2021 EDITION
FREE STATE BUSINESS THE GUIDE TO BUSINESS AND INVESTMENT IN FREE STATE PROVINCE
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Free State Province Center yourself in the heart of South Africa
Growing shared value in our community
Kekeletso and Kedibone Tsiloane founded South Africa’s first eco-friendly brick manufacturing company in Sasolburg, Ramtsilo Manufacturing and Construction. Kekeletso attended cohort of the Sasol-NWU Enterprising Women Programme in 2017 and was the runner-up in the SAB Foundation Social Innovation 2019 Awards. Above are the ladies with 50 tons of plastic Sasol donated to them. Ramtsilo is part of Sasol’s sustainability projects SMMEs and has an enterprise development relationship with Sasol.
It is Sasol’s aim to achieve a transformed, sustainable, diverse and high performing supplier base through simplifying our processes and accelerating the development of small and transformed businesses and giving them enterprise and funding support. Our economic transformation and local content programme is focused to align with the shared value approach to integrate all our interventions which deal with economic inclusion. This includes a focus on nurturing early stage entrepreneurial talent to enable a mindset for development and agility in our communities. Since Sasol’s Enterprise Development relationship started with Kent
Zikhona Ngubentombi is permanently employed at Rates and Taxes, Metsimaholo Local Municipality after completing the 2018 Sasol Youth Development Programme, a partnership with the Free State Department of Public Works and Infrastructure.
Electrical Services in 2015, the company grew from 24 to 30 employees, increasing their annual turnover by 2019 by 60%. Kent provides solutions in the industries of electrical services, telecommunication, oil purification plants, and recently expanded to warehousing and distribution facilities management. Apart from securing contracts with Sasol in Sasolburg, they also do work for Sasol and other organisations in Gauteng. Another company that benefited from Sasol’s Enterprise Development initiatives is Siyashanela Services. Founded in 2002, their relationship with Sasol only started in 2013. Since then, Siyashanela increased their annual turnover by more than 100% in 2019.
Green Eden Nursery is another local SMME assisted by Sasol’s Enterprise and Supplier Development Programme. Their relationship with Sasol started in 2013, having 16 employees. They increased their staff complement to 50 employees while also growing their annual turnover by more than 100%. Green Eden renders a number of services to Sasol, from tending to gardens, to weed control and supplying of indigenous trees, in particular during Arbor Day. The owner of Green Eden Nursery, Khathutshelo Maseleni specialises in indigenous trees, working with the School of Animal, Plant and Environmental Sciences at the University of the Witwatersrand and the Centre for Environmental Management at the North-West University. This work relates to the planting of indigenous trees and furthering biodiversity.
They also grew their staff complement from 30 in 2013 to 130 in 2019. They acquired their first contract with Sasol for plant and office cleaning, but were able to expand their services to include load securement that has since become their primary business. They also do material distribution and render a material handling service. There are a number of other initiatives in and around Sasolburg through which Sasol promotes entrepreneurship development. As part of Sasol’s Social Investment initiatives training opportunities include the Sasol-NWU Enterprising Women Programme, the Sasol VUT Entrepreneurship programme and the Sasol Youth Development Programme done in partnership with the Metsimaholo Local Municipality and the Free State Department of Public Works and Infrastructure.
“Our aim is to enable economic inclusion and access for small businesses, to contribute to economic growth, through our economic transformation programme.” Rightwell Laxa, Senior Vice President, Sasolburg Operations.
CONTENTS
CONTENTS Free State Business 2021 Edition
Introduction Foreword
A unique guide to business and investment in the Free State.
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Special features A regional overview of the Free State
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With acquisitions in the chemicals sector, drilling about to start for natural gas and the bedding down of a new Special Economic Zone, there are opportunities for growth in the Free State economy.
Economic sectors Agriculture 36 An inland fishery has been launched.
Mining 38 Feasibility studies are exploring new gold projects.
Oil and gas
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Logistics companies are signing up for gas.
Manufacturing 40 The textile sector is recovering.
Tourism 41 Culture and heritage are growth sectors.
Education and training
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Coding and AI are in the curriculum.
Reference Free State provincial and local government
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Index
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FREE STATE BUSINESS 2021
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ABOUT THE COVER: Sasolburg Operations is one of five operating hubs in Southern African. This photograph shows the Sasol One Site which was established in 1950, converted from coal gasification in 2004 and now uses more efficient natural gas in its production processes. Among the products produced on this site are ammonia, ammonium nitrate, catalyst, ethylene, mining chemicals, phenolics, solvents and wax. Image: Sasol.
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CAPE(Western BUSINESS 2020 9 is located in WESTERN ABC Worcester Cape), Kirkwood (Eastern Cape), Nelspruit (Mpumalanga) and Upington (Northern Cape). We operate in all nine provinces in South Africa and also across the borders into Sub-Saharan Africa, including Namibia, Botswana, Zimbabwe, Mozambique, Zambia, Malawi, Tanzania, Kenya and Nigeria. ■
www.abc.co.za Head Office: 023 342 1212 Area Manager: Fanie Fourie | 073 402 0655 | fanie@abc.co.za
FOREWORD
Free State Business A unique guide to business and investment in the Free State.
Credits Publishing director: Chris Whales Editor: John Young Managing director: Clive During Online editor: Christoff Scholtz Designer: Simon Lewis Production: Lizel Olivier Ad sales: Gavin van der Merwe Sam Oliver Jeremy Petersen Gabriel Venter Vanessa Wallace Shiko Diala Admin & accounts: Charlene Steynberg Kathy Wootton Printing: FA Print
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he 2021 edition of Free State Business is the 11th issue of this successful publication that, since its launch, has established itself as the premier business and investment guide for the Free State. The Free State has varied investment and business opportunities and the Free State Development Corporation describes some of these in detail in these pages. Drilling for natural gas is a new phenomenon which may spark activity in other sectors and this journal notes significant new investments and projects in the chemicals and mining sectors. The official launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) was a significant event for the economy of South Africa’s most centrally located province. Located on the strategically significant N3 highway that links the economic heartland of South Africa to the coast, the MAP SEZ has the potential to attract new investors and spark a revival in the manufacturing sector. In addition, overviews on each of the key economic sectors provide upto-date information on trends in the mining and tourism sectors, for example. Regular information about the size and nature of each sector is also included. To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.freestatebusiness.co.za. Updated information on the Free State is also available through our monthly e-newsletter, which you can subscribe to online at www.globalafricanetwork.com, in addition to our complementary businessto-business titles that cover all nine provinces, our flagship South African Business title and the new addition to our list of publications, African Business, which was launched in 2020. ■
Chris Whales Publisher, Global Africa Network Media | Email: chris@gan.co.za PUBLISHED BY
DISTRIBUTION
Free State Business is distributed internationally on outgoing and incoming trade missions, through trade and investment agencies; to foreign offices in South Africa’s main trading partners around the world; at top national and international events; through the offices of foreign representatives in South Africa; as well as nationally and regionally via chambers of commerce, tourism offices, airport lounges, provincial government departments, municipalities and companies.
Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal address: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Fax: +27 21 674 6943 Email: info@gan.co.za | Website: www.gan.co.za
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ISSN 1999-5059
COPYRIGHT | Free State Business is an independent publication published by Global Africa Network Media (Pty) Ltd. Full copyright to the publication vests with Global Africa Network Media (Pty) Ltd. No part of the publication may be reproduced in any form without the written permission of Global Africa Network Media (Pty) Ltd.
PHOTO CREDITS | Pics courtesy Agricultural Research Council, BHIT Bulk Logistics, Harmony Gold, Maluti-A-Phofung Local Municipality, Nic Roets/ Wikitravel, Omnia Group, Protea Hotel by Marriott Clarens, SAB Foundation, SANParks, SA Tourism, Seda, Sibanye-Stillwater, Splendid Inn Bloemfontein, University of the Free State, VKB.
DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Free State Business is accurate and up-to-date, the publishers make no representations as to the accuracy, quality, timeliness, or completeness of the information. Global Africa Network will not accept responsibility for any loss or damage suffered as a result of the use of or any reliance placed on such information.
FREE STATE BUSINESS 2021
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MESSAGE
Domestic and international investors are invited to The Free State Africa’s most invest in South welcomeslocated investors centrally province MESSAGE
MECfor forEconomic, Economic,Small SmallBusiness BusinessDevelopment, Development, Tourism Environmental Affairs, MEC Tourism andand Environmental Affairs, the Honourable MP Mohale, relates how the province has supported business in the the Honourable MP Mohale, outlines how human capital formation is at the heart of the Covid-19 and how investment spark further development. creation of crisis a conducive environment forcan investment in the Free State Province.
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response to and the gratitude effects of Covid-19 the subsequent t nis with pleasure that we, as theand department charged lockdown of theinvestment economy, into Freethe State enterprises were introduce invited to with promoting Free State Province, apply forBusiness economic recovery incentives. Incentives publication’s and support Free State 2020. We welcome this well-known programmes were for businesses in the formal and informal sectors regular description of the economic environment of our province andare were focussed on saving existing jobs and creating new ones. and pleased to contribute to its pages. AInbrief an effort to improve uptake of climate opportunities overview of thethe investment in ourpresented province by is government, working with different business chambers in the Free provided on the facing page. State, the department has assisted businesses to meet the minimum Our department also published a dedicated investment prospectus. compliance requirements, like business, tax and other licence The purpose of the Free State Investment Opportunities Prospectus is registration. We would not like to see anybody left behind. to provide pertinent information about large-scale investment It is with pleasure and gratitude that we, as the department opportunities currently available in various sectors. These initiatives charged with promoting investment into the Free State Province, represent Free State’s response President Ramaphosa’s clarion introducethe Free State Business 2021.toWe welcome this well-known call for increased long-term investment inclusive growth publication’s regular description of the necessary economicfor environment of our and job creation. province and are pleased to contribute to its pages. investment is has an essential ingredient to economic growth, it While Our department also published a dedicated investment should be pointed out that at the centre of the Free State government’s prospectus, the Free State Investment Opportunities Prospectus. These economic development strategy human capital formation and deinitiatives represent the Free State’sis response to President Ramaphosa’s velopment universities andinvestment colleges, and various for institutions clarion call through for increased long-term necessary inclusive pursuing innovation and offering proof-of-concept services, to name a growth and job creation. few. Indeed,investment the Free Stateisisan poised to become a laboratory for excel While essential ingredient to economic lence in education research andatinnovation, in growth, it shouldoutcomes, be pointed out that the centreparticularly of the Free the fields of health, agriculture, manufacturing, water State government’s economicagro-processing, development strategy, as well as the Value Chains Economic Transformation Approach, is human capital management, ICT, pharmaceuticals and rural development. formation through universities andworld colleges, Domesticand anddevelopment potential investors from around the are and various institutions pursuing innovation and offering welcome to contact the DESTEA Head of Department at: proof-ofconcept services, to name a few. The Free State is poised to become HoD_office@destea.gov.za. a laboratory for excellence in education outcomes, research and innovation, particularly in the fields of health, agriculture, agroprocessing, manufacturing, water management, ICT, pharmaceuticals and rural development. Domestic and potential investors from around the world are welcome to contact the DESTEA Head of Department at: FREE STATE BUSINESS 2020 6 HoD_office@destea.gov.za.
FREE STATE BUSINESS 2021
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MEC for Economic, Economic,Small Small Business Development, Business Development,Tourism Tourism and Environmental Environmental Affairs Affairsthe the Honourable MP Honourable MPMohale Mohale.
MESSAGE MESSAGE
Investing in the Free State Province Investing in the Free State Province Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the Free State’s Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the unique selling propositions.
Free State’s unique selling propositions.
FT
ree State Province is situated in the heart of South Africa and heborders Free State Province situated in theprovinces. heart of South Africa shares with Lesothois and six other It provides and shares borders with Lesotho and six other provinces. easy access to the main ports of Durban, East London and It provides easy access to the main ports of Durban, East Port Elizabeth. London and Port Elizabeth. The Free State is an attractive business and investment destination. The Free State is an attractive business and investment The province is at the centre of South Africa and the dominant sectors destination. The province is at the centre of South Africa and the are agriculture, mining, manufacturing and the tertiary sectors, making dominant economic sectors are agriculture, mining, manufacturing it ideal for transport logistics and agro-processing. and the tertiary sectors, making it ideal for transport logistics and Companies locating to Free State not only enjoy the opportunity to agro-processing. source inputs at competitive but also benefit from domestic, The Department has prices, developed a to Value Chains Economic regional and international markets for their products and services. Transformation Approach, which aims to place the economy on a Because Africa has recovery been engaging with our economically large path ofSouth reconstruction, and development post the Covid-19 trading partners, access tosound international marketswith is facilitated through pandemic. Maintaining relationships the private sector various trade preferences and free-trade agreements. ensures that government’s economic transformation agenda As far asonlong-term theresectors are industrial remains track. Theinvestment departmentisisconcerned, engaging with such as parks and adevelopers Special Economic that are supported by the property on issuesZone such (SEZ) as bulk services and the approval Department Trade, Industry and Competition. parks of plans. A ofdevelopment committee made up Industrial of government, aredevelopers, situated infinancing Maluti-A-Phofung, and Thaba institutionBotshabelo and municipalities willNchu. soon be established. SEZ is situated in Tshiame. Maluti-A-Phofung The Companies Free investment State not are only enjoyby: the Free State’s relocating strengths fortoinward boosted source trade inputs at foreign competitive prices, but also to • opportunity openness toto business, and investment from of domestic, regional and international markets for their • benefit abundance natural resources andrentals services. • products low factory Thereleading are industrial parks and a Special • Africa’s telecommunications networkEconomic Zone (SEZ) are supported by the developed Department of Trade, Industry and • that incentive packages uniquely for Special Economic Zones Industrial parks are situated in Maluti-A-Phofung, • Competition. incentives associated with the revitalised industrial parks Thaba Nchu. The Maluti-A-Phofung SEZ services is situatedforin • Botshabelo Free State and Development Corporation (FDC) support Tshiame, Harrismith. priority sectors such as agro-processing and manufacturing The Free State’s • a large labour poolstrengths for inward investment are boosted by: openness to business, trade and foreign investment • • diverse cultures • abundance of natural resources • competitive land and building cost • low factory rentals • world-class transport and telecommunications infrastructure • Africa’s leading telecommunications network • incentive packages uniquely developed for Special Economic Zones and industrial parks 7
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• F ree State Development • an idyllic climate Corporation (FDC) support services forand priority sectors • recreational lifestyle such as agro-processing and facilities. manufacturing • a large labour pool Select investment opportunities • diverse cultures include: competitiveand landagroand building • • Agriculture costs. processing S e l e and c t property investment • Tourism opportunities developmentinclude: Agriculture agriprocessing • • Medical andand pharmaceutical • production t o u r i s m and a n ddistribution proper ty development • Manufacturing • medical and pharmaceutical • Renewable and clean energy production and distribution • Medical tourism. • manufacturing • renewable and clean energy and medical tourism. ■ FREE STATE BUSINESS 2020 FREE STATE BUSINESS 2021
MESSAGE
Working together, Working together, growing Free State growing thethe Free State Thabo Lebelo, the Chief Executive Officer of the Free State Development Corporation gives details on how the FDC is delivering on its mandate to create a conducive environment for entrepreneurs to thrive and for inward investment into the provincial economy.
The Free State Development Corporation unlocks business opportunities.
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n line with Free State Growth and Development Strategy and the mandate of broadening access to economic opportunities for the Free State-based business sector, the Free State Development Corporation (FDC) will continue to unlock business opportunities for both local and foreign direct investors.
Both the national and provincial government have provided some relief to businesses in one form or another. The FDC has also partnered with government departments to assist businesses in distress in order to cushion the blow caused by the global health crisis. The Covid-19 pandemic has dealt a tremendous blow to our SMMEs. Many have been forced to shut their operations for months due to the lockdown regulations. This has had a negative impact on their survival and sustainability with some downsizing their operations, while others have had to cease operations. The FDC continues to foster partnerships with various stakeholders from municipalities, government departments and other state entities with the aim of advancing SMME development, promoting expor ts, attracting investments within the province and most importantly, saving businesses. As an organisation, we believe that the best way to grow the Free State and the country is through meaningful collaboration and partnerships which allows us to pool all our resources together for the betterment of our entrepreneurs. Thabo Lebelo, CEO of the FDC This Free State Business 2021 publication The World Bank Group flagship report, June presents the Free State’s value proposition as a n line with the Free Statea Growth and andRussia anddestination. South Africa have lowbusiness tourism Key opportunities 2020, projected global and GDPDevelopment contraction Strategy theof mandate of broadening accessreal to economic opportunities er GDP growth rates compared in the for Free State include the following: 5.2%.The South African GDP is also theexpected Free State-based business sector, the Free China andcommodities India. The South to go down by 7.2% in 2020 due State to theDevelopment • A leading to agricultural producer Corporation will continue to unlock business opportunities African economy was projected economic(FDC) restrictions that were implemented presents significant opportunities across the for both direct andthrough foreign direct investors. alert to grow bychain. only 1.7% in 2019. by local government its risk-adjusted agro-processing value in Bank response to thethat Covid-19 pandemic. • A(Brazil, quaculture associated with the Thelevels World projected the GDP growth The for BRICS The activities FDC is working hard within has depreciated significantly Gariep Russia,rand India, China and South Africa) willagainst be 5.4%the in US 2019 and 2020.Dam. this framework to promote and the beginning theChina year. All these the• Spack heep and related value-chain As thedollar bloc’ssince powerhouses, Indiaofand areofleading in farming advance economic development present a very difficult road ahead. The growth processing. terms challenges of higher GDP growth rates. The annual economic rate in South Africa’s most centrally economic recovery will7.5% need thewhile socialChina’s partners ourism development potential leveraging off in India was projected to be inall 2019 annual• Tgrowth located province. to hold handstoand worktotogether. heritage rate was projected decline 6.3% in 2019 from 6.8% in 2017. Brazil, sites and The assets. FDC continues to foster
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FREE STATE BUSINESS FREE STATE BUSINESS 2020 2021
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We will utilise all our resources in creating a • E ngineering oppor tunities within the conducive environment for entrepreneurs to Lejweleputswa District as a result of excellent thrive and unleash the potential of the provincial engineering training and capacity-building economy to grow through our commitment to: within the mining sector. • Jewellery beneficiation. • The Maluti-A-Phofung Special Economic Zone • Relationship building. (MAP SEZ), situated at Tshiame in Harrismith • I ACommitment ourTcustomers INDUSTR L P R O P E Rto TY O R E N Tand I N investors. HARRISMITH in the Thabo Mafutsanyane District inFDC theis renting • Economic transformation for the common out 18 850 sqm standalone factory including Furniture I N Manufacturing D U S T R I Agood LMachinery, P RofO EEquipment, Rpeople. T Y T Oand R EFurniture N T I NforHBusiness ARRISM Eastern Free State is targeting investments allPour Operation.. into the province. This SEZ is situated midway • Assisting investors with accessing incentives FDC is renting out 18 850 sqm standalone factory including Furn between the biggest port in Africa, Durban, and and grants where available. and Furniture for Busines Manufacturing Machinery, Equipment, the biggest market in Africa, Gauteng. Operation.. • The Industrial Parks in Sasolburg, the anchor With the continued support from the provincial government, willinindeed grow the Freeproximity State. ■to all amen town of the Metsimaholo MunicipalityThein the This factory offers the factory is Situated atfollowing: Sitewe 2277 Harrismith and close Fezile Dabi District in the Northern Free State are main arterial routes and Quick access onto N3 Freeway. available for rental to industrial tenants. www.fdc.co.za
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on main arterial routes and Quick access onto N3 Freeway.
Sprinkler System. 4 Roller Doors
This factory offers the following: Security Guard House Sprinkler System. Well fenced and secured Ample Doors parking 4 Roller 3 phase power with 100 amps
Security Guard House
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
Well fenced and secured shower
Ample parking 3 phase power with 100 amps
Occupation available immediately. Please contact Mr Tefo Matla for more
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse abluti
information or to view:
shower
Tel: 051 4000 800
Email: tefo@fdc.co.za
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Occupation available immediately. Please contact Mr Tefo Matla for more FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 information or to view: Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.z
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
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FREE STATE BUSINESS 2021
SPECIAL FEATURE
A regional overview of Free State By John Young
A regional overview of the Free State By John Young
With acquisitions in the chemicals sector, drilling about to start for natural gas and the bedding down of a new Special Economic Zone, there are opportunities for growth in the Free State economy.
A
s of February 2020, nearly 100 new permanent jobs had been created within the Maluti-a-Phofung Special Economic Zone (MAP SEZ), the strategically located area on the N3 highway designed to attract new investment to the Free State Province. Sectors prioritised at the MAP SEZ include logistics, ICT, automotive, pharmaceuticals, manufacturing and agro-processing. The 1 000ha site has four zones: agro-processing, light industrial, heavy industrial and a container terminal. Control of the project now rests with the provincial Department of Small Business Development, Tourism and Environmental Affairs (DESTEA). Other areas that are being upgraded to provide infrastructure to encourage manufacturing are the Phuthaditjhaba Industrial Park and the Botshabelo Industrial Park. The N3 is South Africa’s busiest road and the Highway Junction truckstop at the entrance to Harrismith claims to be Africa’s biggest. More than 1 500 vehicles pass through every day and three forecourts cater to three fuel brands. Refuelling, storage and handling take place here, highlighting the province’s strengths in logistics as the country’s most central province.
FREE STATE BUSINESS 2021
The country’s two great highways pass through the province. The N3 links the ports of Richards Bay and Durban with the industrial heartland and the N1 provides north-south connectivity. The provincial capital, Bloemfontein, is another logistics hub. Three other national highways intersect the province which is also well served by rail and air links. The Bram Fischer International Airport serves the provincial capital. Links to the west (Kimberley and on to Namibia) and east (to Lesotho) underpin the planning behind the N8 Corridor concept which covers Bloemfontein, Botshabelo and Thaba Nchu. A plan for the coordinated development of the N8 Corridor has been approved by a range of bodies and is being funded by the Development Bank of Southern Africa (DBSA) and the Mangaung Metropolitan Municipality.
Projects and purchases The Omnia Group is present in 45 countries, has more than 4 400 employees and a net asset value of R9.7-billion (March 2020). The company’s agricultural and chemicals divisions have a large
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presence in the northern Free State town of Sasolburg and the company has recently acquired a US-based firm that specialises in patented agriculture biological products, further expanding its geographical footprint and product range. International fuel, gas and chemicals company Sasol regularly invests in new technologies and in expanding production of its many products. Renergen, the owners of the Virginia Gas Project, announced in March 2020 that their findings had “radically improved” the company’s drilling plan. One of the key facts to emerge is that the gas contains helium of up to 12%, a good percentage. Despite the drawback associated with Covid-19, Renergen also announced that it was going to roll out filling stations across South Africa to cater to companies in the trucking industry converting to gas. Mining is reduced in importance but remains a significant employer. Harmony Gold has several assets in the province and Sibanye-Stillwater has undertaken a feasibility study on a property adjacent to its existing Beatrix mine. In agriculture, the Free State is looking forward to the implementation of the African Continental Free Trade Agreement (AfCFTA), the free trade agreement that was stalled by the Covid-19 pandemic. The Free State’s agricultural export basket is well suited to trading with African states and strategies are being considered to promote apples, asparagus, cherries, cut flowers, sorghum, venison and wine.
The Free State produces significant proportions of South Africa’s wheat (30%), sunflowers (45%) and maize (45%) and is ranked third in contribution to national GDP in agriculture. The Free State shares borders with six other provinces, in addition to the Mountain Kingdom of Lesotho. A summer-rainfall region with a mean annual rainfall of 532mm, the Free State’s climate, soil types and topography vary greatly within the province, with plains in the west and mountains in the east. The western and southern areas are semidesert, with some Karoo vegetation occurring in the south. The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam.
Municipalities in Free State The Free State has one metropolitan municipality (Mangaung), four district municipalities and 19 local municipalities.
Mangaung Metropolitan Municipality Mangaung Metropolitan Municipality is a Category A municipality which governs Bloemfontein, Botshabelo and Thaba Nchu. The sixth-largest city in the country, the Mangaung municipal area covers more than 6 263km² and has a population of about 850 000 people. Bloemfontein is responsible for about 25% of provincial GDP.
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FREE STATE BUSINESS 2021
SPECIAL FEATURE
Xhariep District Municipality
the Allemanskraal Dam, the Goldfields Wine Cellar in Theunissen and the Willem Pretorius Game Reserve.
Towns: Trompsberg, Zastron, Philipollis, Smithfield, Wepener The southernmost region of the Free State is a largely dry area with open grasslands predominating, although it is also home to the Gariep Dam, South Africa’s largest dam. The dam is also the site of small hydro-power and aquaculture projects. The nearby Tussen die Riviere Nature Reserve and the Mynhardt Game Reserve are popular. Crops are produced in the northern parts of the district and sheep farming is the biggest activity in the south. Diamonds, gravel and clay are mined at Koffiefontein. Jagersfontein is one of the first places where diamonds were found.
Fezile Dabi District Municipality
Towns: Sasolburg, Parys, Kroonstad, Frankfort, Heilbron, Viljoenskroon The chemical complex at Sasolburg is the economic driver in the district, which shares a border with Gauteng province along the Vaal River. Kroonstad is the district’s second-largest town and has a number of engineering works and a railway junction. A good proportion of South Africa’s grain crop is sourced from this district and when the vast fields of sunflowers and cosmos flowers are in bloom, a marvellous vista is created. The Vaal River presents opportunities for yachting, rafting and resort-based enterprises. Parys is a charming town and Vredefort is home to a World Heritage site – the Vredefort Dome where a meteor crashed to earth. Fezile Dabi District Municipality is the biggest contributor towards the provincial GDP, contributing approximately 35%. The Fezile Dabi area is mostly dominated by the industrial power of Sasol, with the manufacturing of refined petroleum, coke and chemical products adding largely to its GDP.
Thabo Mofutsanyana District Municipality
Towns: Phuthaditjhaba, Bethlehem, Ladybrand, Clarens, Harrismith, Ficksburg Tourism and fruit farming are the two principal economic activities of this area which is characterised by beautiful landscapes: the Maluti and the Drakensberg mountain ranges, wetlands in the north, well-watered river valleys and the plains of the north and west. The most famous asset is the Golden Gate National Park. Industrial activity is undertaken at Harrismith and Phuthaditjhaba, where the Free State Development Corporation is promoting investment. The Maluti-a-Phofung Special Economic Zone (SEZ) at Harrismith is a multimodal transport and logistics hub. The commercial centre of the district is Bethlehem while Clarens and Ficksburg have become famous for their artists and cherries respectively. ■
The Early Childhood Development Centre at Zamdela in Sasolburg is supported by Sasol. Image: Sasol
Lejweleputswa District Municipality
Towns: Welkom, Virginia, Boshof, Christiana, Bultfontein, Bothaville Mining is the most important economic activity in this area, also known as the Free State Goldfields, but it is also the most important maize-growing area in South Africa. A large natural gas field has been discovered on what used to be gold turf. Bothaville hosts the annual NAMPO maize festival and the headquarters of Grain SA. Welkom is the major urban centre in the district. The area has tourist assets such as a holiday resort on FREE STATE BUSINESS 2021
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FOCUS
FDC empowers youth Job creation scheme is a multi-agency effort.
INDUSTRIAL PROPERTY TO RENT IN HARRISMITH
I N Manufacturing D U S T R I A LMachinery, P R O P EEquipment, R T Y T Oand R EFurniture N T I NforHBusiness ARRISMITH FDC is renting out 18 850 sqm standalone factory including Furniture
Operation..
FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors
This factory offers the following: Security Guard House Sprinkler System. Well fenced and secured Ample Doors parking 4 Roller 3 phase power with 100 amps
Security Guard House
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
Well fenced and secured shower
Ample parking 3 phase power with 100 amps
Occupation available immediately. Please contact Mr Tefo Matla for more
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
information or to view:
shower
Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
Occupation available immediately. Please contact Mr Tefo Matla for more FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
information or to
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 view:
Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
Images: DESTEA
I
n its efforts to empower youth, the Free State Development Corporation (FDC) is participating in job creation for unemployed individuals in the province. The FDC has signed a funding agreement with the Unemployment Insurance Fund (UIF) under the Labour Activation Programme (LAP) as an implementing agency. The LAP is an initiative by the UIF to provide work experience, training and skills opportunities to former contributors to the UIF who have lost their jobs, and unemployed youth. This is carried out under the Training and Skills Development Business Unit. The UIF is an agency of the Department of Labour. The unit intends to prioritise employment, skills and re-skilling of unemployed individuals, combating long-term unemployment and poverty alleviation in the province. “The implementation of
the programme will cultivate an entrepreneurial culture and train participants to increase their chances of acquiring employment and starting their own business,” says Thabiso Tshabalala, FDC Project Manager. The programme targeted 1 500 learners who come from various communities around the Free State. The beneficiaries, both male and female, have already completed their theoretical and practical experience in building and civil construction (paving), welding and mixed farming. A total of 819 women completed this training. Positive feedback received from learners indicates that the programme is on the right path. This will create an economy that will result in employment opportunities for women, youth and many currently unemployed South Africans who should be productive participants in the economy. ■
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FREE STATE BUSINESS 2021
FOCUS
FDC offers affordable rental rates for businesses The property management and development unit of the FDC has a diverse property portfolio.
INDUSTRIAL PROPERTY TO RENT IN HARRISMITH
I N Manufacturing D U S T R I A LMachinery, P R O P EEquipment, R T Y T Oand R EFurniture N T I NforHBusiness ARRISMITH FDC is renting out 18 850 sqm standalone factory including Furniture
Operation..
FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, o Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors
This factory offers the following: Security Guard House Sprinkler System. Well fenced and secured Ample Doors parking 4 Roller 3 phase power with 100 amps
Security Guard House
T
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
Well fenced and secured shower
Our spread Occupation available immediately. Please contact Mr Tefo Matla for more The substantial proper ty por tfolio makes information or to view: FDC one of the biggest property owners in the province with industrial, residential and Occupation available immediately. Please contact Mr Tefo Matla for more commercial properties in excess of 900 000m² information or to view: situated in the Mangaung Metro and Thabo Mafutsanyana District.
he Free State Development Corporation oversees and administers a diverse and substantial portfolio. If you are a small, medium, micro enterprise or a labourintensive company in search of suitable industrial and commercial premises, look no further. FDC’s Property Management Unit offers rental space for your small to medium enterprise at affordable rates through its diverse and substantial property portfolio. Over the years the unit has provided business premises to the general public, business people and government departments who want to initiate projects. The unit has also been instrumental in providing warehousing, manufacturing space, offices and space in various shopping centres across the province.
Ample parking
3 phase power with 100 amps
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions wi shower
Tel: 051 4000 800
www.fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND
Our industrial properties are located in: • Thaba Nchu • Botshabelo • Industriqwa, Harrismith • Phuthaditjhaba.
CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
Our cost structures FDC’s property rates of leasing are competitive and compare favourably with similar industrial and commercial properties elsewhere in the country. FDC’s industrial property rates currently range from R9.08 to R16.09 per square metre for factory space, depending on the features of the property, and from R30 to R96 per square metre for commercial premises and are adjusted from time to time in line with prevailing economic conditions.
Offering you quality services Overseeing a total of 253 commercial and 290 industrial properties, FDC uses this infrastructure to: • Facilitate commercial and industrial activity • Assist new investors who may be looking for suitable premises • Facilitate SMME development, particularly in rural areas. FREE STATE BUSINESS 2021
Email: tefo@fdc.co.za
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FOCUS Incentives Incentives may be granted in the form of rental holidays, reduced rental rates and discounts on utilities for investments contributing to job creation on a large scale. Black Economic Empowerment Concessions which may be granted to businesses with more than 50% black ownerships include the following: • A discount of 10% on normal rental rates • An additional discount of 2% for womenowned businesses, where women have more than 50% shareholding in the business • An additional discount of 2% for youthowned entities where more than 50% of shareholding in the business belongs to individuals below the age of 35 • An additional discount of 2% for businesses where disabled persons hold 25% shareholding or more. These concessions do not apply in instances of lease renewals or existing leases. Three easy steps to occupying your new premises Once FDC has identified a suitable site for your business, you will have to confirm your interest in the site in writing with the corporation. Within a week of receiving the confirmation and all legal documentation, premises will be allocated based on the availability and the specific requirements of the prospective tenant. You will sign the agreement and pay the initial costs which include the following: deposits; admin and legal fees; two month’s rental in advance. You will be able to occupy the premises after FDC has prepared the building according to the agreed requirements. Contact details For more information regarding factory space to rent please contact us: Tel: +27 51 4000 800 Email: wecare@fdc.co.za
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FREE STATE BUSINESS 2021
OVERVIEW FOCUS FOCUS Phuthaditjhaba Industrial Park Phuthaditjhaba Industrial Park
Botshabelo Industrial Park Botshabelo Industrial Park
Phuthaditjhaba IP is strategically located in the Phuthaditjhaba is 40km strategically located the Eastern Free StateIPand away from the N5inand Eastern Free State from the N5 and N3 highways. Theand park40km is on away the border between N3 TheKwazulu park is on the provinces. border between thehighways. Gauteng and -Natal the Gauteng and Kwazulu-Natal provinces. The Park is situated within the Thabo Mofutsanyana The Park is District situatedMunicipality within the inThabo the Mofutsanyana District Maluti-A-Phofung LocalMunicipality Municipality.inIt the is Maluti-A-Phofung LocalbyMunicipality. It is owned and managed the Free State owned and managed by the Free State Development Corporation (FDC), which is the Development Corporation (FDC), which is the official agency responsible for driving economic official agency responsible for driving economic development in the Free State Province. development in the Free State Province. The Park is divided into Industrial estates The Park is divided into Industrial estates ie factory units, which are further divided into ie factory units, which are further divided into small and small and large large units. units. Small Small units units range rangefrom from 50m² to to 499m² 499m² while while the 50m² the large large units unitsare are500m² 500m² and above above in and in size. size. These These factories factories are aremainly mainly rented for rented for manufacturing manufacturingand andservice serviceindustries industries and to to aa lesser lesser extent and extent retail retail (wholesaling) (wholesaling)and and warehousing (storage). warehousing (storage).There Thereare areaatotal totalofof296 296 factories in factories in the the Phuthaditjhaba PhuthaditjhabaIndustrial IndustrialPark. Park. IndustrialPark Parkoccupies occupiesa total a total of The Industrial of 257 257 360m² gross land area,with with approximately approximately 360m² gross land area, occupancy rate 62% occupancy rate and and 185 185 companies. companies. ItIt has one of the biggest biggest local local employers employersininthe the CMT sector, employing employing 11 200 200local localpeople, people,who who comprise more more than than 90% 90% women. women.The ThePark Parkisisaa major economic hub of of the the district, district,with withvaried varied economic hub businesses located locatedininthe thepark. park. The municipality municipalityprovides provides services services suchsuch as as water electricity, infrastructure water andand electricity, andand thethe infrastructure is is owned municipality. is more owned by by thethe municipality. ThereThere is more than 2 than 120 2000m of land vacant 112 vacant of vacant andland 112 and vacant factories 120 000m factories (large and small). Sectors (large and small). Sectors include textiles,include plastic textiles, plastic products, manufacturing, products, manufacturing, construction, food and construction, foodnumber and snacks. The total number snacks. The total of jobs is estimated of jobs is estimated at 7 300. at 7 300.
FREE STATE BUSINESS 2020 2018 FREE STATE BUSINESS 2021
The Botshabelo Industrial Park is situated The Botshabelo Industrial is situated approximately 60km from thePark economic hub approximately the economic hub on the eastern60km side offrom the Mangaung Metro. on theindustrial eastern side the Mangaung The The areaofwas developed Metro. in 1985 industrial area was developed in 1985 with the with the assistance of DBSA. assistance of DBSA. Industrial Park boasts The Botshabelo manufacturing The Botshabelo Industrial Park boasts and service companies in manufacturing and service companies in the the textiles, electrical, plastic production, textiles, electrical, plastic production, poultry, poultry, food and snack sectors. Currently it food and snack sectors. Currently it provides provides employment to an estimated 7 519 employment to an estimated 7 519 people, people, of which the majority are women. of which the majority are women. Mangaung Mangaung and Maluti-A-Phofung form part and Maluti-A-Phofung form part of the of the distressed regions and were declared distressed regions and were declared as one onePresidential of the Presidential nodal that areasrequire that ofasthe nodal areas require development. development. TheBIP BIPwas was the the first 1 and The firstto toreceive receivephase phase 1 and phase 2 of the revitalisation programme. The phase 2 of the revitalisation programme. The initiationof of the hashas initiation the revitalisation revitalisationprogramme programme hadsome someimpact impactand andhas has seen seen an an increase increase in had in investment within park. Industrial investment within thethe park. TheThe Industrial Park Park has 144 factories operating 113 has 144 factories operating with 113with occupied. occupied. The total capital is investment is The total capital investment around R755around R755-million. million. The factory factory sizes The sizes range rangefrom from500m² 500m²to to 500m².The The Park also centre 22500m². alsohas hasananincubator incubator centre known knownasasthe theSmall SmallBusiness BusinessPark. Park.
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Office and industrial space available
Free State Development Corporation (FDC) offers a wide I N D Urange S T R I A L of P R spacious O P E R T Y T O and RENT IN HARRISMIT affordable rental space for SMMEs. INDUSTRIAL PROPERTY TO RENT IN HARRISM
FDC is renting out 18 850 sqm standalone factory including Furnitu Manufacturing Machinery, Equipment, and Furniture for Business Operation..
FDC is renting out 18 850 sqm standalone factory including Fu
Manufacturing Machinery, Equipment, and Furniture for Busine
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities
Operation..
There are opportunities to rent factory space at Free State Development Corporation properties in Botshabelo, Phuthaditjhaba and Industriqwa. The FDC offers affordable rental space, ranging from massive stand-alone industrial buildings, office blocks and shopping centres, to loose single-tenant commercial buildings situated in rural areas to suit different needs.
CommercialThis portfolio factory offers the following: This portfolio is divided into urban and rural areas and typically consists of the following: shopping This factory offers the following: centres, office blocks, market stalls, kiosks and containers.
Industrial portfolio Industrial building: Mainly stand-alone industrialtype buildings designed for manufacturing and/or warehouse purposes. Large factories (>500m²): Consists of mainly standard and custom-built factories used for manufacturing, service industries and warehousing. Small industrial units (<300m²): Standard units in small industrial parks and incubators designed for incubation of start-up manufacturing and/or service industry activities. Warehouses: Buildings occupied by businesses servicing the broader economic base that is utilised for storage and distribution. Factory shops: Manufacturing entities utilising industrial space to sell own products to the general public. Wholesalers/retailers: Community projects in the manufacturing and service sectors, serving the broader economic base, targeting ownership in historically disadvantaged communities. Ownership and control must be widely based in such communities rather than by an individual member of such communities. Vacant land: Serviced or unserviced land zoned for commercial and industrial use.
Black Economic Empowerment The following concessions mayPlease be contact granted toMatla for mor Occupation available immediately. Mr Tefo businessesinformation with more than 50% black ownership: or to view: • Discount of 10% on normal rental rates • An additional 2% for women-owned businesses, FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AN where women have more than 50% shareholding CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 • Additional 2% for businesses qualifying as youthowned entities with more than 50% shareholding belonging to individuals below the age of 35 years • A n additional 2% for businesses with more than 25% shareholding belonging to disabled individuals • The concessions may be granted to any business entity and community-based projects will qualify for small industries with a 50% rental holiday for the first year • Rental holidays.
main arterial routes and Quick access onto N3 Freeway.
The factory is Situated at Site 2277 in Harrismith and close proximity to all ame Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors
Security Guard House
Well fenced and secured
Sprinkler System.
Ample parking
4 Roller Doors
3 phase power with 100 amps
Security Guard House
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions
Industrial incentives Rental holidayOccupation of up available to six months. immediately. Please contact Mr Tefo Matla for more Well fenced and secured shower
Ample parking
3 phase power with 100 amps
information or to view:
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse abl shower
Tel: 051 4000 800
Email: tefo@fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
Tel: 051 4000 800
Email: tefo@fdc.co.za
It is our duty to facilitate commercial and industrial activity, assist new investors looking for spacious and affordable premises, and facilitate SMME development, particularly in rural areas. Look no further than FDC for spacious and affordable, subsidised rental facilities
Contact details: Email: wecare@fdc.co.za • Tel: +27 51 4000 800 • Website: www.fdc.co.za
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www.fdc.co.za
FREE STATE BUSINESS 2021
www.fdc.co
PROFILE
Free State Development Corporation (FDC) Driving enterprise development and investment in South Africa’s most central province, the Free State.
The FDC contributes to the Free State’s economic development through four service delivery pillars:
Property management The FDC administers a diverse property portfolio and can offer small to medium enterprises suitable premises at affordable rates. The corporation has some 253 commercial properties, 290 industrial properties and a large number of residential and vacant land for development. The corporation aims to use them to facilitate commercial and industrial activity, while assisting new investors looking for suitable premises. The FDC offers advice and guidance in terms of the following incentives: • Subsidised rental rates. • Rental holidays of up to three months. • Special incentives and discounts for BEE companies or individuals.
SMME/co-operative funding and support The FDC provides products and services to SMMEs and co-operatives in the form of financial support (business loans) as well as business development support (facilitating training and mentoring service providers). The principal loan products offered to Free State entrepreneurs by the FDC are: • Start-up loans for recently established businesses that are mainly at formative stages. • E xpansion loans offering viable and existing businesses the capital needed to expand. • Business take-over finance to assist potential clients to acquire a business as a going concern. • Bridging finance for SMMEs with short-term cashflow problems with contracts or tenders. FREE STATE BUSINESS 2021
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PROFILE
INDUSTRIAL PROPERTY TO RENT IN HARRISMITH FDC is renting out 18 850 sqm standalone factory including Furniture
I N DManufacturing U S T R I A L Machinery, P R O P E REquipment, T Y T O and REN T I N for H ABusiness RRISMITH Furniture Operation..
FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation.. main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors Security offers Guard House This factory the following: Well fenced and secured
Sprinkler System.
Export-related services Investor services 4 Roller Doors The FDC services to exporters include the The FDC offers a range of services to investors and Security Guard House businesses looking to trade in the Free State. These Export Promotion Programme, which aims to Well fenced and secured grow demand for Free State products in global include the following: markets through capacity-building workshops, • Project appraisal and packaging. Ample parking the dissemination of trade leads, networking • Promotion and facilitation of investment projects 3 phase power with 100 amps Occupation available immediately. Please contact Mr Tefo Matla for more opportunities with inbound trade missions, and facilitation of access to finance. 8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with information or to view: • Providing access to business and government product promotion through participation in shower outbound group www.fdc.co.za missions and on national and networks and assistance with business retention Tel: 051 4000 800 Email: tefo@fdc.co.za international exhibitions, access to national exportand expansion. market access information • I nformation on statutor y requirements, Occupation available immediately. Please contactprogrammes, Mr Tefo Matla for FDC IS ZERO TOLERANCE TO FRAUD ANDincentive CORRUPTION.PLEASE REPORT FRAUD ANDmore and technical advice investment advice and assistance with investment CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 on 154 exporting procedures ■ information or to view: incentive applications and business permits. • A ssisting withTel:the of local 051development 4000 800 Email: tefo@fdc.co.za Contact details www.fdc.co.za and international markets and facilitating Free State Development Corporation joint ventures/equity partnerships through FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND Tel: +27 51 4000 800 identification of local partners. CORRUPTION INCIDENTS TO THEEmails: FRAUD HOTLINE 0800 212 154 wecare@fdc.co.za | invest@fdc.co.za Website: www.fdc.co.za Ample parking
3 phase power with 100 amps
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower
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FREE STATE BUSINESS 2021
OVERVIEW PROFILE PROFILE
Maluti-A-Phofung SEZ Maluti-A-Phofung SEZ investment opportunities investment opportunities
M
Thealuti-A-Phofung SEZ is booming with investment to the tune of R1.1-billon for 2020. Special Economic Zone SEZ project pipeline
(MAP SEZ) has been established in terms There are various companies that have signed theNo. traffic letters to different locations in South of intent to locate in theAfrica MAP and SEZ. neighbouring Some of of the Special Economic ZonesofAct countries such Lesotho and Swaziland. Through itswithin cross-docking theassectors targeted for establishment the 16 of 2014. The programme is intended its logistics warehousing sectors the MAP SEZ SEZ are asand follows: to deepen industrial development and precinct improve andMAP presents itself• asLogistics a solutionand to lighten the traffic pressure on the N3. distribution. manufacturing competitiveness in the Maluti-A This Special Economic Zone (SEZ) is part of the Free State leg • Agro-processing. Phofung region. the massive State-Gauteng logistics and industrial • Durban-Free Food processing. Situated in Harrismith and Tshiame in theofEastern corridor intended to strengthen the logistics and transport container terminal (Transnet Freight Free State, MAP SEZ is strategically located on the N3that• is Rail-based corridor South Africa’s main industrial hubs to: Rail). national road, halfway between Johannesburg andbetween Ignitefor the economy the region through industrialisation. • Starchofchemicals. Durban. MAP SEZ offers 1 038 hectares of• land • Attract foreign and direct investment. • Biogas. industrial development. • Create access to export and import markets. Since the Durban port is the busiest in the • Integrate Free State industrial strategy activities into the corridor. southern hemisphere, it therefore means that the N3 MAP SEZ milestones • Create job opportunities and grow the economy within the region. carries the majority of the traffic to different locations • MAP SEZ was launched by President Zuma on 25 April 2017 to operate as a Special Economic Zone. in South Africa countries such as MAP SEZ and CEO neighbouring Mpho Mgemane Lesotho and Swaziland. Through its cross-docking • Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade and precinct and its logistics sectors a l u t i - Aand - P hwarehousing ofung Industry after cabinet approval. the MAP SEZ presents itself Economic as a solution to lighten Special • Perimeter fencing and lighting have been the traffic pressure Zone on the N3. SEZ) has (MAP completed. This Special Economic Zone (SEZ) isin part of the Free been established State leg of the Durban-Free terms of massive the Special EconomicState-Gauteng • Bulk infrastructure roll-out is in progress and is 90% complete. logistics and Act industrial Zones No 16 corridor of 2014. that The is intended to strengthen the logistics and transport corridor • The SEZ has developed a marketing and programme is intended to promotion pipeline which has attracted between Southindustrial Africa’s main industrial hubs to: deepen development 30 potential investors with an estimated • Improve to export and import markets. and access improve manufacturing investment value of R 2.6-billion and will create • Integrate Free State industrial strategy activities competitiveness in the Malutiapproximately 22 130 permanent and temporary intoA-Phofung the corridor. region. Objectives As part of its mandate, the MAP SEZnext is intended to establish job Since the Durban job opportunities in the 5 to 10 years. • Create opportunities andport growisthe economy manufacturing create a regional and international thethe busiest • opportunities Construction and of top structures commenced in within region.in the southern trade environment added value-chain benefits. It has also been hemisphere, it therefore means Junewith 2019. established to simulate social and economic benefits and regional thatbenefits the N3 carries the majority Investor development and to create Benefits that will be derived from locating within What the MAP SEZ offers prosperous trade city • Lots of space – morea than 1000ha available to and MAP SEZ include: prospective investors.functional trade ecosystem. • 15% corporate tax instead of 28% corporate tax. F i nwhich a l l y , provide t o investors encourage • Long-term lease periods • Building allowance. activities an opportunity to beneficiation recoup investment on that • Employment incentive. promote value-added benefits infrastructure. • Customs controlled area (CCA). andof help to create aoffered prosperous • Affordability in the form concessions • 12i Tax allowance. trade city and functional trade on rentals. ecosystem.
M
FREE STATE BUSINESS 2020 2018 FREE STATE BUSINESS 2021
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PROFILE
Priority sectors Some of the many MAP SEZ priority sectors are: • Automotive • Agro-processing • Logistics • General processing • ICT • Pharmaceuticals.
From this pipeline MAP SEZ is proud to pronounce that it has secured investments from five investors to the value of R1.1-billion in various sectors. The operations of these investors were established in June, September and November 2020. These investors are a source of great pride for the MAP SEZ as they have created 103 jobs since the start of their operations and are projected to create 466 jobs collectively, once they are fully operational. The MAP SEZ is now gaining momentum in terms of attracting local and foreign investors and is supported by its healthy investment pipeline of approximately R3.2-billion, which is project-ed to create 12 000 work opportunities. ■
Investor benefits Some of the many investor benefits that can be derived from locating within MAP SEZ include but are not limited to the following: • 15% corporate tax instead of 28% corporate tax. • Building allowance tax. • Employment incentive tax. • 12i tax allowance. MAP SEZ milestones Maluti-A-Phofung SEZ was granted an operator permit in 2017 by the Minister of Trade, Industry and Competition after cabinet approval. MAP SEZ was gazetted as a Special Economic Zone on 2 June 2017 and its tax incentives were gazetted on 6 July 2018. SEZ project pipeline Since inception the MAP SEZ has engaged numerous investors and through these engagements has built a pipeline of lucrative local and international investments to the tune of R2.3-billion.
Contact details Any investor interested in establishing their business within the SEZ can contact: Ms M Setai, Manager in the Office of the Chief Executive Officer Maluti-a-Phofung Special Economic Zone Tel: +27 51 4000 800 | Cell: +27 73 210 0935 Email: maphoika@mapsez.co.za | Website: www.mapsez.co.za
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FREE STATE BUSINESS 2021
SPECIAL FEATURE
Free State Gambling, Liquor and Tourism Authority Driving economic transformation in the Free State.
Free State Province Center yourself in the heart of South Africa
Vision A transformed economy and a prosperous society with an effective, well-regulated gambling and liquor industry and a vibrant tourism sector. Mission To be a leading developmental institution that drives economic transformation, regulation and adaptation to the ever-changing industry dynamics to benefit the Free State.
CEO of Free State Gambling, Liquor and Tourism Authority, Mr Kenny Dichabe
T
he Free State Gambling, Liquor and Tourism Authorit y (FSGLTA) is one of the two entities of the Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA). The FSGLTA was established by the FSGLTA Amendment Act 4 of 2017, which was amended to incorporate the former Free State Tourism Authority and Free State Gambling and Liquor to form the new entity which is known as FSGLTA. FREE STATE BUSINESS 2021
Mandate The mandate of the Free State Gambling, Liquor and Tourism Authority is to regulate the gambling and liquor industries within the province and to market and promote tourism in the province. The Authority’s purpose is to promote legally compliant, responsible, sustainable and transformed gaming and liquor industries through effective licensing, regulating and reporting on the activities of the industries, and to position the Free State Province as a tourist destination of choice. The gambling industry • Invite applications for licences (gambling) • Consider, grant or refuse applications • Cancel, suspend, vary, renew or revoke a licence or registration approved • Implementation of norms and standards in the gambling industry as determined by the National Gambling Act • Ensure that gambling activities are effectively regulated, licensed and controlled • Ensure compliance to the act, rules and regulations The liquor industry • Receive applications for registrations (liquor) • Reduce the socio-economic and other costs of alcohol • Promote the development of a responsible and sustainable liquor industry in relation to gambling • Generate revenue for the Free State Province
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SPECIAL FEATURE
Image: iStock The tourism industry It is important that the FSGLTA intensifies its efforts to ensure effective marketing of the province in order to attract domestic tourists as well as international tourists. The province continues to enhance tourism infrastructure, up-skill the sector, inculcate the culture of service excellence and enhance the provision of world-class visitor experiences. The Authority has partnered with event organisers and tour operators to market and promote the Free State as a tourist destination. These are achieved through the following: • Forging strategic partnerships with the public and private sectors to leverage from each the capability and capacity to improve the industry • S treamlining the impact of events through partnerships and sponsorships • Improving on Meetings, Incentives, Conferencing and Events (MICE) as a focused growth area of the market • Continuous review of the marketing plans to stay on par with the industry trends. ■
GAMBLING AND LIQUOR CONTACT DETAILS • Mangaung Metro Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272 •T habo Mofutsanyana Peter Moleko molekop@fsglta.gov.za | 078 309 4178 • Lejweleputswa Thabo Tlake tlaket@fsglta.gov.za | 057 492 0001 | 072 533 6681 • Fezile Dabi Bongakele Nzunga nzungab@fsglta.co.za | 056 492 0001 | 082 256 5926 • Gariep Abraham Classen classena@fsglta.gov.za | 051 404 0320 | 079 506 0272 TOURISM ROUTE CONTACT DETAILS • Cheetah Route Nthabiseng Methola cheetah@freestatetourism.org | 073 125 1614 • Eagle Route Bonolo Molefe eagle@freestatetourism.org | 072 056 6090 • Flamingo Route Dineka Lephowane flamingo@freestatetourism.org | 073 796 8577 • Lion Route Keakabetse Ramokonopi lion@freestatetourism.org | 084 951 1564 • Springbok Route Kefiloe Molefe molefek@fsglta.gov.za | 079 496 2999
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FREE STATE BUSINESS 2021
SPECIAL FEATURE
South African investment incentives The South African government, particularly the Department of Trade, Industry and Competition, has a range of incentives available to investors, existing companies, entrepreneurs and co-operatives across many sectors.
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ment (grants for R&D and feasibility studies, THRIP, Stp, etc) • Capital expenditure – involving the creation or expansion of the productive capacity of businesses (MCEP, EIP, CIP, FIG, etc) • Competitiveness enhancement – involving the introduction of efficiencies and whetting the competitive edge of established companies and commercial or industrial sectors (BBSDP, EMIA, CTCIP, etc) • Some of the incentives are sector-specific, for example the Aquaculture Development and Enhancement Programme (ADEP), Clothing and Textile Competitiveness Improvement Programme (CTCIP) and the Tourism Support Programme (TSP).
outh Africa wishes to diversify its economy and incentives are an important part of the strategy to attract investors to the country. The Department of Trade, Industry and Competition (the dtic) is the lead agency in the incentives programme, which aims to encourage local and foreign investment into targeted economic sectors, but the Industrial Development Corporation (IDC) is the most influential funder of projects across South Africa. There are a variety of incentives available and these incentives can broadly be categorised according to the stage of project development: • Conceptualisation of the project – including feasibility studies and research and develop-
FREE STATE BUSINESS 2021
24
SPECIAL FEATURE
Manufacturing INDUSTRIAL PROPERTY TO RENT IN HARRISMITH
Key components of the incenINDUSTRIAL PROPERTY TO RENT IN HARRISMITH tive programme are the Manufacturing Incentive Programme (MIP) and the Manufacturing Competitiveness Enhancement Programme (MCEP). The initial MCEP, launched in 2012, was so successful that it was oversubscribed with almost 890 businesses receiving funding. A second phase of the programme was launched in 2016. The grants are Incentives for SMMEs not handouts as the funding covers a maximum of 50% of the cost of the investment, with the A lot of emphasis is placed on the potential remainder to be sourced elsewhere. role of small, medium and micro enterprises in job creation and a number of incentives are The Enterprise Investment Programme (EIP) designed to promote the growth of these makes targeted grants to stimulate and promote businesses. These include: investment, BEE and employment creation in the manufacturing and tourism sectors. • Small Medium Enterprise Development Prog Aimed at smaller companies, the maximum ramme (SMEDP) • Isivande Women’s Fund grant is R30-million. Specific tax deductions are • Seda Technology Programme (Stp). permissible for larger companies investing in the manufacturing sector under Section 12i of the • Seda is the Small Enterprise Development Agency, Income Tax Act. an agency of the Department of Small Business Development that exists to promote SMMEs. FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business Operation..
FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors
Security offers Guard House This factory the following: Well fenced and secured
Sprinkler System.
Ample parking
4 Roller Doors
3 phase power with 100 amps
Security Guard House
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
Well fenced and secured shower
Ample parking
Occupation available immediately. Please contact Mr Tefo Matla for more
3 phase power with 100 amps
information or to view:
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower
Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
Occupation available immediately. Please contact Mr Tefo Matla FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUDfor ANDmore CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 information or to view: Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
Other incentives
Trade-related incentives
Other incentives that are available to investors as well as existing businesses in more than one sector include the following: • Technology and Human Resources for Industry Programme (THRIP) • Support Programme for Industrial Innovation (SPII) • Black Business Supplier Development Programme (BBSDP), which is a cost-sharing grant offered to black-owned small enterprises • Critical Infrastructure Programme (CIP) that covers between 10% and 30% of the total development costs of qualifying infrastructure • C o-operative Incentive Scheme, which is a 90:10 matching cash grant for registered primary co-operatives • Sector Specific Assistance Scheme, which is a reimbursable 80:20 cost-sharing grant that can be applied for by export councils, joint action groups and industry associations.
The Export Marketing and Investment Assistance (EMIA) Scheme includes support for local businesses that wish to market their businesses internationally to potential importers and investors. The scheme offers financial assistance to South Africans travelling or exhibiting abroad as well as for inbound potential buyers of South African goods. ■
Online Resources De partment of Trade, Industry and Competition: www.thedtic.gov.za Free State Development Corporation: www.fdc.co.za Industrial Development Corporation: www.idc.co.za Official South African government incentive schemes: www.investmentincentives.co.za
25
FREE STATE BUSINESS 2021
SPECIAL FEATURE
Establishing a business in South Africa South Africa has eased the barriers to doing business for locals as well as international companies and individuals. new legislation, no new Close Corporations can be created but CCs can convert to companies. Registration of company The company must be registered with the Companies and I ntellec tual Proper ties Commission, (CPIC) in Pretoria within 21 days of the company being started. There are a range of administrative procedures that need to be fulfilled. Bank account A business bank account must be opened in the company’s name with a bank in South Africa. Registration with the receiver of revenue • As a Provisional Taxpayer • As a VAT vendor • For Pay As You Earn (PAYE) income tax payable on money earned by employees • For Standard Income Tax on Employees
S
outh Africa has a sophisticated legal, regulatory and banking system. Setting up a business in South Africa is a relatively straightforward process with assistance being offered by organisations such as the Department of Trade, Industry and Competition and provincial investment agencies like the Free State Development Corporation (FDC). South African law regulates the establishment and conduct of businesses throughout the country. Tax, investment incentives, regulations governing imports, exports and visas are uniform throughout the country. The particular environment varies from province to province with regard to the availability of human and natural resources, the infrastructure and support services, business opportunities and the quality of life. In this respect, the FDC can offer specific advice about the business environment in the province. Business is regulated by the Companies Act and the Close Corporation Act, which cover accounting and reporting requirements. Under
FREE STATE BUSINESS 2021
Registration with the Department of Labour Businesses employing staff will have to contact the Department of Labour regarding mandatory contributions to the Unemployment Insurance Fund (UIF). Register with Compensation Commissioner for Compensation Fund: Files with the Compensation Fund (in the Department of Labour) for accident insurance (Workmen’s Compensation). Registration with the local authority Relevant only to businesses dealing in fresh foodstuffs or health matters. Other procedures • Checking exchange control procedures (note that non-residents are generally not subject to exchange controls except for certain categories of investment).
26
SPECIAL FEATURE • Obtaining approval for building plans or she has tried to find a suitably qualified local • Applying for industry and export incentives employee prior to hiring a foreigner? INDUSTRIAL PROPERTY TO RENT IN HARRISMITH • Applying for import permits and verifying import • Is the prospective employee appropriately INDUSTRIAL PROPERTY TO RENT IN HARRISMITH duties payable qualified and do they have the relevant experience? • R egistering as an exporter if relevant and applying for an export permit. Business permits Foreign nationals who wish to establish their own Business entities business or a partnership in South Africa must, There are a variety of forms which businesses can apart from having sufficient funds to support take, including private and public companies, themselves and their family, be able to invest at personal liability companies, non-profit companies, least R2.5-million in the business. state-owned companies and even branches of foreign companies (or external companies). The funds must originate overseas, be Branches of foreign companies fall under transferable to South Africa and belong to the applicant (ie emanate from the applicant’s own Section 23 of the Companies Act of 2008 and are bank account). The business must also create required to register as “external companies” with jobs for South African citizens. After six months the CIPC. An external company is not required to a year, proof will have to be submitted that the to appoint a local board of directors but must business is employing South African citizens or appoint a person resident in South Africa who permanent residents, excluding family members is authorised to accept services of process and of the employer. any notices served on the company. It must also appoint a registered local auditor and establish a Applications for work permits for selfregistered office in South Africa. employment can only be lodged at the South African Consulate or Embassy in the applicant’s Patents, trademarks and copyrights country of origin. The processing fee is US$186. The Trademarks (including service marks) are valid for applicant would also have to lodge a repatriation an initial period of 10 years and are renewable guarantee with the consulate/embassy equivalent indefinitely for further 10-year periods. Patents are to the price of a one-way flight from South Africa granted for 20 years, normally without an option back to his or her country of origin. to renew. The holder of a patent or trademark This guarantee is refundable once the must pay an annual fee in order to preserve its applicant has either left South Africa permanently validity. Patents and trademarks may be licensed or obtained permanent residence. Any application but where this involves the payment of royalties for an extension of a business permit may be to non-resident licensors, prior approval of the lodged locally. The processing fee per passport licensing agreement must be obtained from holder is R425. Some countries also need to pay the dtic. South Africa is a signatory to the Berne R108 per return visa. Copyright Convention. A list of countries to which this applies is available from the Department of Home Affairs. Permits for foreign nationals The FDC assists investors in applying for the Work permits relevant work permits to conduct their business. In considering whether or not to grant a work permit, the Department of Home Affairs will first What can the FDC do for you? evaluate the validity of the offer of employment The FDC will help new businesses by assisting in by conducting a number of checks to confirm the project appraisal and packaging, putting investors following: in touch with relevant agencies and government • Has the Department of Labour been contacted? departments, alerting investors to investment • Has the position been widely advertised? incentives and setting up joint ventures where required. ■ • Is the prospective employer able to prove that he FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business Operation..
FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on
Operation..
main arterial routes and Quick access onto N3 Freeway.
This factory offers the following:
The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on Sprinkler System.
main arterial routes and Quick access onto N3 Freeway. 4 Roller Doors
Security offers Guard House This factory the following: Well fenced and secured
Sprinkler System.
Ample parking
4 Roller Doors
3 phase power with 100 amps
Security Guard House
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with
Well fenced and secured shower
Ample parking
Occupation available immediately. Please contact Mr Tefo Matla for more
3 phase power with 100 amps
information or to view:
8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with shower
Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
Occupation available immediately. Please contact Mr Tefo Matla FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUDfor ANDmore CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154 information or to view: Tel: 051 4000 800
Email: tefo@fdc.co.za
www.fdc.co.za
FDC IS ZERO TOLERANCE TO FRAUD AND CORRUPTION.PLEASE REPORT FRAUD AND CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154
27
FREE STATE BUSINESS 2021
State Province FOCUS
Growing the tourism sector
Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the Free State’s unique selling propositions.
The Tourism Unit of DESTEA is providing market access for local operators.
FD
ree State Province is situated in the heart of South Africa and ESTEA’swith Tourism Unit’s is to shares borders Lesotho andobjective six other provinces. It provides grow to thethe tourism easy access main sector’s ports ofcontribution Durban, East London and to the Free State economy. In achieving Port Elizabeth. this, isvarious activities and functions are The Free State an attractive business and investment destination. Theperformed, province iswhich at the include: centre of South Africa and the dominant sectors Creating a mining, conducive environmentand forthe tourism to sectors, making are•agriculture, manufacturing tertiary thrive it ideal for transport logistics and agro-processing. • Formulating and implementing a Provincial Companies locating to Free State not only enjoy the opportunity to Tourism Sector Strategy to guide tourism activities source inputs at competitive prices, but also to benefit from domestic, in the province regional and international markets for their products and services. • Providing market access opportunities both Because South Africa has been engaging with our economically large locally and internationally to provincial tourism • Promotion of tourism safety through among others, trading partners, access to international markets is facilitated through enterprises programmes such as the Provincial Joint various preferences and free-trade agreements. Operational and Intelligence Structure (Provjoints), • Rolltrade out programmes to enhance visitor services As farexperience as long-term investment is concerned, there are industrial with law enforcement agencies, and also through and parks and a Special Economictourism Zone (SEZ) that areand supported by the the Tourism Monitors Programme. implementing • Facilitate and promote education Department of Trade,forIndustry and sector Competition. Industrial parks capacity-building the tourism are• Psituated Botshabelo and Thaba Nchu. • anExcellence idyllic climate Journey to Service romote in theMaluti-A-Phofung, culture of tourism and service Maluti-A-Phofung SEZ is situated in Tshiame. • recreational and lifestyle The J2SE will focus on nominating a small town excellence Free State’s strengths of forthe inward investment are boosted by: tourism facilities. in the rural nodes and assisting the •The Promote transformation tourism sector for • openness business, trade and foreign investment town to develop a service excellence-orientated inclusive to tourism economy, as well as providing • abundance natural Select investment opportunities culture in their organisations and different support to of youth andresources women in tourism • •low factory rentals strong media attention and focus Facilitating events tourism to reduce seasonality structures with include: • Africa’s leadinggeographic telecommunications • Agriculture during the activation. A townand willagrobe identified and enhance spread network • •incentive developed for Special Zones and the principlesprocessing of Service Excellence will be Facilitatepackages fundinguniquely for initiatives that seek toEconomic communicated •to all organisations. A criterion has develop and grow tourism in the province • incentives associated with the revitalised industrial parks Tourism and property beenfor developed for the nomination which • Free State Development Corporation (FDC) support services development has been shared and discussed with relevant priority sectors such as agro-processing and manufacturing • Medical and pharmaceutical stakeholders. production A number of will be • a large labour pool andactivities distribution implemented in anticipation of the big media • diverse cultures • Manufacturing event to launch J2SE Town.and clean energy • competitive land and building cost • Renewable At its core, the J2SE aims to bring together • world-class transport and telecommunications infrastructure • Medical tourism. the entire town including restaurants, accommodation facilities, tourist attractions, police, banks and petrol attendants, among FREEtrained STATE and BUSINESS 2020 7 others, to be informed, exposed to the four components of the SANS 1197:2012. A secondary objective of this programme is to establish a local Tourism Service Excellence structure or to link with existing structures to build a sustainable service culture. ■ FREE STATE BUSINESS 2021
28
FOCUS
Environmental sustainability The Environment and Conservation Branch is working to promote a pristine environment that facilities economic transformation.
E
Conservation priorities The Free State is 128 000km² in extent, or 12.8-million hectares. This means that it is the third-largest province in South Africa. Located in the centre of the country, with ideal soils and climate, the province is an extremely important food producer and the environmental health of the province is therefore vital to the food security of the country. The province boasts a strong conservation mindset, not only from within the DESTEA but also from land owners generally.
nvironmental sustainability within the Free State Province is conducted within the prescripts of promoting Section 24 of the South African Constitution, recognising and promoting environmental rights as contained in the Bill of Rights. We also recognise our responsibility to promote a pristine environment that facilitates a transformative economic agenda to create jobs and a just society. The main focus areas are: • Environmental Quality and Protection: environmental education and awareness; waste and air quality management; environmental impacts and assessments; EPWP. Also promoting the circular economy with a particular focus on waste and recycling. • Biodiversity Conservation and Research: m a i n te n a n c e o f re s o r t s a n d re s e r ve s ; protected areas maintenance and expansion; biodiversity research; game culling and auc tions including the transfor mation and promotion of Biodiversity Economy ; transformative entrepreneurship; development and promotion of the wildlife economy.
Prior to the adoption of the Free State Protected Area Expansion Strategy there were already 240 formally declared Nature Reserves in the province. Since the inception of the Biodiversity Stewardship programme an additional 53 000 hectares of private land have been declared and added to the conservation estate. Priority focus is now on extending these conservation areas into the remaining natural areas of the province thereby conserving wetlands, rivers, terrestrial ecosystems and species for future generations. In addition to the formal conservation areas, there are over 300 000 hectares of game and mixed-species ranches. The province generates over R600-million per annum from the local hunting industry, which maintains many huntingsupport businesses such as taxidermists, curio producers, etc. ■
Current considerations • Ensuring sustainable environmental management. • Improve national and provincial state of environmental reporting. • Integration of environmental objectives in national, provincial and instruments and tools. • Implementation of Chapter 4 of NEMA provisions in relation to fair decision-making and conflict management (conciliation, arbitration and investigations). Responding to EIA complaints and appeals without compromising on economic transformation, job creation and the promotion of spatial integration.
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FREE STATE BUSINESS 2021
ADVERTORIAL
see money differently
RELATIONSHIPS AND UNDERSTANDING CLIENT NEEDS ARE KEY, SAYS EXPERT
L
oderick Lubisi, Nedbank’s Provincial General Manager for Limpopo and Mpumalanga, explains how new brand values built on the bank’s expertise can benefit Nedbank clients, especially in what is now ‘the new normal’.
'Nedbank has continued to deliver on its brand promise, which is to use our financial expertise to do good for individuals, families, businesses and communities in which we operate. Our client-centred strategy has enabled us to reach out to our individual and business clients in times of need during the Covid-19 national lockdown,' he says. The Nedbank Contact Centre and advanced digital innovation, including the awardwinning Nedbank Money app, enabled the bank to continue serving clients in the comfort of their homes. It brought convenience to clients and helped them to comply with lockdown regulations. Lubisi says that for small- and mediumbusiness clients, Nedbank continues to deliver end-to-end solutions through a dedicated business manager. ‘Our business managers are supported by a team of experts across the bank to deliver seamless
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Our client-centred strategy has enabled us to reach out to our individual and business clients in times of need …
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banking solutions. Our bigger-picture business approach ensures that we are able to take a holistic view of the business by understanding the vision, cashflow cycle, and transactional and capital expenditure needs of the business. This way, we become trusted advisors to the business owners who strive to grow their business.’
‘We encourage you to see money differently with the bigger-picture approach offered by Nedbank Business Banking, and to take advantage of our one-stop banking service in Limpopo, Mpumalanga and beyond,’ Lubisi says. To take your business to the next level or for more information about Nedbank’s specialised service offering, email Loderick Lubisi at loderickl@nedbank.co.za or visit www.nedbank.co.za/business.
ADVERTORIAL
see money differently
NEDBANK BUSINESS BANKING HELPS PUBLIC SECTOR SEE MONEY DIFFERENTLY
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edbank is committed to delivering easy and innovative banking solutions to government, municipalities and state-owned enterprises throughout South Africa.
Monei Seleho, Nedbank's Provincial Manager for the Public Sector in Limpopo and Mpumalanga, says that given the strategic importance of the public sector to the economy and the country at large, Nedbank has a dedicated public sector team to provide financial solutions that enable the broader mandate of service delivery. ‘We understand that the various spheres of government and their agencies face unique challenges, and are ready and able to draw on the bank’s innovative, seamless and hassle-free products to help build a greater nation.’ With an enduring belief in the value of strong partnerships in facilitating business growth, effective community development and environmental conservation, Seleho’s team boasts extensive experience in provincial and local government, stateowned entities and educational institutions. ‘Our services are tailored specifically for the needs of the public sector and include
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We understand that the various spheres of government and their agencies face unique challenges …
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extensive transactional banking solutions, short to long term funding, financial products and services for public servants and value-added services.’ In addition, Nedbank supports its public sector clients on their transformation journey through the implementation of various enterprise development initiatives. ‘The focus to grow small and medium enterprises is a business imperative for economic sustainability as well as for ensuring a thriving, vibrant social and economic future,’ says Seleho. To find out more about how Nedbank can partner with your organisation to grow a greater South Africa, please email Monei Seleho at moneis@nedbank.co.za or visit www.nedbank.co.za/business
ADVERTORIAL
see money differently
MONEY EXPERTS BRINGING 21ST-CENTURY BANKING TO LIMPOPO AND MPUMALANGA Claude Keena, Nedbank Provincial Sales Manager for Limpopo and Mpumalanga, says that a deep connection with the community is what underlies his team's personal and professional values.
‘B
ased in each community, our teams have a thorough understanding of the local economy and a genuine interest in the success of each client. We believe that our role goes beyond providing banking solutions and we play an active role in empowering the communities in which we operate.’ Keena says that, as money experts who do good, Nedbank strives to empower the workplace employees who drive the Limpopo & Mpumalanga economy by saving them time and money, as well as helping them manage their money better through the Workplace Banking solution.
'We assist clients to save time by providing onsite assistance from our dedicated teams, and we help them save money through our preferential banking packages and our award-winning Financial Fitness and Consumer Education programmes. These interventions assist clients in managing their money better by providing budgeting and money management training, equipping their staff to better deal with everyday money management challenges' And the innovative banking journey continues, ensuring greater value for clients.
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We assist clients to save time by providing onsite assistance from our dedicated teams …
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Our market-leading Money app allows clients to manage accounts and investments, make payments and set savings goals and budgets from their smartphone. Keena adds that working with communities is entrenched in the bank’s values through community development, skills development, education and job creation, as well as environmental conservation. ‘These play a vital role in building a sustainable economy and vibrant society. We believe our fastgrowing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,' he says. If you are interested in taking your business to the next level through our workplace banking solution and would like more information about Nedbank’s specialised service offering, please contact Claude Keena at claudek@nedbank.co.za or visit www.nedbank.co.za.
ADVERTORIAL
see money differently
NEDBANK: PARTNERING FOR GROWTH AND SUSTAINABLE AGRIBUSINESSES According to the Agricultural Business Chamber (Agbiz), South Africa’s agricultural sector is not expected to be hit as hard by the Covid-19 pandemic as the global agricultural sector.
While this is good news for an economy entering what’s expected to be the deepest recession on record, the agriculture value chain faces a daunting task: to increase food production by 70% to meet the demands of a global population that is expected to reach nine billion by 2050. As with many economic sectors, it is becoming clear that technology and innovation are the drivers in the establishment of more efficient, productive and sustainable agriculture. Ivor Meeding, Nedbank Regional Manager Agriculture for Mpumalanga, says that Nedbank has created innovative funding solutions designed to support farmers with sustainable farming interventions where the commodity produced or infrastructure itself is used as security. ‘For example, with drought a perpetual threat that South
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Nedbank has created innovative funding solutions designed to support farmers with sustainable farming interventions …
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Africa faces, our funding solutions range from water-efficiency innovations and cutting-edge irrigation to shade-netting, which improves the yield of underperforming crops, protects them from natural hazards and reduces water use.’ Nedbank's purpose is to help clients 'see money differently' and we do this by applying our bigger-picture business banking approach to understand each client’s business and the specific challenges and opportunities they face. This enables us to provide the banking solutions they need, ranging from the innovations mentioned above to short- and long-term financial support,’ he says. If you would like to see how our specialist teams can assist you, or want more information, please send email Ivor Meeding at ivorm@nedbank.co.za or visit www.nedbank.co.za/business. Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).
SPO6014
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n fact, thanks to bumper grain and fruit harvests, we could see a 10% year-onyear recovery in GDP in the sector for 2020. The current maize harvest is up 38% from the 2018/19 harvest, and is the secondlargest harvest on record, which means that South Africa remain a net exporter of maize and could also export maize beyond the African continent.
KEY SECTORS Overviews of the main economic sectors of the Free State Agriculture 36 Mining 38 Oil and gas 39 Manufacturing 40 Tourism 41 FREE STATE BUSINESS 2021 34 Education and Training 42
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Image: Protea Hotel by Marriott Clarens.
FREE STATE BUSINESS 2021
OVERVIEW
Agriculture An inland fishery has been launched.
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ranjeville, on the southern banks of the Wilge River, is the site of a fisheries project which has created seven new jobs in its first phase. The river flows into the Vaal River and the town is located in the Metsimaholo Local Municipality (under which Sasolburg also falls) within the Fezile Dabi District Municipality. Five agri-parks are planned in each of the Free State’s district municipalities. The concept brings together farmers, traders and agroprocessors at convenient sites. Support for rural smallholders will be available in terms of equipment hire from a central source, storage facilities, packaging of produce and getting products to market.
Image: VKB As part of the agri-parks programme a warehouse is under construction at Springfontein and the Thaba Nchu abattoir is being upgraded. In Sediba, Farmer Production Support Units supplied a tractor and implements to participants. A goat development project has been launched by the provincial government, intended to create agriculture opportunities for young people and women. Key to the growth of these small-scale operations is access to finance and the Industrial Development Corporation (IDC) is a key roleplayer in the Free State. The launch of the Maluti-A-Phofung Special Economic Zone (MAP SEZ) has created another platform to boost the agro-processing and agro-logistics sectors. Cannabis is a potential new sector. A Cannabis Expo was held in November 2019 at which experts, industry leaders and regulators from met to discuss the economic benefits of medicinal cannabis. A provincial strategy will be developed in the course of 2020/21. FREE STATE BUSINESS 2021
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Sector Insight Omnia has bought Oro Agri Opportunities.
Company news The Agriculture RSA division of chemical group Omnia has bought Oro Agri Opportunities, a producer of agriculture biologicals, for a reported $100-million (Engineering News). The US-based Oro Agri has production facilities in the US, Brazil and South Africa where it makes crop protection products, fertilisers and soil conditioners. Omnia has a big presence in Sasolburg: its facilities include an ammonium nitrate/calcium nitrate plant, two nitric acid/ ammonium nitrate plants, a porous ammonium nitrate plant, granulation plants and a nitrophosphate plant. Research facilities, the Chemtech group of laboratories, 185 specialised ammonia rail tankers and another production facility at Wesselsbron (south of Bothaville) make up the balance of Omnia’s presence in the Free State. The purchase of a 21% stake in BKB by VKB has given the latter company extended geographical reach and opportunities in new markets. While VKB is strongest in the Free State and Limpopo with a grain focus, BKB is wellestablished in the Eastern Cape, deals mainly in wool and mohair and runs many auctions.
OVERVIEW VKB is already a diverse group, with the capacity to produce soybean meal and soybean cake and flour from its plants, mills and factories. Grain Field Chickens, a large abattoir in Reitz, is one of the company’s biggest facilities in the province. The Industrial Development Corporation (IDC), which has a 23% stake in the project, aims to help develop the Free State as the poultry hub of South Africa. VKB has six agro-processing companies including VKB Flour Mills and Free State Oil and is active in auctioning, storage, packaging and fuel sales, among other activities. VKB’s headquarters are in Reitz in the eastern part of the province and the group is one of the province’s largest employers. The Imbani Homsek Group is an integrated dairy-products producer with one of the biggest Ayrshire herds in the world. The head office of Country Bird Holdings is in Bloemfontein: its brands are Supreme Chicken, Nutri Feeds and Ross (breeding). Country Bird Logistics controls 45 chilled and frozen vans.
Image: Agricultural Research Council Clover has three factories in the Free State: Bethlehem (milk powder, whey mixtures and creamers); Frankfort (butter, the largest such factory in the country, where ghee and roller dried milk powder is also made) and in Heilbron (whey, buttermilk, condensed milk and packaging). Not many rural landing strips have to deal with 376 aeroplanes and 63 helicopters in a short space of time. That’s what Bothaville had to do when it again hosted the country’s largest agricultural festival, NAMPO Harvest Day, in 2019. Grain SA’s big day had 775 exhibitors catering to 81 345 visitors. Bothaville is on the western edge of the Free State and the town falls under the North West in the organisational chart of giant agricultural company Senwes, which has its headquarters in Klerksdorp. The rest of the Free State is divided into three regions by Senwes, which deals with about 20% of the country’s oilseeds and grain through its 68 silos. The province supplies significant proportions of the nation’s sorghum (53%), sunflowers (45%), maize (45%), potatoes (33%), wheat (30%), groundnuts (32%), dry beans (26%), wool (24%) and almost all of its cherries (90%). Red meat and dairy are other important products. Game hunting is a significant sector, and several large Free State farms have been converted from stock to game farms. Crop production represents about two-thirds of the province’s gross agricultural income. The main crops are maize and wheat. Sunflowers, sunflower seeds, sorghum and soy beans are other major crops. The Mangaung Fresh Produce Market plays a vital role in the sector, catering as it does to householders, bulk buyers, informal traders, agents and farmers. ■
Online Resources
Image: Omnia
Agricultural Research Council: www.arc.agri.za Bothaville: www.bothaville.info Free State Department of Agriculture and Rural Development: www.ard.fs.gov.za Grain SA: www.grainsa.co.za
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OVERVIEW
Mining Feasibility studies are exploring new gold projects.
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iamonds, coal and gold are the main minerals found in the Free State but the decline of gold mining is a cause for concern. Several summits and a Mining Indaba have focussed on what kind of economic activity can replace gold mining. However, Sibanye-Stillwater is bucking the trend with the investigation of a possible new project next to its existing Beatrix mine. Gold prices rose appreciably during the Covid-19 pandemic. The mining sector makes up 11% of provincial GDP. A minerals beneficiation strategy has been developed because this is a key area for potential growth.
Beatrix gold mine. Image: Sibanye Stillwater The Free State Provincial Government announced in February 2020 the creation of a company that will manufacture mining equipment, to be called Newco. Small mining companies have been promised technical support and with health and safety and access to beneficiation opportunities. Sibanye-Stillwater’s Beatrix mine, with a life-of-mine projected to 2025, produced 196 698 ounces of gold in 2019. Beatrix also holds 26.97-million pounds of uranium resources. Mining rights to the Southern Free State project adjacent to Beatrix have been approved and a feasibility study on part of it, the Bloemhoek decline, was done in 2019. The company reported that the Southern Free State property had surface and underground gold reserves of 2.1-million oz and mineral resources of 8.2-million oz. AngloGold Ashanti has sold most of its assets to Harmony Gold. Most of the mines are in the North West Province, but the Great Noligwa and Kopanang mines are in the Free State. The complex includes one uranium plant, four gold plants and one sulphuric acid plant.
Online Resources Minerals Council South Africa: www.mineralscouncil.org.za National Department of Mineral Resources: www.dmr.gov.za South African Mining Development Association: www.samda.co.za
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Sector Insight A new equipment manufacturer is planned for Welkom. These assets increased H a r m o n y ’s u n d e r g r o u n d resource base in South Africa by nearly 40%. The mines include Tshipong and Phakisa (near Odendaalsrus), Virginia, Target (near Allanridge), Masimong (Riebeeckstad), Joel (near Theunissen) and Bambanani at Welkom. Phakisa has mineral reserves of just over five-million ounces of gold and Harmony has invested heavily in the project. Gold mines in the Free State also supply a substantial portion of the total silver produced in the country, and large concentrations of uranium occurring in the gold-bearing conglomerates of the goldfields are extracted as a by-product. Petra Diamonds’ Koffiefontein mine is on the western edge of the province, about 80km from Kimberley. The Voorspoed mine of De Beers Consolidated Mines closed in 2018. Coal is mostly found in the northern part of the Free State. The Sigma-Mookraal mine is run by Sasol Mining and has the capacity to supply Sasol Infrachem in Sasolburg with two-million tons of coal per year. Seriti Resources has purchased the New Vaal Colliery from Anglo American. ■
OVERVIEW
Oil and gas Logistics companies are signing up for gas. Sector Insight Filling stations offering liquified natural gas are planned.
Image: BHIT Bulk Logistics
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he Virginia Gas Project is making good progress. The project is owned by Tetra4 which is a Renergen company. The company has invited bids for the allocation of liquefied natural gas (LNG) and expects to start drilling in 2020. Tetra4 holds the rights for onshore petroleum production, the only such licence in the country which is issued by the Department of Mineral Resources and Energy through Petroleum Agency South Africa. Renergen intends equipping filling stations with LNG at strategic locations across South Africa to cater for the logistics industry. The first two such stations will be Total stations in Johannesburg and Durban that will be rebranded in green. One station is planned for Harrismith on the busy N3 highway which links these two cities. Bulk Hauliers International Transport (BHIT ) has signed an agreement to take LNG to fuel 50 of its trucks, which should lead to lower operating and maintenance costs. South African Breweries is another client. Tetra4 has a R218-million loan from the Industrial Development Corporation to build a 107km pipeline network from Virginia and the Overseas Private Investment Corporation (OPIC), an agency of the US government, will lend Renergen $40-million (more than R600-million) over 12 years to build a gas plant in the Free State. The area around Virginia has proven reserves of 25-billion cubic feet. The chemical complex at Sasolburg is the economic driver of the oil and gas sector for the province. One of the Sasol companies at
Online Resources Petroleum Agency SA: www.petroleumagencysa.com South African Oil and Gas Alliance: www.saoga.org.za South African Petroleum Industry Association: www.sapia.co.za
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Sasolburg, Sasol New Energy, is moving the group away from reliance on fossil fuels. In 2020 Sasol called for bidders to construct an embedded 10MW solar PV facility at Sasolburg. The company’s larger goal across all its sites is eventually to procure 600MW of renewable energy and achieve a 10% greenhousegas (GHG) emission reduction by 2030. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-methane-gas exploration rights in KwaZuluNatal and natural gas exploration permits in the Free State. Early surveys suggest that the Free State has 23-billion cubic feet of gas underground. If this is confirmed, then four new power stations could be built in the province. Tests have begun in the Karoo in search of shale gas. The Natref fuel refinery is one of only four in South Africa, and the country’s only inland refinery. The refinery is a joint venture between Sasol Oil (63.6%) and Total SA (36.3%). It is a technologically advanced facility, which refines heavy crude oil into petrol, diesel, commercial propane, jet fuel and bitumen. ■ FREE STATE BUSINESS 2021
OVERVIEW
Manufacturing The textile sector is recovering.
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eed funding and investment are critical in helping businesses Sector Insight get started, but sometimes good advice can be just as valuThe Sasol complex is able. Tehilaa Golden CC, a clothing manufacturer, more than the province’s biggest doubled its annual turnover to R11-million with the support enterprise. of the SAB Foundation’s 18-month Tholoana Enterprise Programme. Tholoana offers skilled mentorship, business development tools and training, access to peer networks and finance. Founder Cherilyn About 20% of the Free Lucena (pictured) also expanded her workforce from 46 to 135. State’s manufacturing sites are devoted to food and beverages, The SAB Foundation has provided over R8-million in grant with soft drink giant Cocafunding and business support to 70 entrepreneurs in the Free State. Cola Fortune operating a large Collective turnover has grown by 271%. bottling plant in Mangaung. A 172ha business park in Sasolburg designed to incubate black Landzicht Wine Cellar distriindustrialists is a joint venture between the National Department butes 2.4-million litres of wine of Trade, Industry and Competition (the dtic) and Sasol. There are every year from Jacobsdal. five buildings on the site, training is provided, and companies have access to Sasol’s diverse supply chains. Image: SAB Foundation In 2018 Kevali Chemicals became the first beneficiary of the dtic’s Black Industrialists Scheme (BIS). A grant of R35-million allowed the company to acquire machinery and equipment to start a new line of manufacturing in the Maluti-a-Phofung SEZ (MAP SEZ). Sasolburg in the northern Free State is a key asset in South Africa’s chemicals industry. International giant Sasol has the biggest presence but companies such as Omnia and AECI are other major companies which give the Free State the lead in this sector which relies on advanced technology. Sasol in particular is faced with some tough decisions as its plants must start to comply with stricter Harrismith is home to both sulphur dioxide emission standards. Nouwens Carpets and Boxmore Plastics. Boxmore Packaging’s Manufacturing makes up 9% of Free State gross domestic new PET beer bottles are the first product, and this comprises 4% of South Africa’s total. The Free State PET bottles specifically designRegional Industrialisation Policy is under review to ensure integration ed for beer on the South African of infrastructure, bulk service provision, industrial sites and export market. Empire Gloves makes and tax incentives to attract investment. industrial gloves. The existing manufacturing sector covers chemicals, agro K roonstad-based O c ta processing, textiles, carpets, engineering, packaging, furniture and jewellery. Engineering makes specialised rail carriages for the mining Online Resources sector. In Bloemfontein, Transnet Engineering manufactures new Chemical and Allied Industries’ Association: www.caia.co.za wagons for the Transnet group, Free State Development Corporation: www.fdc.co.za including iron ore and cement South African Textile Federation: www.texfed.co.za wagons and fuel tankers. ■
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OVERVIEW
Tourism Culture and heritage have potential.
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he global pandemic closed down the tourism sector and it Sector Insight will take some time to recover. The requirements for social Cancelled festivals will distancing mean that festivals will be one of the last types of mean job losses. tourism to restart. Bloemfontein has 151 rooms, This will be a big blow for the Free State, where festivals such as the and there is a Road Lodge at Mangaung African Cultural Festival (Macufe) have become a fixture on the airport. many calendars. In 2019, a total of 921 temporary jobs were created at the festival. Other festivals that normally attract good crowds are The Rantsoareng Group the Cherry Festival (Ficksburg), the Rose Festival (Bloemfontein), the operates exclusively in the Free Clarens Craft Beer Festival and the Vintage Tractor Fair (Clocolan). State and has three properties, Bloemfontein’s Kunstefees celebrates artistic expression and the the biggest of which is the connections between cultures. President Hotel in Bloemfontein. Heritage is seen as a sector with growth potential. A Heroes’ Park is Sun International runs the to be constructed at Thaba Nchu and Tumahole with statues of Oliver Lesotho Sun and the Maseru Tambo and Fidel Castro. The much-delayed museum and statue at Brandfort to commemorate Winnie Madikizela-Mandela will be opened in the course of the 2020/21 financial year. The Free State is a good destination for water recreation. The Gariep Dam offers resorts and large expanses of water on which pleasure crafts can meander. Forever Resorts runs a popular resort with chalet accommodation and a caravan park. Overlooking the dam is the 43-room de Stijl Gariep Hotel. The Vaal River is another popular place. The town of Parys, which also boasts a UNESCO World Heritage Site in the shape of the Vredefort Dome, is geared to river sports. The annual NAMPO Harvest Day is a major event. In 2019 more than 81 000 people descended on the small town of Bothaville on the banks of the Vals River. Sun in neighbouring Lesotho. In 2019 the 88-room Splendid Inn Bloemfontein (pictured) was In Bloemfontein, the Windmill opened by Premier Hotels & Resorts. Protea Hotels has four properties Casino and Clarens Entertainment in the Free State, two in Bloemfontein, one in Harrismith and the Protea Image: Protea Hotel Centre offers slot machines and Hotel Clarens. gaming tables, plus conference The Tsogo Group’s properties include the four-star Southern Sun facilities. The four-star Willow Bloemfontein and the Goldfields Casino in Welkom. The City Lodge Lodge has 80 rooms. The Naledi Online Resources Sun Hotel and Casino is about 65km from Bloemfontein. Bloemfontein Tourism: www.bloemfonteintourism.co.za The Golden Gate Highlands Free State Gambling, Liquor & Tourism Authority: www.gla.fs.gov.za National Park in the Maluti Free State Department of Economic, Small Business Development, Mountains is one of South Tourism and Environmental Affairs: www.destea.gov.za Africa’s great parks. ■
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OVERVIEW
Education and training Coding and AI are in the curriculum. Image: UFS
Sector Insight Flavius Mareka TVET College is a Centre of Specialisation for two trades.
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national policy of promoting training in critical trades has been adopted. Two of the three campuses of Flavius Mareka TVET College are designated Centres of Specialisation, for electrical work at Sasolburg and plumbing at Kroonstad. The Mphohadi campus of the college is also in Kroonstad. The Free State has about 14 000 students at four Technical and Vocational Education and Training (TVET) colleges, taught by 400 lecturers. All of the colleges have multiple sites. Maluti TVET College in Phuthaditjhaba, for example, offers classes at eight sites. Motheo TVET College operates in Bloemfontein and Thaba Nchu, while Goldfields TVET College is headquartered in Welkom with some classes offered in Thabong and a satellite campus at Virginia (Meloding). In early 2020 the completion of the building of three new schools was announced by the Premier of the Free State, Sisi Ntombela. A further six new schools will be built in the 2020/21 financial year. Coding has been introduced at some schools and the first winner of the Robotic League was Albert Moroka High School in Thaba Nchu. Air Traffic and Navigation Services (ATNS) handed over its 16th sponsored ICT and Science laboratory in 2020 to Akademia High School, Brandfort. The donation forms part of a five-year “Back to School” CSI initiative which has seen ATNS sponsor laboratories across the country to schools from impoverished communities. The Free State Provincial Government is implementing South Africa’s largest global skills development programme in support of the National Development Plan (NDP). The free overseas training programme entails about 905 students studying in leading universities in China, India, Germany, Portugal, Russia, Turkey and Belarus.
Online Resources Central University of Technology: www.cut.ac.za Flavius Mareka TVET College: www.flaviusmareka.net Free State Department of Education: www.education.fs.gov.za University of the Free State: www.ufs.ac.za
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Fields of study range from engineering to computer science, medicine and pharmacy. Of the 175 young people who were awarded overseas bursaries in the Department of Agriculture, 46 have graduated and were placed in the department and some have been employed in agro-businesses. The University of the Free State has 158 researchers rated by the National Research Foundation (NRF), two A-rated scientists and five tier-one SARChi research chairs. The university has 18 international research partnerships and produces an average of 240 postgraduate research degrees every year. The Central University of Technology (CUT ) has four faculties: Engineering, Built Environment and Information and Technology, Health and E n v i ro n m e n t a l S c i e n c e s, Humanities and Management Sciences. Researchers at units such as the Centre for Community, Environmental and Industrial Development tackle important regional issues. The CUT has started training programmes in artificial intelligence, 3D cloud computing and data screening. ■
Free State Black Business Chamber Driving business excellence.
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Vision To be the catalytic voice
hrough business advocacy, the chamber supports business member organisations and civil society organisations with an interest in supporting business to engage in private-public dialogue and to advocate improvements in the business environment. Business matchmaking and networking ensures that businesspeople and entrepreneurs meet to form business relationships and to recognise or create business opportunities, share information and seek potential partners. We aim to promote investment by introducing investors to local suppliers, providing useful data and business information and by managing investment incentives.
for economic growth and development in the Free State Province.
Mission To represent and support the Free State business community. Values Integrity. Results-driven. Accountability. Agility. Innovation. ■ Mr Lucky Motsamai, Chief Executive Officer Contact details Physical address: No 7, 107 Zastron Street, Westdene, Bloemfontein. Tel: +27 51 430 1525. Fax: +27 51 430 1525 Email: info@fsbbc.co.za. Website: www.fsbbc.co.za
Mangaung Chamber of Commerce and Industry The voice of business in the Free State.
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support-Member” campaign. Triple-BEE is promoted by linking big and small businesses through the chamber’s network. The MCCI is a strategic vehicle for the participation of member businesses in social responsibility programmes and supports renewable and alternative energy initiatives. Benefits include networking events, training, an SMME development and support centre and an import and export support centre. ■
he Chamber seeks to be the voice of business in Mangaung and to assist in promoting economic development and investment in the province. In these endeavours the MCCI won the PMI Africa award for the organisation doing the most for business development as well as triple-BEE in the province.
Objectives
The MCCI is creating entrepreneurs to transform this region’s economy. We serve our members and the community with innovative approaches to establish a vibrant business network. We promote and support local businesses through specific interventions like the “Member-
Contact details Tel: +27 51 522 1710 Email: President@bcci.co.za Website: www.mcci.co.za
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Promoting and developing small business The National African Federated Chamber of Commerce and Industry is active in the Free State.
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AFCOC’s main objective is to promote, unite and encourage the development of small business in South Africa in general and black entrepreneurs in particular, thereby drawing the majority from the peripheries of the consumption-based economy to the frontlines of production-based economic activity and decision making processes. NAFCOC Free State responded in a special way to address the distress faced by members during lockdown. In 2020, the chapter: • Lobbied for localised provincial funding during the lockdown.
• Campaigned for the regulation of township businesses (trading permits and adherence to bylaws). • Assisted small and informal businesses in applying for Covid-relief funding. • Worked with government on a programme to assist people living with disability to gain access to markets and procurement opportunities. • Encouraged youth to be more involved in agriculture and try to find solutions to the lack of access to funding. • Worked with Standard Bank to assist small enterprises to open business accounts.
Vision To be the leading voice of business in South Africa. Mission To develop and promote economic growth among existing and new businesses.
Values Empowerment, dignity, integrity, hard work and commitment. ■ Contact details
NAFCOC members applying for permits.
Chairperson: Tshepo Matsaba Tel: 083 485 7883 Email: matsabat@nafcocfs.org.za National website: www.nafcoc.org.za
BUSINESS CHAMBERS IN THE FREE STATE Free State Black Business Chamber Contact: Mr Lucky Motsamai
Cell: 066 204 5295
Free State Youth Chamber of Business and Commerce Contact: Mr Sam Motlogeloa Cell: 081 442 8928
Email: info@fsbbc.co.za Email: yccifs@gmail.com
Mangaung Chamber of Commerce and Industry Contact: The President Tel: +27 51 522 1710 Email: President@bcci.co.za Phenomenal Women Contact: Ms Thato Mokhothu
Cell: 071 383 4183
Vredefort Tourism Association Contact: Ms Renee de Jong
Cell: 071 448 4332
Email: vredefortinfo@gmail.com
LISTING
Free State Provincial Government A guide to Free State’s provincial government departments. Visit: www.freestateonline.fs.gov.za Office of the Premier Premier: Mrs Sefora Ntombela 4th Floor, OR Tambo Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9300 Tel: +27 51 405 5496 | Fax: +27 51 405 4803 Website: www.premier.fs.gov.za
Department of Human Settlements MEC: Ms Motshidise Agnes Koloi 7th Floor, Lebohang Building, Cnr Markgraaff and St Andrews Streets, Bloemfontein 9300 Tel: +27 51 405 3379 | Fax: +27 51 403 3699 Website: www.humansettlements.fs.gov.za
Department of Agriculture and Rural Development MEC: Mr KW Bulwane Main Building, Gielie Joubert Street, Glen, Bloemfontein 9360 Tel: +27 51 861 8509 | Fax: +27 51 861 8452 Website: www.ard.fs.gov.za
Department of Police, Roads and Transport MEC: Mr Sam Mashinini 4th Floor, Perm Building, 45 Charlotte Maxeke Street, Bloemfontein 9301 Tel: +27 51 409 8849 | Fax: +27 51 409 8864 Website: www.policeroadstransport.fs.gov.za Department of Public Works and Infrastructure MEC: Ms Motshidise Agnes Koloi Cnr Markgraaff and St Andrews Streets, Bloemfontein 9301 Tel: +27 51 405 3909 | Fax: +27 51 405 4490 Website: www.publicworks.fs.gov.za
Department of Cooperative Governance and Traditional Affairs MEC: Mr Skully Nxangisa 7th Floor, Lebohang Building, Cnr St Andrews and Markgraaff Streets, Bloemfontein 9301 Tel: +27 51 405 5719 Website: www.cogta.fs.gov.za
Department of Social Development MEC: Ms Mamiki Qabathe Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 409 0555 | Fax: +27 51 409 0618 Website: www.socdev.fs.gov.za
Dept of Economic, Small Business Development, Tourism and Environmental Affairs MEC: Mr Makalo Mohale Bojanala Building, 113 St Andrews Street, Bloemfontein 9301 Tel: +27 51 404 9600 | Fax: +27 51 400 4732 Website: www.dedtea.gov.za
Department of Sports, Arts, Culture and Recreation MEC: Ms Limakatso Mahase Civilia Building, 14 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 407 3520 | Fax: +27 51 407 3541 Website: www.fssacr.gov.za
Department of Education MEC: Mr Pule Makgoe Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 404 8430 | Fax: +27 51 404 8269 Website: www.education.fs.gov.za
Provincial Treasury MEC: Ms Gadija Brown Fidel Castro Building, 55 Miriam Makeba Street, Bloemfontein 9300 Tel: +27 51 405 4229 | Fax: +27 51 405 4152 Website: www.treasury.fs.gov.za
Department of Health MEC: Ms Montseng Ts’lu Cnr Harvey and Charlotte Maxeke Streets, Bloemfontein 9300 Tel: +27 51 408 1108 | Fax: +27 51 408 1950 Website: www.fshealth.gov.za
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LISTING
Free State Local Government A guide to metropolitan, district and local municipalities in the Free State Province. METROPOLITAN MUNICIPALITY Physical address: Bram Fischer Building, cnr Nelson Mandela and Markgraaff Streets, Bloemfontein 9301 Postal address: PO Box 3704, Bloemfontein 9300 Tel: +27 51 405 8911 | Fax: +27 51 405 8663 Website: www.mangaung.co.za
LEJWELEPUTSWA DISTRICT MUNICIPALITY Physical address: cnr Jan Hofmeyer and Tempest Streets, Welkom 9460 Postal address: PO Box 2163, Welkom 9460 Tel: +27 57 353 3094 | Fax: +27 57 353 3382 Website: www.lejwe.co.za
FEZILE DABI DISTRICT MUNICIPALITY Physical address: John Vorster Road, Sasolburg 1947 Postal address: PO Box 10, Sasolburg 1947 Tel: +27 16 970 8600 | Fax: +27 16 970 8747 Website: www.feziledabi.gov.za
Masilonyana Local Municipality Tel: +27 57 733 0105 | Fax: +27 57 733 2217 Website: www.masilonyana.fs.gov.za
Mafube Local Municipality Tel: +27 58 813 1051 | Fax: +27 58 813 3072 Website: www.mafubemunicipality.gov.za
Matjhabeng Local Municipality Tel: +27 27 57 391 3611 | Fax: +27 57 357 4393 Website: www.matjhabeng.co.za Nala Local Municipality Tel: +27 56 514 9200 | Fax: +27 56 515 3922 Website: www.nala.org.za
Metsimaholo Local Municipality Tel: +27 16 973 8301 | Fax: +27 16 973 2191 Website: www.metsimaholo.gov.za
Tokologo Local Municipality Tel: +27 53 541 0014 | Fax: +27 53 541 0360 Website: www.tokologo.fs.gov.za
Moqhaka Local Municipality Tel: +27 56 216 9911 | Fax: +27 56 216 9122 Website: www.moqhaka.gov.za
Tswelopele Local Municipality Tel: +27 51 853 1111 | Fax: +27 51 853 1332 Website: www.tswelopele.gov.za
Ngwathe Local Municipality Tel: +27 56 816 2700 | Fax: +27 56 817 6343 Website: www.ngwathe.fs.gov.za
THABO MOFUTSANYANA DISTRICT MUNICIPALITY Physical address: Old Parliament Building, 1 Mamopi Street, Phuthaditjhaba 9870 Postal address: Private Bag X810, Witsieshoek 9870 Tel: +27 58 718 1000 | Fax: +27 58 713 0940 Website: www.thabomofutsanyana.gov.za
Maluti-A-Phofung Local Municipality offices
Dihlabeng Local Municipality Tel: +27 58 303 5732 | Fax: +27 58 303 4703 Website: www.dihlabeng.gov.za Maluti-a-Phofung Local Municipality Tel: +27 58 718 3700 | Fax: +27 58 718 3777
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LISTING
LISTING
THABO MOFUTSANYANA DISTRICT MUNICIPALITY Mantsopa Local Municipality Physical address: Old Parliament Building, Mamopi Street, Tel: +27 51 924 0654 | Fax: +27151 924 0020 Phuthaditjhaba 9870 Website: www.mantsopa.fs.gov.za Postal address: Private Bag X810, Witsieshoek 9870 Tel: +27 58 718Local 1000 Municipality Nketoana Fax: 713863 09402811 | Fax: +27 58 863 2523 Tel:+27 +275858 Website: www.thabomofutsanyana.gov.za Website: www.nketoana.fs.gov.za
Phumelela Local Municipality
Tel: +27 58 913 8300 | Fax: +27 58 913 2317 Phumelela Local Municipality Website: Tel: +27www.phumelela.gov.za 58 913 8300 | Fax: +27 58 913 2317 Setsoto LocalMunicipality Municipality Setsoto Local Tel: 933933 93009300 | Fax: +27 933 9383 Tel:+27 +275151 | Fax:51+27 51 933 9383 Website: www.setsoto.info Website: www.setsoto.info
XHARIEP DISTRICTMUNICIPALITY MUNICIPALITY XHARIEP DISTRICT Physical address: Louw Street,9913 Trompsburg 9913 Physical address: 20 Louw20Street, Trompsburg Postal address: X136, 9913 Trompsburg 9913 Postal address: PrivatePrivate Bag X136,Bag Trompsburg Tel:+27 +275151 Fax:51+27 51 713 0461 Tel: 713713 93009300 | Fax: |+27 713 0461 Website: www.xhariep.gov.za Website: www.xhariep.gov.za
Dihlabeng Local Municipality
Tel: +27 58 303 5732 Fax: +27 58 303 4703 Website: www.dihlabeng.gov.za Maluti-a-Phofung Local Municipality
Kopanong LocalMunicipality Municipality Kopanong Local Tel:+27 +275151 Fax:51+27 51 713 0292 Tel: 713713 92009200 | Fax: |+27 713 0292 Website: www.kopanong.gov.za Website: www.kopanong.gov.za
Tel: +27 58 718 3700 | Fax: +27 58 718 3777 Website: www.map.fs.gov.za
Letsemeng Local Letsemeng LocalMunicipality Municipality Tel:+27 +275353 | Fax: 53 205 0144 Tel: 330330 02000200 | Fax: +27 53 +27 205 0144 Website: www.letsemeng.gov.za Website: www.letsemeng.gov.za
Mantsopa Local Municipality
Tel: +27 51 924 0654 | Fax: +27 51 924 0020 Website: www.mantsopa.fs.gov.za
Mohokare Local Mohokare LocalMunicipality Municipality Tel: +27 51 673 9600 | Fax: +27 51 673 1550 Tel: +27 51 673 9600 | Fax: +27 51 673 1550 Website: www.mohokare.co.za Website: www.mohokare.co.za
Nketoana Local Municipality
Tel: +27 58 863 2811 | Fax: +27 58 863 2523 Gariep Dam Website: www.nketoana.fs.gov.za
Gauteng
MUNICIPALITIES IN THE FREE STATE
Mpumalanga
Metsimaholo
North West
Fezile Dabi
Mafube
Ngwathe Moqhaka
Nala
Nketoana Tswelopele
Northern Cape
Tokologo
Phumelela
Thabo Mofutsanyana
Matjhabeng
Lejweleputswa
Dihlabeng
Maluti-a-Phofung
Setsoto Masilonyana
KwaZuluNatal Mantsopa
Mangaung
Letsemeng
LESOTHO
Xhariep
N
Mohokare
Metropolitan/District Municipality boundary
Kopanong
Local Municipality Boundary District Municipality Local Municipality
Xhariep Setsoto
Eastern Cape
FREE STATE BUSINESS 2020
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FREE STATE BUSINESS 2021
INDEX
INDEX Africa Biomass Company (ABC) ............................................................................................................................ 3, 11 Airlink.......................................................................................................................................................................................... IBC Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA)....................................................................................... 6-7, 28-29, OBC Free State Black Business Chamber.......................................................................................................................... 43 Free State Development Corporation...................................................................................... 8-9, 13-19, OBC Free State Gambling, Liquor and Tourism Authority (FSGLTA)......................................... 22-23, OBC Maluti-A-Phofung Special Economic Zone (MAP SEZ) ........................................................ 20-21, OBC Mangaung Chamber of Commerce........................................................................................................................ 43 National African Federated Chamber of Commerce (NAFCOC) ......................................................... 44 Nedbank ............................................................................................................................................................................. 30-33 Sasol ............................................................................................................................................................................................ IFC
FREE STATE BUSINESS 2021
48
48669
More choices. More opportunities. More freedom.
As the largest privately owned regional feeder airline in southern Africa, our independence offers more freedom, as well as the widest network and choice of flights. Airlink is now operating under its own 4Z flight code, with an on-time performance consistently at 95% and a fleet of 50+ aircraft.
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