amount of MW to be allocated to the solar part of the procurement, perhaps Indicating the ambition of the project. The planned Upington Solar Park is the sort of infrastructure that should reduce the cost of solar TYPE

NAME

power due to economies of scale and create an opportunity for localisation. Private sector investors will be persuaded to operate IPP plants within the park. Feasibility plans are being drawn up by Eskom to investigate the potential of building a massive solar park that will generate an eighth of the county’s electricity needs – 5 000MW – near Upington. Sixteen square kilometres of land has been identified and Eskom is looking for private partners. The park, which will cost more than R150-billion, will generate 1 000MW in its first phase.

NEAREST TOWN DISTRICT

COMPANY Mainstream Renewable Power including Globeleq and others

Solar PV

Droogfontein

Kimberley

CSP

KaXu Solar One

Pofadder

Namakwa

Abengoa

STE CSP

Khi Solar One*

Upington

Namakwa

Abengoa

50

Solar PV

Upington Solar PV Upington

Namakwa

Enel Green Power

8.9

Solar PV

Konkoonsies Solar Pofadder

Namakwa

Limarco 77

9.7

Solar PV

De Aar 1

De Aar

Pixley ka Seme

Solar Capital

85

Solar PV

De Aar 3*

De Aar

Pixley ka Seme

Solar Capital

90

Solar PV

De Aar Solar Power

De Aar

Pixley ka Seme

Mainstream Renewable Power including Globeleq and others

50

Solar PV

Herbert PV Power Plant

Pixley ka Seme

AE-AMD Independent Power Producer

Douglas

Frances Baard

MW 50 100

19.9

Solar PV

Greefspan

Douglas

Pixley ka Seme

AE-AMD

Solar PV

Kalkbult

De Aar

Pixley ka Seme

Scatec Solar

72.5

Solar PV

Linde

Ha nover

Pixley ka Seme

Scatec Solar

36.8

Solar PV

Mulilo

Prieska

Pixley ka Seme

Gestamp Mulilo Consortium

19.9

Wind

Noblesfontein

Victoria West

Pixley ka Seme

Gestamp & Shanduka

72.8

Solar PV

Sishen Solar Facility

Sishen

ZF Mgcawu

Acciona Energy

74

CSP

Bokspoort*

Groblershoop

ZF Mgcawu

ACWA

50

Solar PV

Lesedi Power Company

Postmasburg

ZF Mgcawu

Cobra, Gransolar and Kensani

64

Solar PV

Jasper

Postmasburg

ZF Mgcawu

Solar Reserve

75

Solar PV

Kathu

Kathu

ZF Mgcawu

Lokian Trading & Investments

75

Solar PV

Mulilo-Sonnedix Prieska Plant

Prieska

Pixley ka Seme

Mulilo-Sonnedix

75

CSP

Kathu Solar Park

Kathu

ZF Mgcawu

Engie consortium

100

CSP

Redstone Thermal Power

Postmasburg

ZF Mgcawu

ACWA Power

100

renewable energy projects in the Northern Cape * SOLAR FARMS APPROVED IN FIRST THREE BIDDING ROUNDS, PLUS SELECTED ROUND 4 PROJECTS

NORTHERN CAPE BUSINESS 2016/17

20

10


Mainstream Renewable Power Mainstream Renewable Power (Mainstream) has been successful in securing a number of South African renewable energy projects.

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ainstream South Africa is a leading developer of wind and solar PV projects employing more than 45 people in its Cape Town and Johannesburg offices. Since the South African Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was launched in August 2011, Mainstream has been awarded 848 megawatts (MW) of wind and solar projects–more than any other project developer. Mainstream designs, develops, builds and operates the wind and solar PV projects and its strategy is to work as a consortium to submit bids. It has worked in partnership with organisations such as Absa Capital, Globeleq, Thebe Investment Company and Siemens Energy South Africa.

Northern Cape projects Mainstream was awarded three projects during the first window of REIPPPP, two of which are in the Northern Cape. These are the Droogfontein and De Aar solar PV projects, which are operated by Globeleq SAMS. Droogfontein Solar Power: Situated 20km outside the provincial capital, Kimberley, the plant occupies approximately 100 hectares of land and generates 85 458MWh per year. De Aar Solar Power: Located 6km outside the town of De Aar, the project expands over 100 hectares of Emthanjeni Municipality-owned land. This project generates 85 458MWh per year, supplying enough clean, renewable energy to power 19 000 homes. In recognition of the success of the initial programme, the government launched subsequent bidding rounds and in 2013 a Mainstream-led consortium won preferred bidder status to deliver 360 megawatts of wind energy projects. These are the Khobab, Noupoort and Loeriesfontein wind farms. Noupoort Wind Farm: This farm is in the Umsobomvu Municipal area, 10km east of Noupoort, and is designed to generate approximately 304 800MWh of clean energy at full capacity. The site

21

was scheduled for completion in mid-2016. Loeriesfontein Wind Farm: Situated in the Hantam Municipality 60km north of Loeriesfontein, the farm will have 61 99m-high wind turbines erected on 3 453 hectares of agricultural land. The farm will be operational by late 2017. Khobab Wind Farm: Also located north of Loeriesfontein, when operating at full capacity Khobab will generate approximately 563 500MWh of clean renewable energy per year. In June 2015, Mainstream was awarded a further two wind farms, one of which is in the Northern Cape (Kangnas). Kangnas Wind Farm: The 140MW farm is located outside Springbok in the Nama Khoi Municipality and construction on the site was scheduled to begin in the latter half of 2016 or early in 2017. www.mainstreamrp.co.za NORTHERN CAPE BUSINESS 2016/17


Upington Special Economic Zone

Upington Special Economic Zone

Follow industrial opportunity all the way to the heart of the Green Kalahari. The Special Economic Zone in Upington offers more than 400ha of prime land adjacent to the Upington International Airport. As such, it is ideally placed for being a launchpad into Africa and the rest of the world. Supported by the Northern Cape government and our valued project partner in establishing the special economic zone, the Airports Company of South Africa (ACSA), we invite all interested investors to consider doing business with the Upington Special Economic Zone.

What is a Special Economic Zone? A Special Economic Zone (SEZ) is a geographic area of a country or region designated for targeted (strategic) economic activities, which are supported through special measures. The Special Economic Zones programme is a relatively new South African Government tool for accelerating industrial development. By building the required infrastructure and ensuring coordinated planning among government agencies and the private sector, industrial agglomeration is encouraged in priority regions.


The Opportunity The SEZ is currently being promoted by the Northern Cape Economic Development, Trade and Investment promotion Agency (NCEDA) and ACSA to investors as an opportunity for the following: •

Solar-component manufacturing and maintenance

A solar park with a potential 23mVA to operate the SEZ off the ESKOM grid

Aeronautical industry projects

Agro-processing (processing and packaging of agricultural goods as well processing of raw materials with medicinal properties)

Mining equipment manufacturing and assembly

High-value micro-technology production, e.g. solar, electronic, robotic, astronomy and programming

An incubator for businesses in the micro-technology sector

Solar- and astronomy-related logistics, assembly and warehousing

“One-stop shop” support services to prospective and existing clients in the SEZ

Planning for the SEZ incorporates a proposed manufacturing and industrial area incorporating: •

Heavy industry

Medium industry

Light industry

PV solar farm


Why Upington? Upington is situated in the ZF McGawu district and is wedged between Namibia and Botswana. The district is a popular tourist destination and is blessed with excellent weather with long sunny days. It is also famous for producing export-quality grapes, citrus, dates and other fruits. The district and town has a well-developed economy and an active business community, which is well-supported by government and parastatals. Upington also boasts an international airport with the longest runway in the southern hemisphere. •

The Northern Cape has, in recent years, already benefitted from extensive investment from the renewable energy sector with numerous solar plants and wind farms established within the province or close to its borders. Upington’s location is particularly relevant to the solar corridor. As part of the sectoral intervention programme for Green Industries (a component of national government’s Industrial Policy Action Plan 2), government intends revising the local content requirements for the Renewable Energy Independent Power Producer Programme (REIPPP). The local content threshold is likely to increase, making local manufacture of components an attractive proposition. A Renewable Energy Centre of Excellence has been established in Upington and it enjoys the support of key stakeholders including the Energy and Water SETA (EWSETA), Department of Energy, Eskom, SANEDI and others. The site earmarked for the SEZ, which is in excess of 400ha, is adjacent to collector roads, an existing industrial area and the airport. Upington is serviced through a comprehensive road network and good rail infrastructure in addition to the airport and the location is highly suitable for its intended purpose. Furthermore, Upington is located in fairly close proximity to raw materials that could be used to support an integrated solar PV manufacturing facility. There is already policy and political support for the establishment of the SEZ on that site. Thousands of jobs will be created in renewable energy activities alone, making it a welcome development in an area with limited employment opportunities. A number of prospective investors have already expressed an intention to use the proposed SEZ for project office accommodation and first-line maintenance.


The Upington SEZ An application has been submitted to the Department of Trade and Industry (the dti) for the issuing of a licence to operate an SEZ in the Upington area. It is intended that activities related to solar energy and other forms of renewable energy, specifically relevant component manufacture, will form the core of the economic activity undertaken within the zone. Furthermore, skills training facilities situated within the SEZ will equip technicians and artisans to install solar-powered systems anywhere in the country. The SEZ is being developed with ACSA as a project partner. This opens up a vast number of opportunities to benefit from the proximity of an international airport.

Location Land adjacent to an existing industrial area north of Upington, one of the largest cities in the Northern Cape, has been earmarked for the Upington SEZ.

Upington Special Economic Zone

Upington


Incentives for Investment in an SEZ Companies that intend investing in the Upington SEZ could potentially benefit from the following incentives offered by the dti: •

15% corporate tax

Building allowance

An employment Incentive

Customs-controlled area

12i tax allowance

The South African government has also introduced a number of demand-side support mechanisms aimed at encouraging businesses to become more energy-efficient. These include: •

Environmental tax breaks and tax allowances (SARS)

Environmental and competitiveness improvement incentives (the dti)

Demand-side management incentives (Eskom)

Investment incentives and grants (the dti)

Subsidised interest rates (from the IDC)

Depending on the nature of the investor proposal, additional incentives may be negotiated with the Northern Cape provincial government and local municipalities.

Willem Engelbrecht Project Executive Mobile: 078 393 6988 Office: 054 333 1137 Email: wjbengel@gmail.com

Contact details Upington Special Economic Zone

Elreeve Titus Project Officer Office: 054 333 1137 Mobile: 073 957 5825 Email: tituste@gmail.com


Upington International Airport Airports Company South Africa is developing a world-class aircraft storage facility in Upington that has the potential to catalyse the establishment of a skilled industry associated with South Africa and, in particular, Upington.

International Airport is host to a recently completed and commissioned 10MW solar PV installation that is spread over 20hectares of land. The power generated from the panels feeds into the Eskom grid.

Upington International Airport’s close proximity to Sub-Saharan Africa and its 4.9 km long runway ensures that the airport and the surrounding area is set to become a valuable business and cargo hub. The area’s arid climate is ideal for aircraft storage and maintenance, as this results in decelerated corrosion and deterioration.

In addition to this, the airport has an area of 55 hectares dedicated to the operation of an aviation park that will facilitate the storage and maintenance of aircraft. The airport also has 30 hectares of land zoned for commercial development.

Property development opportunities will focus on land development for logistics services and will benefit from the tax benefits and incentives afforded to the Upington Solar Special Economic Zone (SEZ). The Upington SEZ concentrates on renewable energy developments and the Upington

Airports Company South Africa’s contemplated storage facility could also lend itself to various ancillary concepts, namely: • Aircraft modification/reconfiguration • Aircraft demolition and part-out • Light aviation parts manufacturing and warehousing • Ground support equipment (GSE) repair

Contact details Airport address: Private Bag X5936 Upington 8800 Elsie Rateiwa: +27 11 723 1445, Elsie.Rateiwa@airports.co.za Haroon Jeena: +27 11 723 1440, Haroon.Jeena@airports.co.za Website: www.airports.co.za


SPECIAL FEATURE

Square Kilometre Array Radio Telescope A multi-billion-rand international astronomy project is unfolding in the Karoo desert.

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ny investor thinking of starting an outdoor drive-in movie theatre should stay away from the Northern Cape – this is star country and a large part of the province has been declared an Astronomy Reserve. This means that there are tight restrictions on how much light can be emitted, as the aim is to achieve a Dark Sky, or optimal conditions for star-gazing. South Africa is one of only three countries to have passed legislation to create an Astronomy Reserve and this helped to persuade the international decision-makers that South Africa should be the host (along with Australia) of the Square Kilometre Array NORTHERN CAPE BUSINESS 2016/17

(SKA) radio telescope, the single biggest measuring instrument ever created. The cost limit for Phase One of SKA has been set at â‚Ź650-million, or approximately R11-billion. The town of Sutherland already hosts an array of telescopes that have a long history of providing scientists with excellent data. Carnarvon, 245km away to the north-east through the flat and dry Karoo, is now the focus of an international effort to take radio telescopy to a new level. South Africa is sharing the hosting of the Square Kilometre Array radio telescope project with Australia, and it has a number of African partners.

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SPECIAL FEATURE There are 17 countries partnering on the project, with the headquarters in Manchester, England. In Africa, a total of eight countries will host SKA antennae, including Kenya, Mozambique, Namibia and Zambia. There are physical limits to how big a normal single dish can be on the ground. However, if several receiving dishes are linked by radio, then the size of the dish becomes the distance between the various radio points, thus expanding enormously the capability to receive information. With receiving antenna in several parts of Africa and Australia, that’s a mighty big ‘dish’. As part of the process of preparing for the SKA, South Africa has been rolling out its own programme (MeerKAT) that will have 64 receptors once it is fully operational in April 2017. Half of them were scheduled to be working by July 2016. The notion is popular: international astronomers have already prebooked the first five years of MeerKAT observations! The name comes from the decision to increase the Karoo Astronomy Telescope from 20 telescopes to 64, thus meer (Afrikaans for ‘more’). The fact that this is also the name of a Karoo-based mammal famous for its curiosity fits very nicely! Sectors in the Northern Cape to benefit include tourism and hospitality. Experts in construction and engineering have responded to the project and a number of local firms have become involved through the provision of at least 75% of the components. Efficient Engineering, with facilities in Gauteng and the Western Cape, is responsible for the MeerKAT antennas, including the rotating yokes. Other local suppliers include Tricom Structures (back-up structure) and Titanus Slew Rings (azimuth bearings). Stratosat Datacom (Pty) Ltd is the leader of a technology consortium including international partners General Dynamics Satcom (GDSatcom, USA) and Vertex Antennentechnik (Germany). In 2015, the MeerKAT radio telescope won the Steel Award of the Southern African Institute of Steel Construction (SAISC) for the design and construction of the antenna. To ensure that local contractors have access to some of the work, the Kareeberg and Karoohoogland Contractors’ Forum was established in 2014. Ten

local contractors are receiving training in how to prepare to tender for projects, with a particular focus on the 80km road that links the town of Carnarvon to the SKA site. Sutherland has not been left out of the radio telescopy revolution. A joint venture between South Africa and the University of Radboud (Nijmegen) will see a new telescope built specifically to observe the same things that SKA is looking at, thus giving a simultaneous optical view on the radio observations. The new ‘MeerLicht’ telescope (‘more light’ in Dutch) will cost about half-a-million Euros and is separate from the SKA project.

Educational benefits The province’s new university in Kimberley, the Sol Plaatje University, has committed to offering courses in future, which will prepare students to take up employment at the SKA project. Three South African universities (University of Cape Town, University of the Western Cape and North West University) are cooperating to operate the Inter-University Institute for Data Intensive Astronomy. The Minister of Science and Technology, Naledi Pandor, told a conference in 2016 that the department’s Africa Human Capital Development Programme had been training people for a decade, with 700 people studying at every level from undergraduate to doctoral. Among the recipients of this training are 91 students from partner African countries (and a further 34 from other African countries). Forty Karoo students have received bursaries to study at Technical Vocational Education and Training colleges in the Northern Cape. There are currently five bursary holders employed at the support bases for the project at Losberg and Klerefontein. In 2016, 10 TVET bursaries and 15 BTech and National Diploma bursaries were awarded. The SKA has made a big impact on performances in the classroom in Carnarvon as well: five children who achieved good marks in maths and science have been awarded university bursaries to study those subjects.

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NORTHERN CAPE BUSINESS 2016/17


Square Kilometre Array South Africa invests in the Northern Cape

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he Square Kilometre Array South Africa (SKA SA) project has invested heavily in the Northern Cape province, from upgrading knowledge centres to creating jobs and providing deserving students with much-needed academic funding. SKA SA has five focus areas: investing in the youth, developing small to medium enterprises (SMEs), supporting community upliftment programmes, nurturing learners’ talent; and ensuring that communication connectivity is not compromised. With its partners, SKA SA has contributed towards social and

technological development in areas such as Carnarvon, Vosburg, Williston, Van Wyksvlei and Brandvlei. SKA SA and NMC Civils have partnered with Absa in an enterprise and supply chain initiative to develop small and medium enterprises (SMEs) in the Northern Cape through the SKA programme. This exciting programme will enable qualifying SMEs to obtain funding from Absa so that they can provide services and goods to NMC Civils in respect of the 80 kilometre stretch of the provincial road between Carnarvon in the Northern Cape and the SKA SA Losberg construction site, which NMC Civils has been contracted to build.

Empowering our youth Not only does SKA SA support the development of the youth from school level, we also appointed four young people from Carnarvon as permanent employees after they have completed their training in optic fibre technology. Another group of SKA SA artisans hailing from Carnarvon and surrounds, have qualified or will soon qualify in fields emanating from bursaries provided by SKA SA, such as fitting and turning, electrical work, diesel mechanics and instrumentation and control.


Contact us: SKA SA, 3rd Floor, The Park, Park Road, Pinelands, Cape Town, 7405, Tel: +27 (0) 21 506-7300


SPECIAL FEATURE

Firing for fastest The Bloodhound project which aims to break a land speed record could spell opportunity for Northern Cape entrepreneurs.

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The need for speed is stronger in some people than in others, but there is something about a project that wants to get a car going at 1 000 miles per hour that will stir anyone’s imagination. That is the ultimate goal of the team behind the Bloodhound project, after they have broken the world land-speed record, which currently stands at 1 227 miles per hour. The rocket engine designed to carry out this task should be able to reach the magical thousand m/h mark (about 1600km/h), but the land-speed record is what comes first. Great care has been given to choosing the site. A thorough worldwide search was conducted using Space Shuttle radar data and satellite imagery to find the perfect site. Hakskeenpan is 200km north of the Northern Cape’s second-biggest town, Upington, and about 400km north of Verneukpan, the site of the 1929 attempt to break the record by British daredevil Captain (later Sir) Malcolm Campbell. Hakskeenpan is ideally suited to the bid by the Bloodhound SuperSonic car to set a new land-speed record. Criteria included being long enough (at least 16km), flat enough and firm enough to support 6.5 tons of motor car. Wing Commander Andy Green is the current holder of NORTHERN CAPE BUSINESS 2016/17

the world record but he intends setting a new one in the Northern Cape. Assisting the Bloodhound team in preparing the site for the record was a team of previously unemployed people in Loubos and Rietfontein. To date they have removed 16 000 tons of stones to create a surface as flat and as safe as possible. This work was done as part of the Extended Public Works Programme (EPWP) and employed 315 workers who received the necessary equipment to do the work along with the appropriate clothing, including widerimmed hats. Open pans in this part of the world can get very hot. The 450kg rocket that will fire the vehicle is going to be generating a lot of its own heat. The car will be fitted with two jet engines and have power equivalent to the power of 180 Formula One motor cars. Final testing will happen at the project’s base in Bristol in the United Kingdom during 2016 or early 2017, with the hope that conditions will allow for the attempt on the record to take place six months after the conclusion of those final tests. The complicated process of importing several jet engines and large teams of specialists is further complicated by ground and weather conditions which may change at any time: presumably the drought currently affect-

32


SPECIAL FEATURE

ing the area at least provides some stability for the planning process. The site has been divided into Trackside (to be controlled by the Bloodhound Project) and Landside (the Provincial Government of the Northern Cape), and the logistical challenges are quite considerable. Flying movements over the area are going to be suspended for the duration of the land-speed record attempt, with aeroplanes being diverted to the airport at Upington or the airstrip at Rietfontein. The advance Bloodhound team were due to take possession of the Trackside in middle 2016 in order to build a technical camp near the R31 road. Organisation on the Landside is going to be demanding and complex: provincial government may either appoint an event management company or parcel up the opportunities into smaller bundles. Regardless of their approach, there remains a significant amount of work to be done. According to the Bloodhound website, the list of priorities that still have to be attended to include: accommodation; campsite area; RV parking and hook-up area; toilets, ablutions; waste management; emergency services (fire, medical, police). The nearest general hospital is in Upington; public viewing area on landside aligned with the measured mile; catering; local merchandising; transportation services between Hakskeenpan, Upington and Rietfontein airstrip; entertainments for non-run days such as safari outings, astronomy classes, concerts; and potable drinking water. This is a long and complicated list, but it could present good opportunities for willing and able

entrepreneurs. The huge technical team that will descend on the Northern Cape to support the project will themselves boost the accommodation, food and beverage, and business support and engineering sectors. Television images of the unspoilt beauty of the Northern Cape will massively boost the efforts of the tourism authority to market the province’s assets. MTN has erected five 70m mobile phone towers in the area, which will enable three video feeds and 300 data channels to bring the record attempt to the global community. A specific legacy that the Bloodhound project will leave behind is the provision of water to a very dry area, which is home to about 10 000 people in the municipality of Mier. Rietfontein, the biggest of nine towns, is about 280km north-west of Upington. The !Khomani San community live in the borders of Mier. The existing Kalahari East water pipeline is being extended in two phases, which will eventually extend to Rietfontein and Philanderbron. GWI Consulting is one of the firms involved in the project. Askham, Big Ant and Noeniput are among the other settlements that will receive piped water. The Northern Cape Provincial Government is also including 50 schools in the Bloodhound project, creating many opportunities for learning about science, mathematics, engineering and technology. The schools chosen include the province’s 17 Dinaledi schools, which already specialise in mathematics and science. Back in Britain, the project is linked to STEM schools (Science, Technology and Mathematics Schools).

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NORTHERN CAPE BUSINESS 2016/17


SPECIAL FEATURE

Deep sea port for West Coast Harbour plans will boost the provincial economy.

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narrow-gauge railway used to run between Okiep and Port Nolloth, but neither town features strongly in any analysis of the regional economy today. However, there was a time when Okiep was a major copper exporter, and Port Nolloth the important port was where trans-shipment happened. If the plans of the Northern Cape Provincial Government come to fruition, however, Port Nolloth will once again be a major harbour – and the economy of Namaqualand will blossom once again. The far western edge of the South African landmass is not for the faint-hearted (the old railway sometimes had to be pulled by mules because there was not always enough water to power the steam trains) but natural resources such as copper and diamonds drew investors to the area in the past, and now there is a chance that the huge gas fields in the ocean and a seaward economic focus will revitalise the west coast economy. Preparations are underway: both a pre-feasibility study and a follow-up Gap Analysis have been done, and the plans have been registered with the Provincial and National Treasuries. A bankable NORTHERN CAPE BUSINESS 2016/17

feasibility study remains to be done, but there is obviously some serious thinking behind the project. Port Nolloth itself is today a small fishing harbour and the studies have shown that better potential exists at nearby Boegoe Baai to develop deep-sea facilities. The plan would incorporate both areas. Preliminary research indicates that the project could generate income of R2.1-billion annually by handling bulk cargoes and minerals such as manganese and iron ore. There would be possibilities for linking the port to the gas fields and developing ship-repair facilities. The opportunity exists for a private investor or a consortium to take the project forward.

Oceans Economy The Northern Cape’s plans are not happening in a vacuum. A national plan to focus on what is called the Oceans Economy has recently been launched, and three Northern Cape harbours feature in the list of harbours that need attention: Port Nolloth, Boegoe Baai and Hondeklip Bay. The last-named

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SPECIAL FEATURE Operation Phakisa is working on 18 initiatives across three categories to boost this sector. The categories are infrastructure and operations, market growth and “capacity-building” (training). The Port Nolloth/Boegoe Baai project would be a good example of the first category. Under training, Technical Vocational Education and Training colleges would be responsible for developing skills in the maritime sector. The Phakisa planners envisage 2 550 TVET students working on 18-month workplace programmes in scarce and critical trades over a fiveyear period. If the Port Nolloth/Boegoe Baai harbour becomes a reality, then some of the six sites of the Northern Cape’s two TVET colleges (and perhaps the new Sol Plaatje University in Kimberley) would be asked to offer relevant progammes. If the harbour project gets the green light, then accompanying infrastructure will follow. The best route to connect to Upington will be the subject of further studies, as will the feasibility of a new rail link. In announcing that the deep-sea harbour project was ‘progressing well’ in her 2016 State of the Province address, Premier Sylvia Lucas referred to “aligning infrastructure to freight type and ensuring that network connectivity links complementary ports with inland connections”. Logistics comprises a complicated set of interlocking networks that requires careful planning. The preliminary studies suggest that it would cost about R2.4-billion for the first phase of the seaside construction, with a further R800-million needed on the landside. There is an expectation that volumes through the harbour could be 20-million tons (for bulk commodities like manganese and iron ore) and 6.3-million tons of break-bulk cargo. The construction requirements of a project this size would themselves be a boost to the economy of the Northern Cape. The harbour project has the potential to be transformative.

harbour has already received investment in the aquaculture sector. According to documents related to Operation Phakisa (the national government’s strategy to unlock value from the Oceans Economy), the untapped potential that passes South Africa’s coast is immense. This includes: • The fact that South Africa only does maintenance on 5% of the 13 000 vessels that use SA ports. • That South Africa is currently only servicing 4-5% of the 80 rigs close to Cape Town. Cape Town recently did a R1-billion job on a rig and about 130 rigs pass along the coast each year. • Vessels carry 1.2-million tons of liquid fuel around South Africa. • Foreign vessels ship 300-million tons of cargo in and out of South African ports. The coast controlled by South Africa and adjacent waters have ‘possible resources’ of oil that could supply the country’s needs for 40 years, and natural gas that could supply the country’s needs for 375 years. This has the potential to lead to production of 370 000 barrels per day, but this could not happen without significant investment. At first glance, oil and gas are the most lucrative sectors, but ship and rig repair and supply might be the sectors where the best returns could be made in the short term, without huge outlays. As things stand at the moment, South Africa accounts for 1% of the global market of ship repair and refurbishment.

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FOCUS

Making the things that really matter with businesses and communities happen Kevin De Beer, Nedbank Regional General Manager, Branch Networks, explains how Nedbank works with communities to deliver banking solutions.

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edbank continues to build on its client-centred strategy aimed at delivering distinctive experiences and channels of choice. This has seen the bank simplify and enhance its product offering in line with its great value banking philosophy, based on simplicity, transparency and affordability. Innovation and technological advancements as well as training and development of staff have been key pillars in achieving the bank’s objectives. Nedbank has also placed greater emphasis on client engagement to better understand the diverse and individual client needs across its personal and business banking base. “Innovation is an integral component of a holistic approach that encompasses our systems and processes and which is an enabler in delivering distinctive client experiences. Despite the tough economic environment, Retail and Business Banking have delivered value to our shareholders while significantly improving our client experience. Through these milestones, we are well geared to weather the persisting macroeconomic environment, and highly competitive business conditions,” says Kevin De Beer: Nedbank Regional General Manager, Branch Networks. Since 2012, Nedbank has launched several first-to-market innovations such as the award-winning Nedbank App Suite™, Home Loans Online Digital Channel and Market Edge, as well as the “Branch of the Future” concept in communities locally and nationally. “Working with communities is entrenched in our values through community development, skills development, education and job creation as well as environmental conservation. These play a vital role in building a sustainable economy and vibrant society. We believe our fast-growing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,” concludes De Beer. The bank has also invested in innovative alternative distribution outlets through its strategic partnership with Pick n Pay and Boxer Stores. These partnerships, which span over 15 years, enable communities to gain access to financial services every day of the week, including Sundays and public holidays. NORTHERN CAPE BUSINESS 2016/17

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Kevin De Beer, Nedbank Regional General Manager, Branch Networks Nedbank also leverages its strong market positioning with businesses and the public sector, encouraging them to bank their employees through its innovative Nedbank@Work employee banking offering. This forms part of Nedbank’s Banking and Beyond™ philosophy and is aimed at supporting business owners to make informed decisions so that they can grow and take their businesses to the next level. This is another way Nedbank continues to make the things that really matter with businesses and communities happen. For more information contact +27 51 400 5813 or visit www.nedbank.co.za.


FOCUS

Making it easier to do business Jordaan Roelofse, Nedbank Regional Business Head, Northern Cape and Free State, explains how they are making the bank relevant to business owners.

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reat news for Northern Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has eight business managers located across the Northern Cape specialising in commercial and agricultural industries. They are ready to assist you with professional advice, industry-specific solutions and a comprehensive range of financial products and services. “At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but can also provide you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to youthe running of your business,” says Jordaan Roelofse, Nedbank Business Banking’s Regional Business Head for the Northern Cape and Free State regions. At the core of the bank’s offering is a relationship-based model, with a business manager dedicated to your business as the key entry point into the bank. Each business manager is supported by a team –comprising a credit manager, credit analyst and services manager –which has a thorough understanding of the regional economy and business market, and a genuine interest in the success of each individual business. “When you do business with us, you are speaking to people who know the area, understand its nuances and are familiar with the various industries operating here,” explains Roelofse. An additional benefit of banking with Nedbank Business Banking is that your business and your personal financial needs can be managed in one place. “Because very often business owners and their businesses are financially dependent on each other, our client service teams now also offer individual banking solutions, better advice and a hassle-free service to you and your staff as we already know and understand your needs,” explains Roelofse. With this in mind, Nedbank has recently introduced Nedbank@ Work–a unique service to employees of companies who bank with Nedbank. The service facilitates convenient banking at the workplace through bankers or consultants on site, in the branch or via our call

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Jordaan Roelofse, Nedbank Regional Business Head, Northern Cape and Free State centre and internet channels. In addition, Nedbank@Work offers non-financial support to you and your employees free of charge, including financial fitness training to employees at all levels through customised education programmes. For more information about our specialised service offering please call Jordaan Roelofse on +27 51 400 5700.

NORTHERN CAPE BUSINESS 2016/17


FOCUS

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

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ecognising that small businesses are the mainstay of our economy and arguably the best remedy for the country’s unemployment challenges, the bank has, over the years, instituted various interventions aimed at giving support to the small business sector. Over and above our Small Business Services solutions, we provide small business owners with support that goes beyond banking, freeing up their time to truly focus on running their businesses,” says Kim Lawrence, Regional Manager Small Business Services. Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Small Business Friday, free Small Business Seminars and the SimplyBiz.co.za platform – all of which are geared to support the SME sector. As an example, the Small Business Friday initiative, in association with the National Small Business Chamber (NSBC), seeks to encourage all in South Africa to rally behind and show their support to small businesses. Notwithstanding its name, the initiative calls on all in South Africa to make a conscious decision to vote small business through their hearts, feet and wallets; not only on Fridays but in their everyday lives. Supporting small businesses can translate to more sustainable economic growth, social upliftment and job creation. The biannual Nedbank Small Business Seminars (in their tenth year), are free for attendants and provide practical advice and solutions for small business owners. The inspired up-and-coming and emerging entrepreneurs that attend the seminars benefit from invaluable insight shared by small business experts. The seminars are rolled out across the country and the topics include issues such as cash-flow planning that works and turning strengths and weaknesses into more sales and profits. SimplyBiz.co za is a free-to-join value networking portal especially for small businesses. It seeks to assist small business owners facing unique challenges with valuable insights from other entrepreneurs and our seminars. Moreover, the online portal is there for small businesses to improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas NORTHERN CAPE BUSINESS 2016/17

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Kim Lawrence, Regional Manager Small Business Services or advice. Entrepreneurs can also upload their business details and logo at no cost. Nedbank remains focused on the enhancement of growth opportunities for small businesses through improved presence and distribution of much-needed expertise that will benefit the sector. It continues to offer a full range of services to this sector, including short-term, medium-term and long-term funding as well as transactional banking. For more information about our Small Business Services call Kim Lawrence on +27 51 400 5700 or send an email to kiml@nedbank. co.za


FOCUS

Making banking more accessible Nedbank’s partnership with government is gaining momentum according to Regional Relationship Manager Liezel Herbst.

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s a bank for all, Nedbank continues to support the government’s efforts to promote sustainable socioeconomic development through financial wellness in the public sector. These efforts take place at local, provincial and government level. Nedbank has signed a memorandum of understanding with the Department of Correctional Services (DCS) for the Free State and the Northern Cape, in order to create a platform through which local correctional services offices can access financial solutions and planning for employees and the community at large. “We are pleased to partner with DCS as part of our commitment to make banking more accessible to all. Nedbank provides several communities, including individual and business clients, with access to products and services through Nedbank@Work–a unique service to employees of companies who bank with Nedbank,” says Liezel Herbst, Regional Relationship Manager for Nedbank@Work. The bank offers convenient, client-centric banking by leveraging company and community relationships through a dedicated key account relationship manager. Through customised workshops Nedbank@Work ensures that employees have access to non-financial support and financial-fitness training. The workshops encompass a range of Nedbank financial solutions that can be accessed through a helpdesk, which also provides a platform for individuals and communities to submit their corporate social responsibility proposals for consideration by the Nedbank Foundation. “At Nedbank we understand that in today’s world most people are pressed for time and are not able to visit the branch, therefore delivering banking services in a seamless and convenient manner is key for us,” continues Herbst. Nedbank understands that solutions aimed at the heart of South Africa’s socioeconomic development can be found in collaboration with all key stakeholders. “While we are acutely aware that there are no quick fixes, we believe that addressing social challenges in our country is a collective responsibility and this drives our commitment to partner with government and local departments to make a tangible difference,” concludes Herbst.

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Liezel Herbst, Regional Relationship Manager Our range of products and services include the Nedbank Keyona Plus transactional account, which comprises funeral cover, a personal loan facility, the Just Save Account and the Send Imali money transfer solution. To encourage the youth to save and build their financial fitness from an early age, the newly launched Nedbank4me offering is based on four key pillars: 4spending, 4saving, 4growing and 4good. Nedbank4me comprises a full transactional banking account with no monthly fees, free initial transactions and thereafter reduced pay-as-you-use pricing, free eNotes and self-service banking. For further information contact Liezel Herbst on +27 51 400 5754 or email: liezelh@nedbank.co.za NORTHERN CAPE BUSINESS 2016/17


PROFILE

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

Our heritage in brief

WHY NOCCI?

NOCCI was established on 22 February 2000 when the Chamber of Business and the Kimberley Afrikaanse Sakekamer amalgamated. At the time, these two organisations had served the business community of Kimberley for 120 years.

• NOCCI is an autonomous organisation •

What NOCCI stands for Our purpose is to establish a strong and coherent structure, constituted by businesses in the Northern Cape, to: • Serve the interest of the business community; • Promote the well-being of the whole community through enhancing the role and capacity of businesses; and to • Position Kimberley and the Northern Cape at large as a business destination.

• • •

that is affiliated to national bodies (AHI and SACCI). NOCCI is a professional service organisation which acts on behalf of its members as a facilitating coordinating and representative body. NOCCI is flexible and keeps up with change. NOCCI is member orientated. The organisation provides high-quality dynamic services through its capacity of facilities, organisation, human resources and management.

NOCCI strives to be the representative voice of business in the Northern Cape, and places emphasis on engaging local chambers into the provincial structure. Pictured are NOCCI CEO Sharon Steyn with members of the Prieska Chamber who attended the 2016 NOCCI AGM.

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PROFILE

What NOCCI does

THE NOCCI ACHIEVER AWARDS

• Facilitates the networking of businesses to • • • • • •

• •

strengthen the voice of business. Facilitates communication among business to enhance learning and support through interaction. Influences decision-making and policy in issues that concern business. Contributes to the empowerment of business by providing information and to facilitate training. Influences economic development policy. Identifies and communicates business opportunities. Provides an office structure to support general functions for the provision of service to members. Offers affordable membership fees and easy payment arrangements. Facilitates specialised inputs to address specific business needs.

Lawrie Shuttleworth Awards for Business of the Year and Business Person of the Year

The 2015 winners - Peter and Riaan Steyn from Kimberley Recycling (Business of the Year), and Gary Hepburn from Mohawk Spur (Business Person of the Year).

NOCCI is honoured to recognise leaders in Northern Cape business through the annual Lawrie Shuttleworth Business Achievers Awards. The first winners were announced at the NOCCI AGM in February 2016.

For its members, NOCCI: • • • • •

Creates opportunities for business interaction Shares experience Identifies needs and problems Addresses specific issues concerning business Communicates with decision-makers in the interest of business • Creates training opportunities to empower businesses • Provides general information concerning important issues (new laws) • Provides information relating to business opportunities and services • Communicates with possible investors and connects with existing businesses

These awards originated when NOCCI gave a special recognition to Mr Lawrie Shuttleworth on his 99th birthday in 2013. It was decided to continue these awards annually as the Lawrie Shuttleworth Business Achievers Awards. Criteria include Excellent Service and Corporate Governance. The categories are “Business of the Year” and “Business Person of the Year”, and the public is invited via social and commercial media to nominate businesses and business people in these categories, based on their own experience.

CONTACT INFO

Kimberley Recycling received the inaugural Business of the Year award, while the Business Person of the Year award went to Gary Hepburn of Mohawk Spur in Kimberley. Other finalists were SwiftPrint and Boston City College in the former category, and Bernard Engelbrecht of USB Cellular in Upington in the latter.

Tel: +27 53 831 1081 Email: sharon@nocci.co.za Website: www.nocci.co.za

We invite everyone to support those who strive to make Northern Cape business great by nominating candidates when nominations open.

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KEY SECTORS Overview of the main economic sectors of the Northern Cape. Agriculture

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Wine and grapes

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Aquaculture and mariculture

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Mining

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Engineering

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Transport

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Construction and property development

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Banking and financial services

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Development finance and SMME support

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Tourism

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OVERVIEW

Agriculture The agricultural sector in the Northern Cape has been significantly affected by drought but it remains an important contributor to the economy.

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ccupying 36-million hectares, the Northern Cape is the largest province in the country, almost a third of South Africa’s total land area. Although the province is a predominantly semi-arid region, agriculture is a major component of the economy of the regional economy and the province’s farmers contribute 6.8% to South African agriculture. Approximately 80% of the Northern Cape agricultural land is used for livestock farming including beef cattle and sheep or goats, as well as game farming. The province is also a significant exporter of table grapes and fruit. The production of groundnuts is increasing, with the province forecast to be the largest provincial producer of groundnuts, producing over 45% of the country’s crop in 2016.

Current conditions Nationally the agriculture, forestry and fisheries sector contracted by 12.6% in 2015 largely due to the effects of severe drought, with NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT A drought-monitoring tool incorporating remote sensing and GIS technology has been developed.

the Northern Cape being particularly prone to the effects of climate change. Abattoirs in the Northern Cape have reported very low slaughter volumes for 2015/16. During November and December 2015 alone, the provincial government assisted 257 farmers with R7.7-million worth of


OVERVIEW fodder. Thirty-five Agricultural extension officers have been trained in disaster risk mitigation. Fortunately, an irrigation scheme supports intensive crop cultivation in the Vaalharts region and the fertile banks of the Orange River support agricultural activities. There have, however, been changes in the crops planted, with rapid expansion of pecan nut orchards planted in the Vaalharts area for example. This is an area traditionally known for maize, wheat and groundnut production.

Agricultural products by region Agricultural development takes place along defined corridors within the province. The main agricultural produce of the Northern Cape is as follows: • In the Orange River Valley, especially at Upington, Kakamas and Keimoes, grapes and fruit are cultivated intensively. High-value horticultural products such as table grapes, sultanas and wine grapes, dates, nuts, cotton, fodder, and cereal crops are grown along the Orange River. • W h eat , f r uit , groun d nuts, maize and cotton are grown in the Vaalharts Irrigation Scheme in the vicinity of Hartswater and Jan Kempdorp. • Vegetables and cereal crops are farmed at the confluence of the Vaal River and the Orange River in the vicinity of Douglas.

Wool, mohair, karakul, Karoo lamb, venison, ostrich meat and leather are farmed throughout most of the province. The province is second only to the Eastern Cape in terms of the number of sheep farmed and it is the fourth-largest wool-producing province based on annual sale of producer lots. The karakul-pelt industry is one of the most important in the Gordonia district of Upington.

Agribusiness Given the province’s dry conditions and dependence on irrigation, many Northern Cape farmers are branching out into value-added

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OVERVIEW activities such as game farming. A number of the largest South African agricultural companies are active in the province. Food production and processing for the local and export markets is also on the uptick. This is in response to the call to revitalise the agriculture and agroprocessing value chains. Farmer-owned agribusiness GWK, in April 2016, unveiled its R400million GWK Farm Foods wheat mill, pasta plant and biscuit factory in Modder River in the Northern Cape. The new agro-processing plant boasts a capacity of 25t/h for wheat flour, 1.3 t/h for biscuits and 1t/h for pasta. Infrastructure for the government-supported rooibos extraction and concentrate plant in Nieuwoudtville is complete and the necessary equipment has been procured to allow for the supply of concentrate to the cosmetics, dairy and other markets.

available for development in the ZF Mgcawu District. Onseepkans clearing Work has started in the development of 118ha of land in Onseepkans. Invasive plants are being cleared so that 40ha of vineyards can be planted. The scope of the full project is the development of 3 200ha of high potential arable land in the Namakwa District. Vaalharts Revitalisation Programme Revitalisation is ongoing and to date, 462ha of irrigation land has been rehabilitated, 19 479m of subsurface drainage has been cleared or installed and two overnight reservoirs have been constructed.

Government-supported programmes Vineyard Development Scheme The province has seven projects to prepare 218ha of land in various stages of vineyard establishment – from soil preparation and construction of trellises to planting of vine cuttings. Many more hectares are

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Kgalagadi Upington- Groblershoop

Vaalharts

KURUMAN HARTSWATER

Pofadder-Springbok

Upington- Kakamas

UPINGTON

KAKAMAS

GROBLERSHOOP

POFADDER AGGENEYS PRIESKA

SPRINGBOK Vioolsdrift-Garies

KIMBERLEY

DOUGLAS

Hopetown-Victoria West

BRANDVLEI

GARIES

Douglas-Prieska-Hopetown

HOPETOWN

DE AAR NIEUWOUDTVILLE

Districts Namakwa

Rooibos tea

ZF Mgcawu

CALVINIA

VICTORIA WEST

SUTHERLAND

Prieska-Britstown

Corridors Hubs

Pixley Ka Seme

Roads

Frances Baard John Taolo Gaetsewe

Perrenial Rivers

Northern Cape Province agriculture development corridors and hubs.

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Legend

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OVERVIEW Emthanjeni and Tshwaraganang Hydroponics The Emthanjeni Hydroponics Project is situated on commonage land. It is about 8km outside De Aar, on route to Philipstown in the Emthanjeni Municipality. The project consists of a 50m x 25m tunnel that produces tomatoes (cherry, plum and cocktail) and a high-tech pack house. Farmer Support and Development The provincial department is helping small-scale farmers increase productivity and allocated R225million to this project in its 2016/17 budget.

Research Research is obviously key to improving the agricultural prospects and outputs for the region. Some of the current priority research projects supported by the Northern Cape Department of Agriculture, Land Reform and Rural Development are: Small stock – in partnership with other stakeholders a viable population of the feral goats of the Tankwa Karoo National Park has been established at Carnarvon. The research has been successful in terms of the cryopreservation of semen. Crop production – various field crops such as cotton, maize, wheat, barley, groundnuts, canola, soybeans and lucerne are being evaluated for optimal cultivars. Drought monitoring – a drought monitoring tool has been developed using remote sensing and GIS technology.

Pest management – research continues into the effect that margarodes and fruit flies are having on grape farming in the lower Orange River region.

ONLINE RESOURCES Agricultural Research Council: www.arc.agric.za Agri SA: www.agrisa.co.za National Department of Agriculture, Forestry and Fisheries: www.daff.gov.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development Trade and Investment Promotion Agency: www.nceda.co.za

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OVERVIEW

Wine and grapes Almost half of the country’s grapes are produced in the Northern Cape.

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est White Wine of the Year—that’s what the judges called Orange River Cellar’s 2015 Colombard when they announced the 2016 winners of the prestigious SAA Wine Awards. The Orange River doesn’t look like the traditional wine country further south, but it is producing ever-increasing volumes of excellent grapes and wines. The river and extensive irrigation create extremely good, controlled conditions for cultivation. Warm to hot conditions, coupled with the nutrient-rich land on the banks of the mighty Orange and sharply contrasting temperatures at times, combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm. Expectations were that the 2016 season would be another good one, with a harvest of upwards of 130 000 tons, according to Orange River Cellars. The South African wine grape crop in 2015 was about 1 502 360 tons, just 1% smaller than the record that was achieved in 2014. Nationally, the most popular wine cultivars are currently Villard blanc and Chenin Blanc, with ‘mainly old unproductive cultivars’ being uprooted: Chenel, Raisin Blanc, Clairette Blanche and older Colombar. The Northern Cape’s Orange River wine region accounts for 25.6% of South NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT Orange River Colombard won top white wine in the SAA Wine Awards. • T he Nor ther n Cape Vineyard Development Scheme has planted 163 hectares.

Africa’s Colombard vines and 10% of Chenin Blanc. The focus is on Colombard and Hanepoot grapes. According to SA Wine Industry Statistics, the Orange River region has about 5% of the total hectares under wine grapes in South Africa, and just over 3% of the


OVERVIEW total number of vines, although new vineyards are being planted. Table grapes are a large part of the province’s agricultural offering, with just less than half the country’s grapes produced in the Northern Cape. About 9% of the province’s population is employed in agriculture. Orange River Wine Cellars is a large co-operative with six wineries. Grapes are collected from 749 farmers along the Orange River for a distance of more than 350km. OWC has a winery at its head office in Upington (where there is also a juice-concentration plant) and at Keimoes, Groblershoop, Kakamas and Grootdrink. ORC supplies wine to the retail group Spar and has been selling wine in China, the USA and Europe for a number of years through its Norweco division. Unique labelling aims to capture local markets, which is why ORC wines are branded and marketed as ‘Star Tree’ in the US and ‘Goddess’ in Denmark. There are plans to add 40 000-tons of grapes for wine, juice and raisins to the Northern Cape’s capacity. A draft six-year plan has been developed for the Northern Cape Vineyard Development Scheme which will be implemented by the Northern Cape Department of Agriculture, Land Reform and Rural Development, the National Agricultural Marketing Council, the Land Bank, Distell, Winetech and Orange River Wine Cellars. In 2016, the Northern Cape government reported that 163 hectares of vineyard have been planted as part of the scheme and

a further 394 hectares will be developed in the ZF Mgcawu District. At Onseepkans, 40 hectares is being cleared of invader plants to make way for vineyards. This is a part of broader plan valued at R1.3-billion to develop good land in the Namakwa District. The Douglas Wine Cellar produces about 6 000 cases per year. Together with the Landzicht cellar (just over the border in the Free State), the Douglas Wine Cellar is a GWK company. The Douglas cellar crushes 7 000 tons of grapes every year and produces 5.6-million litres of wine. Hartswater Wine Cellar is a part of the region’s other big agricultural company, Senwes. Two wine brands (Overvaal and Elements) are produced in the Hartswater irrigation area north of Kimberley.

Table grapes, raisins and sultanas The Northern Cape produces 49% of South Africa’s table grapes, and 70% of the Sultana grapes grown in the Lower Orange River Region are used for vine-fruit products. There are 1 250 Sultana grape growers in the province, and they produce three Sultana-type grapes which rank among the best in the world: the Sultana Clone H5, a new hybrid called Merbein Seedless, which has proved resistant to splitting after rain, and the most popular type, the 143B. The following vine-fruit products are produced in the Northern Cape: Sundried Thompson Seedless Raisins; Dipped Orange River Sultanas; Golden Sultanas; Muscat Raisins; Monuca Raisins. An example of a successful Sultana-grape production operation in the province is SAD Vine Fruit (Pty) Ltd. The Upington-based firm employs more than 350 people when in full production and owns the largest dried-vine fruit processing and packaging plant in South Africa. As much as 80% of vine fruit grown in South Africa is exported, primarily to Europe. The South African Table Grape Industry Partnership promotes South Africa in international markets.

ONLINE RESOURCES Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Orange River Cellars: www.orangeriverwines.com SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za South African Wine and Brandy Company: www.sawb.co.za Wines of South Africa: www.wosa.co.za

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OVERVIEW

Aquaculture and mariculture The Northern Cape is well placed to take advantage of the growing global demand.

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he Northern Cape’s 313km-long coastline carries great economic potential, even beyond the various land- and sea-based mining operations that have been carried on along the coast for many years. The mining industry carved out depressions which are now being converted to pools for the cultivation of abalone and oysters, and old mine pumping equipment is being used to oxygenate water. The bright sunshine and strong winds of Namaqualand provide excellent conditions for mariculture. According to Viking Fishing Aquaculture, South Africa contributes about 2% to the world’s supply of abalone, with 14 farms putting out 1 200 tons every year. This is expected to more than double in the short term. The Northern Cape is well placed to take advantage of growing global demand. The aquaculture consultancy Sustainable Environmental Aquaculture Services (SEAS) helped create an abalone farm at Kleinzee which will produce 200 tons of product per year when it is at full capacity. The Western Cape company Tuna Marine is contracted to buy abalone from the Kleinzee facility, which is owned by Ponahalo Holdings (the empowerment partner of De Beers Consolidated Mining South Africa). NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT The provincial government has committed to supporting small-scale fishers. • Hondeklip Bay has good kelp harvesting.

With food security uppermost in the minds of national and provincial planners, fish farming is increasingly seen as a good option and the provincial government has committed to supporting small-scale fishers. The Premier of the Province, Sylvia Lucas, announced in her 2016 State of the Province Address that a feasibility study for a deep-water harbour


OVERVIEW

has identified a site 70km north of Port Nolloth, Boegoe Baai. If this project is undertaken, it will significantly boost the maritime sector in the Northern Cape. Forty farmers have signed up for a Catfish Project in the Vaalharts area. The scheme lies in the Phokwane Local Municipality, north of Kimberley, which falls under the Frances Baard District Municipality. A joint venture by the national Department of Science and Technology (DST) and HIK Abalone is running an abalone project in Hondeklip Bay with the intention of producing 120 tons of abalone for sale. This seaside town is well known for its kelp. The coastline of the Northern Cape has 2 000 hectares of kelp beds and there is a growing domestic and international demand for kelp. The old John Ovenstone factory in Port Nolloth is now the site of small-scale hatcheries for abalone and oysters, while Premier Fishing has a lobster-processing plant in Port Nolloth.

ONLINE RESOURCES Aquaculture Association of South Africa: www.aasa-aqua.co.za National Department of Science and Technology: www.dst.gov.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development Trade and Investment Promotion Agency: www.nceda.co.za South African Institute of Aquatic Biodiversity: www.saiab.ac.za

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Mining The Northern Cape has vast mineral reserves.

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ining is a vital part of the economy of the Northern Cape. This makes the provincial economy part of the world economy in a way that does not apply to some of South Africa’s other provinces. The reality of low prices for iron ore have been felt very keenly in the Northern Cape, where, just five years ago, some employees of Kumba Iron Ore were paid out half-a-million rand in an employee share ownership scheme. Now towns like Kathu at the giant Sishen mine have many residents who have been laid off and alternatives are few and far between. The quality of the iron ore has not changed, it just needs markets. After a very tough few months and years because of reduced global demand (particularly for platinum and iron ore), mining as a whole started to recover in 2016, and in the Northern Cape there have been several bright points in the narrative, with zinc, copper and rare NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT Vedanta has broken ground on a new zinc project. • Anglo America’s sell-off of iron ore assets has sparked interest. • Rare ear th element miners are upbeat. earth elements featuring in the good news columns. Several initiatives are under way to exploit the semi-precious stone Tigers Eye. Petra Diamonds’ revenue


OVERVIEW from its Kimberley Underground Mine increased by 8% for the 2015 financial year due to increased production. Mining contributes 23.4% to the Northern Cape economy and makes up nearly 7% of South Africa’s total mining value. Whatever cyclical ups and downs affect the sector, it remains a most important component of the provincial economy. The Department of Economic Development and Tourism (Northern Cape) has published an Economic and Investment Profile, in which these important facts stand out about Northern Cape mining: • 95% of South Africa’s diamond output is processed in Kimberley • 97.6% of alluvial diamond mining takes place within 200km² of Kimberley • 13.4% of world lead exports emanates from the Northern Cape • 80% of the world’s manganese resource is in the province • 25% of the manganese used in the world comes from the province • 100% of South Africa’s Tigers Eye is located in the Northern Cape • The Northern Cape is the number-one producer of sugilite (a semi-precious stone).

News Zinc seldom features in reports, but when Vedanta started work in 2015 on its R9.4-billion Gamsberg Zinc project, it was very big news

indeed for a sector in need of good news. The new mine, which is in the Namakwa District Municipality south of the N15 road that links Pofadder and Springbok, is near to Vedanta’s existing Black Mountain mine. About 1 500 jobs are expected to be created in the construction phase, with about 500 permanent positions for the running of the mine. Diamond-mining company West Coast Resources (WCR) completed its production plant at Michells Bay at the end of 2016 and started mining in 2016. Trans Hex, with a 40% shareholding in WCR, will manage the mine and market the diamonds produced from it. The national Department of Trade and Industry (dti) owns 20% of WCR. By 2020 the project intends employing 686 jobs. By May 2016 there were 166 permanent employees and 24 part-timers working at Michells Bay. The historical site of copper explorations is again a site of interest for miners. Galileo’s initial tests at its Concordia Copper project near Okiep suggest that prospects are good what it calls “large-scale copper targets”. Tungsten has also been found in the area. The company is nearing the end of its testing phase. In 2016 Horomela Investments received prospecting rights for is property near Aggeneys. The only 100% black-owned and blackmanaged base metals mining company in South Africa, Horomela will be mining for lead, silver, copper and zinc. The Kimberley Diamond and Jewellery Incubation Centre was launched in Kimberley in December 2015. New skills on offer for local people include diamond cutting, polishing and designing and making jewellery. There are 40 Incubators around the country, run by the Small Enterprise Development Agency (Seda). The first studies on the feasibility of mining for rare earth elements at Zandkopsdrift (near the town of Garies) were published in 2015, and presented a very positive picture. The decision by Anglo American to become a company that has assets only in copper, diamonds and platinum has huge implications for mining in South Africa, and especially in the Northern Cape. The disposal of Anglo’s 69.7% shareholding in Kumba Iron Ore will have the biggest impact. The decision on whether or not to sell this very valuable stake as one entity or to sell bits of it off to various other shareholders in Kumba (or indeed, new shareholders) has not yet been taken. The company has given itself to the end of 2017 to finalise the sell-off. With the price of iron ore having fallen by three-quarters since 2011, Moneyweb reports that Anglo’s whole stake in Kumba is now valued at less than it paid for an additional 4.5% in the ironore miner four years ago. The price then was about R15-million. At that time, iron ore was the darling of the resources index and demand was extremely high because of stellar Chinese growth. No more.

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OVERVIEW Initiatives The Provincial Government of the Northern Cape has made a number of interventions to assist small miners and communities in the context of the downturn in the broader mining sector. Steps have been taken to protect and enhance the growing Tiger Eye industry and exports to China have been increasing. However, illegal mining has been a problem. Provincial government has stepped in to create co-operatives and to assist such groups to get mining licences. Land owned by municipalities at Prieska, Niekerkshoop, Marydale and Griekwastad is the focus of these initiatives. The National Youth Development Agency (NYDA), the provincial government and Mintek are collaborating on the Prieska Loxion Hub (PLH), which beneficiates Tigers Eye for jewellery and stone-cutting products. Grants from the Co-operative Incentive Scheme are being given to co-operatives to help them buy mining equipment. A Procurement Indaba will be held in the Northern Cape in the third quarter of 2016. Procurement is seen as a way of helping black businesses to grow.

Iron ore

Assets The mineral resource of the Northern Cape is wide-ranging and impressive. The province has significant deposits of iron ore, manganese, zinc, copper, lead, titanium, pig iron, zircon and gypsum Rare earth elements Rare earth elements (REE) are a very modern mineral, in that large parts of the modern economy rely on them. Super-conductors, X-ray machines, nuclear batteries and PET-scan detectors are just some of the technologies that rely on rare earth elements such as promethium, thulium and holmium. China controls 95% of the world’s supply of REEs and the search is on for alternative sources. Two sites in western South Africa have attracted investors attention: Zandkopsdrift (Northern Cape) and, very close by but in the adjoining province of the Western Cape, Steenkampskraal. The company with rights to Zandkopsdrift, Frontier Rare Earths, published in June 2015 a very positive preliminary feasibility study, describing the finds as being of “high purity” and concluding that the proposal to proceed with mining is “both technically feasible and economically robust”. Zinc The Black Mountain mine run by Vedanta can produce 30 000 tons of concentrate annually, 7 000 tons of copper, 50 tons of silver and NORTHERN CAPE BUSINESS 2016/17

40 000 tons of lead. Almost a third of the mine’s concentrate output is exported through Saldanha on the West Coast.

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The Northern Cape produces more than 84% of South Africa’s iron ore. The province has two major iron belts, from Postmasburg to Hotazel, and running through Sishen and Kathu. Sishen is the most important iron-ore mine in South Africa, where operations include extraction and four beneficiation plants. The availability of natural resources, labour and infrastructure (including the Sishen-Saldanha railway line), make Sishen the ideal location. Kumba Iron Ore has the Sishen facility at Kathu and Kolomela (formerly Sishen South). Assmang, a joint venture comprising African Rainbow Minerals and Assore, mines at Khumani. Copper The Northern Cape is responsible for around 18% of South Africa’s total copper production, with the


OVERVIEW two most prominent mines located in Nababeep and Aggeneys. The Carolusberg Mining Complex has copper reserves of 37.5-million tons, while the Nigramoep deposit has 15-million tons. Lead and zinc Aggeneys, in the Namaqualand region of the Northern Province, is responsible for approximately 93% of South Africa’s lead production, and 12% of all world lead exports. Zinc is less abundant, but the province is still responsible for about 43% of South Africa’s overall zinc production. Anglo American is investing R4-billion in the Gamsberg zinc deposit near Aggeneys, which is reported to hold about 93-million tons of zinc, and could produce as much as 300 000 tons annually. Manganese The overwhelming majority of the world’s manganese comes from the Postmasburg – Kalahari regions of the Northern Cape. The province is responsible for 25% of the world’s exports of the mineral. Assmang has two manganese mines in the province: Nchwaning and Gloria. Samancor (a joint venture between BHP Billiton, 60% and Anglo-American), runs the Hotazel Manganese Mines comprising Wessels, Mamatwan and a sinter plant. Hotazel is the site of a relatively new manganese mine, Tshipi é Borwa. Tshipié Ntle Manganese Mining (Tshipi) is a joint venture between Pallinghurst Co-Investors (led by Brian Gilbertson) and a black empow-

erment company representing several groups called Ntsimbintle Mining. Indications are that Tshipi can produce about 2.2-million tons of ore per year, for about 60 years. The Kalagadi manganese project involves the construction of a manganese mine and sinter plant near Hotazel in the Northern Cape, and was initiated by Kalagadi Manganese Ltd, a new company comprising mainly black business leaders, with women in many leadership positions. Diamonds De Beers sold its underground operations at Kimberley to Petra (in 2007 but the final details were only sorted out in mid-2010) and it sold South Africa’s second-biggest diamond mine, Finsch mine, 165km west of Kimberley, to the same company for R4.25-billion in early 2011. This is part of a broader programme of De Beers in which several of its mines have been sold to Petra (Koffiefontein and Cullinan mines in other provinces and a Tanzanian operation are examples). The company’s Namaqualand mines have been closed and are for sale. De Beers has also stopped trying to recover diamonds from the sea off South Africa and is concentrating its marine efforts on Namibian waters. Petra Diamonds’ recent purchases mean the company now has five South African mines, two of which are in the Northern Cape. Londonlisted Petra, which produced 1.3-million carats in the 2015 financial year, owns the Kimberley mine in a joint venture with Sedibeng Mining, a black empowerment company. The operation has three kimberlite pipe mines: Bultfontein – Dutoitspan and Wesselton. Finsch is expected to produce 2.0 million carats per annum by 2018. Another active purchaser of mines is Rockwell Diamonds, which is listed on the TSX and JSE. Nieuwejaarskraal (in the Prieska-Douglas area and bought from Trans Hex) and Tirisano Mine (near Ventersdorp in the North West) join the company’s other assets in the Northern Cape: Holpan, Klipdam (north of Kimberley) and Saxendrift (southwest of the capital). Away from the underground kimberlite pipes and fissures, river and coastal deposits are also present in the Northern Cape. Diamonds have been recovered along the Orange, Buffels, Spoeg, Horees, Groen, Doom and Swart rivers in the province, while coastal deposits have been found from the mouth of the Orange River to Lamberts Bay.

ONLINE RESOURCES Chamber of Mines: www.chamberofmines.org.za Geological Society of South Africa: www.gssa.org.za Mining Qualifications Authority: www.mqa.org.za National Department of Mineral Resources: www.dmr.gov.za Southern African Institute of Mining and Metallurgy: www.saimm.co.za

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PROFILE

Petra Diamonds Petra Diamonds is driving development through focused expansion.

Who is Petra Diamonds?

by Petra is expected to extend the lives of these operations thereby contributing to the local economy and ensuring that optimal benefit will accrue to their local communities .

The Company has interests in six producing mines: four underground mines in South Africa (Finsch, Cullinan, Koffiefontein, Kimberley Underground), extensive tailings operations in Kimberley (via its interest in Kimberley Ekapa Mining) and one openpit mine in Tanzania (Williamson). It also maintains an exploration programme in Botswana.

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

Petra has grown rapidly in recent years, and plans to steadily increase annual production to 5-million carats by FY 2019. The Group has a major resource base in excess of 300-million carats. Petra conducts all operations according to the highest ethical standards and will only operate in countries which are members of the Kimberley Process. Petra is quoted with a premium listing on the Main Market of the London Stock Exchange and is a constituent of the FTSE 250 Index.

Petra Diamonds and the Northern Cape As can be seen from the list of operations above, three of the operations that Petra is involved with fall in the Northern Cape. Petra is proud to be part of the future of this province, which can be regarded as the birthplace of the modern diamond industry. Petra’s philosophy is that its operations should benefit the communities in which it mines and therefore these local communities are regarded as high priority and the mines’ principal stakeholders.

Finsch Diamond Mine at Lime Acres in the Northern Cape is one of South Africa’s primary diamond producers in terms of carats mined. A major capital investment by Petra Diamonds has ensured that it will remain operational for many years into the future.

Apart from creating employment, with local recruitment receiving preference, investment NORTHERN CAPE BUSINESS 2016/17

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PROFILE Examples of this include discretionary sponsorship of events and community-based organisations that benefit the community, the establishment of Enterprise Development Centres around its mines to empower and assist SMMEs, various forms of assistance to education and training, from preschool to tertiary, and active involvement in and partnerships with both statutory and nonstatutory bodies and organisations in order to ensure coordination of development efforts. Proactively building productive relationships with key stakeholders in local communities is therefore also a priority.

The recent purchase, in consortium with Ekapa Mining, of some of De Beers’ assets in Kimberley included the Combined Treatment Plant (“CTP”). Kimberley Underground Mines’ Wesselton Mine can be seen in the background.

A bit more about Petra’s Northern Cape operations

is to increase underground production from the current 1.3-million carats to around two-million carats per year by the 2018 Financial Year.

Kimberley Underground Mines

The historic underground mines east of Kimberley were the first of Petra’s current operations in the Northern Cape to be acquired. Petra began operating these mines on Care and Maintenance under the licence of the previous owner in 2007, with the acquisition then completing in May 2010. These mines consist of three kimberlite pipes, Bultfontein and Dutoitspan, which are mined from the Joint Shaft at Bultfontein, and Wesselton further east, which is mined as a standalone shaft. Despite their age, with some of the resources being mined since 1869, Petra’s capital injection into these mines has provided for their future, with steady-state production of around 170 000ct per annum as from the current Financial Year. Albeit that these mines are not high-volume producers, the quality of their diamonds translates into relative high values per carat.

Finsch has produced large, special diamonds in its history and produces a number of +50 carat stones annually. In addition, the mine is known for highly commercial goods of +5 carats and is rich in gemquality smaller diamonds. Kimberley Ekapa Mining

Ekapa Minerals, a consortium of Ekapa Mining and Petra Diamonds, was announced as the successful bidder for De Beers’ surface operations in Kimberley in December 2015. The participation between the partners in Kimberley Ekapa Mining (”KEM”), as these operations are now known, offers synergy opportunities with regards to joint resources and leveraging the combined skills and capabilities of each company. The intention is to pool and share the assets and resources of the various operations under management of KEM and its consortium partners to achieve a combined life of the operations that extend beyond the current mine life of each of the individual operations. This will contribute to the future sustainability of all of these operations and their employee base in Kimberley.

Finsch Diamond Mine

Finsch Diamond Mine, which has been in operation since 1963, is one of the world’s foremost and most modern diamond mines and the secondbiggest producer by volume in South Africa. Petra Diamonds acquired Finsch in September 2011, and immediately started with a capital expansion project of several billion rand to access undiluted ore from new mining areas. The aim of this expansion project

For more information, please visit the company’s website at www.petradiamonds.com

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Engineering Renewable energy projects need sophisticated engineering.

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ew technology abounds in the Northern Cape at the moment. Dozens of renewable energy projects (mostly using solar and wind methods) are under way, and every month another one announces that its power is being connected to the grid. In the southern reaches of the province, the multi-national Square Kilometre Array (SKA) radio telescope project is under way, bringing the greatest minds of the age together. Older sectors such as the mining industry and the railways continue to demand engineering skills, and these are much in demand in the Northern Cape. Transnet Rail Engineering has a workshop in Kimberley (Beaconsfield Depot) and there is a new refurbishment workshop in De Aar. Both of the province’s colleges for Technical Vocational Education and Training (formerly FET colleges) offer engineering courses at NATED and National Certificate Vocational level (NCV) levels on specific campuses. Courses include “Civil engineering and building construction” and “Engineering and related design”. Among the companies active at Kumba’s huge Sishen ironNORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT The Square Kilometre Array (SKA) telescope project is at the cutting-edge of technology • Major engineering firms are active working on the province’s mines. ore mine over the years include TWP, IMS Engineering, Murray & Roberts, Bateman, Grinaker-LTA, Krupp, Concor, DCD-Dorbyl, Duisburg and Alstom. Impac t assessments are an important part of the consulting role of engineers. The


OVERVIEW

Strategic and Sustainability Services Unit of engineering and environmental consultant SSI has drafted a comprehensive Environmental Management Framework for the John Taolo Gaetswe District Municipality. Au r e co n is p ro v i d i n g an Environmental Impac t Assessment for a proposed wind farm near Prieska. The SKA radio telescope project is one of the world’s most ambitious scientific projects. An estimated R14-billion will be spent in the Northern Cape over the course of the project’s lifespan. SKA is being driven by 55 international institutions, with the project’s building phase set to last from 2016 to completion in 2021.

The SKA project is funding hundreds of university students in the fields of science and engineering. The foundations of the building for SKA were overseen by Group Five Coastal, while Schneider Electric South Africa was responsible for the building-management system. The antennas for the complementary MeerKAT project are being provided (with many components manufactured in South Africa) by Stratostat Datacom (part of the Schauenburg International Group from Germany). Technical assistance is being provided by General Dynamics SATCOM Technologies (a United States company).

ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za South African Institution of Civil Engineering: www.saice.org.za Southern African Institute for Industrial Engineering: www.saiie.co.za Square Kilometre Array: www.ska.ac.za Steel and Engineering Industries Federation of South Africa: www.seifsa.co.za

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Transport Vast distances make good transport infrastructure vital for the economy of the Northern Cape.

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e Aar has always been one of South Africa’s most important rail junctions as it is the marshalling point for the entire western half of the country’s rail network. This fact, plus the existence of the Sishen-Saldanha line (one of the biggest rail operations of its kind in the world) puts the Northern Cape province at the heart of South Africa’s railway system. The opening of the Transnet Wagons Refurbishing Facility in De Aar in 2014 signalled a welcome R30-million investment in this small town and proved clear evidence that Transnet Freight Rail (TFR) operations are growing. The main rail corridor through De Aar is called Capecor and increased volumes mean a greater need for wagons. The De Aar wagons depot functions as a satellite workshop for the Transnet Rail Engineering Beaconsfield Depot in Kimberley and has an annual production capacity of 250 wagons. The workshop is expected to create 300 direct and indirect jobs. Another plan to turn De Aar into a Freight Transport Hub is being investigated. Rocla, manufacturer of precast concrete infrastructural products, has a factory in De Aar and has been involved in upgrades to the Sishen-Saldanha line by supplying pipes and culverts for intersections. Rail currently carries only 14% of freight in South Africa, but Transnet is determined to change this. Improved turnaround times of goods will ultimately lead to improved percentages of freight carried by rail. Something that might help in this process is the reopening of oncebusy branch lines, such as the Douglas-Belmont line. These smaller lines make it easier for farmers to get their crops to market. The Sishen-Saldanha railway line carries massive quantities of iron ore from the heart of the province to the west coast at Saldanha in the Western Cape. Transnet Freight Rail, which operates the line to Saldanha on the west coast, has plans to eventually be able to carry 60-million tons per year. The world record for the longest and heaviest train belongs to Sishen-Saldanha.

Growth Employment in the transport sector grew by 40% in 2015, according to the provincial government. This has been ascribed to the phenomenal NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT New rail refurbishment workshops at De Aar have boosted employment. • R45-million is allocated to bus subsidies. • A new deep-water harbour is being investigated.

success of the renewable energy sector, with new projects worth hundreds of millions of rands being announced and put into operation on a regular basis. While this new sector is supplying the impetus for growth, volumes in iron ore and manganese continue to be significant. Most of the province’s manganese gets to Port Elizabeth on the general freight line, but there have been pledges that the line will be upgraded in order to carry really big volumes. Until such time, excess manganese will be transported to Bloemfontein by truck, and then transferred to rail wagons and delivered to the Port of Durban. Other big transport plans for the province include: • To Develop Upington Airport into an international cargo hub. The airport has one of the longest runways in the world and was on standby


OVERVIEW

as an emergency landing site for the Shuttle spacecraft. It is anticipated that products such as citrus, grapes, fish and meat would pass through the cargo section. Following up on the feasibility study which announced that a site 70km north of Port Nolloth might be suitable for a deepwater harbour. A ‘commodity mix’ study is currently under way. If such a project were given the green light then a rail link from Upington to the coast would have to be built. Alternately, to upgrade and expand the harbour at Port Nolloth.

Roads The Northern Cape has 3 025 kilometres of paved road and 22 000 kilometres of gravel road, comprising 21% of the national road network. Major national highways define the boundaries of the province: the West Coast Highway (N7), the N12 that runs along the province’s eastern edge and the N14 connecting the west with the east across the northern

half of the province. The N8 links Kimberley to Bloemfontein, Maseru and beyond. Dawid Rooi, MEC for Roads and Public Works, said in December 2012 that, despite the figure of 21%, the province received only 3% of the national roads budget. He estimated that the backlog for road maintenance was R5.4-billion. Public transport is one of the responsibilities of the provincial government. In the 2015/16 budget, R45-million was set aside for subsidising bus transport. The Northern Cape Department of Transport, Safety and Liaison signed 195 contracts to provide transport for 18 798 scholars at 410 schools, where the distance to school from their homes is further than 5km. A joint venture with the national Department of Transport also saw 350 bicycles handed over to children living between two and five kilometres from school. Animal-drawn carts are also on the list of vehicles that the department provides to communities that need them.

Air The Northern Cape’s two major airports are run by Airports Company South Africa (ACSA). Kimberley Airport caters for about 132 000 passengers every year. The SA Red Cross Air Mercy Service operates out of the airport. Upington Airport caters to the tourist sector and is an important conduit for agricultural produce. As it is situated in an area with clean desert air, the airport is suitable as a facility for the long-term parking of mothballed aircraft. Airlink flies to Upington, and charter company Walker Flying Services is based at the airport. The Northern Cape has many good landing strips. The Sishen airfield is a licensed aerodrome and serves the mining industry, while the Namakwa District Municipality has three good airstrips at Calvinia (a private field which is 1 250m long), Springbok and Alexander Bay. Gariep Dam airstrip is tarred and, with a 1 360m runway, can cater for Learjets.

ONLINE RESOURCES Airports Company South Africa: www.acsa.co.za Air Traffic and Navigator Services: www.atns.co.za Northern Cape Provincial Government: www.northern-cape.gov.za Railroad Association of South Africa: www.rra.co.za South African Civil Aviation Authority: www.caa.co.za South African National Roads Agency Limited: www.sanral.co.za Transnet Freight Rail: www.transnet.net Transnet Engineering: www.transnet.net

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Construction and property development Investment in renewable energy projects is driving growth in both sectors.

SECTOR INSIGHT T he new Sol Plaatje University provided welcome work for builders. • Nearly R3-billion has been invested in infrastructure in five years.

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he construction sector is a small but vital contributor to gross domestic provincial product (approximately 2.6%), and provides the base on which a more diverse provincial economy is being built. The major drivers of the construction sector are still mainly the mining industry and the provincial government, but the influx of renewable energy projects to the province has provided an additional stimulus for the construction of energy plants and the search for housing by engineers and their families. The provincial government estimates that employment in the construction sector grew by 42% in 2015. A specific project that helped create that welcome statistic was the construction of the academic and residence buildings of the new Sol Plaatje University. When the second phase is complete in early 2017, R850-million will have been spent on the university which does not currently provide instruction in either construction or engineering skills. The province’s two vocational colleges do, however, provide such skills training and development. At the Kimberley campus of the Northern Cape Urban TVET College students can do diploma courses in Civil Engineering and Building Construction, while the Kathu and Upington campuses of the Northern Cape Rural TVET College offer Electrical Engineering and Construction. NORTHERN CAPE BUSINESS 2016/17

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The provincial government is very active in building new physical facilities such as multi-purpose centres in the province, and this helps contractors with work. A particular priority for several years has been to build libraries and in 2016 the provincial government will hand over libraries to the communities of Sternham, Churchill, Cassel, Olifantshoek (Welgelee), Danielskuil and Homevale. A dual-service library (also functioning as an educational centre) at Lukhanyisweni in Phillipstown has already been opened. In the five years to 2015, the provincial government of the Northern Cape spent R2.8-billion on infrastructure. In the five years to 2011, the provincial Department of Roads and Public Works (DRPW) spent nearly R3-billion on infrastructure. The provincial government has established a Contractor Development Policy and Targeting Strategy. This is intended to ensure that emerging


OVERVIEW contractors are able to gain government tenders, and it targets the contractors in Grades 2-6. The programme includes ring-fencing certain projects and providing mentors for emerging contractors. Most contractors are still on Grade 1, meaning that outside contractors are needed for sophisticated work. Overall, the introduction of the Construction Industry Development Board (CIDB), has led to an annual increase in the number of registered contractors and an improvement in their grading status. For 2015/16 the DRPW has set aside R50-million for contractor development. The DRPW has also secured artisan training opportunities at these companies: B&C Engineering; Sishen Mine (Sivos Training Centre); AfriSam (ULCO Mine) and Kimberley Mine.

Property The Northern Cape department responsible for housing has a good reputation, so much so that national government took R100million that other provinces had failed to spend in previous years and made the funds available for the Northern Cape for 2016/17. The additional funding will be used to build 550 top structures in the Sol Plaatje Municipality. A priority is to upgrade informal settlements and to provide basic services. Title deed transfers are proving difficult to secure, and the provincial government has pledged to see to it that 6 155 transfers take place in the course of 2016/17.

For some mine workers, the prospect of owning their own home improved radically when they were each paid out over half-a-million rand each as part of the Kumba Iron Ore Employee Share Ownership Plan (Esop) payout. The tiny town of Kathu, the nearest town to Kumba’s Sishen mine, is unsurprisingly experiencing a boom because of the huge windfall enjoyed by the mine’s employees and part-owners, but it’s the larger town of Upington that is attracting the attention of the property professionals. Houses on the market below R1-million are “almost non-existent”, according to a Pam Golding franchisee quoted on www.privateproperty. co.za. The main buyers are mining executives who have moved their families to Upington while they work on mines at Kathu, Kuruman or Buffelshoek. Seeff’s representative told the website that Upington is expected to double in size, with two new malls, the new provincial hospital and an airport upgrade all contributing to this trend. Adding to this trend is the influx of new staff for solar and wind projects. The upmarket suburb of Belgravia in Kimberley has more than one mansion in it, that being a throwback to the days of diamond magnates. Suburbs such as Monument Heights and Hillcrest attract good prices for three-bedroomed homes. Some of the little villages in the Karoo are attractive to people wanting to move away from overcrowded cities. Richmond is one such village; it has grown in popularity quickly, with a lively annual book fair drawing large numbers of visitors. The successful bid to host a major radio-astronomy project near the town of Carnarvon will have a big impact on the town’s property values, as it will on the surrounding towns of Vosburg, Loxton and Williston. The Kumba iron-ore project underway at Kolomela will eventually result in the building of an additional 700 houses in Postmasburg. The company has donated a sum of R4-million for the installation of water, sewerage and electricity services for the township of Boichoko. Integrated Housing Developments are ongoing at Ouboks, Colesberg (250 houses), Pampierstad (700) and Ikhutseng (200).

ONLINE RESOURCES Construction Industry Development Board: www.cidb.org.za Diamond Pavilion Shopping Mall: www.diamondpavilion.co.za National Department of Public Works: www.publicworks.gov.za Northern Cape Department of Roads and Public Works: www.ncrpw.ncpg.gov.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Architects: www.saia.org.za SA Property Owners Association: www.sapoa.org.za.

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OVERVIEW

Banking and financial services Agricultural finance is an important part of the financial services sector.

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inancial professionals associations have come forward to offer training to the public sector, where keeping good books is a vital part of a functioning democracy. A public-private partnership between government and the South African Institute of Chartered Accountants and the Association for Accounting Technicians of South Africa offered 100 Northern Cape government officials two years of financial skills training. The first group graduated in 2015. After many years of audit disclaimers and qualified audits, the Northern Cape’s biggest local municipality, Sol Plaatje Municipality, achieved an unqualified audit in 2014/15. Other good news for financial reporting in the province was the award won by the Northern Cape Department of Agriculture, Land Reform and Rural Development the 2015 Southern African Institute of Government Auditors annual reporting award. South Africa’s four big retail banks (Absa, Standard Bank, First National Bank and Nedbank) have a solid presence in all of the major towns in the province. Standard Bank has a presence in some minor towns too (13 towns in all) and these towns host 42 branches across the sparsely populated but very large province. AccessPoints (where bank customers can do basic banking at shops) are in a further 134 places such as spaza shops, and the bank also has 154 ATM machines in the Northern Cape. In an area like the Northern Cape, agriculture is such a vital economic activity that banks generally have agricultural desks. Standard Bank has specialist Agricultural Advisers and for small-scale black farmers, there is possible access to the bank’s Agricultural BEE Ring-Fenced Credit Line. Absa Bank focuses on small business through its Enterprise Business unit, with every one of the bank’s 15 Northern Cape branches having bankers working in that area. Funding and advice for start-ups and small enterprises is available. Relative newcomer Capitec is quickly building infrastructure in the province, as it is around South Africa. Kimberley already has six branches and Upington three. Even the small town of Swartklip has a branch (population 3 517, Wikipedia), although there is a mine in the area. Unsurprisingly, the small mining town of Kathu has two Capitec branches—this is unsurprising because it is here that the beneficiaries of the Kumba Iron Ore Company’s Employee Share Ownership Plan were paid out their first dividend, which amounted to more than R2-billion. NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT Public sector officials have been getting accounting skills training. • Sol Plaatje Municipality has achieved an unqualified audit. Most agricultural companies in the province have financing and services divisions, providing real competition for the retail banks. The Land and Agricultural Development Bank of South Africa (Land Bank) is also a major participant in the Northern Cape financial sector.


OVERVIEW GWK is one of the biggest agricultural firms, with the GW standing for Griqualand West, and headquarters in the town of Douglas. GWK has six units within its Corporate Services division and these mostly relate to finance: Finance, Financing, Risk Management, and Financial Agricultural Advice. Farmers have a wide choice of products to choose from: production loans for the cultivation of products or livestock, buyers’ accounts, auction accounts and instalment agreements for buying equipment and vineyard establishment. Senwes is another big agricultural company active in the Northern Cape, although its headquarters are in Klerksdorp in the North West. It offers many products within its Credit division, including a grain hedging account and vehicle and equipment financing, which is linked to Wesbank. Upington-based KLK Landbou has insurance and medical cover products, while OVK offers insurance and financing options. Kaapagri has three offices in the Northern Cape where farmers can consult on financial matters.

Improving access A high percentage of the population of the Northern Cape live in rural areas and are members of burial societies or saving groups (stokvels), but banks are continually working on products to attract them to formal banking.

Finscope’s 2014 survey of South African banking and financial surveys shows that between 2004 and 2014 a remarkable eight million people were connected to the financial system in some way. Overall, the ‘financially included’ reached 31.4-million (up from 17.7-million in 2004). In a category called ‘formally served’, which includes services other than formal banks with branch networks, the percentage of South Africans so served grew from 50% to 80%; in the ‘banked’ category (more traditional, but including new devices), the percentage grew from 46% to 75%. Among other recent innovations designed to reach the unbanked were Teba Bank’s decision to allow customers to deposit at supermarkets, Pick n Pay Go Banking (a division of Nedbank), the string of 70% of Absa’s new ATMs (400 in one year) in poorer areas and Absa launching two mobile banks. FNB also created mobile branches and most of Standard Bank’s new sites were planned for townships (Finscope). Absa’s partnership with Thumbzup allows shops to accept card payments with smartphones and tablets. Introduced in 2012, the device turns phones into terminals. In the same year, Absa took over Edcon’s card portfolio, massively increasing the bank’s reach (Edcon brands include Edgars, CNA and Jet). Absa’s Entry Level and Inclusive Banking (Elib) branches have proved popular, accounting for an increasingly high percentage of the bank’s loans, despite still representing quite a small number of actual branches. Nedbank has Approve-it™, which allows customers to accept or reject an Internet transaction by cellphone. FNB has a wide range of cellphone-banking options and a Facebook application whereby cellphone vouchers can be posted on the socialnetworking site. The eWallet application converts the voucher into cash or airtime. Standard Bank’s community-banking initiative offers a low-cost cellphone-banking service. Retailers also act as agents for the bank, even in very remote rural areas. Shops such as Shoprite, Pep and Spar are connected to the system which is known as AccessPoints, as are certain spazas. In the Northern Cape, there are 134 such outlets.

ONLINE RESOURCES Auditor-General of South Africa: www.agsa.co.za Banking Association South Africa: www.banking.org.za Financial Services Board: www.fsb.co.za Institute of Bankers in South Africa: www.iob.co.za Insurance Institute of South Africa: www.iisa.co.za Office of the Ombudsman for Banking Services: www.obssa.co.za South African Reserve Bank: www.resbank.co.za

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OVERVIEW

Development finance and SMME support Tourism and renewable energy offer opportunities for entrepreneurs.

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ntrepreneur Beyers Myburgh is riding the accommodation wave that investment in mining and renewable energy is bringing to the Northern Cape. What used to be the small town of Kathu now has its own modernist-style Urban Hotel, the first of what Myburgh hopes will become a group of small-town hotels. Backing him as a 51% investor is the Industrial Development Corporation (IDC), which is one of many organisations that have products designed to support start-ups and small, medium and micro enterprises (SMMEs). Most of the hotel’s clients are business travellers and 24 jobs have been created to date. Some Spanish and Chinese business visitors have passed through on their way to viewing the Abengoa Khi Solar One farm near Upington as well as the massive Sishen mine run by Kumba Iron Ore. The IDC is better known as an investor in mega-projects, but support is available through it (as in the case of Urban Hotels) for NORTHERN CAPE BUSINESS 2016/17

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SECTOR INSIGHT Seda opened a Diamond Jewellery Incubator in Kimberley in 2015. • The construction sector attracts 41% of Small Enterprise Finance Agency funding. • An SMME Indaba is to be held in the Northern Cape.

smaller investments that have the likelihood of creating jobs.


OVERVIEW The biggest investment of the IDC in the Northern Cape is through its stake in a new manganese mine and sinter plant located near Hotazel. The IDC also has a 36.5% shareholding in Karsten Group Holdings, a diversified agricultural and exporting company with a primary focus on dates and table grapes. Karsten employs more than 4 000 people on a seasonal basis. Through the ID C’s Transformation and Entrepreneurial Scheme, a black economic empowerment project is underway at Kakamas, where emerging farmers are planting citrus. Vaal Community Citrus should create 1 330 jobs. Other IDC projects in the province support ventures in barley and groundnuts, cut flowers, alluvial diamonds and chrome chemicals. The IDC is also heavily invested in a large number of solar-power projects that have been approved in the province. The opening of the Seda Diamond Jewellery Incubator in Kimberley represents a big opportunity for business-minded Northern Cape residents to learn new skills. Training will be offered in technical skills related to jewellery manufacture and also in the skills relevant to starting a new business. The Small Business Development Agency (Seda) runs 49 incubators around the country. Seda is an agency of the national Department of Trade and Industry (dti) and supports the growth of viable businesses through advice, mentoring, access to technology, referrals, providing access to markets and

business linkages. The agency helps small enterprises in applying for funding. There are six branches of Seda in the province. The Northern Cape has a satellite office of the Seda unit known as the Zenzele Technology Demonstration Centre. This is headquarted at the Mintek Campus in Randburg (Gauteng) and offers technical and research support to small-scale mining and mineral-related enterprises. National government has created a specialised agency to spur the development of SMMEs, the Small Enterprise Finance Agency (Sefa). In 2014/15, Sefa achieved its highest-yet level of funding at R446-million. This included an amount of R25.5-million set aside for the support of spaza shops operating out of containers in two provinces, the Eastern Cape and Northern Cape. Sefa’s loan book shows 41% of funding going to construction projects with manufacturing at 14% in second place. The Provincial Government of the Northern Cape will host an SMME Indaba in the course of 2016, in partnership with the national Department of Small Business Development. The creation of this new national department focussing on small business reflects a renewed focus on supporting small-scale business, and this is supported by research. According to research done by Absa, SMMEs were supporting 60% of the country’s employable population in 2011, against a figure of just 18% in 1998. In 2015 the Provincial Government of the Northern Cape gave support to 199 SMMEs and 87 co-operatives in different ways. One of the most important methods of governmental support is in the supply chain, where various goods and services can be set aside for smaller operators. Prompt payment by government departments has been an issue for some time, but the Northern Cape has succeeded in reducing turnaround times for invoice payments to SMMEs. The Northern Cape Department of Economic Development and Tourism (DEDAT) has an Enterprise Development section (including

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OVERVIEW co-operatives) as well as a unit devoted to product development. It channels funds into promising small enterprises, particularly in the manufacturing sector. An annual expo that focuses on SMMEs and brings together many of the agencies that can help entrepreneurs has been held under the auspices of the DEDAT since 2009. The Northern Cape Economic Development Agency (NCEDA) is an agency of the DEDAT and also handles trade and investment promotion for the province. One of its tasks is to help prepare SMMEs for exporting their products. There is a plan to create a Provincial Incubation Strategy and planners are also looking into creating a specialist Renewable Energy Incubator to support smaller entrants into that growing sector. Many of the programmes in the Northern Cape that support small, medium and micro enterprises focus on agricultural production and food security. The investment priorities of the national Department of Science and Technology (DST) have ensured that the tiny hamlet of Onseepkans on the banks of the Orange River is now growing rose geraniums for profit. The DST and Council for Scientific and Industrial Research (CSIR) are supporting the project to develop rose-geranium essential oils. Farmers and entrepreneurs living in the Succulent Karoo region of the province can apply to the Skeppies Fund, the funding arm the Succulent Karoo Ecosystem Programme (SKEP). This initiative has the backing of the Development Bank of Southern Africa and several international conservation bodies.

Private sector The decline of diamond mining in the western regions has made it even more important for small, rural communities to be able to feed themselves.

ONLINE RESOURCES Department of Science and Technology: www.dst.gov.za Department of Small Business Development: www.dsbd.gov.za Department of Trade and Industry: www.dti.gov.za Development Bank of Southern Africa: www.dbsa.org Industrial Development Corporation: www.idc.co.za National Development Agency: www.nda.org.za National Empowerment Fund: www.nefcorp.co.za Northern Cape Economic Development, Trade and Investment Promotions Agency: www.nceda.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za Succulent Karoo Ecosystem Programme: www.skep.org

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Anglo American’s Zimele launched a business-enterprise hub in the Namaqualand town of Kleinzee and granted R14-million in low-interest loans to small enterprises. This support has resulted in the creation of about 400 jobs in the area. Absa Bank has dedicated Enterprise Business units in each of its branches across the Northern Cape. Nedbank has a range of interventions to assist small business owners and make banking accessible to all. Standard Bank supports a training programme run by TechnoServe called Believe Begin Become. Winners receive up to R75 000 in seed capital. A special fund with a value of R500-million caters to farmers and communities that have had successful land claims, and gives them loans to get their agricultural enterprises going. The Masisizane Fund (Old Mutual) makes loan financing available in sectors such as agriculture and agri-processing, commercial, supply chain and manufacturing. It also offers training and technical support and funding to help businesses to comply with legislation. The Vumela Enterprise Development Fund of First National Bank is available to small businesses. FirstRand has put R186-million into the fund and to date it has invested R50-million in small businesses that have shown potential for growth.


OVERVIEW

Tourism The Rough Guide rates the Richtersveld in its Top Ten.

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he Northern Cape Provincial Government Growth and Development Strategy targets tourism as one of the key sectors with the capacity to “grow, transform and diversify the provincial economy”. The sector’s direct contribution to provincial gross domestic product (PGDP) is about 6%. In addition to events, attention is also being given to the potential of niche tourism, a sector that is growing fast. Assets unique to the Northern Cape include a large number of arid areas (for lovers of deserts and desert life) and very clear night skies (for sky-gazers, a niche that already exists but has tremendous potential to expand). There are no fewer than six national parks in the province, each showing off distinct geographical and biological features with trees such as the elephant’s trunk and the quiver tree proving endlessly fascinating to visitors. Most of the province lies in the Nama-Karoo Biome and the annual display of spring flowers is quite spectacular. Although the tourism offering is already well developed and there has been considerable investment in infrastructure in recent years, the potential for the Northern Cape to capture more of the domestic and international tourism market is immense.

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SECTOR INSIGHT Country Hotels has invested heavily in a string of hotels in the Northern Cape. • A 240km desert bike race is typical of the province’s adventure sports offering. • AfrikaBurn has found a home in the Tankwa Karoo National Park. • Attractive investment packages are available in the Northern Cape tourism sector. Country Hotels recently invested heavily in the province, noting the upsurge in demand for beds NORTHERN CAPE BUSINESS 2016/17


OVERVIEW

The Kimberley Conference Centre.

driven by the province’s concerted drive to attract more tourists – and the pressing need for accommodation on the back of investments in the mining and renewable energy sectors, particularly new solar plants. Spanish and Chinese engineers are now a common sight in Northern Cape towns, to such an extent that local supermarkets are having to source spices such as saffron for fragrant paellas.

THERE ARE NO FEWER THAN SIX NATIONAL PARKS IN THE PROVINCE R40-million has been invested by Country Hotels in the new Kathu Inn and R50-million will see the Springbok Inn become a smart 100room hotel with a further 250 beds available in a backpackers’ lodge and 25 sites available at an associated campsite. The Orange River Rafting Lodge has an obvious purpose, while the Namastat Lodge and Caravan Park caters to travellers on the N7. What used to be known as the Hantam Hotel in Calvinia is now the refurbished Calvinia Hotel and Tankwa Lodge, offering 25 air-conditioned rooms and easy access to flower-spotting and the Tankwa Karoo National Park. The province’s tourism strategy targets adventure tourism (4x4 trails, hiking, river-rafting) and desert tourism, which includes the stark delights of the Kalahari and the Richtersveld. The Northern Cape Tourism Authority (NCTA) has increasingly been focusing on adventure sports (with a brand of “Northern Cape Extreme”) and the organisation and promotion of events, including festivals. NORTHERN CAPE BUSINESS 2016/17

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The Tankwa Karoo Mountain Bike Challenge, which traverses the southern part of the Great Karoo from Ceres to “star-gazer’s Central” at Sutherland, is a 240km marathon that typifies the type of adventure tourism of the province’s brand. The Northern Cape is a nature-lover’s paradise. It has five provincial reserves and six national parks, a stunning variety of landscapes and endless potential for adventure tourism, hunting, and observing stars, rock paintings and flowers. Diamond fields, diverse cultures, battlefields and the Orange River are some of the province’s other major assets. The decision by UNESCO to inscribe the Richtersveld Cultural and Botanical Landscape as a World Heritage Site (South Africa’s eighth) has great significance for the tourism industry in the Northern Cape, and for the prospects for ecotourism in general. This 160 000-hectare landscape of mountainous desert is managed by the semi-nomadic pastoral Nama people. The Richtersveld Transfrontier Park achieved a major international accolade when it was included in the Rough Guide’s Top 10 for 2016. What is more, this was the only spot in Africa to be showcased in this way. Although the park is very dry it also receives mists off the Atlantic Ocean and sustains almost 30% of the succulent plants in South Africa. The Verreaux eagle is a prized sighting for bird-watchers and many other mammals survive these harsh conditions such as the black-backed jackal,


OVERVIEW Hartmann’s zebra, duiker, klipspringer and leopards. However, the stark landscape is the ultimate attraction of this park, which straddles the Orange River. The 2012 opening of the 2 500-seater Mittah Seperepere Convention Centre was a boost to the Northern Cape events and conferences industry. It is located in the centre of Kimberley, near the Big Hole. With the town’s biggest hotel situated in the same precinct, the Convention Centre it makes it much easier to sell the provincial capital as an ideal meetings, incentives, conference and events (MICE) destination. Progress in that field was evidenced when Kimberley was chosen to host the 7th International Wildlife Ranching Symposium in late 2011, with delegates from 20 countries present. The Northern Cape is a very popular hunting and wildlife-ranching destination. The Northern Cape has its fair share of annual festivals. AfrikaBurn is now a regular in the Tanka Karoo National park, attracting alternative types who are determined to “chill” in the heat. The Vleisfees (meat festival) has been held in Calvinia in the heart of the Hantam region since 1990, and this is where the consumption of vast quantities of lamb and mutton compete for the attention of festival-goers, along with a vintage car rally and a Miss Vleisfees competition. Richmond has a festival called Boek Bedonnerd—a phrase that is not easily translatable, but which suggests that attendees are really excited about books!

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OVERVIEW

Kimberley’s Gariep Arts Festival is gaining a reputation as the venue for outstanding performances and events. Upington’s Kalahari Kuier (Visit) Festival has outgrown its focus on the raisin, and has since become all-encompassing festival that includes a popular race, the Kumba Iron Ore Classic. More than 30 000 people have been known to attend the event, providing a welcome boost for the local economy.

Investment opportunities As the major investment in new tourist accommodation by the Country Hotels group shows, the Northern Cape offers a good business proposition for tourism. The Northern Cape Department of Economic Development and Tourism (DEDAT) has prepared a number of tourism investment packages and is looking for partners to take these opportunities to completion. Adventure sports at Kimberley: DEDAT, together with the NCTA, NCEDA and the IDC is doing a pre-feasibility study for the establishment of an adventure sports resort in the Big Hole Precinct in Kimberley. Steam train: Reviving steam train tourism (“Gems on Track” is the working title) could be done along a variety of routes, including routes out of Kimberley to Belmont and from De Aar to Victoria West. An Upington-Kakamas-Keimoes route is also an option. Eco-resort at Boesmansput: Development of a diver training facility NORTHERN CAPE BUSINESS 2016/17

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would form part of the plan at this popular fresh-water cave-diving site. An eco-lodge is envisaged, in addition to a conference facility. The intended beneficiaries are the farm workers on the Mount Carmel game farm, but additional jobs will also be created. Wildebeest Rock Art Centre: To take advantage of the great store of rock engravings in the nearby hills. More than 400 pieces of rock art would form the cornerstone (together with the nearby Nooitgedacht Glacial Paving) of a world-class heritage and archaeological site. Developments would include the creation of a performance arena (for the depiction of San Bushman culture) and facilities for game viewing and photographic safaris. The Xun and Khwe San Bushman Tribe will be the primary beneficiaries.

Tourism regions and routes The province is divided into five tourism regions, which coincides with the boundaries of the district municipalities. The north-western portion of the province is known as the Green Kalahari, much of which is taken up by national parks. The Kgalagadi Transfrontier Park (with Botswana) encompasses 3.7-million hectares, making it one of the biggest conservation areas in the world. The Red Dune Route is a network of guesthouses, reserves and farms to guide the visitor to the great park, offering country hospitality and hearty food along the way.


OVERVIEW out-of-the-way towns to experience real life and to bring economic development to rural areas, at the same time giving a real sense of the size of the wilderness area. The Diamond Fields region contains the spectacular Big Hole, the Mokala National Park and many Anglo-Boer War battle sites. The Anglo-Boer War Route is a well-developed tourist attraction. The town of Kimberley is itself an extremely popular attraction and offers fine examples of Victorian architecture. The Karoo region encompasses the south-eastern portion of the province. While most of the region is dry, the Vanderkloof Dam is a major tourism asset. Many of the region’s small towns are geared to cater to tourists drawn to the magic of the Karoo’s open spaces. Rock art is found in several locations. The Namakwa region is famous for its flowers, but it also hosts the South African Astronomical Observatory, several historic mission settlements, the Namaqua National Park (on the West Coast) and the aweinspiring Richtersveld Transfrontier Park. Springbok and Calvinia are the two major towns in this huge district, which is also the only Northern Cape region with a coastline. The first Green Kalahari Canoe Marathon attracted 45 paddlers over three days in 2012. The marathon was held over a 99km course. The Orange River provides the lush landscape in which the grapes of the several hundred producers of Orange River Wine Cellars prosper. The rushing waters of the Augrabies Falls National Park provide another popular attraction. The Kalahari in the north-east is home to many of the province’s biggest mines, but also to great numbers of raptors, vultures and owls. A specialist raptor route has been developed. Birders can look out for 50 species, including the Booted Eagle, the Pygmy Falcon and the Bateleur. Tours of the area’s vast open-cast mining operations can be arranged. Hunting is a lucrative subsection of the tourism sector that is proving extremely popular in this region. The Roaring Kalahari Route guides tourists to

FESTIVALS March: Kakamas Sultana Festival. March/April: Diamonds and Dorings, Kimberley; AfrikaBurn, Tankwa Karoo National Park May: Upington Agricultural Show. August: Hantam Vleisfees, Calvinia. September: Gariep Arts Festival, Kimberley; Kalahari Kuier Fees, Upington; Cultural Festival, Okiep. October: Boek Bedonnerd Festival, Richmond. December: Namakwa Festival, Springbok.

ONLINE RESOURCES AfrikaBurn: www.afrikaburn.com Gariep Arts Festival: www.gariepfees.co.za Hantam Vleisfees: www.hantamvleisfees.co.za Kalahari Kuier Fees: www.kalahari-kuierfees.co.za Northern Cape Tourism Authority: www.northerncape.org.za Richtersveld: www.richtersveld-conservancy.org South African National Parks: www.sanparks.co.za South African Tourism: www.southafrica.net Supadrift Series: www.xspromotions.co.za

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LISTING

South African National Government An overview of South Africa’s national government departments. President

Department of Arts and Culture

Address: Union Buildings, Government Avenue, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za Website: www.economic.gov.za

Address: 10th Floor, Kingsley Centre, 481 corner Steve Biko & Stanza Bopape streets, Arcadia, Pretoria 0001 Postal address: Private Bag X899, Pretoria 0001 Tel: +27 12 441 3000 Fax: +27 12 440 4485 Website: www.dac.gov.za

Deputy President

Department of Basic Education

Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 323 8246 Website: www.thepresidency.gov.za

Address: Sol Plaatje House, 222 Struben Street, Pretoria 0001 Postal address: Private Bag X9034, 8000 Tel: +27 12 357 3000 Fax: +27 12 323 5989 Website: www.education.gov.za

Minister in the Presidency

Department of Communications

Address: Union Buildings, Government Avenue, East Wing, 1st Floor, Arcadia, Pretoria 0001 Postal address: Private Bag X1000, Pretoria 0001 Tel: +27 12 300 5200 | Fax: +27 12 300 5795 Website: www.thepresidency.gov.za

Address: Tshedimosetso House, 1035 Frances Baard (Cnr Festival Street), Hatfield, Pretoria 0001 Postal address: Private Bag X745, Pretoria 0001 Tel: +27 12 473 0000 | Fax: +27 12 462 1646 Website: www.doc.gov.za

Ministry in the Presidency responsible for Women (Minister of Women in the Presidency)

Department of Cooperative Governance and Traditional Affairs

Address: East Wing, Union Buildings, Pretoria 0001 Postal address: Private Bag X931, Pretoria 0001 Tel: +27 12 359 0011 / 0013 | Fax: +27 12 326 0473 Website: www.women.gov.za

Address: 87 Hamilton Street, Arcadia, Pretoria 0083 Postal address: Private Bag X802, Pretoria 0001 Tel: +27 12 334 0705 | Fax: +27 12 326 4478 Website: www.cogta.gov.za

Minister for Public Service & Administration

Department of Correctional Services

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Address: 123 Poyntons Building, West Block, cnr Schubart and Church streets, Pretoria 0001 Postal address: Private Bag X136, Pretoria 0001 Tel: +27 12 307 2934/2884 | Fax: +27 12 323 4111 Website: www.dcs.gov.za

Dept of Agriculture, Forestry and Fisheries

Department of Economic Development

Address: No 20, Agriculture Place, Block DA, 1st Floor, cnr Beatrix Street and Soutpansberg Road, Arcadia, Pretoria Postal address: Private Bag X250, Pretoria Tel: +27 12 319 7319 | Fax: +27 12 319 6681 Website: www.daff.gov.za

Address: Block A, 3rd Floor, 77 the dti Campus, cnr Meintjies & Esselen streets, Sunnyside, Pretoria 0001 Postal address: Private Bag X149, Pretoria 0001 Tel: +27 12 394 1006 | Fax: +27 12 394 0255 Website: www.economic.gov.za

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LISTING Department of Defence and Military Veterans

Department of Human Settlements Address: Govan Mbeki House, 240 Justice Mahomed, Sunnyside, Pretoria 0001 Postal address: Private Bag X644, Pretoria 0001 Tel: +27 12 421 1310 Fax: +27 12 341 8513 Website: www.dhs.gov.za

Address: cnr Delmas Avenue & Nossob St, Erasmuskloof, Pretoria 0001 Postal address: Private Bag X427, Pretoria 0001 Tel: +27 12 355 6101 | F ax: +27 12 347 0118 Website: www.dod.mil.za Department of Energy

Department of International Relations and Cooperation

Address: 192 cnr Visagie and Paul Kruger St, Pretoria 0001 Postal address: Private Bag X96, Pretoria 0001 Tel: +27 12 406 8000 Fax: +27 12 319 6681 Website: www.energy.gov.za

Address: OR Tambo Building, 460 Soutpansberg Road, Rietondale, Pretoria 0001 Postal address: Private Bag X152, Pretoria 0001 Tel: +27 12 351 1000 Fax: +27 12 329 1000 Website: www.dirco.gov.za

Department of Environmental Affairs Address: Environment House, 473 Steve Biko and Soutpansberg Road, Arcadia, 0083 Postal address: Private Bag X447, Pretoria 0001 Tel: +27 12 310 3537 | Fax: +27 086 593 6526 Website: www.environment.gov.za

Department of Justice and Correctional Services Address: Salu Building, 316 cnr Thabo Sehume and Francis Baard Streets, Pretoria 0001 Postal address: Private Bag X276, Pretoria 0001 Tel: +27 12 406 4669 | Fax: +27 12 406 4680 Website: www.doj.gov.za

Department of Finance Address: 40 WF Nkomo Street, Old Reserve Bank Building, 2nd Floor, Pretoria Postal address: Private Bag X115, Pretoria 0001 Tel: +27 12 323 8911 | Fax: +27 12 323 3262 Website: www.treasury.gov.za

Department of Labour Address: 215 Laboria House, cnr Francis Baard and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X499, Pretoria 0001 Tel: +27 12 392 9620 | Fax: +27 12 320 1942 Website: www.labour.gov.za

Department of Health Address: 20th Floor, Civitas Building, cnr Struben and Andries streets, Pretoria 0001 Postal address: Private Bag X399, Pretoria 0001 Tel: +27 12 395 8086/80 | Fax: +27 12 395 9165 Website: www.doh.gov.za

Department of Mineral Resources Address: 70 Meintje Street, Trevenna Campus, Sunnyside 0007 Postal address: Private Bag X59, Pretoria 0001 Tel: +27 12 444 3000 Fax: +27 86 624 5509 Website: www.dmr.gov.za

Department of Higher Education and Training Address: 123 Francis Baard Street, Pretoria 0001 Postal address: Private Bag X893, Pretoria 0001 Tel: +27 12 312 5555 | Fax: +27 12 323 5618 Website: www.dhet.gov.za

Department of Police Address: Wachthuis Building, 7th Floor, 231 Pretorius Street, Pretoria 0001 Postal address: Private Bag X463, Pretoria 0001 Tel: +27 12 393 2800 Fax: +27 12 393 2812 Website: www.saps.gov.za

Department of Home Affairs Address: 909 Arcadia Street, Hatfield 0083 Postal address: Private Bag X114, Pretoria 0001 Tel: +27 12 432 6648 | Fax: +27 12 432 6675 Website: www.dha.gov.za

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LISTING Department of Public Enterprises

Department of Social Development

Address: Infotech Building, 1090 Arcadia Street, Hatfield, Pretoria 0001 Postal address: Private Bag X15, Hatfield 0028 Tel: +27 12 431 1000 Fax: +27 12 431 1039 Website: www.dpe.gov.za

Physical address: HSRC Building, North Wing, 134 Pretorius Street, Pretoria 0001 Postal address: Private Bag X904, Pretoria 0001 Tel: +27 12 312 7479 Fax: +27 086 715 0829 Website: www.dsd.gov.za

Department of Public Service and Administration

Department of State Security

Address: Batho Pele House, 116 Johannes Ramakhoase Street, Pretoria Postal address: Private Bag X884, Pretoria 0001 Tel: +27 12 336 1700 Fax: +27 12 336 1809 Website: www.dpsa.gov.za

Physical address: Bogare Building, 2 Atterbury Road, Menlyn, Pretoria 0001 Postal address: PO Box 1037, Menlyn 0077 Tel: +27 12 367 0700 | Fax: +27 12 367 0749 Website: www.ssa.gov.za

Department of Public Works Address: 7th Floor, CGO Building, cnr Bosman and Madiba Street Postal address: Private Bag X65, Pretoria 0001 Tel: +27 12 406 21978 Fax: +27 086 276 8757 Website: www.publicworks.gov.za

Department of Sport and Recreation South Africa Physical address: Regent Place, 66 cnr Madiba and Florence Ribeiro Street, Pretoria 0001 Postal address: Private Bag X896, Pretoria 0001 Tel: +27 12 304 5000 Fax: +27 12 323 7196 / 086 644 9583 Website: www.srsa.gov.za

Department of Rural Development and Land Reform

Department of Tourism

Address: 184 Old Building, cnr Jeff Masemola and Paul Kruger Streets, Pretoria 0001 Postal address: Private Bag X833, Pretoria 0001 Tel: +27 12 312 9300 Fax: +27 12 323 3306 Website: www.ruraldevelopment.gov.za

Physical address: 17 Trevena Street, Tourism House, Sunnyside, Pretoria 0001 Postal address: Private Bag X424, Pretoria 0001 Tel: +27 12 444 6780 Fax: +27 12 444 7027 Website: www.tourism.gov.za

Department of Science and Technology

Department of Trade and Industry

Physical address: DST Building, Building No 53, CSIR South Gate Entrance, Meiring Naude Road, Brummeria, Pretoria 0001 Postal address: Private Bag X727, Pretoria 0001 Tel: +27 12 843 6300 Fax: +27 12 349 1041/8 Website: www.dst.gov.za

Physical address: The dti, 77 Meintjie Street, Block A, Floor 3, Sunnyside, Pretoria 0001 Postal address: Private Bag X274, Pretoria 0001 Tel: +27 12 394 1568 | Fax: +27 12 394 0337 Website: www.thedti.gov.za

Department of Small Business Development Physical address: The dti, Block A, 3rd Floor, 77 Meintjies Street, Sunnyside, Pretoria 0001 Postal address: Private Bag X84, Pretoria 0001 Tel: +27 12 394 1006 Fax: +27 12 394 1006 Website: www.dsbd.gov.za NORTHERN CAPE BUSINESS 2016/17

Department of Transport Physical address: Forum Building, 159 Struben Street, Room 4111, Pretoria 0001 Postal address: Private Bag X193, Pretoria 0001 Tel: +27 12 309 3131 | Fax: +27 12 328 3194 Website: www.transport.gov.za

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LISTING Telecommunications and Postal Services Physical address: Iparioli Office Park, 399 Jan Shoba Street, Hatfield, Pretoria 0001 Postal address: Private Bag X860, Pretoria 0001 Tel: +27 12 427 8000 Fax: +27 12 427 8016 Website: www.dtps.gov.za Department of Water and Sanitation Physical address: Sedibang Building, 185 Frances Baard Street, Pretoria 0001 Postal address: Private Bag X313, Pretoria 0001 Tel: +27 12 336 8733 Fax: +27 12 336 8850 Website: www.dwa.gov.za

National coat of arms The national coat of arms was adopted on 27 April 2000. It is constructed in two circles, which are described as the circle of foundation and the circle of ascendance.

Circle of foundation Shield – The two Khoisan figures on the shield are taken from a Bushman rock painting known as the Linton stone, and represent the common humanity and heritage of South Africans. Depicted in an attitude of greeting, the figures symbolise unity. Spear and knobkierie – Together, these objects symbolise defence and authority, but the flat angle at which they lie symbolises peace. Wheat – The ears of wheat, as emblems of fertility, represent germination, growth and the development of potential, as well as nourishment and agriculture. Elephant tusks – Elephants symbolise wisdom, strength, power, authority, moderation and eternity, and the use of tusks is a tribute to the world’s largest land mammal, Loxodonta Africana, which is found in South Africa. Motto – Taken from the language of the now extinct /Xam Bushmen, the motto translated means ‘people who are different come together’ or ‘diverse people unite’. Circle of ascendance Protea – Protea cynaroides is the national flower of South Africa and is symbolic of the beauty of the country and flowering of the nation’s potential. Secretary bird – Characterised in flight, the secretary bird represents growth and speed, and is a symbol of divine majesty and protection. Rising sun – The sun is an emblem of energy and rebirth, a source of light and life appropriate for a country characterised by sunshine and warmth.

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LISTING

Northern Cape Provincial Government A guide to the Northern Cape’s provincial government departments. Visit www.northern-cape.gov.za.

PROVINCIAL COAT OF ARMS The Northern Cape Province’s coat of arms was approved on 25 August 1997 by the Provincial Legislature, having been developed by the province’s Directorate of Arts and Culture. The motto written in the /’Auni language of a clan of Bushmen people, ‘sa k//?a: !aisi ?uisi’ translates as ‘strive for a better life’.

Office of the Premier

Department of Cooperative Governance, Human Settlements and Traditional Affairs

Premier: Sylvia Lucas Physical address: JW Sauer Building, 6th Floor, cnr Roper and Quinn streets, Kimberley 8301 Postal address: Private Bag X5016, Kimberley 8300 Tel: +27 53 838 2600 / 2900 Fax: +27 53 838 2690 Website: www.northern-cape.gov.za

MEC: Alvin Botes Physical address: JS du Plooy Building, 9 Cecil Sussman Road, Kimberley 8301 Postal address: Private Bag X5005, Kimberley 8301 Tel: +27 53 830 9422 Fax: +27 53 831 4832 / 4308 / 2904

Department of Agriculture, Land Reform and Rural Development

Department of Economic Development and Tourism

MEC: Norman Shushu Physical address: 162 George Street, Kimberley 8301 Postal address: Private Bag X5018, Kimberley 8300 Tel: +27 53 838 9100 / 087 630 0887 Fax: +27 53 831 4685 / 3635 Website: www.agricnc.gov.za

MEC: Mc Collen (Mac) Jack Physical address: Room 1419, 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Postal address: Private Bag X5054, Kimberley 8300 Tel: +27 53 839 4000 Fax: +27 53 832 6805

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LISTING Department of Education

Department of Social Development

MEC: Martha Bartlett Physical address: 156 Barkley Road, Homestead, Kimberley 8301 Postal address: Private Bag X5023, Kimberley 8300 Tel: + 27 53 839 6500 Fax: +27 53 839 6580 Website: www.ncedu.ncape.gov.za

MEC: Gift van Staden Physical address: Mimosa Complex, Barkley Road, Homestead, Kimberley 8301 Postal address: Private Bag X6110, Kimberley 8300 Tel: +27 53 874 9100 Fax: +27 53 871 1062

Department of Environment and Nature Conservation

MEC: Bongiwe Mbinqo-Gigaba Physical address: 32 Abbatoir Road, Kimberley 8301 Postal address: Private Bag X6091, Kimberley 8300 Tel: +27 53 807 4700 Fax: +27 53 807 4600

Department of Sport, Arts and Culture

MEC: Tiny Chotelo Physical address: 90 Long Street, Kimberley 8301 Postal address: Private Bag X6010, Kimberley 8300 Tel: +27 53 807 7300 Fax: +27 53 807 7328

Department of Transport, Safety and Liaison

Department of Health MEC: Pauline Williams Physical address: cnr Lennox and Sydney Roads, Kimberley 8301 Postal address: Private Bag X1368, Kimberley 8300 Tel: +27 53 839 1700 Fax: +27 53 839 1773

MEC: Lebogang Motlhaping Physical address: 144 Dutoitsta Road, Kimberley 8301 Postal address: Private Bag X5049, Kimberley 8300 Tel: +27 53 830 2100 Fax: +27 53 833 4394

Department of Infrastructure and Public Works

Provincial Treasury MEC: Mc Collen (Mac) Jack Physical address: 14th Floor, Metlife Towers, cnr Knight and Stead streets, Kimberley 8301 Postal address: Private Bag X5054, Kimberley 8300 Tel: +27 53 830 8200 Fax: +27 53 831 4235

MEC: Mxolisi Sokatsha Physical address: 9-11 Stockroos Road, Square Hill Park, Kimberley 8301 Postal address: Private Bag X5065, Kimberley 8300 Tel: +27 53 839 2100 Fax: +27 53 839 2291

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PROFILE

A Transformed Quality Education System.

Northern Cape Department of Education The Northern Cape Department of Education is investing billions of rands into ensuring that all children in the province benefit from equal education.

EDUCATION FIRST

.

The Northern Cape MEC for Education, Ms Martha Bartlett, tabled her R5.4-billion Budget Speech to the Northern Cape Provincial Legislature in Kimberley on 26 May 2016. In her address she highlighted the significance of celebrating our Constitution’s 20th anniversary, the 40th anniversary of the Soweto Uprising and the 60th anniversary of the Women’s March to the Union Buildings.

The summit will afford various key stakeholders an opportunity to reflect on the status of the provision of basic education within the province. Importantly, the summit must chart an unambiguous way forward for the continued enhancement of the provision of quality public education throughout the province.

Ours is an ideal that strives toward the provision of requisite foundational knowledge and skills that will enable all people in the province to meaningfully participate in the mainstream economy, including the development and growth thereof.

We will ensure that every child is in school and receives quality education. Every child – regardless of gender, background or circumstance – must have equal access to education. No society can afford for any child to drop out, be left out or pushed out.

Our key programmes for this financial year:

Program 1: Administration R608-million. Program 2: Public Ordinary School Education R3.98-billion. Program 3: Independent Schools Subsidy R8.7-million. Program 4: Public Special Schools R116-million. Program 5: Early Childhood Development (ECD) R95-million. Program 6: Infrastructure Development R497-million.

NORTHERN CAPE BUSINESS 2016/17

Program 7: Examinations and Education related services R132-million.

The Northern Cape Provincial Education Summit was convened from 8-10 June 2016 as we work towards the repositioning of basic education to a level that resonates with what the people in the Northern Cape require.

Nothing will derail us from delivering on our commitment to the people of this beautiful province to ensure that the doors of learning are open, and we will ensure the provision of quality education to all people in the province.

.. . .. .

Martha Bartlett NC MEC for Education

Education must fully assume its central role in helping people to forge more just, peaceful and tolerant societies. We cannot stop until every learner, child, youth and adult has the opportunity to go to school, learn and contribute to society. This is our assignment. This is our homework. Let us pass the test for our country’s children. Let us put Education First.

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PROFILE

NUTRITIOUS MEALS MITIGATE THE IMPACT OF POVERTY ON LEARNERS

O

ld Mutual South Africa has made a donation of three fully-fitted school kitchens in support of the National School Nutrition Programme. Three schools benefitted from this partnership between the Department of Education and Old Mutual SA, namely Petrusville High School in Pixley Ka Seme District, Pabalello Primary School in the ZF Mgcawu Distict as well as Poffader High School in the Namakwa District.

Learners with special needs receive school uniforms.

LEARNERS WITH SPECIAL NEEDS BENEFIT IN THE NORTHERN CAPE

The kitchens came fitted with internal lockable storage, a 100-litre water tank, stainless-steel worktops, internal lights, zinc menu board, three gas burners and greywater run-off system to water the school’s vegetable garden.

A

bout 150 learners from special schools in the province received new school uniforms courtesy of Nedbank South Africa and the Department of Education.

The NC Department of Education plans to provide good, healthy and nutritious meals to 260 000 learners in 503 Public Ordinary Schools during the Department’s 2016/17 financial year. A budget of R150-million has been allocated for the schools and activities under the National School Nutrition Programme Grant. The province made an additional internal allocation amounting to R18-million to cater for schools which are not included under the conditional grant framework.

The benefitting schools were NJ Heyns Special School in the Frances Baard District, Learamele Special School in the John Taolo Gaetsewe District and Kleinzee Special School in the Namakwa District respectively. During the handover ceremony at the NJ Heyns Special School in Kimberley, MEC Martha Bartlett said this initiative was important for the restoration of learner confidence and self-esteem in a learning environment. All the learners who received a school uniform were identified through a joint process between the Department and the financial institution (Nedbank). Since 2010, Nedbank has invested more than R13million in the back-to-school campaign which provides school uniforms and stationery to learners.

Learners of Petrusville High School enjoying a nutritious meal.

“This was important for the restoration of learner confidence and self-esteem in a learning environment.”

Fully fitted School Kitchens.

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Our new state-of-the-art schools.

INFRASTRUCTURE DEVELOPMENT CONTRIBUTES TO THE QUALITY OF BASIC EDUCATION The three newly built schools, valued at a total of R224-million, opened their doors for learning and teaching during the current schooling calendar – Valspan High School, Roodepan High School and Matjieskloof Primary School. These state-of-the-art schools were officially opened early in 2016 by the MEC for Education, Martha Bartlett. A further 68 schools are set to receive sanitation maintenance and upgrades this year, while 11 schools will receive new ablution blocks. Two new school hostels will be opening during this current financial year in John Taolo Gaetsewe District to the value of R77-million.

New schools are ďŹ tted with brand new school furniture.

The Department of Education will make a further investment of R332-million in capital projects in the current financial year in five primary schools and one secondary school in the province.

CONTACT INFO

A total of 49 schools will receive structural and cosmetics upgrades within the 2016/17 financial year. Forty-three schools received upgrades to their water supply through the provision of boreholes and purification plants for safe and cleaner water, while 22 schools are targeted for water upgrades in the 2016/17 financial year. NORTHERN CAPE BUSINESS 2016/17

Physical: 156 Barkly Road, Homestead, Kimberley, 8301 Tel: 053 839 6500 Fax: 053 839 6580 Email: geoffreyvm@gmail.com Website: ncdoe.ncpg.gov.za

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LISTING

Northern Cape Local Government A guide to district and local municipalities in the Northern Cape Province.

Frances Baard District Municipality

Namakwa District Municipality

Physical address: 51 Drakensberg Avenue, Carters Glen, Kimberley 8301 Postal address: Private Bag X6088, Kimberley 8300 Tel: +27 53 838 0911 Fax: +27 53 861 1538 Website: www.francesbaard.gov.za

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

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

Hantam Municipality Tel: +27 27 341 8500 Fax: +27 27 341 8501

Magareng Municipality Tel: +27 53 497 3111/2/3 Fax: +27 53 497 4514

Kamiesberg Municipality Tel: +27 27 652 8000 Fax: +27 27 652 8001

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

Karoo Hoogland Municipality Tel: +27 53 391 3003 Fax: +27 53 391 3294 Website: www.karoohoogland.co.za

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

Khâi-Ma Municipality Tel: +27 54 933 1000 Fax: +27 54 933 0252

John Taolo Gaetsewe District Municipality

Nama Khoi Municipality Tel: +27 27 718 8100 Fax: +27 27 712 1635 Website: www.namakhoi.org.za

Physical address: 4 Federal Mynbou Street, Kuruman 8460 Postal address: PO Box 1480, Kuruman 8460 Tel: +27 53 712 8700 Fax: +27 53 712 2502 Website: www.taologaetsewe.gov.za

Richtersveld Municipality Tel: +27 27 851 1111 Fax: +27 27 851 1101 Website: www.richtersveld.gov.za

Gamagara Municipality Tel: +27 53 723 6000 Fax: +27 53 723 2021

Pixley Ka Seme District Municipality Physical address: Culvert Road, Industrial Area, De Aar 7000 Postal address: Private Bag X1012, De Aar 7000 Tel: +27 53 631 0891 Fax: +27 53 631 2529 Email: pixley@telkomsa.net Website: www.pixleykasemedm.co.za

Ga-Segonyana Municipality Tel: +27 53 712 9000 Fax: +27 53 712 3581 Joe Morolong Municipality Tel: +27 53 773 9300 Fax: +27 53 773 9350

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

!Kheis Municipality Tel: +27 54 833 9500 Fax: +27 54 833 0690 Mier Municipality Tel: +27 54 531 0019 Fax: +27 54 531 0019

Kareeberg Municipality Tel: +27 53 382 3012 Fax: +27 53 382 3142 Website: www.kareeberg.co.za

Tsantsabane Municipality Tel: +27 53 7300 MUNICIPALITIES IN THE313 NORTHERN CAPE Fax: +27 53 313 1602 Metropolitan/District Municipality Boundary

Renosterberg Municipality Tel: +27 53 663 0041 Fax: +27 53 663 0180

Local Municipality Boundary

Siyanda

District Municipality

Richtersveld

Local Municipality

N

BOTSWANA NCDMA08

Siyancuma Municipality Tel: +27 53 298 1810 Fax: +27 53 298 3141

North West NCDMA045

NAMIBIA

John Taolo Gaetsewe

Mier

Joe Morolong

Gamagara

NCDMAO8

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

!Kai! Garib !Kheis Nama Khoi

Khâi-Ma

NCDMA08

Ubuntu Municipality Tel: +27 53 621 0026 Fax: +27 53 621 0368

Kgatelopele Municipality Tel: +27 53 384 8600 Fax: +27 53 384 0326

www.salga.org.

Renosterberg

Pixley Ka Seme Kareeberg

Namakwa

Emthanjeni Umsobomvu

Ubuntu

SALGA, your trusted partner Karoo Hoogland

in ensuring an effective Local Government

Eastern Cape

Western Cape

www.salga.org.za SALGA, your trusted partner in ensuring an effective Local Government

Contact Details The South African Local Government Association The South African Local (SALGA) Tel: is the only constitutionally Government Associationmandated (SALGA) 053 836 7924 association of municipalities in South is the only constitutionally mandated association of Africa. Using its people-centered municipalities in South Africa. Using its people-centeredAddress: approach; SALGA supports, advises, approach; SALGA supports, advises, and represents Block 2 Montrio and represents member municipalities, Corporate Park, member municipalities, thereby enabling service delivery thereby enabling service delivery 10 Oliver Road, with innovative and solutions-based actions. Let all role with innovative and solutions-based Monument players in the local government sector work together to Heights, actions. Let all role players in the local build a better South Africa. Kimberley, 8300 government sector work together to Upcoming event: build a better South Africa. • Provincial Conference: 12-13 October 2016, Venue to be announced

//Khara Hais Municipality Tel: +27 54 338 7000 Fax: +27 54 338 7351 Website: www.kharahais.gov.za

NORTHERN CAPE BUSINESS 2016/17

Thembelihle

Free State

Hantam

ZF Mgcawu District Municipality

Kai! Garib Municipality Tel: +27 54 461 6400 / 6700 Fax: +27 54 461 6401

Sol Plaatje

Siyancuma

NCDMA07

Kamiesberg

Umsobomvu Municipality Tel: +27 51 753 0777/8 Fax: +27 51 753 0574

Physical address: cnr Le Roux and Hill streets, Upington 8801 Postal address: Private Bag X6039, Upington 8800 Tel: +27 54 337 2800 Fax: +27 54 337 2888 Website: zfm-dm.co.za

NCDMA07

Dikgatlong

Siyathemba

NCDMA06

Thembelihle Municipality Tel: +27 53 203 0008/5 Fax: +27 53 203 0490

Phokwane

Frances Baard

Tsantsabane

//Khara Hais Richtersveld

GaSegonyana

NCDMA09 Magareng Kgatelopele

Siyanda

Tel: 053 836 7924 Address: Block 2 Montrio, Corporate Park, 10 Oliver Road, Monument Heights, Kimberley, 8300

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PROFILE

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

Ms MM Moloi, Executive Mayor.

Ms ZM Bogatsu, Municipal Manager.

electricity and construction) and tertiary (trade, transport, financial and social services) sectors.

Mandate

Economic profile

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

Frances Baard District Municipality is the strongest economic region in the province, accounting for 36% of the provincial gross domestic product (PGDP). The economy of the district consists of the primary (agriculture and mining), secondary (manufacturing,

An effective governance framework, systems, policies and structure are absolutely crucial to the proper functioning of a district municipality such as Frances Baard. Good governance is a

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

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PROFILE province, giving it the largest population density. The municipality is located in the far eastern portion of the province. It shares its northern borders with the North West Province and its eastern border with Free State Province. Kimberley, which is where the district municipality is located, is less than 500km away from Johannesburg in the north, less than 1 000km away from Cape Town in the south and the Port of Durban in the east. It compromises the four local municipalities of Dikgatlong, Magareng, Phokwane and Sol Plaatje. The main towns are Kimberley, Hartswater, Jan Kempdorp, Barkly West and Warrenton.

Tourism Although predominantly a mining and agricultural region, Frances Baard District Municipality also offers rich experiences in terms of culture and history. Two of the largest rivers, the Orange and Vaal, flow through the district.

concept that describes the process through which the municipality sets priorities, makes decisions, strengthens accountability and engages in constructive interaction with the public and other institutions.

Kimberley is the capital city of the Northern Cape. It is situated in the centre of South Africa. Kimberley offers visitors a plethora of fascinating tourist attractions such as: the William Humphrey Art Gallery, the Duggan Cronin Gallery, which holds a collection of early photographs of Africans, various old buildings and monuments dating back to 1899, Flamingo Casino, game farms, Kamfers Dam (flamingobreeding island), Ghost Tours and the “Big Hole” Tram Route.

The municipality has a mandate to: • Provide a democratic and accountable government for local municipalities • Ensure the provision of services to communities in a sustainable manner • Promote a safe and healthy environment • Encourage the involvement of communities and community organisations in the matters of local government

Local economic development focus areas

The district municipality has been assigned levelone and two accreditation in terms of the housing function. Level-two accreditation status gives municipalities the responsibility to approve and manage housing-construction programmes and ensure technical quality assurance.

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

Geography Frances Baard District Municipality is the smallest district in the Northern Cape and has a geographical area of 13 518.19km2. However, it accommodates the largest proportion of the population of the NORTHERN CAPE BUSINESS 2016/17

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PROFILE

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

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

The district municipality assists new cooperatives with registration and acts as liaison for them to increase accessibility to incentive schemes and other government incentives.

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

The district municipality is currently facilitating the following activities: • The establishment of an oil-processing plant in Phokwane Municipality. The site has been identified and sub-divided and a business plan and feasibility study has been completed. • Development of a small-scale mining strategy to understand the dynamics and status of smallscale mining in the district. • The establishment of a fully functional incubation centre in Ritchie. Funding has been provided in the 2015/16 financial year to assist the Sol Plaatje Local Municipality with the training of incubates and to appoint a business support officer.

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

Tourism focus areas for development A key focus is the development of a tourism route in the Frances Baard District. The project aims to enhance and promote tourism attractions along the N18 between Warrenton and Hartswater, which will

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LISTING

INDEX Frances Baard District Municipality ..................................................................................................................................... 85 Mainstream Renewable Power .......................................................................................................................................2 & 21 Nedbank ..................................................................................................................................................................................... 36-39 Northern Cape Chamber of Commerce and Industry (NOCCI)............................................................................. 40 Northern Cape Department of Economic Development and Tourism ............................................. IFC, OBC Northern Cape Department of Education ................................................................................................................ 80-82 Petra Diamonds ............................................................................................................................................................................. 56 SA Airlink ......................................................................................................................................................................................... IBC South African Local Government Association (SALGA) ............................................................................................ 84 Square Kilometre Array South Africa (SKA) ..................................................................................................................... 30 Upington Special Economic Zone ............................................................................................................................... 22-27

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Physical: Metlife Towers, 13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309 Postal: Private Bag X6108, Kimberley, 8300 Tel: 053 839 4000 | Fax: 053 832 6805 Web: http://economic.ncape.gov.za Email: dedat@ncpg.gov.za


Northern Cape Business 2016-17