inspire TRADE • INVESTMENT • TOURISM
SOUTH AFRICA
LEADING THE WAY SUCCESSFUL WOMEN HELP ENTREPRENEURS
EMPOWERING MINDS VOCATIONAL TRAINING FILLING SKILLS GAPS
TARGETING PROSPERITY NDP 2030 GOALS
Inspire Communications, is hosting the annual Limpopo Open For Business Conference and Exhibition from the 26 – 28 October 2016. Limpopo International Trade and Investment Expo 2016, taking place from the 26 - 28 October 2016 at Sun International’s prestigious Carousel Hotel and Casino. Bringing together a selection of international traders, investors, business leaders and high profile delegates looking to do business with Limpopo. The event provides exhibitors with an intimate, highly targeted environment for business leaders and delegates, wanting to source services to help them trade more successully with Limpopo. Both exhibitors and delegates will have the opportunity to network with key decision makers to create new business openings. With a full conference running alongside the exhibition, the event delivers a fantastic platform for all those wishing to do business in Limpopo.
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WHY EXHIBIT? • Promote your company’s products and services to targeted groups of industry decision makers and buyers • Meet hundreds of new buyers and potential partners and develop a quality database of attendees at the conference • Raise your company’s profile and brand awareness in a unique highly engaged environment • Locate new agents and distributors for your products and services • Showcase your products and services face to face • Develop personal and direct relationships with new and existing clients in a networking environment • A pre and post show targeted digital media campaign; a continuous voice for exhibitors • Present your company to top-tier professionals and PRIVATE INVESTORS. • Connect with senior investors and top executives across the industry value chain. • Initiate and close deals with industry players. • Strategically position your company as a sponsor – the best in the BUSINESS!
TARGET DELEGATES AND VISITORS Potential International investors • Brazil
• Netherlands
• Russia
• Belgium
• India
• Luxemburg
• China
• Amongst others
Corporate South Africa Representatives from multi-national South African corporations SADC trade partners Representatives from the SADC community Foreign Embassies and High Commissions Foreign Trade Missions in South Africa Example Jetro, Rustrade, SANEC etc
EVENT DETAILS Date: 26 - 28 October 2016 Venue: The Carousel hotel and Casino (Bela Bela) • 3 Days, 12 powerful informative speakers per day • 60 plus exhibitors • Match making areas available every day • Open mic – stage in main hall – 15 min open sessions to pitch your business • Coffee/tea daily • The hotel will open the cash bar daily at 3 pm Delegates please email: graeme@inspiresouthafrica.co.za for registration documents Exhibitors please email: mark@inspiresouthafrica.co.za
inspire communications
contents
6 INTRODUCING TVET COLLEGE EDUCATION TJ Kekana, Principal / CEO Sekhukhune TVET College
8
FOREIGN INVESTMENT
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DEVELOPMENT
India looking to strengthen economic bonds Women nurture entrepreneurs
COPY EDITOR Mandy Young
inspire communications
PUBLISHER: Inspire Communications (Pty) Ltd Directors: Mark Poonan, Graeme Mather 63 Boundary Rd, Robindale Johannesburg Tel: 011 888 0036 Fax: 011 888 4271
4
CONTRIBUTORS Hermann Tischlerr, Priya Pitamber, Shamin Chibba Brand SA - Media Club of SA
20 MINING Its not all doom and gloom 26 TRAINING TVET filling the gaps 36 ECONOMY Our people, our future 47 AFRICA
SA be humble
ART DIRECTOR Stacey Storbeck Nel indiodesign@mweb.co.za
ADVERTISING SALES: Bruce Nimmerhoudt
PHOTOGRAPHY Shutterstock, 123RF, Media Club of SA
DISCLAIMER: INSPIRE SOUTH AFRICA is published by INSPIRE COMMUNICATIONS. All work published herein is protected by copyright. No part, editorial or images may be reproduced or adapted in whatever format without the express permission of the publishers and / or their contributors. Information and opinions expressed and published in INSPIRE SOUTH AFRICA, do not necessarily express opinions of this magazine. The magazine, publisher or editor cannot be held liable for damages of any nature, directly or indirectly from any facts or information that has been provided or omitted in these pages. The same applies to any statements made or withheld by this magazine.
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We’re on a journey to sustainability At KLM, we’re always on the hunt for new insights and opportunities to strengthen our sustainable efforts. We believe that if we keep persevering, we can make a difference. Read all about our journey to sustainability and feel free to add your thoughts on klmtakescare.com
foreword
T
VET (Technical and Vocational Education and Training) Colleges in South Africa continue to live up to their cardinal goal of addressing the skills shortages in the country through the supply of qualified work force to various industries and the country’s economy. Over the past years, numerous strides have been made in this regard including the introduction of the National Certificate Vocational (NCV) qualifications, aimed at driving the vocational skills, leading to the production of qualified artisans. One of the strategic goals set by the Minister of Higher Education and Training to address the plight of ‘Neets’, that is young people who are not in employment, education, or training, is to expand access to post education institutions, and more specifically within the TVET College sector. Aligned to that is the objective of changing perceptions of inferiority where TVET colleges, and technical education, are concerned. The Limpopo Employment Growth and Development Plan (LEGPD) 2009:8 stated that the most pressing problem facing Limpopo Province is the absence of economic growth and job creation, which are essential to reduce poverty and improve living conditions. This allusion by the LEGDP can be directly linked to the poor choice of career and crippling subject combination at high school level. We find learners aspiring to pursue commonly soft skills trades which leads to an overproduction of skills and high unemployment, as opposed to them pursuing scarce and critical skills as set out in the NSDS 111. On the other hand, the role of private sector to ensure that TVET graduates acquire the necessary workplace exposure remains a challenge. We therefore make a clarion call to employers, that there is a need to make every workplace a learning place. The workplace component is as critical to Technical and Vocational training as the theory component. Yours sincerely Kekana TJ Principal / CEO Sekhukhune TVET College
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Inspire South Africa
investment
IS IT
NEW DELHI’S TIME TO SHINE IN AFRICA?
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investment
India has age old ties with Africa. Under Narendra Modi, who visited Africa for the first time as prime minister recently, this fast growing global economy is looking to strengthen those diplomatic and economic bonds.
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VISION The vision of Limpopo Gambling Board focuses on becoming the innovative and leading gambling regulator in Africa.
LIMPOPO GAMBLING REGULATIONS The Limpopo Gambling Regulations are in the process of being amended.
MISSION To regulate the gambling industry in a responsible and ethical manner for the benefit of the people of the Province by ensuring compliance with legislation, promoting responsible gambling, and facilitating sustainable local economic development.
THE LIMPOPO BETTING AND RACING REGULATIONS The Limpopo Betting and Racing Regulations are in the process of being promulgated.
VALUES ♦ To operate in accordance with the highest moral and ethical standards. ♦ To accept responsibility towards our most important resources, our employees and to maximise the development and utilisation thereof. ♦ To strive towards a healthy relationship with our stakeholders.
SPECIAL PROJECTS In order to promote tourism and entertainment and leisure facilities in the Province, the Board licensed three casinos with hotel and conference facilities in Vhembe, Capricorn and Sekhukhune districts. Nine Bookmakers, Totalisator agencies and over a thousand slot machines in pubs have been licensed and rolled out throughout the Limpopo Province.
POLICY MANDATES The following policy mandates are key to the Board in its endeavor to achieve its legislative mandates.
Furthermore, the Law Enforcement unit of the Board is constantly engaging themselves in operations to deal effectively with illegal gambling operators in the Province and has for the past year alone, confiscated twenty nine illegal gambling machines and over hundred illegal online gambling computers.
RESPONSIBLE GAMBLING The National Responsible Gambling Programme (NRGP) is a resource that integrates research and monitoring public education and awareness, training, treatment and counseling. Broad Based Black Economic Empowerment to economically empower previously marginalised black masses in the main stream economy.
Limpopo Gambling Board Private Bag X9520, Polokwane, 0700 8 Hans van Rensburg Street, Polokwane, 0699 Tel.: +27 (15) 230 2300 Fax: +27 (15) 295 3566 or 086 505 3460 ceo@lgb.co.za www.lgb.org.za
investment
W
hen he took office in May 2014, Indian Prime Minister Narendra Modi inherited a growing economy built on long established trading agreements. Modi is not a traditionalist, he understood that India had an opportunity to flex its trade and diplomatic muscle. Under his leadership, India has become more assertive on the international stage. He has strengthened ties with the USA and the country’s East Asian neighbours. India’s lobbying for a permanent seat on the UN Security Council offers the African countries that Modi is visiting this week (Mozambique, South Africa, Tanzania and Kenya) an opportunity to strengthen the relationship between the continent and India. South Africa is India’s biggest African market, accounting for more than 22% of all goods exported to Africa. We are also the third largest African investor in India. These ventures are concentrated in the service and retail industries. After meeting President Jacob Zuma, 8 July 2016, Modi expressed the hope that India and South Africa would develop stronger ties in the mining and manufacturing sectors. Most important to Modi was strengthening co-operation in the security sector. “Beyond economic ties, and links of business, trade and investment, we can also partner in the field of defence and security. Both at the level of industry and for our strategic and security needs,” he said. As the sector transformed in India, opportunities would become available to South African defence companies. “Our companies can also pool their capacities to jointly develop or manufacture defence equipment and platforms. And, not just to meet our defence needs, but also to respond to the regional and global demand.” It has been Indian policy to work through the UN to promote global peace and security. The country’s peacekeeping operation in Africa, has provided the largest number of troops to African peacekeeping operations, and is part and parcel of its commitment to peace and development on the continent. The four countries Modi visited are all along Africa’s eastern seaboard and
Modi would like to induce them to join in India’s fight against high sea pirates. As Modi highlighted after his meeting with the president, “Terrorism is another shared threat that puts at risk the safety and security of our people. It attacks the very foundations of our society. The president and I agreed that our two nations need to stay vigilant and cooperate actively to combat terrorism, both in our region and in the world.”
“Our companies can also pool their capacities to jointly develop or manufacture defence equipment and platforms. And, not just to meet our defence needs, but also to respond to the regional and global demand.”
Is it India’s time to shine in the African sun? The slow global recovery from the 2008 financial crisis has highlighted the seismic shift in the economic order. Diplomatic and trade relationships between developing countries have superseded traditional north/south trading. Bi-lateral India/Africa trade has grown by 32% annually between 2005 and 2011. By 2015 the partnership generated $90 billion; a major source of growth and employment creation in Africa during the economic crisis.
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investment
In the year that Modi took office, India became the fastest growing global economy, which is the seventh largest economy and the third largest by purchasing power. Modi inherited credit agreements between India and African governments worth almost $18 billion. He extended grant assistance to the continent that covered the India-Africa development fund, a $10 billion India-Africa health fund and 50 000 scholarships for African students to study in India.
challenges like food security. In West Africa, Indian know how is helping to save the region’s cotton industry, including building factories to process raw material into finished products. Companies like Olam International have also begun to buy up uncultivated land in East Africa to grow maize, palm oil and rice for export to India. Indian companies strengthening ties with Africa gives the continent a new source of growth just as the Chinese economy slows down. These companies are also seen as better corporate citizens. Research done by analytics firm HIS has suggested that India’s soft touch approach has earned it plaudits among African governments, who have applauded their environmental records and their policy of employing Africans to staff their business ventures.
Historical ties
Trade and co-operation between Indian and African governments have occurred in agriculture, the blue economy, and infrastructure and security sectors. The Indian government has also taken the view that Africa’s growth is good for India, and has committed to share expertise and set up training programmes. The Indian private sector has followed the government’s example and invested heavily in Africa. China is most often recognized as the dominant new trading partner for African states. The Indian private sector has avoided competing directly with Chinese investment in Africa; instead they have chosen overlooked niches, like Africa’s diamond sector. They have overtaken Chinese investment in areas like agriculture, ICT and medicine. The new India power-house is enmeshed in the Africa Rising narrative. According to the African Development Bank, the continent enjoys a positive trade balance with India. For Africa and India, the relationship has benefits. India has been especially aggressive in the agribusiness sector. Her deep knowledge in areas like small farm mechanization is helping African governments address
12
During his visit to South Africa, prime minister Modi travelled by train to Pietermaritzburg Station. Infamous as the station where Mahatma Gandhi was thrown off the train in 1893. An event that birthed his lifelong fight for equal rights, and a campaign that changed South Africa and India. Modi’s train journey is a reminder of the long and close ties between South Africa and India. Ties forged in the fight for equal rights for all. “For me personally, this visit is an opportunity to pay homage to two of the greatest human souls to have ever walked this Earth – Mahatma Gandhi and Nelson Mandela. “It was in South Africa that Gandhi found his true calling. He belongs as much to India as to South Africa,” Modi said on his arrival in South Africa. While Africa is a region that India cannot ignore, the long history of India’s involvement in Africa has helped grow economic ties. Africans of Indian descent in East Africa are the progeny of the traders that began trading with Africa a thousand years ago. South Africa is home to one of the largest Indian diaspora populations. The diaspora has helped build ties between the continent and the sub-continent. They were the link between African commodities – tea, coffee, cotton – reaching India and the import of manufactured goods. Read more: http://www.mediaclubsouthafrica.com/economy/4478-is-itnew-delhi-s-time-to-shine-in-africa#ixzz4Fb8YCtZr
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women
There are thousands of African women creating successful businesses, leaving inspiration and change in their wake, and in a small way helping to uplift Africa’s narrative. The five women below are making massive strides in their respective business sectors, changing their industries and improving business for other women in Africa.
FIVE WOMEN © Anglogold Ashanti
LEND A HELPING HAND TO AFRICA’S ENTREPRENEURS
Joy Ndungutse, Founder and CEO of Gahaya Links (Rwanda)
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women
A
ll these women are members of the Graça Machel Trust, a pan-African advocacy organisation that focuses on women’s rights, children’s rights and governance and leadership in Africa. Their ‘Multiplying Faces, Amplifying Voices’ campaign aims to build a network of highly qualified, active and effective women across the continent to become a voice in areas where they are currently underrepresented. This includes the Network of African Businesswomen (NABW), Network of African Women in Agribusiness (AWAB) and New Faces New Voices (NFNV), a programme that focuses on expanding the role and influence of women in the financial sector.
JOY NDUNGUTSE: Founder and CEO of Gahaya Links (Rwanda) Changing economies by commercialising culture
increase financial inclusion of women and educate women on taxation and business practices; these still remain big challenges for women in business. She identifies certain key issues as barriers for women entering into business: geographical access to financial institutions, knowledge of financial products and statistics. According to Joy, “most rural women in Rwanda lack the knowledge to organise businesses in a formal way. It’s critical to educate them on key issues such as new business taxation policies and the simplified tax regime that exempts them in order for them to be able to kick start and build sustainable businesses.” She highlights that a lot more work needs to be done to educate and create awareness of the importance of formalising and growing informal businesses owned by women.
HADIA GONDJI: Managing Director at Hadia Seed Production, Hadia Flowers and Hadia Supermarket (Ethiopia)
Joy Ndungutse spent her childhood and early adult years in exile due to the political instability in Rwanda. Challenging the status quo to create opportunities Driven by ambition, Joy’s strong desire to work towards for women the empowerment of women translated into a weaving initiative when she moved back to Rwanda after the Hadia is the country director of the New Faces New Voices genocide. While running a hotel and the country’s first Ethiopia Chapter; she and is a pioneer in the transportafurniture store, she trained local tion, agriculture and horticulture women in rural areas to design industries in Ethiopia. In baskets, modern in style and agriculture she is involved in shape, that these women could hybrid grain multiplication and make using traditional weaving through her business she teaches skills and techniques. This farmers in the country to improve In Ethiopia it is still journey gave birth to Gahaya their yields. Links; a successful social Hadia says: “We normally work very difficult for enterprise in Rwanda that works with small-scale farmers to help women to get into with over 4 000 weavers to make them improve their production traditional baskets that are and we teach female farmers free business and politics. exported to the US and Japan of charge.” Although things are where they are sold throughout As president of the Ethiopian leading department stores. Women Exporters Association, getting better Joy notes that, “It is a delight (EWEA) she has seen production to see the fruits of this project and by female farmers increase and to see an increase in the number and exports of various produce of women in Rwanda achieving such as coffee, fruit, vegetables financial independence.” and flowers improve. Hadia is She continues: “It is also also one of the founders of encouraging to see that the local culture is alive and Enat Bank, the only financial institution in Ethiopia that vibrant, and that using what we have, we have managed specifically targets women. to make such an impact on the lives of others, and She explains, “In Ethiopia it is still very difficult for on creating awareness of what Rwanda has to offer to women to get into business and politics. Although things the world.” are getting better, it remains hard for women to do However, she highlights that although some progress business, as the environment is not conducive; banks has been made in Rwanda, a lot still needs to be done to want collateral before giving financial support and women
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women
do not own any property. The houses and farms belong to men.” “Enat Bank was launched to assist women by getting money from investors to deposit as collateral for women in business, and we see that the bank is making a great difference to women business owners.” Hadia highlights that creating a strong business network for women in Africa is essential to ensure that business opportunities improve for women on the continent. As evidenced by the Graça Machel Trust, the role of such networks and advocacy groups is invaluable in connecting likeminded business women across the continent.
ELIZABETH SWAI: Managing Director of AKM Glitters Company Limited (Tanzania) Driving the agenda for women in business A self-starter, Elizabeth Swai runs a thriving poultry business that has expanded its operations to include small-scale farmers in its supply chain. Her business model makes a conscious effort to include those parties that would normally find themselves excluded from the formalised market. Elizabeth says that although the Tanzanian government has expressed commitment to supporting female entrepreneurship, women still face a great number of obstacles. Challenges such as cultural barriers, the right to property and decision making, stiff competition, corruption, bureaucracy, and a lack of awareness from women themselves, make it extremely hard for women in Africa to build a successful business. She also serves as leader and coordinator of African Women in Agribusiness, holds a seat in the Network of African Women in Business, is a founder member of the African Agriculture Academy, and is an active member of the World Poultry Association.
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women
According to Elizabeth, her involvement with the women’s networks and associations is aimed at representing the needs of women in Tanzania. She says: “I am involved with all these organisations in order to represent other women. Defragmentation is a poison, so women need to partner with other women, networks, associations, men and their gigantic enterprises with muscle in order to achieve the achievable.” She notes: “I created a business model that is inclusive in order to enable ease of access to finance and technical expertise, but also to work with more women in rural areas and create employment for the youth.”
GRACE MIJIGA-MHANGO: Director of Agriseed and African Women in Agribusiness (Malawi) Building businesses that transform lives
Grace specialises in commodity trading and seed multiplication and has built successful businesses that trade in Malawi and across the continent. Having been with the Graça Machel Trust since 2011, she is one of the pioneers that help shape the Trust’s vision. She conceptualised the African Food Basket Project that promotes the growing of indigenous seeds led by women farmers to raise the yields of staple crops like maize, soya beans and pigeon peas. The overall project aims to benefit 50,000 women across grain production value chains in ELIZABETH MAGAYA: Managing Director of five countries over the next five years. Blissford Investments (Zimbabwe) Grace has incredible vision, which she shares Taking giant steps, one step at a time passionately with those interested in her work and those that share similar interests and beliefs. Elizabeth Magaya became an She sees herself as an agent of entrepreneur at the age of 10, change, and is committed to helping to look after her parents working to support others to reach divorce. She went from vegetable their full potential and achieve vendor to owning a group of meaningful change in their lives. companies that includes “To empower themselves, The Graça Machel Trust, a booming construction business, women must realise through its advocacy work, seeks and has recently diversified into to continue extending its arm to horticulture, landscape and interior that it is possible to more women across the continent, design. At the age of 52, she went to effect and influence a change in start, and you can start back to school to finish what she thinking about women-owned wasn’t able to start as a child and small, you don’t need businesses as a channel for Africa’s graduated at the age of 56. economic development. The trust She is the epitome of self-made to be great or big to seeks to grow women-owned success and attributes this to hard start, begin where businesses across Africa, and to work, sheer determination and a empower female entrepreneurs to constant drive for perfection. you are and the rest realise their full potential. According to Elizabeth, “the will follow” Former South African and biggest challenges with women in Mozambican first lady Machel is a business in Africa are the women renowned global advocate for the themselves.” rights of women and children. A She explains: “Most women are social and political activist for still marginalised and still depend many decades, she serves in various capacities in several on men to make decisions for them and give them organisations. One of these is the Elders, a group of permission to do things. I believe women should independent global leaders working together for peace and be aggressive, start networking and start to expose human rights, brought together in 2007 by her husband, themselves. They should see every situation and Nelson Mandela. challenge as a bull and take it by the horns.” Machel also contributes to the Africa Progress Panel and, “To empower themselves, women must realise that like Adesina, the MDG Advocates Panel. She has been it is possible to start, and you can start small, you don’t named an eminent person in the GAVI Alliance, and works need to be great or big to start, begin where you are on the UN Foundation’s High-Level Panel on the Post-2015 and the rest will follow. Never mind your background, Development Agenda. Machel chairs the board of the where you started or where you came from. If you use African Centre for the Constructive Resolution of Disputes, your hands and mind you will reach your destiny,” and is chancellor of the University of Cape Town. she says.
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brics Development Bank – Filling
south africa
a gaping hole in the gloBal Development aFFairs!
kzn tourism ContriButing immensely
inspire TRADE • INVESTMENT • TOURISM
inspire south africa
inspire trade • investment • tourism
ISSUE 4 2015
SOUTH AFRICA
to the Country’s gDp
design indaba south aFriCan Designs, a ForCe For Change within the Country
afcon
2013
iSSue 1/2013
S.A. AlwAyS reAdy to be counted when duty cAllS
TAKING THE NEXT STEP STRENGTHENING TIES BETWEEN NETHERLANDS AND SOUTH AFRICA
LOVING SA VISITORS KEEP COMING BACK
HERE COMES THE SUN RENEWABLE ENERGY THE ONLY WAY FORWARD
INSPIRE SOUTH AFRICA offers trade partners and investors a platform of information when considering the scope of their investment opportunities in South Africa.
INSPIRE SOUTH AFRICA is used at the highest level when campaigning for new trade partnerships in the governmental, public and private sectors, as well as tourism, trade, industry and investment.
INSPIRE SOUTH AFRICA is aimed at business executives and political decision-makers who are best positioned to initiate and facilitate trade, tourism and investment opportunities available in South Africa
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mining
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mining
LIGHT AT THE END OF THE TUNNEL IT IS NOT ALL DOOM AND GLOOM “We don’t see the end of the tunnel, but I must say I don’t think it is darker than it was a year ago, and in some ways lighter.” President Kennedy
© Anglogold Ashanti
By Herman Tischler
Carletonville, North West province: Jumbo drill rig working in a development end underground at Mponeng Gold Mine, part of the west Witwatersrand operations of mining multinational Anglo Ashanti’s Western Deep Levels.
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mining
T
the same time, miners across the globe had to contend he year 2015 was another immensely with cost pressures, leaving many big operations challenging year for the South African mining struggling for survival. World Bank commodity price industry. It had to cope with the persistent forecasts promise little relief, showing only moderate global slide of commodity prices, fast rising recovery of important metals and minerals between now input costs, and a substantial decline in and 2025, whilst in most cases forecasts tend to be revised productivity. Not surprisingly, the profitability downward every quarter. These figures mean that the of mining operations came under pressure. According to boom days are clearly over. the PWC’s 7th edition SA Mine PwC’s 7th SA Mine report states report (1), mining operations declined by a total of 75%. There that South African mining is general recognition for the need operations generally exhibit the to restructure, and for closer same trends as those visible in the The weaker financials collaboration between all global mining industry, even stakeholders in the industry. though the South African mining had a knock-on effect It is difficult to cast a positive output has been sliding the fastest gloss over trends in commodity amongst the 10 biggest producing on stock values across prices since 2008. Although countries. The Rand’s 21% tumble the board, with prices did recover slightly after this year alone, contributed to the turmoil of 2008, there has offset some of the pressures Glencore plunging been a steady decline across the arising from the cost and by as much as 29%. board from 2012 onwards. For commodity pricing pincer, example, iron ore prices have although it did not weaken much declined by approximately 60% more than the currencies of other over the last two years alone: a commodity producing countries significant blow to an industry (For instance, the Real of Brazil, characterised by a long lag between investment and another important commodity exporter, declined against revenue generation. Platinum, another important South the USD by a staggering 48%). African commodity, has not experienced real prices at Faced with these pressures, South African miners have current levels for over a decade. felt the pressure on the bottom line, with net profits In 2015, overproduction, declining Chinese economic declining by as much as 75% in the last year alone. For growth, and that country’s shift from infrastructure-driven example, seven of Harmony Gold’s 12 mines, are currently to domestic growth, added to the gloom. As the saying running at a loss, and the 3 largest will close unless they goes, when China gets a cough, miners get pneumonia. At are turned around by end of the year. Half of the mines in
INTERNATIONAL METALS, MINERALS, PRECIOUS METALS $ PRICE PER METRIC TONNE: 2013-2025 Item
13
14
15
16
17
18
19
20
21
22
23
24
25
Gold
1411
1266
1175
1156
1138
1120
1102
1084
1067
1050
1127
1113
1100
Silver
23.8
19.1
15.8
15.9
16
16.1
16.2
16.4
16.5
16.6
16.7
16.9
17
Platinum
1487
1384
1100
1135
1170
1207
1245
1285
1325
1367
1410
1454
1500
1847
1867
1765
1804
1845
1886
1928
1971
2014
2059
2105
2152
2200
Copper
7332
6863
5850
5956
6064
6174
6285
6399
6515
6633
6753
6875
7000
Iron ore
135
97
55
57
59
60
62
64
66
68
70
73
75
Lead
2140
2095
1875
2100
2131
2163
2196
2228
2262
2296
2330
2365
2400
Nickel
15032
16893
1300
13572
14170
14793
15445
16125
16834
17575
18349
19157
20000
Tin
22283
21899
16100
16685
17290
17918
18569
19243
19942
20666
21416
22194
23000
Zinc
1910
2161
2125
2400
2432
2464
2496
2529
2562
2596
2630
2665
2700
Coal
84.6
70.1
58
59.5
61.1
62.6
64.3
66
67.7
69.4
71.2
73.1
75
22
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mining
Items Revenues from ordinary activities Adjusted EBITDA Net profit Capital expenditure Total assets
Current year
Previous year
Difference
% Change
R ’billions 335
R ‘billions 323
R ‘billions 12
4%
75 2 55
94 8 57
(19) (6) (2)
(20%) (75%) (4%)
724
702
22
3%
the country, owned by top mining companies, are currently running at a loss. The weaker financials had a knock-on effect on stock values across the board, with Glencore plunging by as much as 29%. In some cases the investments are stressed, as in the iron ore sector. Investments to the order of many billions were made on the assumption that the iron ore price would remain above the cost of production. The long term contracts so typical of the coal sector, also assumed consistently high coal prices. In consequence, the market capitalisation and gearing ratios of the companies analysed by PwC suffered, with market capitalisation declining from R675 billion as at June 2014, to R414 billion in June 2015. Diversified companies seem to have been hit the hardest, reducing their share of market capitalisation from 47% in 2014 to 36% in 2015. Kumba Iron Ore experienced the biggest market capitalisation decline - R61 billion since June 2014, and an
additional R24 billion lost up to September 2015. Reduced investment confidence made it more difficult to raise the capital needed to cover operational shortfalls, with miners having to rely on the more expensive capital markets, traditionally a last resort for raising capital. This not so pretty picture derives substantially from the grim situation faced by miners across the globe. However, the disproportionate impact on the South African mining industry indicates the workings of an additional home-grown set of constraints and pressures, including issues such as the age of many South African mines, mining depth, safety issues, and ore quality. South African miners have also had to face above average cost increases as a result of wages and electricity price increases. Recently they have also had to deal with renewed black equity demands, belligerent unions and protracted strikes, while simultaneously dropping three places in the World Bank’s global competitiveness report,
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mining
to be recovering from pricing lows. Precious metals are volatile, but the drop seems to have slowed. Rare earths may take longer to revive. Currently, some investment is taking place in right–sized operations with close to cash positive operations. South African miners, like their international peers, opted for modernisation and restructuring as a way out of the doldrums. Gold companies, says Gold Fields CEO Nick Holland, have to embrace technology to survive (3). Companies also spun off unproductive assets and started focusing on their best ore bodies. They also started cutting costs across the board, focussing on safe and profitable ore bodies, and rationalising assets. Harmony for instance, cut 3000 jobs in the past year, as a part of restructuring three of their mines (one of which is in Papua New Guinea), with hundreds more to follow in the coming months. Much restructuring of portfolios took place, as did the relocation of operations to where the money is, namely the UK. Social and political pressures continue to complicate restructuring and cost cutting efforts. However, broad consensus has been reached about the need for government, the unions, and miners to develop an inclusive social compact that goes beyond the 2002 Mining Charter and the Framework Agreement for a Sustainable Mining Industry of 2013. In August this year, the three parties did indeed sign a broad plan. Its aim was to stem the worrying wave of job losses, promote South African minerals, and enhance productivity (4). However, says Peter Leon, Head A drill rig in operation underground at mining multinational Anglogold Ashanti’s of Mining Regulatory at Webber Mponeng Mine. Wentzel, investors’ decision as to whether the lighter sheen at the end of the tunnel is in fact ores, South Africa retains the world’s largest reserves of light, will depend substantially on creating more manganese and platinum group metals, and exceedingly predictability and stability regarding the development and high reserves of gold, diamonds, coal, chromite ore, implementation of law and policy (5). In this respect the vanadium, and manganese – all important commodities. ball is firmly in government’s court, though much remains There are early signs of recovery in the case of to be done by miners and the unions. In the meantime, commodities sourced by electronics and in some companies with the right teams, advice, and flexible manufacturing industries. China will continue to consume strategies will prosper, despite the circumstances. South African commodities, even if at modest rates. Furthermore, in time, commodities will recover and Efforts can be made to develop other markets, such as provided that no major geopolitical event intervenes, the India, which has expressed an interest in South African next commodity boom is only a cycle away. coal mining assets. Nickel remains in demand. Iron seems
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© Anglogold Ashanti
mainly as a result of declining productivity (2). Having dealt with the negatives, let’s move to the positives. Johan Rossouw, project manager of the PwC mining report, remarks that the South African mining industry has exceedingly strong foundations with excellent infrastructure, technical expertise, and professional legal and financial support. South Africa’s safety record has improved from ‘exceedingly dangerous’ to international standard over a decade: a major positive. The total number of people employed in the mining industry remained within the 480 to 530 hundred thousand band maintained over the last decade, despite job losses and closures. Importantly, South Africa’s total reserves, worth a staggering estimated R20.3 trillion, still count amongst the most valuable in the world. Despite the image of mined out
education
WORK-BASED EXPOSURE YIELDS
GOOD RESULTS
More than 270 Waterberg TVET College’s level 4 students participated in work-based learning during the winter recess. This is to afford the students an opportunity to practice what they are learning in class and also to expose them to the real workplace environment.
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tudents who were engaged in work-based learning are enrolled in Marketing, Hospitality, Finance Economics & Accounting, Office Administration, Primary Health, Engineering & Related Design, Civil Engineering & Building Construction as well as Electrical Infrastructure Construction. Host employers included Coach House Hotel, Fusion Boutique Hotel, Thandeka Lodge, Entabeni Lodge, Lalapanzi Lodge, OASIS Hotel, The Park Hotel, Vodacom, Studio 88, Mokopane Hospital, Mokerong Magistrate, Mahwelereng Clinic, Belo & Kies Construction Company, Autofix, MVA Laboratory Laboratoy for Civil Materials and Letaba Laboratoy for Civil Materials. The Technical Vocational Education and Training (TVET) Colleges curriculum requires the integration of theory and practice. The practical component may be
offered in the workshop or simulated environment and/or in the real workplace. The relevance of content knowledge and skills and the quality of the graduates that colleges produce, depends on the level of practical training and work-based exposure that the students receive over their years of training. The Minister of Higher Education and Training, Dr Blade Nzimande, has called upon TVET Colleges to build strong links with business and industry in order to achieve the goal of offering quality technical vocational education and training. “We are happy to have worked with the students of Waterberg TVET College who showed a great deal of professionalism and determination towards their work” said Mr Nicholus Belo from Belo and Kies Construction. He further committed to working with the College’s Civil Engineering and Building Construction Students in the future. Mr Tshepo Magoro, Work-Placement Officer, commended all host employers for their commitment to empowering our students. He said “work-based learning provided our students with the actual experience of different work roles that they are likely to encounter once they have completed their studies”. The dedicated College Lecturers make a concerted effort to find workplaces to place students. They also encourage the students to look for employment opportunities on their own closer to their residential areas. The aim of the College is to have all level 4 students engage in work-based training during April, July, September and December recess periods. More host employers are encouraged to join in empowerment of the students in order to remain competitive in an increasingly knowledge-based economy.
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vocational training
VOCATIONAL TRAINING CAN HELP SOUTH AFRICA Vocational training gives people options other than studying at a university. Increased efforts from the government in this sector could help to empower people with skills development and contribute positively to employment rates. Vocational training could help South Africa to reach its goals, as outlined in the National Development Plan, to reduce unemployment. Compiled by Priya Pitamber
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© 123RF
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vocational training
© 123RF
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survey of South African chief executive officers, found that 36% were extremely concerned about the availability of key skills, compared to a global average of 17%, stated in a recent report on vocational education and training in four countries: South Africa, the UK, India and the USA. The report, from the global skills development company, City and Guilds Group, highlighted how vocational education and training (VET) could have a substantial influence on global economies. Vocational training is generally for a career in the technical or practical fields. It includes a diverse
range of careers, such as carpentry, plumbing, and beauty therapy. VET could significantly benefit individuals and businesses, but the report found that VET was not getting the recognition it needed to attract large numbers of students. In South Africa in particular, VET could help the country to reach its National Development goal of decent employment, as well as help to develop the skills necessary to create a capable workforce to support inclusive growth. “The report indicates that vocational education can help to fill skills gaps, boost productivity, enhance industries and increase employment – all of which have a significant impact on individuals, businesses
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vocational training
“University operating subsidies will amount to R72.4-billion. Transfers to universities for infrastructure of R10.5-billion are proposed, including R3.2-billion for the new universities of and the economy as a whole,” said Mike Dawe, the director of international at the City and Guilds Group.
Mpumalanga and Sol Plaatje.”
“However, there is an ongoing challenge in South Africa, where vocational institutions and technical and vocational education and training (TVET) colleges find it difficult to attract large numbers of students,” Dawe noted. “People still see university study as the first prize and vocational options as second-choice at best – or they don’t even know what vocational options are out there.” However, the report also acknowledged the progress South Africa had made. The country has one of the highest rates of public investment in education in the world. According to Brand South Africa, approximately 7% of gross domestic product (GDP) and 20% of total state expenditure is spent on education. Apart from the more than R640-billion that would be allocated to basic education over the next three years, in his budget delivered on 25 February 2015, then Finance Minister Nhlanhla Nene said that allocations to postschool education and training would exceed R195-billion over the medium term, increasing at an annual average of 7.1%. “University operating subsidies will amount to R72.4-billion. Transfers to universities for infrastructure of R10.5-billion are proposed, including R3.2-billion for the new universities of Mpumalanga and Sol Plaatje. “We are mindful of the pressures on student financing at our higher education institutions. The National Student Financial Aid Scheme is projected to spend R11.9-billion in 2017/18, up from R9.2-billion in 2014/15. This will support a further increase in university enrolments and in technical and vocational colleges.
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“Progress in the quality of post-school education programmes is clearly critical. Under (Higher Education) Minister (Blade) Nzimande’s direction, the 21 sector education and training authorities and the National Skills Fund will continue to provide work placements for students and graduates. “Raising the number of trainees who qualify as artisans is a special priority. Options for improving the skills funding system will be reviewed in the period ahead,” Nene said in his budget. In an effort to increase VET, the South African government also plans to increase workplace training, starting with government agencies and departments who will be encouraged to offer workplace training for vocational students. “Even though there is a lack of data proving the benefits of vocational education in many contexts around the world, national governments have realised the significant role vocational education and training plays in their countries’ futures,” added Dawe. “The commitment from the government is encouraging and South Africa has a huge opportunity ahead of it.” Read more: http://www.mediaclubsouthafrica.com/economy/4401vocational-training-can-help-south-africa#ixzz3zaUheUmu
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© Brand South Africa
See more about vocational training here:
vocational training
WHO IS
CAPRICORN COLLEGE FOR TVET?
Capricorn College for TVET is a product of a merger of three Colleges with very distinct and diverse historical backgrounds.
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he Colleges are the former Pietersburg Technical College (PTC), Bochum College of Education and the former Northern Province Community College (NPCC). Capricorn College for TVET has four (4) campuses namely: Polokwane Campus, Seshego Campus, Senwabarwana Campus, Ramokgopa Campus and a satellite campus at Bokoni Platinum Mine.
WHAT DO WE OFFER AS CAPRICORN COLLEGE FOR TVET?
VISION: To be the leading Technical, Vocational Education and Training Institution of Excellence
MISSION: Capricorn College for Technical, Vocational Education and Training is to achieve its vision by offering responsive, flexible and quality programmes that are accessible to all learners through formal learning, skills development and learnerships. This is achieved by forming partnerships with relevant stakeholders, making use of committed human capital and employing appropriate physical and fiscal resources.
LOGO: Our logo symbolizes academic and technological success and contains the motto: “Achieving Excellence Together�
We have four main departments namely: Business Studies, Engineering and General Utility Studies for specialisation and fundamentals which is offered additionally in all faculties. We offer National Certificate Vocational (NCV) Programmes. The national certificate vocational subjects are offered at Levels 2, 3 and 4 of the National Qualification Framework (NQF). All NCV programmes consist of a fundamental learning component and a vocational component and comprise 130 credits on each level. We also offer Nated/Report 191 programmes.
WHAT SETS CAPRICORN COLLEGE FOR TVET APART FROM OTHER TVET COLLEGES? Capricorn College for TVET offers the best engineering and IT programmes, which attract a lot of young female students who add to the number of females in the engineering industry. We pride ourselves in our students and staff members.
Mr K.R Madzhie CEO and Principal of Capricorn College for TVET
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Pioneering PUBLIC TRANSPORT
THROUGH INNOVATION gautrain.co.za
GAUTRAIN: OFFERING YOU A LIFESTYLE CHOICE Gautrain is about the people it moves every day, e.g. the banker from Park Station to Sandton or the tourist eager to explore and experience Gauteng. Since its inception, the system has changed and shaped people’s lifestyle, be it working or playing in Gauteng. Quickly hopping on and off at stations for either leisure or work is becoming the norm – stress free.
Gautrain is not about the train. It is for people who want freedom of movement, and upward mobility. People who demand available, fast, reliable and punctual service. People who are time conscious. Gautrain represents the pride of a nation and the dawning age of the country’s public transport offering – where today’s commuters can make the use of public transport as a lifestyle choice.
Convenience equals travelling from OR Tambo International Airport to the business district of Sandton in less than 15 minutes, whilst reliance on the Gautrain’s punctuality reduces the chances of missing flights. There’s a train every 10 minutes during peak, and every 20 minutes during off-peak hours. In order to continue offering a safe, convenient and efficient service to passengers, earlier and later trains were introduced from OR Tambo International Airport to Sandton in mid-August 2014 and again in February 2015. Centred close to various points of interest, Gautrain brings people not only to their places of work, but also closer to various facilities such as
hospitals, educational institutions, shopping centres, and places of entertainment and sports events. The rapid rail link between Johannesburg, Ekhuruleni and Tshwane has the following attractions and destinations along the route and appropriate linkages that have been created to facilitate access to among others:• Historical landmarks • Shopping Malls • Sporting venues • Events and Expo Centres • Tertiary Institutions • Monuments • Zoological parks A cash-free ticketing system and the use of reloadable smart cards, the Gold Card makes travelling on the Gautrain quick and convenient. Passengers can buy their Gold Cards at any Gautrain stations and approved service outlets.
The Gautrain service continues to receive very high customer satisfaction ratings as reflected in the monthly Customer Satisfaction Surveys. The high rating is primarily due to the reliability, punctuality and high safety standards of Gautrain services. A customer-centric approach includes communicating updates and operational information, enabling the brand’s social media presence to act not only as a marketing resource, but also a source of engagement and information sharing. Its commitment to serving people is evident in the growth Gautrain has experienced with general passenger ridership year on year. Getting to your destination has never been easier or faster. Buses and shuttles are available to transport passengers during weekdays to and from all stations excluding the OR Tambo International Airport station. Be the tourist who wants to explore Gauteng or the businessman on a way to meeting, the student travelling to school, or the professional on your way to work and meeting. Be the person on the move.
Gautrain. For people on the move.
For more information visit www.gautrain.co.za Follow us on:
Twitter: @TheGautrain
Facebook: www.facebook.com/gautrain
Call Centre: 0800 42887246
SMS alert line: 32693
ndp Workers at a plant owned by Sasol, South Africa's petrochemicals giant.
SOUTH AFRICA’S PEOPLE AT THE CORE OF THE NDP By Shamin Chibba
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© Sasol
With less than 14 years to go until the deadline for the National Development Plan’s targets, business and government met at Vision 2030 to find ways to integrate their goals with those of the NDP
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npd
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he National Development Plan provides a vision for a better South Africa, a place where, by 2030, all citizens are educated, employed and live above the poverty line. But the plan requires one thing to make it work, and that is input from ordinary South Africans. This was one of the significant messages put across at Vision 2030, a seminar that looked at how business and government can work with the NDP to drive South Africa forward. Held on 8 and 9 June at Emperor’s Palace, Ekurhuleni, the event brought together leaders in the public and private sectors to discuss ways in which they can align their goals with those of the NDP. The delegates all agreed that, with 2030 less than
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14 years away, there is a greater urgency to achieve the NDP’s goals. These goals include eradicating poverty and unemployment, and improving healthcare and education. WATCH: South Africa’s Jeff Radebe Talks Vision 2030 Economic Plan with Bloomberg.
Adequate human resourses equals economic growth Charismatic struggle veteran Mathews Phosa highlighted the important role ordinary South Africans had to play in achieving these goals. “Without adequate human resources, economic growth will not occur,” he said. Phosa warned that South Africa is on the edge of a recession. He said that South Africans must stop looking
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Barlow Manilal, chief executive of the Technology Innovation Agency, said South Africans s hould have faith in the NDP. “The way we question the NDP doesn’t say much about the NDP. It says a lot about us.”
Business must take the lead
back at the past and focus instead on the present. While the legacy of apartheid remains, he pointed out, South Africa must be aware of the legacy that is being created now. “We must ask ourselves if we want to be governed by the past or the future,” he said. Then he joked: “If we keep driving while looking in the rear view mirror, we may bump that beautiful lady ahead.” One leader, Minister of Home Affairs Malusi Gigaba, seemed to be making the NDP work for his government department. Explaining ways in which his department was working with the NDP, he cited how Home Affairs had gone from being a lacklustre poor service department, to a hi-tech operation that now delivers Smartcard IDs within a week.
When asked by one panellist if anyone had actually read the NDP document in full, most of the crowd put up their hands. However, reading the NDP and working with it are two very different things, with the latter proving difficult for business. Panellists suggested that business must take the lead when it comes to working with the NDP and not wait for the government to give direction. Former anti-apartheid activist, Mathews Phosa, is greeted by an attendee at Vision 2030. Phosa says ordinary South Africans have a huge part to play in fulfilling the NDP’s targets. (Image: Shamin Chibba) To make the NDP work for the economy, Rudy Roberts, the chief executive of Mega Water, suggested that South Africa transform into an entrepreneurial state. “The nature of capital and macroeconomic policy needs to be looked at. We need an entrepreneurial state. This will bring inclusive growth and innovation.” Barlow Manilal, chief executive of the Technology Innovation Agency, said South Africans should have faith in the NDP. “The way we question the NDP doesn’t say much about the NDP. It says a lot about us.” Speaking at a breakaway session on education, Chris van der Merwe, the chief executive of Curro Schools, said education is central to achieving the NDP’s goals. “The education sector will help to grow the others, so we need to get education right,” he said. “We need to provide learners with an education that is aligned to companies and industries.” Read more: http://www.mediaclubsouthafrica.com/economy/4466-southafrica-s-people-at-the-core-of-the-ndp#ixzz4CnShVxFr
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A road construction partnership
Roads Agency Limpopo (SOC) Ltd is a state owned company listed in schedule 3C of the PFMA, that is under 100% control and ownership of the Limpopo Provincial Government. The MEC responsible for Limpopo Department of Public Works Roads and Infrustructure (LDPWRI) is its shareholder on behalf of the provincial government. It was established in 1999, through the promulgamation of its founding statute, the Limpopo Province Roads Agency Propriety Limited and Provincial Act 7 of 1998 as amended. RAL is registered in terms of the Companies Act 71 of 2008, as a state - owned company.
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impopo roads might not be paved in gold, in fact long stretches of them are not paved at all, but that is slowly changing, thanks to innovative partnerships that Roads Agency Limpopo is entering into private sector. The province’s road infrastructure delivery parastatal has raised over R250m through partnerships with large companies that have diverse operations in the province. The initiative is of a number of exciting road construction projects and upgrades that are targeted at economically strategic roads. In July 2015, RAL and Exxaro Coal Limited put pen to paper for the design and construction of a road connecting Ga Seleka villages to the Lephalale commercial centre. The company contributed R71.2m for the project and RAL put in R211.8m of the R283m required. This will see communities living in the area, who struggle to get to the centre of Lephalale for work, and other economic activities; having a smoother access to the town. For residents of Mashabela, GaSelepe and
GaMakgopa villiages, it will now be easier to move between Polokwane and Burgersfort via the R37 route. This is thanks to a R200m project funded by RAL and Anglo American’s Rustenburg Platinum Mines to construct a road that connects them to the two key areas. The mine has committed just over R40m and the Roads Agency will fund the remainder. A unique intergovernmental partnership that also involves a private sector player was entered into in December 2015 to upgrade the road from Dwalboom that passes through Northam and connects to Koedoskop. The R266m project is a partnership between the Limpopo and North West provincial governments as well as cement company PPC. The company contributed R67.2m while government put up R198.8 for the strategic road construction project. RAL and Ledjadja Coal Mining, part of the Boikarabelo Coal Mining Project, are upgrading the road from Lephalale commercial centre to Steenbokpan, including roads that connect to the mining areas in between. The company’s contribution is R71m while RAL has availed R163m of the required R234m to tar the roads.
RAL CEO Maselaganye Matji said the idea of partnerships with the private sector was brought about by the realisation that the agency would need R160bn to address the backlog of 14 500km of roads in Limpopo that either require tarring or rehabilitation. “There is no way that the fiscus could be sufficient to address the backlog. Secondly, there was a need for appropriate skills to support infrastructure planning and support. It is within this context that we have adopted a strategy to partner with the private sector. Limpopo Province has five districts, out of which two have significant mining activities,” he said. The Agency has so far managed to raise R289 million through Public Private Partnerships and discussions are underway to secure other deals of a similar nature. Matji said that the future PPPs could be entered into with corporate giants such as Venetia De Beers, Vodacom SA, Broadband Infraco, and Dark Fibre Africa. “These PPPs will focus on different strategic priorities that can add value to the Limpopo infrastructure delivery,” he said.
WE CARE ABOUT THE COMMUNITIES WHERE WE MINE
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ining companies operating in Limpopo have shown enthusiasm in partnering with government to build tarred roads in far flung communities where these mines have operations. Exxaro Coal has entered into a PPPs with Roads Agency Limpopo to construct a tarred road connecting Ga Seleka villages to Lephalale commercial centre. Martin Ramaboea, project manager at the coal mining company, said this was their way of leaving a lasting legacy in an area where they have significant mining operations. “We are a caring mine and we work with the community, we want to leave a lasting legacy for our communities, and also, most of employees reside in these areas that will benefit,” he said. Ramaboea said the project attracted them because it also had the potential to alleviate high unemployment in the area. “We have seen that unemployment is rife there and so over and above creating road infrastructure, we also wanted to create employment.” He said this was the first such partnership the mines had entered into with the public sector and praised the RAL technical team and the CEO, saying it had been a pleasure to be involved in a project of this magnitude with them.“The technical team was excellent, the support from the CEO was good. It was a pleasure working with RAL,” Ramaboea said.
(From Left): Mr Phil van Zyl of ZZ2 Farming, Mr Maselaganye Matji of RAL and Mr Johan Grobler of ZZ2 Farming during signing of RAL-ZZ2 Farming Memorandum of Understanding (MOU).
A UNIQUE, THREE-WAY PARTNERSHIP BREAKS NEW GROUND IN ROAD CONSTRUCTION
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ement producer PPC entered into a road construction partnership with RAL, not to benefit the company but to make life easier for communities that live in the affected villages. This is according to PPC Cement Stakeholder Relations Manager, Constance Netshifhefhe. RAL, the North West Provincial Government and the PPC are upgrading the road joining Dwalboom that passes through Northam and ends in Koedoskop. “The company has always wanted to achieve a goal for communities around which we operate to make sure we look after them and contribute to their upliftment,” Netshifhefhe said. She said the PPC still prefer using the already tarred road that runs through Thabazimbi and Northam to get to PPC operations near the affected villages. But because PPC was concerned about the difficulties faced by those communities to access nearby towns and other centres, they felt the need to play a part. “The most important element in our business is the need to travel on safe roads for communities. Access to working environment and shopping centres should be easy, that is why there is a need to create proper roads,” said Netshifhefhe. RAL CEO Maselaganye Matji said because the PPC factory is situated at the border between Limpopo and the North West, its workers are from both Provinces, hence the three-way partnership. “Upgrading the road from gravel to tar will benefit both Limpopo and North West Provinces, including PPC, as it connects both Provinces to the factory,” he said.
Acting Head of Limpopo Department of Public Works and Infrustracture Ms Kate Machaba, RAL CEO Mr Maselaganye Matji and Excutive Head of Corporate Affairs of Anglo American Seara MacheliMkhabela, during sigining of RAL-Anglo American MOU.
AN EFFECTIVE PARTNERSHIP WITH THE LARGEST TOMATO PRODUCER IN THE REGION
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ot many people know that most of the tomatoes consumed in Southern Africa are farmed in Limpopo. That is part of the reason why a partnership between Roads Agency Limpopo and the farming enterprise the biggest producer of tomatoes in the southern hemisphere ZZ2 – is important. This partnership will result in the upgrading and maintenance of key roads that are shared between RAL and ZZ2. The affected roads include the Houtsbosdorp, Malaladrift, Smitsrust and Grootbosch. “This partnership could not have come at the right time, when the Province is strengthening its efforts to address the road infrastructure backlog” said RAL CEO, Mr Maselaganye Matji. In terms of the Memorandum of Agreement signed, affected farmers in these areas are at liberty to contribute to the maintenance of the road infrastructure in their area of operation. An elated Phile van Zyl, a director at ZZ2, said: “This is a commercially effective partnership which will greatly assist in enhancing our business. We use these roads to transport our raw material and products. Tarring and maintaining them will shorten the transporting and delivery time spent on the road and further increase road infrastructure lifespan.”
Exxaro’s Group Manager of Community Development Mr Ramesh Changan, Lephalele Mayor Mr Jack Maeko, RAL CEO Mr Maselaganye Matji and MEC for Public Works and Infrastructure, Honourable Jeremiah Ndou, during signing of Exxaro-RAL MOU.
RAL CEO, Mr Maselaganye Matji, Mrs Nolwandle Mantashe of PPC and Ms Tryphosa Ramono of PPC during the signing of RAL-PPC MOU.
LIMPOPO PROVINCE’S VALUE OFFER (VALUE PROPOSITION) AS INVESTMENT DESTINATION The vision of the Province remains to fulfil the potential for prosperity in a socially cohesive, sustainable and peaceful manner. The vision will be attained by way of a mission statement that emphasizes participatory leadership aimed at promoting excellence and an entrepreneurial spirit, improved service delivery, facilitation of decent job creation and systematic poverty reduction. Limpopo Province is to address the industrial and sectoral diversification and intensification of technology development, to improve the comparative and competitive advantages of the economy, as well as to promote overall growth and development of the industrial sector through promotion of, and investment in high-value production and value-added technologies and activities. By 2030, Limpopo must have a basic education system with high-quality, universal early childhood education and quality school education, with globally competitive literacy and numeracy standards. Education is seen as an important instrument in equalizing individuals’ life chances, preparing next generations to be economically mobile and successful and critical to poverty reduction
© Alchemist-hp
Limpopo as a youthful province is further endowed with the human capital and the demographic dividend which will complement the Natural resource endowment in agricultural land, agricultural produce, mineral wealth and excellent solar intensity. These endowments coupled with sound policies, government capacity to plan, private sector partnership and strong relations with the social partners presents Limpopo as the ideal investment destination. The vision of Limpopo as a future bastion of development-led industrialization and core to the - Make in Africa for Africa and the World - will lead to investment and sustainable growth. The key industrialization drivers i.e. metals value chain, regional energy security services sector growth, sustainable development, Limpopo geographic/spatial location as gateway to rest of Africa and a key industrialization hub in the North-South Corridor. Government is currently investigating the possibility of unlocking South Africa’s coal and platinum-rich northern mineral belt through transport, water and energy interventions. The northern mineral belt project was one of 17 strategic integrated projects, or Strategic Integrat-
municipalities contains the largest PGM mineral reserves in the world. The possibilities to locally beneficiate these minerals currently exist and form the basis of the proposed SEZ. The SEZ is based on the current partnership between the Limpopo provincial government and Anglo-Platinum and buy-in of other role players. The SEZ will be based on the establishment and development of hydrogen fuel cell industry in Limpopo. Anglo Platinum has shown private sector interest through the development of fuel cells in Tubatse.
ed Projects SIPS, prioritised for development by Presidential Infrastructure Co-ordination Commission PICC. Investment in rail, water pipelines, energy generation and transmission infrastructure will catalyse unlocking of rich mineral resources in Limpopo resulting in thousands of direct jobs across the areas covered. Urban development in the Waterberg will be the first major post-apartheid new urban centre and will be a “green” development project. Mining includes coal, platinum and other minerals for local use and export, hence the rail capacity is being extended to Mpumalanga power stations and for export principally via Richards Bay and in future Maputo (via Swaziland link). The additional rail capacity will shift coal from road to rail in Mpumalanga with positive environmental and social benefits. Infrastructure investment and development of two SEZ’s presents investment opportunities in the next 10 years in excess of R20 Bn. The SEZ in Musina is based on the strategic geographical location as the gateway to Africa. The N1 from Gauteng through Beitbridge to the rest of North Africa will strategically link Limpopo Province with the Matebeleland Province of Zimbabwe. Musina Local Municipality also possesses strategic minerals like diamond and coal that can be beneficiated in the area. The SEZ is based on the current buyin of private sector. The SEZ will host the first eco-industrial park in South Africa. The SEZ will also be supported by the Phalaborwa Magnetite and enormous coal reserves in the Vhembe area. The Musina SEZ will focus on the logistics sector. The aim of the SEZ will be to improve the connection between the Limpopo province and SADC. Musina will become a designated area in which all logistics-related activities are brought together to promote seamless supply chains, i.e. a one-stop logistics shop. Businesses tend to gravitate to these areas, thus, reducing travel costs and congestion. The Tubatse SEZ should focus on the PGM (Platinum Group Metals) cluster. The primary production of PGMs is a substantial industry in the country as a whole, with the Limpopo region enjoying a good share. The Greater Tubatse and Mokopane local
The investment value-proposition si driven by manufacturing value chains and key catalytic projects. There are world class competitive based incentives schemes which further enhances the Limpopo comparative and competitive advantage in number of high impact catalytic grow in: • Lephalale Coal to Energy Complex • Phalaborwa – Magnetite semi-metal downstream activities and solar energy • Burgersfort – Platinum / Hydrogen Economy • Musina primary steel complex and metallurgical value chain to higher value-added steel products. “Make in Musina, Limpopo South Africa for Africa and SouthSouth Trade”’ Limpopo is Centrally located for the Regional Integration to the 221 Million people in SADC and the 883 Million people in Sub-Saharan Africa Effective integrated planning through strong institutional alignment with the labour, social partners, business and government in the PEGAC and PICC feeding into MinMEC and National Government. There is very Strong coordination between the 3 spheres of government and a provincial agency Limpopo Economic Development Agency that champions Limpopo as an ideal investor destination.
energy
SOFT POWER: CO-OPERATION WILL GIVE SOUTH AFRICA AN EDGE IN AFRICA By Shamin Chibba
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ccording to a research seminar, building South Africa’s reputation in Africa will take effort from businesses, the government, and all South Africans. While South African businesses are respected in other African countries, South Africans are at times perceived as imposing and aggressive. For South Africa to gain a firm foot in Africa, the government needs to co-operate more with businesses, with the aim of increasing its spread across the continent and building stronger diplomatic relations with other African countries. These were some of the ideas shared at a Brand South Africa research seminar held at the University of Johannesburg on Wednesday, 16 March 2016. The topic; South Africa’s reputation. Hosted in partnership with the South African Research Chairs Initiative (SARChI), Chair in African Diplomacy and Foreign Policy, the event was led by a lively discussion among members of government, academia and the private sector, revealing details of the country’s impact on the African continent.
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Brand South Africa’s general manager of research, Dr. Petrus de Kock, based his presentation on findings from Brand SA’s SA Inc. research project. Since 2014, De Kock and his team of researchers have visited six African countries – Kenya, Nigeria, Ghana, Senegal, the Democratic Republic of Congo and Angola – to gain, across a number of sectors, from arts and culture to business and politics, a sense of what the rest of Africa thinks of South Africa. De Kock began with some highlights on South Africa’s performance taken from an EY study. This study found that the country was, amongst others, the second largest source of foreign direct investment into Africa, and that it was the leading intra-regional investor in the financial services sector. Brand SA’s own research has shown that South Africa is admired for its seamless transition to democracy and
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its strong institutions. Other African countries have also taken a liking to its culture and music. “We are seen as a magnet of creative activity,” said De Kock. At the same time, South Africa is seen as losing its competitive edge. In some cases its people are at times perceived as imposing and aggressive. In some cases, experts also believed that South African companies were losing to local competition because they entered foreign markets poorly prepared, with know it all attitudes. De Kock suggested that businesses should do their homework before entering a foreign market. This should go beyond employing the services of large consulting companies such as EY and PWC, to include consultations with South African embassies, local legal experts and perhaps most importantly, spending time in the market. This was particularly relevant when it came to entering markets such as Angola, since the two countries shared
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Landsberg believes that South Africa can achieve a “tremendous amount through soft power
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more than 150 companies. South Africa is visible, but needs to co-operate more. However, Professor Chris Landsberg of the SARChI Chair in African Diplomacy, does not think that this is an entirely good thing. “South Africa hits you in the face when you visit other SADC countries. It’s like I’ve left South Africa but never really left it. South African corporations must be a little more sensitive to other African regions.” Landsberg believes that South Africa can achieve a “tremendous amount through soft power and diplomacy”. Persuasion, rather than force, he said, would help South Africa gain ground on the continent. Co-operation is important in building Johannesburg, Gauteng province: Workers prepare fruit salad packs for good relationships with fellow African export to the UK. nations. South Africa does not know how to engage with fellow Africans, he added. a difficult, somewhat ‘bi-polar’ history. De Kock went on More tellingly, Landsberg said that to say that South African businesses looking to enter the South African government had unlearned how to Angola, should first understand the country’s political co-operate with the private sector and civil society at and administrative context and invest enough time and home. There was a perception that South African money preparing the ground prior to establishing their companies were running to other African countries so that businesses. they could run away from the challenges at home. De Kock did not only place the onus of building Building relations with businesses entering the rest of South Africa’s reputation on the corporate sector and Africa, would only help to bolster the nation’s reputation the government; all South Africans had to play a part in abroad, he said. “We need to export positive examples of creating a good image of the country. “Each one of us South Africa because our image and reputation is has a role to play in shaping South Africa’s reputation, at stake.” even with what we do at home.” De Kock added that African businesses are also highly visible and respected, particularly in Nigeria where there Read more: http://www.mediaclubsouthafrica.com
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