Midvaal 2017 full magazine by 3S Media

MIDVAAL

T O I N C L U S I V E LY S E R V E T H E N E E D S OF OUR COMMUNITIES

Rise of the Vaal www.midvaal.gov.za

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contents

Rise of the Vaal

6 13

Publisher Elizabeth Shorten Editor: Special Projects Tristan Snijders Executive Head: Special Projects Neilson Kaufman Editorial Candice Landie Head of Design Beren Bauermeister Designer Ramon Chinian Sub-Editor Morgan Carter Client Service & Production Manager Antois-Leigh Botma Production Coordinator Zenobia Daniels Executive Head: Digital Marketing Roxanne Segers Financial Manager Andrew Lobban Administration Tonya Hebenton Distribution Manager Nomsa Masina Distribution Coordinator Asha Pursotham

published by

MIDVAAL

Bringing basic services

Fast facts

Connecting people with places

Message from the mayor

A clean environment for all

The Midvaal way

Vaal rising

Sprucing up Midvaal

Heineken

Money matters

The best brewery in town

Eradicating informal housing

Oro Projects

All lives matter

The supplier of choice

Welcome to Midvaal

New Hope

Committed to the future

Bringing new hope to the world

Powering our communities

A partner in new growth

No. 9, 3rd Avenue, Rivonia, Johannesburg PO Box 92026, Norwood 2117, South Africa t +27 (0)11 233 2600 f +27 (0)11 234 7274/75 www.3smedia.co.za

Please Note: midvaal – Rise of the Vaal statistics have been taken from publicly available documents that may or may not reflect the absolute correct numbers applicable at the time of going to print. NOTICE OF RIGHTS This publication, its form and contents vest in 3S Media. All rights reserved. No part of this book, including cover and interior designs, may be reproduced or transmitted in any form or by any means, without permission in writing from the publisher, nor be otherwise circulated in any form other than that in which it is published. The authors' views may not necessarily reflect those of the publisher. While every precaution has been taken in the preparation and compilation of this publication, the publisher assumes no responsibility for errors, omissions, completeness or accuracy of its contents, or for damages resulting from the use of the information contained herein. While every effort has been taken to ensure that no copyright or copyright issues is/are infringed, 3S Media, its directors, publisher, officers and employees cannot be held responsible and consequently disclaim any liability for any loss, liability damage, direct or consequential of whatsoever nature and howsoever arising.

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FAST FACTS

Interesting things you may, or may not, have known about Midvaal Local Municipality.

111 612

50%

The population of Midvaal Local Municipality

1 722 km

FAST FACTS 18 metres

Midvaal is predominantly rural, with extensive farming constituting almost half of the total area of jurisdiction

Flyboarding in the Vaal River is an extreme sport that uses propulsion to thrust you into the air. An 18 m flexible rope is connected between the flyboard and a jet-ski turbine

R10.44 billion

Midvaal’s economic growth is projected to be R10.44 billion in 2018 – an annual average growth of 3.87%

Midvaal is the largest local municipality in Gauteng

Agri-tropolis

Midvaal aspires to be an Agri-tropolis – a hub of agriculture and agroprocessing development – and the bread basket of Gauteng

70.4%

Midvaal has the highest economically active population percentage in Gauteng

R59 | R82 | R550 Midvaal is ideally linked to the City of Johannesburg, Ekurhuleni Metropolitan Municipality and O.R. Tambo International Airport via the R59, R82 and R550 freeways

30 years

At 30, Executive Mayor of Midvaal Local Municipality Bongani Baloyi is SA’s youngest mayor

Vereeniging to Joburg

The main railway line in the Midvaal stretches from north to south, and connects Vereeniging with Germiston and Johannesburg

R59 FREEWAY

8 R6.52 billion Midvaal contributes 15.2% of Sedibeng’s GDP, and 10% of its population

29.5% 15.2%

The manufacturing industry contributes 29.5% to Midvaal’s GDP

Development within the Midvaal is managed and promoted by way of a Municipal Spatial Development Framework, which is based on eight development principles

foreword

Message from the Mayor A comprehensive transport network that provides sufficient links to other economic sectors, regional nodes and residential options is paramount. The links created by these transport nodes promote the distribution of goods and population, subsequently encouraging economic growth.

n 3 August 2016, 59.7% of our people gave my administration a fresh mandate to lead this municipality until 2021. I am truly thankful and humbled by this vote of confidence. A resident of Sicelo or Meyerton may be a proud South African, but he or she wants to know what the municipality in Midvaal is doing to improve their quality of life. This is what it means for towns and cities to be the agents of change. Change is felt and experienced by ordinary people in their localities. We must always remember that a municipality is the closest government to the people. Our people see us, know us and have a relationship with us. Despite what is going on in the national politics of our country, the people of Midvaal are inspired by the hope offered by the leadership of their municipality. Here in Midvaal, we do not pontificate principles; we deliver. We are increasingly known as the beacon of good governance in a country where corruption is becoming endemic.

Year in and year out, the Auditor-General announces yet another clean audit for our municipality. This means we account for every cent of ratepayers’ money. I do not bite my tongue when I state the new vision of Midvaal: “To inclusively serve the needs of our community.” The commitment to work for the success of our municipality is shared by ordinary residents in Midvaal. Being inclusive means that we must give dignity to our people who live in poor communities. Midvaal cannot claim to be inclusive while its poor residents live in darkness. We mean business when we talk about improving people’s lives. Our approach is a holistic one. Not only do we want our people to have water, sanitation and electricity; we want them to live in communities that have tarred roads. Our municipality has implemented a Local Labour Register, which encourages unemployed residents to list their details on a database. We will vigorously promote the Route 59 development corridor as a site of

Executive Mayor Councillor Bongani Baloyi

The political theme “Rise of the Vaal”, which is led by us, is becoming a concrete reality

commercial and industrial development. This will be done by fostering strategic partnerships with the private sector, including harnessing the investment attraction potential of foreign embassies. My administration has a clear plan for Midvaal. This plan will be implemented in the spirit of the solemn promise we made to the people of Midvaal before the elections last year: to remain an open, honest, transparent and responsive government. We are busy restructuring our municipality’s institutional architecture to oil the wheels of service delivery. Midvaal can and will be the light of Gauteng and the envy of South Africa. We do all this so that, long after we are dead, future generations can visit our graves to lay flowers and say, “Here lie the remains of leaders who worked for the development of their people.” What more could the dead ask for? MV

Councillor Bongani Baloyi, Executive Mayor of Midvaal Local Municipality midvaal l 2017

I n t r o d u cti o n

The Midvaal way Poised for manufacturing and agricultural growth, boasting the lowest unemployment rate in Gauteng, and with a Mayoral Office that is committed to good governance, here’s why you should sit up and take notice of Midvaal Local Municipality.

idvaal Local Municipality (MLM) is one of three local municipalities within the Sedibeng District Municipality, which constitutes the southern parts of Gauteng – South Africa’s economic hub. To the north, MLM directly borders the City of Johannesburg and Ekurhuleni Metropolitan Municipality, the latter hosting the largest concentration of industrial activity in South Africa and O.R. Tambo International Airport. Midvaal is ideally linked to these areas via the R59 freeway, which runs from north to south through the central parts of the municipality, and is widely promoted as one of the emerging development corridors in Gauteng. Approximately 50% of MLM is considered rural, with vast areas of farmland, which is one of the reasons the municipality is looking to expand its agricultural sector. In fact, agriculture and agro-processing development is the area in which the municipality can make a large Midvaal’s proximity to Johannesburg is an important factor in its growth

midvaal l 2017

contribution and could be a game changer for the area. MLM wants to position itself as an “Agritropolis”, which may prove to be viable in terms of economic transformation for the region. While it may not have a range of tourism hotspots, Midvaal is renowned for the beautiful, and protected, Suikerbosrand Nature Reserve. The Klip and Vaal rivers are also prominent landmarks in the area, with the Klip River serving as an important habitat for birds and small animals.

111 612

Population of the Midvaal (Community Suvery, 2016)

Leadership When Bongani Baloyi was instated as Executive Mayor of Midvaal, he probably had his share of skeptics. At 27, Baloyi was one of the youngest mayors ever in the country. According to an interview with the Mail & Guardian, his drive comes from a “deep love for South Africa, a desire to serve his community and country, and a determination to be a part of solving the problems that affect society and that hamper economic growth”. In his role,

1 722 km2

The area coverage of Midvaal, making it the largest local municipality geographically in Gauteng

Baloyi sees his greatest challenge as balancing the community’s expectations with reality, due to limited resources. He is, however, confident that he has proven his capability to residents since he assumed office in 2013, but job creation still stands between him and acceptance from Midvaal’s youth. His objective over the next five years: to focus on creating jobs and ensuring that more young people are able to fend for themselves. ®

Political stance MLM’s political vision can be derived from the six electoral promises made by Executive Mayor Baloyi to the community: • Promise 1: To be youth-biased To prioritise uplifting the youth through the creation of productive activities in an enabling environment, empowering them to participate and contribute towards the success of Midvaal. • Promise 2: Be an open, transparent, honest and responsive government To be a trustworthy municipality that responds with efficiency and integrity in the best interests of its people. • Promise 3: Grow the economy To incubate an enabling business environment, which fosters job creation and is supportive of key sectors, in order to address inequality and improve standards of living. • Promise 4: Quality and standardised service delivery Excellent service delivery for more with greater inclusiveness, delivered through improved efficiency and innovation. • Promise 5: Safe communities and environment To create an environment safe from crime and which is proactive with respect to disasters. • Promise 6: Fight the demarcation board To continue the fight to ensure that Midvaal remains an independent and thriving municipality for its people.

Performance framework In order to support the national, provincial and district policies, plans and objectives, as well as deliver on the political vision for MLM, the municipality developed a performance framework, which is aligned to and supports these objectives. The MLM Performance Framework is composed of key performance areas (KPAs), which are the areas of focus required for the municipality to achieve its strategic objectives. These are also aligned with the promises made as part of the political vision. MLM has developed eight KPAs that have been closely aligned to governmental and political objectives. In line with its commitment to delivering on a sustainable, efficient and inclusive municipality, the table below lists the major capital projects for MLM in 2017/18. MV

MAJOR CAPITAL PROJECTS 2017/18 • Sicelo electricity:

R21 million • Reticulation network: R11 million • Electricity infrastructure: R11 million • New reservoir: R9.5 million • Tarring gravel roads: R6.58 million

• Vaal Marina fire station:

R6 million • Bulk water pipe

replacement: R6 million • New substation at

Risiville: R4 million • Lakeside Sports

Complex: R3.9 million • Roads and sewer

rehabilitation: R3 million

I n v e st m e n t

Sprucing D

up Midvaal

evelopment within the Midvaal Local Municipality (MLM) is managed and promoted by way of a Municipal Spatial Development Framework, which is supported by a number of development policies and town planning schemes. The purpose of these plans and policies is to: • clearly define the development vision for the municipality • indicate spatially where the municipality will support development and provide engineering services and infrastructure • provide certainty for the private sector pertaining to the most appropriate areas to acquire land and to invest in business, commercial, and industrial development. The Spatial Development Framework (SDF) is based on eight development principles. Development Principle 1: To protect and actively manage the natural resources in Midvaal in order to ensure a sustainable

Midvaal Local Municipality is the fastest growing and developing municipality in the south of Gauteng. Here’s what to expect in terms of development opportunities.

midvaal l 2017

equilibrium between agricultural, tourism, industrial and mining activities, as well as urbanisation pressures in the area. The Midvaal Strategic Environmental Management Plan (SEMP) serves to provide guidance in terms of satisfying the requirements of the environmental management mandate of the municipality. Development Principle 2: To facilitate and enhance agricultural production in the municipal area by actively protecting all land earmarked for agricultural purposes. Midvaal is well endowed with high and medium/moderate potential agricultural land, which is deemed to form part of the Gauteng bread basket. The protection and sustainable utilisation of this resource is managed via the Midvaal Agricultural Policy (2011). Development Principle 3: To promote tourism development in the Midvaal area by way of the active utilisation of tourism resources available, such as the Vaal Dam, the ridged precincts and

the nature reserves in the area. There are four major tourism features within the municipal area, which are promoted as tourism destinations and present opportunities for private sector investment: • The Vaal Marina Precinct located in the far south-eastern parts of Midvaal on the banks of the Vaal Dam. • The world-renowned and proclaimed Suikerbosrand Nature Reserve, which already hosts some annual sports events that attract people from far and wide. • The Klip River, specifically the Henleyon-Klip area, which is characterised by a village atmosphere and forms part of a conservancy. • The Bass Lake Precinct adjacent to the north of Henley-on-Klip is also very popular for fishing and hosts a number of adventure sports facilities. The extensive ridges located in the northwestern parts of the municipal area can be utilised to expand on the range of tourism facilities and services offered

I n v e st m e n t

The Eye of Africa golf estate

The R59 Corridor offers approximately 300 business sites and 450 industrial sites

Midvaal is increasingly attracting wealthy investors Meyerton’s Klipriver Business Park

through the development of mountain biking routes, hiking trails, game farming, a range of adventure sport facilities and guest accommodation facilities. The Midvaal Accommodation Policy provides guidelines to the typologies/activities allowed in different parts of the municipality. Development Principle 4: To proactively plan, design and facilitate the establishment of a development corridor along the R59 freeway, and to prioritise the bulk of short- to mediumterm urbanisation, as well as the upgrading/ provision of engineering services in accordance with an urban development boundary. • There is significant potential to promote a variety of economic activities, as well as residential development along the R59 Corridor. Council approved the R59 Corridor Development Framework in July 2010. • The R59 Development Corridor offers approximately 300 business sites and 450 industrial sites. The northern part of the R59 Corridor, closest to Johannesburg, is the short-term priority area, and the Klipriver Business Park has already been established to accommodate the increased need for light industrial and commercial development in this area. It offers 200 serviced stands with ample opportunity for future expansion. • Heineken (Amsterdam) has recently established a large brewery plant in this node along the R59 Corridor, while Pick n Pay is in the process of establishing a 300 000 m² storage facility (warehouse) immediately

adjacent to the south. To the north of the Heineken plant, an 80 000 m² retail development is under way. • Other prominent investors in the area include BSI Steel and Everite. Development Principle 5: To facilitate the development of a hierarchy of activity nodes and a number of multipurpose community centres in the Midvaal area to ensure equitable access to social infrastructure, and to promote local economic development in the urban and rural parts of the municipality. The municipality supports the principle of clustering community facilities and economic activities at a number of predetermined urban and rural nodes in order to enhance service delivery and promote economic development. Development Principle 6: To capitalise on the strategic location of Midvaal by way of regional and provincial linkages, and to establish an internal movement network comprising a hierarchy of roads, which include a comprehensive public transport network and services. Midvaal has an extensive range of routes of provincial and national importance. Locally, the municipality seeks to ensure that all communities have safe and convenient access to home, leisure and work opportunities by way of public and private transport, namely, bicycle, car, bus, minibus taxi and train.

industrial and commercial activities in the Midvaal area, with specific focus on the R59 Corridor and the designated nodal points. The Midvaal CBD is the primary business node within the municipal area and holds an estimated 60 000 m² of retail floor space and 12 000 m² of office floor space. The CBD is surrounded by residential areas, highly accessible from the R59 freeway, and forms part of the R59 Corridor. Several other smaller business nodes with a collective capacity for about 16 000 m² of retail floor space are available at Walkerville, Sicelo, De Deur, Golf Park and Vaal Marina. Development Principle 8: To provide for a range of housing typologies and tenure alternatives within the municipal area by way of clearly defined strategic development areas within the urban development boundary, and to manage residential densification within and outside the urban development boundary by way of the Midvaal Density Policy. Several strategic development areas have already been earmarked for residential development in the Midvaal area. These areas cater for low-, middle- and highincome housing typologies, with ample opportunity for private sector involvement. A recent trend has been for middleto high-income developments to be established in and around the Eye of Africa area, which is easily accessible from the R59 Development Corridor and 20 minutes’ drive from the City of Johannesburg and Ekurhuleni Metropolitan Municipality. MV

Development Principle 7: To promote the development of a diverse range of

midvaal l 2017

FINANCE

matters

A well-run municipality requires solid financial planning, a development framework, and a clean audit – factors that Midvaal Local Municipality has in place.

n terms of Section 26 of the Municipal Systems Act, the Spatial Development Framework (SDF) of a municipality is one of nine legal components of the Integrated Development Plan (IDP) of that municipality. As such, the SDF becomes part of the statutory processes associated with the IDP and includes, among others, the processes related to inter-governmental relations (IGR), community consultation and participation, and the budgeting process of the local municipality. In light of this, it is proposed that the Midvaal Local Municipality (MLM) SDF be incorporated into the MLM IDP process during the 2017/18 IDP review. Within the IDP, the MLM SDF should then serve as the backdrop against which all development needs, projects and initiatives should be measured and assessed.

Budgeting process All projects and programmes to be implemented by the various spheres of government, parastatals, organisations, and/ or the private sector must be evaluated in order to ensure that these are in support of the principles of the SDF, and that these will contribute towards the achievements of the spatial vision for the municipal area, before being included in the IDP for the

next financial year. A significant benefit associated with this is the fact that the IDP is legally linked to the budgeting process of the municipality, in terms of the Municipal Systems Act (No. 32 of 2000) and the Municipal Finance Management Act (No. 56 of 2003). In this way, the effective linkage of the SDF to the municipal budget is achieved. Another important component is the monitoring and evaluation of the implementation of the SDF proposals. The IDP process is subject to a cyclical review on an annual basis. It is appropriate that, as part of the annual IDP review process, an assessment/audit should be done by November each year to determine to what extent the objectives of the SDF have been achieved during the preceding year. This also leaves sufficient time (December to March) to rectify the shortcomings identified, and to include these in the revised IDP and budget for the next financial year. As the IDP review process involves all development partners in the municipal area, it will also be possible to grant each partner an opportunity during the SDF assessment process to report on the progress made in implementing their spatial initiatives, and to illustrate how their initiatives support the realisation of the vision as contained in the MLM SDF. It is of

critical importance that the developers in Midvaal participate in this process, as their investment in social services and residential development contributes significantly to the local spatial structure. Without this level of cooperation and alignment, there is no hope of achieving long-term sustainability in the Midvaal area.

Business sense The consistent quality, extent and level of utility services such as water and electricity, roads and waste disposal provided to businesses remain critical reasons as to why companies remain and expand in an area. Infrastructural support should also be extended to the rural areas, particularly road infrastructure and utility services. Every effort should be made to retain good relationships with businesses, and the medium- to long-term infrastructural needs of businesses must be included in the municipal IDP. “We aim to increase our procurement spend in townships. We call upon entrepreneurs in our townships to come forward and register on our supplier database as well as the National Treasury Central Supplier Database,” announced Midvaal Executive Mayor Bongani Baloyi. MV

Node analysis in Midvaal

Western Region’s main economic sectors: 53.1% – Finance and business services 17.3% – Government and community services

midvaal l 2017

Central Region’s main Eastern Region’s main economic sectors: economic sectors: 34.7% – Mining and quarrying 17.8% – Financial and business services

38.4% – Manufacturing 16.7% – Government and community services

Finance

The terms budget by numbers R2 million The amount of Midvaal’s procurement spend over the term of office.“We want black businesses in townships to get a fair share of this.” – Executive Mayor Baloyi R3.9 million The amount that will be spent on the construction of a multipurpose centre in Lakeside R1.5 billion The amount that the municipality will spend on salaries over the term R149.5 million The figure set aside to upgrade water treatment works at Vaal Marina and Ohenimuri, and to expand the sewerage network in Sicelo and Daleside R350 million Earmarked for sanitation R200 million Set aside to improve water supply to Sicelo and other informal settlements in Midvaal R122 million The amount that will be invested towards

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the upgrading of Midvaal’s municipal electricity network R55 million Has been budgeted for tarring 23 km of roads in the municipality R170 million The amount set aside to maintain Midvaal’s existing road network R5 billion Estimated revenue generation of the municipality: • R1 billion from property rates • R2.5 billion from water and electricity sales • Approximately R500 million from sanitation and refuse removal charges • Just under R1 billion from government grants R2.5 billion Revenue generated from water and electricity sales • R1.7 billion will be paid to Eskom and Rand Water as bulk purchase payments R250 million The amount at risk of becoming bad debt

At the end of April 2017, Midvaal’s total outstanding debt was R200 million. A potential collection shortfall of about R450 million over this term of office is estimated R1 billion Investment in capital projects, 75% of which will be spent on municipal infrastructure projects such as roads, water, electricity network and sewer reticulation R100 million Will go towards community projects, including sport centres and libraries R1 million The amount spent on youth training in this financial year R30 million The estimated amount that will be allocated towards procuring goods and services from the Kgatelopele Youth Development Programme, the objective of which is to ensure that the municipality invests in the development and empowerment of its youth to address service delivery challenges as social entrepreneurs

Industrial Security Retail And Commercial Security Vip Protection Loss Control Investigation Banking Security Training Consultancy Services Special Events Safety Audits Handling Of Strikes/Riots Polygraph Examinations Shopping Centre Security Armed Guarding Security Armed Escorts Guard Monitoring Equipment Services Cctv Cameras Alarm Monitoring Armed Reaction

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H u m a n S e tt l e m e n ts

Eradicating

informal housing

ccording to Midvaal Executive Mayor Bongani Baloyi, during his 2017 State of the Municipality Address (SOMA), Midvaal Local Municipality (MLM) is currently involved in the planning, coordination and facilitation of housing developments, in partnership with the Gauteng Department of Human Settlements, private developers and other stakeholders. “Our municipality will play its part by assisting to implement housing projects. As we have already done for Mamello, Sicelo, Savanna City, we will do it again in future housing projects,” he said. He dismissed rumours that MLM is delaying housing projects, adding that the municipality has invested resources in appointing consultants, submitting applications and relocating beneficiaries. Furthermore, MLM has been involved in

formulating the Human Settlement Plan, which is now being scrutinised openly by communities. “People who live in poor communities (such as Sicelo, Savanna City and Mamello) are estimated to receive a total of 8 774 houses. The middle-income earners of Savanna City are estimated to receive 5 518, while high-income earners at The Grace and Savana City are estimated to receive 8 778 houses. This is what we mean by inclusive service to our communities,” Baloyi added.

Housing demand According to the Census 2011 data, MLM’s backlog was estimated at 5 546. This figure was, however, expected to increase once all the informal settlements had been enumerated. “Our 2013 municipal survey has revealed that Midvaal has 5 469 households

Although not accredited to initiate and implement housing projects, Midvaal Local Municipality does have a meaningful role to play in ensuring that its people have access to decent housing.

in informal settlements. The Gauteng Department of Human Settlements’ Housing Demand Database indicates that there are currently 7 821 people registered within the Midvaal area for housing opportunities. The majority of these residents (6 825) are from Sicelo and Meyerton Farms, with the remaining beneficiaries (996) residing in Randvaal, Walkerville and so forth,” stated Baloyi in his 2017 SOMA address.

Housing projects in progress The Midvaal Migration Plan (2014) noted the following new housing projects under way in the study area. These are respectively listed as private sector (high and middle income), bonded housing (low income) and subsidy housing projects:

Housing estimation

23 070 The estimated number of housing opportunities that MLM will create

midvaal l 2017

H u m a n S e tt l e m e n ts Middle and high income • Grace Township is located to the west of Klipriver Business Park. The Grace provides approximately 1 414 Res 1 residential units, with a subsidy component for 850 Res 3 sectional title units. The development will include mixed-use and commercial stands. • Two smaller residential developments, Pine Valley and The Grace, are currently under way in the Eye of Africa Residential Estate. These will consist of approximately 80 stands and are targeted at higher-income residents. They include a golf course, and may be classified as lifestyle estates. • Savanna City is the largest and most significant development in Midvaal. It comprises 1 462 hectares of land, and will offer 18 399 mixed-income residential stands, together with various community facility and commercial stands. The development will comprise 5 517 RDP houses, 5 518 Finance Linked Individual Subsidy Programme (FLISP) housing opportunities, 2 635 Res 3 units, and 4 729 bonded houses, as well as numerous fully subsidised housing options. When completed, the township will also include 16 schools, 32 institutional sites, nine municipal sites and nine business areas.

Subsidy housing There are four subsidy housing focus areas in MLM: in Sicelo near Meyerton, in Mamello close to the Vaal Dam, and in The Grace and Savanna City developments.

Development guidelines The following development guidelines are applicable to some of the nodes in the Midvaal area. Primary node: The CBD area provides the highest residential and commercial densities in the municipal area and the greatest variety of services in the region. It can also

midvaal l 2017

accommodate a significant higher-density housing component to enable a more vibrant nodal configuration. The Meyerton CBD is most probably the only area within Midvaal that is suited for the development of walk-ups and a higher-density housing option. Secondary nodes: Neighbourhood nodes are intended to create a focus for more residential, suburban areas within the urban boundary of the municipal area. They are to provide a variety of services for local residents, including a mix of medium-density housing, ranging from semi-detached housing to duplex housing, shopping, offices and community services. Vaal Marina: The Vaal Marina complex is not earmarked for conventional residential development/ densification as it caters for holiday accommodation, but Mamello will become a permanent residential township in this area. It is estimated that these areas could collectively accommodate about 69 230 units, which is sufficient to serve the incremental residential demand in the municipal area for at least the next two to three decades. Council-owned properties: Part of the Walkerville node is Ohenimuri, where approximately 373 residential erven are still vacant. It is recommended that Council call for proposals for a developer to develop all the Council-owned properties in Ohenimuri. A variety of housing typologies suited to different affordability levels should be catered. The formalisation of informal settlements needs to be achieved through upgrading programmes. “Our position as a municipality is to work towards the eradication of informal settlements. We want all our people to live in formal communities that are well planned and that offer basic services. We do not want children to grow up in squalid conditions that are detrimental to their health and mental development,” asserted Baloyi. MV

Current and future demand

33 665 The number of households in MLM (2014)

1 472 The projected additional

demand up to 2020 is about 1 472 housing units per annum from 2014

8 830 There will be a need for an

estimated 8 830 additional housing units in MLM by 2020

23 438 The total future housing

supply by 2020 is calculated at 23 438 units: •8 858 middle- and high-income units •1 4 580 subsidised units

2020 There are sufficient projects in progress to accommodate the current and projected demand in Midvaal up to 2020, and even beyond

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midvaal l 2017

Heineken

INTRODUCTION A leading developer and marketer of premium beer and cider brands, Heineken is the world’s most international brewer. Led by the Heineken® brand, the group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders, and is committed to innovation, long-term brand investment, disciplined sales execution, and focused cost management. Boasting a well-balanced geographic footprint with leadership positions in both developed and developing markets, Heineken employs approximately 73 000 people and operates 167 breweries, malteries, cider plants and other production facilities in more than 70 countries. “Heineken has been a family company for nearly 150 years. Our goal for Heineken SA is to create an atmosphere where everyone has a feeling of belonging and can develop themeselves, and grow and excel,” said Ruud van den Eijnden, MD of Heineken SA. “It is my dream that Heineken SA will truly make a difference in the lives of our employees, consumers, customers, communities and all those who work together with us, and be recognised as a company for others to take lessons from.”

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Heineken In the company of finance director Eric van Lokven, you’ll converse with a man who has worked for the Heineken group for over 30 years. Newly appointed innovation and strategic projects director Vinnie Lutchman has immense experience in procurement, supply chain and project management, as well as unique knowledge of the South African market and an energetic leadership style.

MEET THE TEAM A lawyer, a cyclist, an organic gardener, a jogger, a foodie, an industrial psychologist and a golfer walk into a bar… it’s the beginning of what could be an amusing anecdote, but, in fact, it’s the eclectic and impressive personalities of the Heineken SA management team. At face value, Heineken SA’s management team brings together an equitable skill set to help it shine, but a deeper look reveals multilayered individuals who are as passionate about their work as they are about life. It’s not every day that you find a sales director who is a keen organic gardener in his spare time, but that’s exactly what Nantha Moodley is; nor is it common to find a supply chain director who knows the difference between crème brulée and flambé, but if you ever meet up with Guy Duringer, do chat to him about his passion for food. The management team has over 100 years of combined work experience between them, having worked in an array of industries including the JSE stock exchange, other FMCG companies and the public sector. The team is also made up of global citizens who have worked in some of the world’s biggest consumer markets. If you’re ever in the company of the corporate affairs director, Zodwa Velleman, pick her brain on how she led one of South African advertising’s most seminal case.

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Each of the members of the team has been assigned to one of Heineken SA’s strategic pillars. Each pillar is aligned to the individual’s main function, thereby drawing on their strengths. Diederik Vos is the marketing director and is responsible for helping the brands gain market share, but he’s also an acute brand strategist who has worked on three continents. In human resources, you’ll meet Njabulo Mashigo, one of the most dynamic employees of Heineken – a trailblazer who has imparted her expertise from Unilever to the National Treasury. Lastly, all the personalities and verticals of the management structure come together under managing director Ruud van den Eijnden, a road cycling enthusiast. With experience gained from across the world, courage, prowess and inspiration, he leads a management team that the company can get behind and entrust with taking Heineken SA to the top.

Heineken

FAST FACTS 60% Heineken’s aim is to have 60% local sourcing by 2020 €7.2 million The Heineken Africa Foundation has committed €7.2 million towards community health and water projects since 2007, and currently has 45 projects running 10% The percentage of Heineken’s media budget that is earmarked for responsible consumption campaigns Heineken SA’s Reach for the Stars strategy encompasses Winning with brands and innovation

Winning with customers

Winning with its people

Winning with operational excellence

Winning with South Africa

Heineken’s local sourcing in Africa Middle East

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Heineken

BUSINESS UPDATE

SUSTAINABILITY

The year 2016 was Heineken SA’s first as an independent operating entity after dissolving its Brandhouse joint venture with Diageo. The first year for just about every business is never easy.

Sustainability has always been a fundamental component of the way heineken does business. Through its ‘brewing a better world’ mandate, sustainability is embedded in the business and delivers value for all stakeholders.

The Heineken sustainability portfolio includes six focus areas:

But still, over the last year, Heineken SA has created hundreds of new jobs, both internally and externally; its Reach for the Stars strategy was developed, with a clear ambition and five identified pillars; by improving customer service, investments in its brands, innovations, and more disciplined sales execution, Heineken SA’s beer business showed growth ahead of the market; the company successfully entered the cider category with the relaunch of Strongbow® Apple Ciders; and, finally, improved ways of working resulted in more efficient processes and cost savings, which Heineken SA can invest back into its growth strategy. “In 2017, we will continue to innovate, build our brands, work with our customers and improve our ways of working,” said Van den Eijnden. Since the de-merger with Diageo, Heineken SA has created around 300 jobs.

Protecting water resources Sustainable sourcing of raw materials Advocating responsible consumption Promoting health and safety Reducing carbon dioxide emissions Growing with communities

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Heineken

ABOVE AND BEYOND Apart from sustainability efforts, corporate social investment (CSI) is also a cornerstone for Heineken SA. Some of the most recent projects include: 1 HEINEKEN SOUTH AFRICA FOUNDATION: The foundation is a trust governed by an independent board of trusties focused on CSI intiatives of Heineken SA. 2 ORANGE CORNERS: Based in Diepsloot and Maboneng, Orange Corners is a partnership with the Dutch Embassy that supports small, black-owned business initiatives. The aim is to contribute towards the sustainable development of these companies through capacity building, mentorship and coaching. There are currently 30 companies benefiting from this initiative. The overall aim is to support them to create employement in our country 3 PROJECT PLAY PUMPS: Together with the Heineken Africa Foundation, Heineken SA started supporting a project called Play Pumps in 2016. This project installs and maintains water pumps at school grounds in some of the most drought-stricken areas in South Africa.

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As part of our commitment and strategy; HEINEKEN SA strives to raise awareness and educate communities that it serves about responsible drinking. We have put plans in place to partner with more NGOâ&#x20AC;&#x2122;s, communities and different stakeholders to ensure that all our compaigns have an impact. Safety First is a key priority for HEINEKEN SA!

Not For Sale To Persons Under The Age Of 18. Enjoy Responsibly.

Heineken

THE HEINEKEN SA BREWERY Situated in the Sedibeng District, the Heineken SA brewery plays an important role in the region’s economic activity. Sedibeng is one of the five most important centres of high-value massproduction manufacturing in South Africa. Industrial activities are found mainly along the R59 freeway and are clustered in Meyerton, Daleside and Klipriver (R59 and R550 interchange). The route R59 economic corridor currently extends from the Heineken brewery and Klipriver Business Park to the north, through to Samancor in Meydustria to the south, and has the potential to expand in both directions. The southern extension of route R59 forms part of the triangle between Vereeniging, Vanderbijlpark and Evaton/ Sebokeng, which was identified as the Sedibeng District’s economic core. The Sedibeng brewery was the first South African Heineken brewery. Construction began in May 2008 and was completed in July 2009, three months quicker than any other similarsized/capacity brewery in the world. The project involved the construction of 21 production buildings, including

a malt silo, production and bottling facilities, warehousing and a wastewater treatment plant. Built on an 83 ha site and including a brewery, production plant and warehouse, the Heineken SA plant can be described as one of the most advanced in the world, built with due care for the environment. All of the South African staff received training locally, with a large number also trained abroad. At the time of opening, it was estimated that the brewery would generate an additional R1 billion for the local economy through the indirect employment of 100 support service workers and through the local purchasing of packaging and raw materials.

R3.5 billion

The cost to build Heineken SA’s stateof-the-art brewery in Sedibeng

For the latest product developments, news and updates, follow Heineken SA on Twitter @Heineken_SA or visit www.heineken.com/za

“In 2017, we will continue to innovate, build our brands, work with our customers and improve our ways of working,” said Van den Eijnden. Since the de-merger with Diageo, Heineken SA has created around 300 jobs.

THE ONLY BEER ENJOYED IN 192 COUNTRIES w w w . h e i n e k e n . c o m / z a

Not For Sale To Persons Under The Age Of 18. Enjoy Responsibly.

p u b l ic h e a l th

All lives matter Access to basic healthcare is a right for all South Africans, regardless of location. In the Midvaal Local Municipality (MLM), access to healthcare also takes into consideration migrants – both domestic and foreign – who, according to the Midvaal Migration Plan 2014, translated to 3 700 per annum.

ith regard to healthcare, a regional hospital as well as other higherorder and specialised medical facilities, such as a research facility, are essential in MLM. The provision of such facilities requires forward planning and should ideally take into account both the current and expected population over the period under consideration. In the case of a medical skills training and development facility, this could be linked to existing education facilities.

for the health and safety of patients, and in an environment that is not affected by air and noise pollution. Additionally, the environment surrounding the hospital should be one that is well taken care of and clean at all times, and is clear of surrounding dumps or noxious industries. Furthermore, the hospital requires easy local and regional access. Therefore, the proposed location lies alongside two major internal access roads. These roads connect directly to the proposed K47 and PWV18 routes and are accessible from the current R82.

Research-driven

Migration

Discussions are currently underway with the Gauteng Provincial Health Department with regard to the proposed facility. Based on research conducted, the ideal size for a regional hospital and medical research facility in MLM is 15 hectares. The hospital should be located in an area that is ideal

In MLM, as in municipalities across the country, migration has presented significant challenges across the spectrum of service delivery and socio-economic development opportunities – these challenges include the demand for housing, jobs and healthcare services.

Migration is not necessarily a health risk in itself, but conditions surrounding the migratory process can expose migrants to health risks and vulnerabilities. Migrants are often faced with inequalities in accessing health services due to marginalisation, powerlessness, lack of specific policies or shortcomings in implementing them, and exploitative working conditions. Migration can also lead to possible risky sexual behaviour due to the disruption of former stable networks and social norms that would otherwise regulate sexual behaviour. Separation from their kin may drive migrants to engage in unsafe, casual or commercial sex, thus increasing the risk of HIV. Migrants in prolonged transit situations or unstable living conditions often live lives of contingent encounters and shortterm relationships of economic, social or sexual character. Women are particularly vulnerable as they migrate and can become

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victims of discrimination, violence, sexual exploitation and trafficking. Access to family planning, protection from STIs and HIV, access to maternal health services, including antenatal care, safe delivery and postnatal care are critical for the health of migrant women. In view of the growing number and share of women in total migration – both internal and international – gender and cultural issues, the provision of sexual and reproductive health services, and making access to those services easier and affordable are of growing importance. Many migrants are unfamiliar with the local healthcare system and may experience communication barriers due to language or cultural differences.

Prevention and cure The director: Health must ensure that Disaster Risk Management Plans are compiled and maintained in his/her directorate, with specific reference to the following: • Compilation of proactive departmental Disaster Risk Management programmes to support disaster risk reduction or elimination. • Compilation of reactive departmental Disaster Risk Management plans to ensure service continuation during emergency/ disaster situations.

37 000 The number of people who migrated to MLM between 2001 and 2011 70% The percentage of migrants in MLM who relocated from other regions of Gauteng, while 72% of international migrants to the area hail from the SADC region

11% The percentage

of migrants from outside South Africa to MLM

90% Foreign migrants 60% Black migrants (domestic)

38% White migrants (domestic)

• Steps to eliminate disaster risks presented by

communicable diseases. • Isolate person(s) in order to decrease or eliminate disaster

risk presented by a communicable disease. • Protect the health and safety of emergency responders. • Monitor large groups of people for contamination and/or

health effects. • Preventative issues around communicable diseases for

disrupted populations (may be general population or limited to vulnerable populations and essential service operators). • Immunise large groups of people. • Assist with the management of emergency shelter, evacuation assembly points and mass care facilities for persons displaced by emergencies or disasters. • Seize and dispose of food that poses a health hazard. • Monitor the environment (air, water, and ecosystem) for contamination. • Identify victims, responders or affected persons who may require medical follow-up and/or who may require psychosocial support and to facilitate this support, which may be provided by the appropriate governmental and nongovernmental agencies as applicable. • Identify persons or organisations to contribute to postemergency reports/debriefings regarding health matters. • Supplying resources for Disaster Risk Management purposes as requested by Midvaal Health representatives on the Disaster Coordination Team (DCT), if convened. • Establishing and maintaining a resources database that is integrated with the Disaster Risk Management Resources Database (DisRes). • Liaise with the PG: Gauteng Health Department, which is responsible for the provision of curative and operative interventions during any major incident regarding the: – care for evacuees and victims – provision of curative healthcare with regard to communicable diseases for disrupted populations (may be general population or limited to vulnerable populations and essential service operators). Although a regional hospital and medical research facility are lacking in MLM, the municipal area has a full complement of community facilities, which include municipal healthcare facilities such as the Meyerton, Randvaal and Kookrus clinics, and welfare infrastructure such as old-age homes, orphanages, hospices and pension pay-out points. A private hospital, Midvaal Private Hospital, exists in the area. MV

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Oro Projects is a level 2 BBBEE company as rated by Muthelo Mutshutshu Nxumalo, Pr Tech Eng (Masterâ&#x20AC;&#x2122;s Degree in Mechanical Engineering), with many years of experience, will provide clients with a brand of expertise unrivalled in South Africa. Oro Projects specialises in the provision of engineering solutions in manufacturing, water and construction industries.

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o r o p r o j e cts

The supplier of choice Oro Projects was first established in 2000 as one of the first African-owned engineering companies in KwaZulu-Natal. Almost 17 years on, the company has developed into one that offers exceptional service and value for money, while providing technical skills training to disadvantaged and inexperienced individuals.

or Mutshutshu Nxumalo, managing director, Oro Projects, the dream of building a construction company never faded. He used his pension money to set up a construction company and purchase assets, worked incredibly long hours, and endured the ups and downs that go with profits and losses. But he knew that, in order to be successful, the company had to align itself with something much bigger. After continually knocking on the door of Stefanutti Stocks for almost two years, it finally opened. The 100% blackowned Level 2 BBBEE company was a strategic partner in the Stefanutti Stocks

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enterprise supplier development (ESD) programme and a proud member of the South African Federation of Civil Engineering Contractors (SAFCEC) until May 2017. Oro Projects’ specific areas of expertise include earthmoving, materials handling, roadbuilding, manufacturing, fabrication and construction in the water sector. The benefits of being aligned with Stefanutti Stocks include access to a wealth of construction knowledge and being invited to participate in construction at an entirely different level. As an ESD partner, Oro was supported by preferential payment terms, mentoring, SAFCEC membership, the implementation of proven systems,

improved planning, and access to expert advice and guidance from specialists such as quantity surveyors, contract directors and project managers. During this growth phase, Oro Projects will also be working with Murray & Dickson Construction (Pty) Ltd. There will also be a joint venture partnership with WBHO – one of South Africa’s largest construction companies. Thereafter, Oro will be able to migrate quickly to WBHO’s ESD programme.

Service offering Oro Projects’ main service offering includes manufacturing and fabrication, water projects and piping, and re-gravelling and

Vision 2020: Oro Projects Be the premier BBBEE engineering solutions company in SA and beyond, and be the employer of choice in the engineering and construction sectors.

R500 million

Exceed R500 million in revenue by 2020

construction. The company prides itself on offering exceptional service and solutions at reduced costs, while also minimising the environmental impact of each project – working across diverse operational, service and maintenance contracts. Oro is one of the few African companies that bring unparalleled fabricating, assembly and machining capability to ensure the precise assembly of components and systems. The company has a full staff complement of field technicians for the continued service and maintenance of equipment. For site installation, Oro provides design and construction solutions, and offers turnkey

500

Create 500 new jobs

500

Train and develop the skills of more than 500 historically disadvantaged individuals

solutions in water, sanitation, structures, road construction and maintenance. With various contracts in the municipal and industrial market segments, Oro’s Operations Division has the capacity to operate and maintain water and wastewater treatment plants, regardless of size. From the convenience of technical support to the advantages of outsourcing, operational contract options include technical assistance, and operation and maintenance. The company remains flexible in its approach and offers tailor-made solutions according to client specifications. Oro has a proven track record of working on projects with Umgeni Water, thereby

building a solid reputation of providing professional services in the water industry. Furthermore, Oro Projects has been involved in the re-gravelling of roads and other construction work since inception. It has established a good reputation of running various operations and projects for private companies and the public sector. Placing an increased emphasis on rural areas, the projects undertaken by Oro have changed the lives of people throughout South Africa. One such project was Oro’s solutions-driven proposal to a provincial government MEC, Mlibo Qoboshiyane, to fill potholes in Port St Johns in the Eastern Cape. Oro Projects demonstrated an innovative

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o r o p r o j e cts

CURRENT PROJECTS solution that repairs potholes in 20 minutes and, unlike conventional filling methods, the road can be used almost immediately by motorists. The technology uses an asphalt emulsion to effectively fill potholes. The pothole is heated to 210°C before the asphalt solution is poured into it.

Current projects Of all the projects that the company has worked on, Oro is especially proud of its work on the following: The scope of work for Emfuleni Municipality featured the construction of Nguna Road from gravel to bitumen standard, including walkways and stormwater in Sebokeng Zone 7. “We were also faced with the challenge of

74%

Oro Projects is a 74% black-female-owned, Level 2 BBBEE company

Project: uMshwathi Bulk Water Supply Scheme Phase 1 & 2 Employer/professionals worked with: Icon Construction/ Umgeni Water Project value: R45 million Project: Construction of Nguna Road, Walkways and Stormwater in Sebokeng Zone 7 Employer: Emfuleni Local Municipality Project value: R19.5 million

6 000 m2

Central Welding Works offers fabrication and machining facilities at its 6 000 m2 workshop in Benoni

constructing temporary access over the river in order for us to minimise costs regarding moving plant and equipment between the South and North Road sections,” explains Pieter van Rooyen, site manager on the Nguna Project. “The project is still in the start-up phase, and we just completed bulk earthworks on the road in terms of box-cut, backfilling and compacting side drains. Clear and grub excavation as well as exposing existing services have also been completed thus far. Existing manholes must also be raised up to normal ground level. Additionally, culverts on the previous bridge construction will be removed.”

Welding works Over and above, a manufacturing company exists within Oro Projects (Oro owns a controlling stake in the business) called Central Welding Works. What started out as a small, one-man business is, today, the largest plate and section rolling service provider in Africa. Central Welding was primarily involved in the manufacture of light carbon steel fabrications for the general engineering industry. However, the company now has

120

The number of employees, comprising management, artisans, labourers and administrative staff at Central Welding

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some 45 different roll-forming machines under its control, which are equipped with tooling for tubular hollow sections, hotrolled sections such as beams, channels and angles, as well as flat products such as plates and flat bars. The range of supply is diverse and spans from architectural and shopfitting to heavy industrial. Situated in Benoni, Gauteng, Central Welding’s service to customers includes technical advice and know-how, which is backed by years of experience in the rollbending of all standard sections. The facilities at Central Welding include: • various sizes of plate and section rolling machines • six overhead gantry cranes • power saws

• a 400 t press brake • a 13 mm guillotine • machine shop • various sizes of horizontal boring mills,

lathes, a milling machine and a vertical boring mill • a bulk oxygen tank for gas cutting • a multihead-profile gas cutter • spray-painting • a Huck machine with various sizes of guns and nozzles. With regard to capacity, General Rolling Works is an associated company of Central Welding, offering three main services, namely: roll only, supply and roll, and supply/roll and weld. General Rolling operates the largest section roll-bending machine in the

country, using the latest technology to rollbend all standard sections irrespective of size. Special sections, such as window and builders’ sections are also offered. A full set of rolling dies is available for roll-bending of all standard pipe sizes without filling. The team consists of highly skilled experts who are well equipped to work according to complex drawings and layouts. MV

Regional Offices: Gauteng 22 Van Dyk Street, Benoni KwaZulu-Natal 212 Peter Kerchhoff Street, Suite 1-4, Akhatech House, Pietermaritzburg 0861 823 823 info@oroprojects.co.za

WELCOME T O M I D VA A L … W E W I L L I M P R E S S

Midvaal Local Municipality has come a long way from its quiet, quaint roots to become a booming tourism, recreational and industrial centre in the south of Gauteng. And its rapid growth in residents and migrants is testament to this.

800 km

The Vaal Dam has over 800 km of coastline, covering in excess of 300 km2 and bordered by three provinces

idvaal has significant untapped tourism potential; its proximity to Johannesburg and Ekurhuleni is potentially one of its greatest assets. Apart from business tourism, MLM offers scenic beauty with ridges and river systems, conservancies, nature reserves, game farms, outdoor activities, cultural experiences, local cuisine and historical landmarks. 1. Birdlife: Sedibeng District Municipality, together with Birdlife SA, has developed the Sedibeng Birding Route, of which many sites are located in Midvaal or just outside of the Midvaal area of jurisdiction. This route should be promoted and marketed, and additional tourist attractions could be incorporated as part of the route. 2. Cultural node: Walkerville is being developed into a tourist town. It has potential for development as a tourism node, offering a range of art and craft shops, galleries, coffee shops and restaurants, and has a strong link to the surrounding agricultural and equestrian culture.

Say what?

Suikerbosrand Nature Reserve gets its name from the Transvaal suikerbos, or sugarbush, which is found in abundance in the area

3. Vaal Marina: The Vaal Marina precinct is located in the far south-eastern parts of the municipal area, and comprises a number of holiday resorts located around the Vaal Dam. This area is an asset to the local Midvaal community, as well as the broader Gauteng and regional population. It needs to be actively managed and protected in order to ensure that the character of the area as a tourism destination is maintained in the long term. 4. Suikerbosrand Nature Reserve: This is one of the most idyllic game reserves in Gauteng. The flora and fauna in Suikerbosrand are extensive, which makes it a popular spot for hiking, cycling and picnicking. Approximately 200 different species of South African birds have made the reserve their home. 5. Henley-on-Klip: The Klip River and specifically the Henley-on-Klip area represent another prominent tourism feature located within MLM. The area is characterised by a village atmosphere and forms part of a conservancy. The Bass Lake precinct adjacent to the north of Henley-on-Klip is very popular

10 hectares

Bass Lake consists of a 10 ha body of spring-fed water and is considered to be the best scuba training venue in South Africa

for fishing and offers a number of adventure sports facilities. Bass Lake and the Glen Douglas Dolomite Mine are earmarked for mixed land-use development, to promote the development of Bass Lake as a tourism attraction. The area could accommodate hospitality uses, such as overnight facilities and restaurants to supplement the proposed adventure and conference facilities to come over time. 6. Ridges: Another tourism precinct within MLM is represented by the extensive ridges located in the south-eastern and northwestern parts of the municipal area, and which form part of the Midvaal Regional Open Space System. Because of the strict development limitations applicable to these areas, there is potential to utilise these to further enhance the tourism character of the Midvaal. The ridges areas can be utilised to expand on the range of tourism facilities and services, such as the development of mountain biking routes, hiking trails, game farming, and adventure sport facilities, as long as these don’t have a negative impact on the environmental quality of the area. MV

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NEW HOPE SOUTH AFRICA (PTY) LTD The New Hope Group aims to be a leading world-class agricultural enterprise in SouthÂ Africa. As a local comany, we strive to keep both our customers and our valued employees satisified

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new hope group

Bringing new hope to the world T

he New Hope Group is a global enterprise that has never strayed far from its modest roots. While the scope of its business dealings include, animal husbandry, meat production, chemicals, real estate, mining and finance, the heart of the company has always been in agriculture. Global multinationals don’t just sprout from the ground overnight, and the New Hope Group has a very proud history spanning 35 years, steming from the most humble of origins. The company logo, in fact, also speaks to the founding of the business, being a representation of the sun shining over three fields, bringing new hope and new life.

A walk through history In 1982, its founder, Mr Yonghao Liu, left his government job in the city for a small village in the Sichuan province of south-western China, where he founded a quail farming business with all of US$500 start-up capital. Over the space

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of five years, and through a combination of hard work and wise business decisions, the entrepreneur grew the company from a modest rural business into one of China’s earliest private enterprises with a turnover of $650 000 (according to current exchange rates). In 1987, New Hope’s core business moved to the processing and production of animal feeds – the very basis of its current operations in South Africa. By 1992, revenue had soared to some $73.5 million and the year marked two particularly special occurrences: New Hope launched its national expansion programme and the company was ranked as the top private enterprise in China. Within five years, the company had commenced overseas expansion and helped to found China Minsheng Bank – the first mostly privately owned bank in China – while securing a $221 million turnover. By 2002, revenue had more than doubled to $500 million and the New Hope Group was recognised as one of the top 500 enterprises in China. The company also started engaging in CSR initiatives, such as the Guangci Poverty Reduction Programme. In 2007, it issued its first CSR report and had grown

The New Hope Group’s international footprint keeps growing, as does its revenue, but the company remains firmly in touch with its founding principles.

its revenue exponentially to $4.1 billion, and to $11.9 billion by 2012. And so the company has continued to grow in both revenue generation and global footprint, going from being a small-scale quail and chicken farming business to a general, truly multinational empire.

Prosperity through growth Liu explains his company’s outlook thusly: “New Hope strives to ‘grow young’. Entrepreneurial passion and an innovative mindset have been key to our success today and will be in the future. The New Hope Group fulfils its mission to promote industry and social progress based on its own growth. We actively adapt to the trends of the time, meet the demands of customers, and foster

NEW HOPE GROUP HONOURS National Leader in the Industrialization of Agriculture State-designated Corporate Technology Centre Three CNAS-accredited Quality Test Centres

New Hope Group holds over

$11 billion in assets and is highly praised for its robust financial structure

New Hope Group has

remained among the Top 500 Chinese enterprises for the past 14 consecutive years

continuous development that is always half a step ahead.” As mentioned, the New Hope Group has interests that span numerous sectors. It has a range of businesses and subsidiaries that include: • New Hope Agriculture (New Hope Liuhe) – agribusiness • New Hope Baoshuo (Hebei Baoshuo) – chemicals industry • New Hope Chemicals Investment – chemicals industry • New Hope Dairy – dairy industry • New Hope Real Estate – real estate industry • New Hope Finance – financing • New Hope Trading – group trading arm • Hosen Capital – investment.

Agribusiness at the heart At the core of the New Hope Group’s business is New Hope Liuhe, an agribusiness enterprise that places its focus on steady

Second place in the National Science and Technology Progress Award for two technological achievements Joint Deputy Director of the GFSI China Local Group

and certain development, with areas of specialisation covering animal feeds, breeding and farming, meat production and financial investment. The enterprise was formed in 2005 through a merger between New Hope Group (established in 1982) and Liuhe Group (established in 1995). Meeting the needs of China’s huge population has demanded the utmost efficiency from its agricultural sector, particularly because the amount of arable farming land in China is very limited compared to its geographical size. Placing an increased focus on automation and technological advances has significantly boosted the country’s overall food production, with China being both the world’s largest producer and consumer of agricultural products. New Hope’s highly automated feed processing approach has enabled it to step outside of China with confidence and competitiveness. New Hope

Liuhe has a footprint in over 20 countries across the world, including the USA, India and Australia, with more than 550 branches in its network. The instantly recognisable blue tower that is part of New Hope’s processing plant design is found on all its sites across the globe, and provides a familiar landmark wherever the company operates. New Hope’s growing presence across the globe is epitomised by its Australian operations, where it runs its own dairy cow farm and, as part of a consortium, is poised to become the most competitive and influential dairycow-raising company in the country. New Hope Liuhe alone brought in $10.3 billion in sales revenue to the Group in 2016 and, with an annual capacity of over 28 million tonnes of feed, New Hope is the largest producer of agricultural products in China and the third largest in the world. It provides feed to some midvaal l 2017

new hope group

COMPANY VALUES Besides these numerous differentiators being a point of pride for New Hope Liuhe, one of the most important defining characteristics for the company are the corporate culture and values espoused by the parent Group. The four foundational values that define New Hope staff are to be: Illuminative • An illuminative character contributes to business operations • Be simple, sincere, happy, confident and illuminative • Be willing to give and contribute to collective interests • Be friendly, energetic and communicative Positive • Promote positive thinking and integrity • A positive mind and positive action bring positive results Normative • Be professional, dedicated, diligent and conscientious • Be honest, fair and trustworthy • Serve the customers and society Innovative • Dedicated to product and service innovation to build core competency • Improve management ideas and practices for better performance • Innovate business models for continual growth For any business to be successful, its people need to have faith in it and need to be willing to put in the hard work required to meet everyday tasks with refreshing zeal. When a business founder himself retains so much belief in the work his organisation is doing, it rubs off on everyone within the company family – and New Hope’s continued growth and success are testament to this. “Growth is the ultimate beauty on the earth; hope is the utmost freshness in nature. The New Hope Group shares beauty with the world,” Liu concludes.

New Hope Group president Yonghao Lui is also the founder of China Minsheng Bank 250 000 farming operations. Over the course of its lifespan, the company has built up significant advantages over its competitors and its differentiators are the result of both organic growth and strategic development.

Defining differentiators Raw materials: The company has established overseas headquarters in Singapore and become a shareholder of the Lansing Trade Group, an American grains and commodities merchandiser. Both these developments have given New Hope a remarkable global advantage in procurement, particularly in terms of variety, quality, cost and risk control of commodity. Breeding: New Hope Liuhe has developed a three-tier system for rearing fine breeds of chickens, ducks and pigs, as well as model bases for commercial breeding, which facilitate close cooperation with farmers through various businessinitiatives. New Hope also seeks to standardise and modernise pig breeding through the “company + farmer” model. Food: The company has launched a variety of brands for different markets and has been hard at work making these brands synonymous with high quality and reliability. Brands include Kinghey chilled pork (a high-end leading brand in China), Beiyouzi chilled poultry (the first in China to implement a full traceability system), Meihao cooked pork and Liuhe Delicacy cooked poultry (two of the most popular brands of their kind in China), Qianxihe Food (frozen dumplings, sausages and more), and New Hope Milk, which also sells yogurts and other dairy products. Retailers: The Rose Kitchen high-end meat chain has been in business for over 10 years and has nearly 1 000 outlets in China. In recent years, the New Hope family has acquired such brands as Jiujiuya, Benxiang Pork and Porridge Jiahe through theNew Hope Liuhe+ platform, making its quality products accessible to consumers through multiple channels. Database and monitoring network: Over 30 years of experience in agriculture and animal husbandry have given New Hope Liuhe an exceptionally vast database as well as a world-class monitoring network. Yummy Discovery Center: Devoted to discovering and inventing delicacies, the centre incorporates consumers’ needs into every aspect of its business – from food concepts, R&D, production and consumer experiences, to the design of nutritional plans. The centre offers easy access to safe, delicious and healthy foods, and provides its clients in the catering industry with one-stop R&D services and solutions. SHE system: New Hope Liuhe has ingrained the SHE (safety, health and environment) system into its entire industrial chain to ensure the safety of all its operations and activities. The industrial chain-based food safety control and traceability systems are part of the headquarters’ responsibilities; they are placed under the chairman’s direct control and supervised by a vicechairman to effectively implement safety control from the beginning to the end of the industrial chain. MV

Contact information 010-007-2488 | admin@newhopesa.co.za

midvaal l 2017

n e w h o p e sa

A partner in new growth As a relatively new player in the country, animal feeds expert New Hope South Africa is determined to build trust in the agricultural sector, nurturing growth and development that extends to the greater South African economy.

ew Hope SA may be part of a global enterprise, in the form of the New Hope Liuhe Group, but the company’s approach to its clients is as personal as it comes. It’s commitment to the highest standards as well as the development of South Africa’s agricultural sector is further testament to an approach that is at odds with that of a typical Chinese investment firm. After intensive market research that started in 2012, New Hope decided to set up its first South African offices and processing plant at the Klipriver Business Park in Meyerton. The planning and development of the site took nearly three years to complete, with full operations commencing in January 2016. The standard strategy many Chinese multinationals adopt is simply to open small satellite offices in countries across the world, while importing goods wholesale from China. In New Hope SA’s view, this is an unsustainable model that does not actively

contribute to the economy within which it operates. In fact, the company’s focus on local engagement extends to ensuring “local-only” supplier and purchaser bases, much to the benefit of the local agricultural industry and economy. Under the leadership of general manager Mr Yang Zhao, some 80 employees work for New Hope SA, over 80% of which are South African nationals – another way in which the company takes local involvement and a commitment to reducing unemployment very seriously.

High-tech operations What is imported directly from China, however, are the company’s feed processing methods, which are fully automated and exceptionally efficient. “Using among the most advanced technologies in the world, our processing plant in Meyerton operates at the highest level of automation possible, reducing the incidence of human error. The heart – or

rather the brains – of the plant lies in the central control room, which provides the operators with an overview of the facility’s entire processing and production operation,” explains company representative Angelique Gu. From the offloading of bulk materials, right through to end-product bagging, the level of automation ensures that every step of production is done to the book – every time. When a bulk materials delivery at New Hope takes place, for example, all the control operator needs to know is what materials are being delivered. The automated system then takes care of the rest, diverting the materials to the appropriate warehousing space. The advanced nature of the machinery also ensures that processes such as soybean extrusion can be consistently executed to perfection at the exact same temperature.

Both quantity and quality “With our state-of-the-art facility, New Hope boasts the highest production output of any animal feed producer on a single site midvaal l 2017

new hope SA

General manager Yang Zhao

Company representative Angelique Gu

in South Africa – in the vicinity of 15 000 tonnes per month, which is 50% more than the next highest,” Gu notes. Clearly, quantity is not a problem, and the company places equal focus on product quality, with a nutritionist and laboratory technicians onsite. The plant’s high level of automation also ensures a consistency in meeting standards that is difficult to attain otherwise. “Our feeds adhere to the highest standards, often exceeding South African national standards for agricultural products by some stretch. While automation guarantees the processes are consistent, the foundation of animal feed quality lies in the raw materials sourced, and then the product formulation. As such, New Hope ensures that it buys only the best products from reliable suppliers,” says Gu. In fact, the company takes the quality of its raw materials so seriously that trucks delivering goods from suppliers are stopped at the weighbridge inside New

2012 The year New Hope SA was established

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R200 million Capital investment in South Africa

Hope’s premises to ensure that both the correct quantity is being delivered and, even more importantly, that the product coming in meets New Hope’s exacting standards. There’s no guess-work going on here. “It’s quite simple. If you can’t ensure that your raw materials quality meets the highest standards, you can’t guarantee that the quality of your end product will either,” adds Gu. A product sample is collected from the truck’s load and is immediately taken to the on-site laboratory for testing, to analyse and confirm the agreed-upon product grade. This all happens within minutes. Once the laboratory technicians and quality control manager have confirmed the suitability of the product, delivery is given the go-ahead. The competitiveness of New Hope in the South African market is augmented by its effective, highly experienced team, on both the management and technical sides. The

R1 billion Amount to be invested in the next five years to expand SADC operations

80%

Percentage of locals employed at New Hope SA

combination of excellent raw materials and scientifically accurate product formulation – particularly in achieving the ideal amino acid balance – results in a product of exceptional quality that is very cost competitive and saves clients’ money in the long run.

Addressing South Africa’s challenges According to Gu, New Hope SA has made a concerted effort to understand and address the unique challenges South Africa faces: “We are a firm supporter of empowering the previously disadvantaged, which is vital in the creation of an inclusive and growing economy. Our research has shown that the majority of emerging farmers who fail do so because of a lack of knowledge, and securing expert advice through consultants is prohibitively expensive. To assist in tackling this challenge, we offer free advice as well as site visits to small-scale farmers to share our knowledge of good feeding, farming operation and animal husbandry practices.” She adds, “When emerging farmers become insolvent and can’t pay back their financiers, this negative cycle affects the entire value chain, and is simply not good for the economy. Helping smaller farmers to grow in both knowledge and expertise helps them, their communities, and the agricultural sector at large. We prefer to see farmers who purchase feed from us as clients – rather than just customers who purchase goods from us like a retailer. No client is too small for us; we are always looking at the longer-term picture and the potential of their operations. In a rather short period

new hope SA of time, a farmer with a 20 t per month feed requirement can turn into one that needs to feed 100 t per month, so treating all clients well engenders trust and makes business sense.” Another key aspect that underpins New Hope’s operations in South Africa is a drive towards economic stimulation and job creation, and the company hopes to partner with industry players and government in this regard to the benefit of all. With South Africa’s farming community being as established as it is, brand loyalty and familiarity are significant challenges to overcome for any new entrant to the market. “Building farmers’ trust in New Hope is very important to us. As such, we invite potential clients to our site to scrutinise our operations, and see for themselves what it is we do, and how we do it,” says Gu.

A growing footprint As concerns distribution channels, New Hope has established eight retail depots in Gauteng, KwaZulu-Natal, the Free State, Limpopo and the North West. The sales representatives in each province are locals of the areas they work in and are, as a result, in tune with the needs and demands of their region’s agricultural communities. New Hope’s reach extends beyond these depots through its fleet of delivery vehicles, which can supply feed in both packaged and bulk options. With some of the large-scale farmers who enjoy a higher level of automation, the bulk delivery trucks are able to provide near-instant feed to the livestock. The New Hope support team also regularly tours sites across the country, offering training workshops and an introduction to the company’s products to farmers, whether or not they are New Hope clients. “So far, the response has been very positive, with some training sessions attracting up to 100 attendees,” comments Gu.

NEW HOPE SOUTH AFRICAN COW FEEDLOT In April 2017, New Hope SA initiated a 3 000head strong cattle feedlot project to serve as a demonstration base for local farmers, with the aim of changing the traditional way of fattening cattle in South Africa. The main purpose of the 100 ha facility is to invite and educate farmers to use new feeding technologies to save costs and improve breeding efficiency – optimising the entire value chain by starting at its very base. This will foster economic growth from the ground up, as feeding directly affects the costs of breeding, which has a knock-on effect on the costs of slaughter. This approach has a positive impact on both the price and nutritional value of the meat for the end consumer.

Developing the youth With its significant focus placed on education and training, and in acknowledging the employment challenges South Africa’s youth face, it’s no surprise that New Hope runs an internship programme. Fresh graduates are offered the opportunity to acquire on-the-job experience, as well as potential employment at New Hope if they excel during their internship. The company has also had students of agricultural studies visiting the premises as an introduction to working life in the sector and the company itself. “We believe that in order to be successful, especially as a foreign-headquartered company coming into a new market, we need to give something of ourselves and add value to the communities we operate in. We need to be open and look towards building trust right from the start.” Developing the youth in agriculture is key to the ongoing success of the sector, as well as ensuring national food security going forward. “Particularly in this age of technological advancement, unique solutions often come from the minds of young people, who look at problems from a different, and often bolder, perspective. Unlike more senior staff, they don’t rely on the knowledge they’ve accumulated over the years to inform their decisions, which sometimes results in innovative problem-solving solutions,” comments Gu.

New innovation On the topic of innovation and in responding to the local market’s demands as determined by extensive market research, New Hope has recently formulated and tested the palatability of its own brand of adult dog food. Again, the product is formulated to the highest standards, and aims to sit just below the premium veterinary dog food brands and provide a cost-effective yet well-balanced pelleted food. This dynamic and adaptive attitude of making sure to understand and respond to local market needs defines New Hope’s approach in all its countries of operation. While New Hope is certainly a relatively new player in the South African market, with the wealth of experience of its operational management staff as well as the support, expertise and business acumen of its head office in Beijing, the company is certain to make swift inroads into the local agricultural sector all the while adhering to its core values of Innovation, Harmonisation, Pragmatism, Modesty and Integrity. MV

Contact information 010-007-2488 | admin@newhopesa.co.za

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y o u th d e v e l o p m e n t

Committed to the future The Midvaal Local Municipality has long been committed to advancing the potential of its youth. This is embodied by its highly successful Kgatelopele Youth Development Programme.

lthough much talked about as a driver of economic growth and ensuring future prosperity, the development of South Africa’s youth is often an afterthought in top-level decision-making. Perhaps it takes leadership from someone as young as Executive Mayor Bongani Baloyi to truly acknowledge the importance of the youth in ensuring regional and national growth and economic prosperity. At 30 years old, South Africa’s youngest executive mayor has been open about his commitment to making Midvaal Local Municipality (MLM) a youth-biased region. MLM’s Kgatelopele Youth Development Programme was launched on 20 January 2017, and is aimed at utilising the municipality’s resources to invest in the development and empowerment of the youth. Upon its launch, Baloyi emphasised the importance of families supporting and motivating the youth, particularly those within the programme. He further outlined how MLM aims to partner with young people, fostering social entrepreneurs that are key in addressing service delivery challenges and creating employment opportunities for others.

First graduates The first programme was concluded on 15 June 2017, with 99 young entrepreneurs graduating with the skills and resources to grow their own businesses that can contribute to the regional economy. Baloyi encouraged them to “go out there and be the salt of your community”. There could be no better way to precede Youth Day than a graduation that acknowledges the empowerment and upskilling of young people, enabling them to go out and seize their own destinies, while helping others along the way.

Cllr Baloyi congratulating one of the Kgatelopele graduates

KGATELOPELE VISION To establish an employment creation and entrepreneurship development programme aimed at training, upskilling and mentoring young people, to provide them with opportunities, employability and a chance to step forward! The Kgatelopele initiative entails the setting aside of targeted work for local cooperatives to compete for the awarding of work relating to road marking, grass cutting, street and waste cleaning, delivery of accounts, and other similar tasks. Once established and operational, these cooperatives should be able to compete in the open market for other appropriate work to ensure that they become sustainable business enterprises, thus creating jobs themselves and doing actual local economic development.

Next steps In order to ensure the continued economic growth of MLM, the municipality has committed to procuring goods and services valued at R30 million from Kgatelopele beneficiaries until the end of this electoral term. Beyond that, MLM has set aside 100 ha of land for Kgatelopele beneficiaries interested in agriculture, taking another step in the pursuit of equitable land reform. This financial year, MLM has set aside R1 million for the programme, which will see a further 151 youth empowered and equipped with the skills and knowledge to contribute to minimising unemployment in the region. MV

The Kgatelopele Class of June 2017

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ENERGY

R212 million

The amount allocated for the upgrading of Midvaal’s electricity network

4 000

The numbers of houses in Sicelo that will receive electricity

Powering our communities

Investment in infrastructure is a key priority for Midvaal Local Municipality. The municipality’s investment in capital projects is almost R1 billion, 75% of which will be spent on municipal infrastructure projects, including its electricity network.

ignificant achievements in implementing transformative industrial policy action plans at sectoral level and the development of stronger transversal platforms set the basis for the further strengthening of industrial policy interventions. Special emphasis will be placed on three sectors that are particularly well placed for scaling up through leveraging market growth and associated upgrading of supply capacity and capabilities. One of these is ‘green’ industries, particularly the manufacture of components for the 17.8 GW renewable energy generation programme and the production of solar heaters and components, and a range of other goods and services that arise from the requirements of higher energy efficiency in the economy. “We are realistic in our planning. We know that Midvaal does not

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have a pool of unlimited resources. Our municipality will generate a revenue of R5 billion. Of this, R1 billion will come from property rates, R2.5 billion from water and electricity sales, almost R500 million from sanitation and refuse removal charges, and just under R1 billion will come from government grants. Of the R2.5 billion income from water and electricity, R1.7 billion will be paid over to Eskom and Rand Water as bulk purchase payments,” explained Midvaal Executive Mayor Bongani Baloyi in his 2017 State of the Municipality Address (SOMA).

Provincial overview In trying to reach the destination of being an inclusive and sustainable economy, Gauteng will need to tread a particular path. This growth path will be one that necessitates profound structural changes in the provincial economy. According to the 2017/18

Midvaal Draft IDP, Gauteng envisages that the economy will need to shift, as rapidly as possible, to an endogenous economic growth trajectory that is based primarily on innovation, green growth and inclusivity. The province will not have an economy that provides decent work and economic opportunities for all, unless it can become, among other things, a green, environmentally friendly economy that capitalises on the enormous economic value to be gained by investing in green processes and products, and which uses existing resources in a more efficient and sustainable manner, thus reducing its carbon footprint.

Electricity supply Only the urban parts of Midvaal are provided with electricity by the local municipality, while the remaining area is served by Eskom. Areas served by the Midvaal Local

ENERGY Municipality (MLM) include: Ironsyde Agricultural Holdings, Homestead Apple Orchards, Blue Saddle Ranches, Blignautsrus, De Deur, Golfview, Hartzenbergfontein, Henley-on-Klip, Highbury, Klipriver and parts of Walkerville. There is also an extensive Master Plan in place to ensure that new developments along routes R59 and R82 can be supplied with electricity as and when required. Approximately 79% of households in Midvaal receive electricity from the local authority. There is a backlog of approximately

5 598 households (18% of households) without access to electricity. Census 2011 data indicated that approximately 79% of households in MLM utilise electricity as the main source for lighting, while 15% utilise candles and 4% use paraffin. It is considered that mostly farm labourers and residents of informal settlements who do not have electricity use candles and paraffin, especially in the Mamello and Sicelo areas. These areas will only be reticulated once they are formalised. Electricity provision to schools, clinics and other community facilities

should also be prioritised. A number of new substations have been proposed along route R59, and the Meyerton Substation will be upgraded to provide electricity to new developments in the short to medium term.

Substation upgrades Electricity is largely available in the central region, with the main suppliers being MLM and Eskom. Capacity exists on both these networks to accommodate additional incremental development. Construction of the Graceview Substation to the north of the corridor has commenced. This substation will serve all developments around the northern part of the R59 Development Corridor. The Meyerton Substation is also undergoing an upgrade. “We plan to invest R212 million towards the upgrading of our municipal electricity network. This includes R21 million that will be spent in the next financial year on electrifying Sicelo (beginning with Extensions 4 and 5), as well as R77 million that will be spent on upgrading and maintaining Sicelo’s electricity network. R20 million will be spent on enhancing capacity at Riversdale,” Baloyi emphasised during the SOMA. MV

HISTORY

The company was formed in 1998 in Sasolburg. In 2001 we moved our operation to Meyerton to be closer to the economic hub of the country.

MATERIALS

We use a by-product from power stations eg.coarse ash and ﬂy ash in the manufacturing process. Our bricks are made to SABS standards with regards to size and strength. We test our bricks on a daily basis at our inhouse lab on site

MISSION

Inka Brick is dedicated to produce and supply a quality brick to the building industry. We also want to increase our involvement in making our brick manufacturing process even more environmental friendly.

MAXI BRICK

INNER BRICK

Tel:

STOCK BRICK

(016) 364 0800 | Fax: 0880 163 640 784 | Email: inkabric@mweb.co.za

w at e r & saN I T A T I ON

Bringing basic

services to the people

dequate shelter and basic services, especially access to water and sanitation, should be provided in areas close to social and economic opportunities, such as public schools, healthcare and places of employment. The National Development Plan 2030 – adopted by the National Cabinet in August 2012 – makes a few policy pronouncements and proposes performance targets that intersect with developmental mandates assigned to local government. One such target is to ensure that all South Africans have access to clean running water in their homes. Basic service delivery in the Midvaal Local Municipality (MLM) is no exception, and includes providing access to water, electricity and sanitation as well as waste removal. Midvaal has progressed quite steadily with regard to providing basic service delivery to all households in the community.

Water supply

The standard for water provision in terms of the Reconstruction and Development Plan and Water Supply and Sanitation White Paper is 25 ℓ per person per day, within 200 m walking distance. This was confirmed by government’s commitment to deliver 6 kℓ of free water per household per month, which now has

midvaal l 2017

to be implemented by municipalities. Approximately 65% of households in MLM have access to piped water inside their dwellings; 18% have access inside their stand/yard; 13% have access to a communal tap; and 4% have no access to water. In total, 96% of households in MLM have some sort of piped water supply. Bulk water is supplied to MLM by Rand Water, while the local distribution network is mainly focused in the central and western parts of the municipality. It is mainly farm labourers and residents of informal settlements who do not have access to formally treated water sources (MLM Migration Plan, 2013). In the past, water reticulation networks in MLM were designed and constructed for lowintensity land use, for example, agricultural holdings. Capacity of existing systems is thus limited, which may inhibit new economic and residential developments. The main rivers in the region, namely the Klip, Riet and Suikerbos rivers flow into the Vaal River in the south. Water in these rivers is polluted by various sources and is used mainly for crop irrigation. The Klipwater Township in the Waterval area is serviced via a 200 kℓ elevated tower linked to a Rand Water pipeline located to the east thereof. Rand Water recently constructed the new

Spioenkop Reservoir and Pump Station. This reservoir has a 42 Mℓ capacity and is located approximately 16 km north-west of Meyerton Town. This new infrastructure benefits users in Orange Farm, Ennerdale, Weilers Farm/Sweetwaters (City of Johannesburg) and Walkerville/De Deur (Midvaal). A new reservoir was also recently constructed to serve the Savannah City development in the Doornkuil area.

Service delivery

A key challenge for MLM is inefficiency in delivering services. The municipality showed poor turnaround times in service delivery on account of resource and capacity constraints, according to an internal analysis). According to the 2016 Oct-Dec Customer Satisfaction Survey, the highest number of complaints arising from MLM all related to service delivery. These included water leakages and blocked sewers, among others. Midvaal’s affluent community (highincome earning) occupy the developed areas of the municipality, which already have access to service-delivery-enabling infrastructure such as tarred roads, piped water and sanitation and receive the respective basic and social services from

w at e r & saN I T A T I ON

“All of our people have a right to dignity, and a right to running water and flush toilets within their own homes,” said Midvaal Mayor Bongani Baloyi in his 2016 State of the Municipality Address.

the municipality. This community requires excellent and efficient services from the municipality, and has the most registered complaints relating to water leakages, electricity outages and potholes (Midvaal Customer Satisfaction Survey Q3 2016). The township community (low-income earning) occupies the less-developed areas of Midvaal, either on the edge of developed areas or in rural settings, where there is limited or no service-enabling infrastructure. This receives limited basic services from the municipality. The township community requires access to basic and social services, which it does not have at present. Basic services are seen as a vehicle for upliftment; however, this cannot be seen in isolation to social services. The municipality currently supports the township community with a number of programmes focused on uplifting and supporting the youth and residents who need it the most, but a lack of funding and resources has limited the reach of the respective programmes.

Financial planning

Provision has been made to supply all households serviced by the council with 4 kℓ of water free of charge, rather than the 6 kℓ of the past. As from 1 July 2017, only registered

R200 million: Earmarked to 17%: Water makes up 17%

of MLM’s Operating Revenue Distribution for the 2017/18 financial year

improve water supply to Sicelo and other informal settlements

10.2%: Water purchases from Rand Water

R6 million: The cost of the Aged Bulk Water Pipe Replacement Project – one of the major capital projects – included in the draft capital budget

indigent households (inclusive of deemed indigent households) will receive 6 kℓ free water per month, and all other household will receive only 4 kℓ. It is intended to phase out the provision of free basic water from non-indigent household in totality by the end of the MTREF period. 4 kℓ of free basic water will be provided in the 2017/18 and 2018/19 financial years; 2 kℓ in the 2019/20 financial year; and no free basic water as from 1 July 2020. The income budget has been compiled based on projected billing; however, provision has been made for a 94% collection rate through the provision of funds for the impairment of debtors.

Sanitation services

There are three wastewater treatment works in MLM, of which the Meyerton Treatment Works is the main regional facility. The other two facilities only serve the local surrounding areas and hold very limited capacity. Insufficient capacity at the Meyerton Plant needs to be addressed as a matter of urgency to make provision for future growth in the surrounding core urban area of the Midvaal, including Sicelo.

Good to know The expansion to the Meyerton WWTW will increase the capacity of the plant from 10 Mℓ

per day to 25 Mℓ per day, which will substantially increases the capacity of the municipality to facilitate development for the next 15 to 20 years. Approximately 82% of households in the Midvaal area are served by waterborne sewers, which is relatively high, considering the rural nature and vast extent of the area. It could be said that the sanitation backlog in the area is 18% or 5 598 households. These are mostly for farm labourers and residents of informal settlements who do not have access to proper sanitation facilities. No formal sewerage network exists in the remainder of the Midvaal area. Sanitation in the rural parts is generally addressed by means of pit latrines or septic tanks, and trench drains. Initiatives are currently underway to provide Sicelo and Mamello with sanitation. “Being inclusive means that we must give dignity to our people who live in poor communities,” said Mayor Baloyi in his 2017 State of the Municipality Address. “For this, we have set aside R149.5 million to upgrade water treatment works at Vaal Marina and Ohenimuri, and to expand the sewage network in Sicelo and Daleside. Over the term of this administration, a total of R350 million is earmarked for sanitation.” MV

midvaal l 2017

Transport

Connecting people with places A comprehensive transport network that provides sufficient links to other economic sectors, regional nodes and residential options is paramount. The links created by these transport nodes promote the distribution of goods and population, subsequently encouraging economic growth. Executive Mayor Bongani Baloyi

idvaal Local Municipality (MLM) is connected to major economic centres to the north and south, around the R59, and, to a lesser degree, the R82. The condition of provincial roads in MLM is generally poor, mitigating economic development and access to the area. “We mean business when we talk about improving people’s lives. Our approach is a holistic one. Not only do we want our people to have water, sanitation and electricity; we want them to live in communities that have tarred roads,” said the executive mayor of Midvaal, Bongani Baloyi, in his 2017 State of the Municipality Address. The reviewed Midvaal Spatial Development Framework (SDF) is based on a number of development principles associated with various functional and structuring elements within the area. These principles form the individual layers, which the SDF comprises,

and are incrementally consolidated to form one Integrated Spatial Development Framework for the Midvaal area.

Transport Master Plan The Gauteng Integrated Transport Master Plan (GITMP25) aims to deliver a worldclass and sustainable transport system that supports Gauteng’s economic, social, cultural, and environmental goals. Key to the GITMP25 is the focus on public transport, with the rail system being the backbone of the network. This is in order to enable a shift from private vehicles to reduce congestion, enhance public transport efficiency and promote the sustainability of the province as a whole. The main railway line in the Midvaal area stretches from north to south parallel to the R59 and connects Vereeniging with Germiston and Johannesburg. This railway is mainly used for freight services in Midvaal. To the west, and running along the

far western border of MLM, in the vicinity of Savannah City, is a second line that serves as the main commuter line between Emfuleni Municipality and the City of Joburg. There is a secondary railway line from this line, which traverses the area from east to west but is no longer operational.

Road linkages Route K154 forms part of the EnnerdaleChamdor Corridor/east-west linkage that is vital to open up the southern parts of Gauteng and stimulate local economic development. The section up to Kliprivier has already been constructed, while the section from Kliprivier to Walkerville has been prioritised in the GITMP25. This link will eventually be further extended to a proposed interchange on to the N1 national freeway at Elandsfontein in Midvaal, before extending westward into the City of Joburg and up to Chamdor in Mogale City.

R55 million has been

R6 589 000:

budgeted for tarring 23 km of roads in MLM

Gravel to tar Sicelo Ext. 4 roads

R170 million has been set aside to maintain the Midvaal’s existing road network

Extension to Daleside Sewer (road rehab)

R3 000 000:

The existing road network mainly caters for north-south movement through the Midvaal area due to the historic functional relationship between Johannesburg to the north and Vereeniging-Vanderbijlpark to the south. The following are routes of national and/or provincial significance: • Route R59, which links Vereeniging with Alberton and the N12 in Johannesburg. This route is situated in the central part of MLM and has been marketed as a development/industrial corridor since the late 1990s. • The N1, which is the major national northsouth route linking Musina in the north to Cape Town in the south, and which passes adjacent to the west of the Midvaal area. • The N3, which is the major transport link between Gauteng and eThekwini (Durban), and which passes the Midvaal area a few kilometres to the north-east. • Route R82, a secondary north-south route linking Vereeniging and Johannesburg via Walkerville and De Deur situated in the western parts of Midvaal. The route runs parallel to and midway between

www.favv.co.za

The following major capital projects are included in the draft capital budget:

Aerovaal Airport can accommodate up to 64 aeroplanes in its hangar facilities at any given time

the N1 and the R59 freeways. The condition of provincial roads in MLM is generally poor and the routes require upgrading. Excessive freight transport (overloading) and a lack of maintenance are contributing to the deterioration of provincial road infrastructure.

Public transport The public transport system in Midvaal is as efficient as it can be to deliver a reliable service to all communities. Private transport seems to be the norm in the urban parts of the Midvaal area while public transport is more commonly used in the rural areas. Route R82 is a major public transport corridor. Taxis are the most dominant form of public transportation, followed by buses. The low levels of private vehicle ownership correspond with the low-income levels in the disadvantaged communities. This emphasises the need for public transport routes and facilities in MLM. Population densities in the rural areas are very low, which is not conducive to effective public

transport. Meyerton Station is the major modal transfer point between rail, bus and taxi in the Midvaal area. There is a need to develop the station and to pay particular attention to the safety of pedestrians crossing the roads between the taxi rank and bus stop.

Air travel Aerovaal Airport is the only airport situated within the Sedibeng District. It is located within a proclaimed aeronautical airstrip (the Vereeniging Airport), on the boundary between Midvaal and Emfuleni, outside the jurisdiction of Midvaal (11 km to the north of Vereeniging and 4 km north-west of Meyerton). The viability of rerouting cargo flights from O.R. Tambo International Airport to Aerovaal is currently being investigated, to alleviate airspace congestion. This holds tremendous opportunity for the Sedibeng District, and particularly Midvaal, in light of the proximity of the airport to Meyerton. The only airfield situated within Midvaal is the Tedderfield Airfield. It is privately owned and is used mostly for recreational purposes by micro lights. MV

midvaal l 2017

Occupational Health Services OHS Care has provided Occupational Health Services to the mining industry and private sector clients since 2001. We pride ourselves on our customer service levels and strive to adapt to meet the speciﬁc requirements of each individual client.

Clients

Contact 0861 OHSCARE (647 2273) +27 (0)86 573 0688 admin@ohscare.co.za

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B U I L D I N G A G R E AT E R M I D VA A L

L AY I N G T H E F O U N D AT I O N S O F A G R E AT PA R T N E R S H I P Savanna City is not an ambitious project, in fact, calling it a project does not do it justice. It is a vision. For over 18 000 families, this vision is the creation of a sustainable community from diverse backgrounds sharing common amenities and an excellent quality of life. The thing about vision is that it is extraordinary people

Midvaal was also critical in the decision to heavily invest in Savanna City’s very

that realize extraordinary dreams. People who go

own reservoir that is incorporated into

beyond achieving the expected. When we began

its design. It is an innovative model that

discussing the Sedibeng district, South of Johannesburg,

will save millions of litres of water and

as a possible site for Savanna City, we knew that we had found the perfect partners. Midvaal Local Municipality. Dynamic, energetic, forward-thinking. And of course, hugely experienced. Developing a City, the size of Savanna, is about so much more than building houses. Midvaal, together with Gauteng Department of Human Settlements (GDHS), was able to guarantee the provision of essential services, water, sewerage, roads, electricity and refuse removal. Not only now, but for future generations.

Savanna City Developments (RF) (PTY) LTD Tel: +27 10 010 5316 • Fax: +27 86 572 2950 info@savanna-city.co.za • www.savannacity.co.za

ensure a sustainable supply.

w ast e

Progressing towards A CLEAN ENVIRONMENT FOR ALL Basic service delivery not only includes providing access to water, electricity and sanitation, but providing waste removal too.

ll urban areas in Midvaal Local Municipality (MLM) have access to refuse removal services, while about 84% of small holdings and agricultural holdings are served. There is a regional landfill site located to the north of the Suikerbosrand Nature Reserve, outside the jurisdictional area of Midvaal. There is a second, smaller landfill site in Vaal Marina and landfill sites in Walkerville and Henley-onKlip. All landfill sites in MLM are licensed. Additionally, there are also transfer stations in Rissiville, Kliprivier, and Meyerton. A Solid Waste Master Plan for Midvaal has been formulated, to deal with the social, physical and environmental aspects of solid waste management. This master plan is set to be reviewed, taking specific consideration of current and future housing developments. “For them to be healthy, happy and active, people must live in a clean environment,” said Midvaal executive mayor Bongani Baloyi. “We believe that people who live in poor communities deserve this too. This is why our municipality will introduce a community-based waste management programme in informal settlements and high-density, low-income areas.”

SOLID WASTE PLAN

Waste statistics

A total of 82% of households in MLM have access to refuse removal by the local authority or a private company at least once a week. An own refuse dump is used by 11% of local households in the municipality, while 2% use a communal refuse dump and 3% have no rubbish disposal.

Municipal solid wastes, in general, constitute about 14% to 20% of all wastes generated worldwide. Other wastes include construction and demolition wastes (30%), manufacturing (20%) and mining and quarrying (23%). Source: Green is Not a Colour, 2015

1 Compiling proactive departmental 2

Local slums Midvaal migration data suggests that the majority of migrants to the area earn a monthly salary lower than R3 500. Lower-income migrants relocate to the region in search of better employment and to access land and housing options. They relocate mainly to informal settlements and dwellings, and increase the extent to which backlogs for informal settlements are created. “Our position as a municipality is to work towards the eradication of informal settlements. We want all our people to live in formal communities that are well planned and that offer basic services. We do not want children to grow up in squalid conditions that are detrimental to their health and mental development. We will monitor and curtail the growth of informal settlements in Midvaal,” said Mayor Baloyi.

In accordance with MLM’s Disaster Management Plan, the director: Solid Waste Management is responsible for ensuring the following seven necessary steps:

5 6 7

disaster risk management programmes to support disaster risk reduction or elimination. Compiling reactive departmental disaster risk management plans to ensure service continuation during emergency/disaster situations. Disposing of non-hazardous waste and refuse when and where required. Advising and providing facilities for the disposal of hazardous waste. Identifying and prioritising essential services that may require restoration as the result of an emergency or disaster. Supplying resources for disaster risk management purposes as requested by the Disaster Coordination Team. Establishing and maintaining a resources database that is integrated with the Disaster Risk Management Resources Database.

midvaal l 2017

s o cia l d e v e l o p m e n t

Vaal rising M igration studies provide valuable insights into the reasoning behind people moving to an area, with the below points highlighting different income groups’ views of Midvaal Local Municipality (MLM).

Disadvantages

Low-income migrants noted that the primary disadvantage of Midvaal was the slow rate of development. Other disadvantages related to the lack of employment opportunities, safety concerns, and limited access to social and economic facilities. Middle-income migrants noted that distance to access transport, social and entertainment activities and economic facilities were the primary disadvantages in the municipality. Higher-income migrants identified the main disadvantages of the municipality as traffic congestion, limitations in streetlights, air pollution, restricted social development, slow rate of development, lack of access to social and entertainment facilities, transport facilities and economic activities.

Advantages Migrants also noted the primary advantages of residing in Midvaal. Low-income migrants pointed out that affordable housing, the safety

The municipality’s theme – “Rise of the Vaal” – entails repositioning Midvaal as a hub for economic development and innovation.

of the area, and the expectation that future development would occur in the municipality and locality were the primary advantages of MLM. For middle-income migrants, the range of advantages differed to some degree. The main advantages included the safety of the area, attractive appearance of the municipality, its tranquil and rural lifestyle, and the affordability of residential options. Higher-income migrants pointed out the attractive appearance, the quality of life of the rural lifestyle and tranquility of the municipality, the safety of the area, and anticipated future development. According to Midvaal Executive Mayor Bongani Baloyi, the size of the municipality should in no way indicate that it has limited potential. “We know from experience elsewhere in the world that small places can do big wonders,” he reiterates. “City-states like Singapore (with a population of 5.5 million people) have achieved the kind of social and economic progress that big countries can only dream of. Scandinavian countries are very small, and yet they are admired by the whole world for their inclusive growth and development. They are the most equal societies in wealth generation and distribution. The Scandinavians have demonstrated that size doesn’t matter. What matters is what you do with your potential. Here in Midvaal, our focus is on our potential. We use our limited sources sparingly. We account for ratepayers’ money. We stimulate inclusive growth. And we use language that unites our people instead of harking back to a divided past. This is the fuel that propels our Rising Vaal.” MV

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Our production expertise is coupled with experienced technical product support, long-term customer relationships and an intimate knowledge of global logistics

Consistent quality Ferrosilicon for Dense medium Separation. Technology which enables the high through-put superior efficiency and increased flexibility With nearly seventy years in the Ferrosilicon business, and a 100% Black owned company, DMS Powders, formerly a division of Samancor Ltd, is the foremost supplier of FeSi today.

Our production expertise is coupled with experienced technical product support, long-term customer relationships and an intimate knowledge of global logistics

Corporate Social Investment DMS Powders is responsive to the needs of the communities within which it operates and demonstrates its commitment to being a caring company through the support of and effective involvement in relevant and sustainable community activities and partnerships, which will effect meaningful change. The business efforts Corporate Social Investment focus on supporting programs that improve the quality of life of the people residing within the communities within which it operates and were its employees reside. The following project are currently being supported by DMS DMS Powders is responsive to the needs of the communities within which Powders: it operates and demonstrates commitment to being a caring company o FeedingitsSchemes through the support of and effective involvement in relevant and o Issuing of blankets sustainable community activities and partnerships, which will effect o Solar Computer Lab meaningful change. The business efforts focus on supporting programs that improve the quality of life of the people residing within the communities within which it operates and were its employees reside. The following project are currently being supported by DMS Powders: • Feeding Schemes • Issuing of blankets • Solar Computer Lab

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NEW HOPE SOUTH AFRICA (PTY) LTD

Yonghao Liu

New Hope South Africa (Pty) Ltd was established in 2012, with an initial capital investment of R200 million. We will invest another R1billion to put up 8 to 10 factories in SADC region within 5 years. New Hope will work closely with local community to support the rural development plan in agriculture sector. FOUNDER: YONGHAO LIU

Read about New Hope on pages 35-42

Chairman of the board of New Hope Group (NHG), Vice-president of China Minsheng Banking Corp. Ltd

ABOUT NEW HOPE

OUR MISSION

CORPORATE CULTURE

As a general international enterprise, New Hope Group’s business involves agriculture, animal husbandry, meat, chemical, mining, real estate, financial investment, and more

To create successful farmers, yielding good profits and in the process contribute to the benefits of the community at large

Professional corporate governance, discipline, staying on top of industry-related technology and managing our enterprise in an authentic family tradition

OUR VISION

EXPANSION

To be a leading world-class agricultural enterprise in South Africa. We will strive as a local company not only to keep our customers satisfied but also our valuable employees

The business of our Group falls into four industries: agriculture and meat processing, chemical and mining, real estate, finance and investment industries

w w w. n e w h o p e a g r i . c o. z a