Introduction

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 T 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

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.

Member of the Audit Bureau of Circulations PUBLISHED BY

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

ISSN 1999-5059

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.

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.

Domestic and international MESSAGE investors are invited to invest in South Africa’s most The Free State centrally located province welcomes investors

MEC for Economic, Small Business Development, Tourism and Environmental Affairs, MEC for Economic, Small Business Development, Tourism and Environmental Affairs, the Honourable MP Mohale, outlines how human capital formation is at the heart of the the Honourable MP Mohale, relates how the province has supported business in the creation of a conducive environment for investment in the Free State Province. Covid-19 crisis and how investment can spark further development.

It is with pleasure and gratitude that we, as the department charged with promoting investment into the Free State Province, introduce Free State Business 2020. We welcome this well-known publication’s regular description of the economic environment of our province I n response to the effects of Covid-19 and the subsequent lockdown of the economy, Free State enterprises were invited to apply for economic recovery incentives. Incentives and support programmes were for businesses in the formal and informal sectors and are pleased to contribute to its pages. and were focussed on saving existing jobs and creating new ones. A brief overview of the investment climate in our province is provided on the facing page. Our department also published a dedicated investment prospectus. The purpose of the Free State Investment Opportunities Prospectus is to provide pertinent information about large-scale investment opportunities currently available in various sectors. These initiatives represent the Free State’s response to President Ramaphosa’s clarion In an effort to improve the uptake of opportunities presented by government, working with different business chambers in the Free State, the department has assisted businesses to meet the minimum compliance requirements, like business, tax and other licence registration. We would not like to see anybody left behind. It is with pleasure and gratitude that we, as the department charged with promoting investment into the Free State Province, introduce Free State Business 2021. We welcome this well-known call for increased long-term investment necessary for inclusive growth publication’s regular description of the economic environment of our and job creation. province and are pleased to contribute to its pages.

While investment is an essential ingredient to economic growth, it Our department has 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 is human capital formation and deinitiatives represent the Free State’s response to President Ramaphosa’s velopment through universities and colleges, and various institutions clarion call for increased long-term investment necessary for inclusive pursuing innovation and offering proof-of-concept services, to name a growth and job creation. few. Indeed, the Free State is poised to become a laboratory for excel-While investment is an essential ingredient to economic lence in education outcomes, research and innovation, particularly in growth, it should be pointed out that at the centre of the Free the fields of health, agriculture, agro-processing, manufacturing, water State government’s economic development strategy, as well as the management, ICT, pharmaceuticals and rural development. Value Chains Economic Transformation Approach, is human capital

Domestic and potential investors from around the world are formation and development through universities and colleges, welcome to contact the DESTEA Head of Department at: and various institutions pursuing innovation and offering proof-ofHoD_office@destea.gov.za. concept services, to name a few. The Free State is poised to become 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 HoD_office@destea.gov.za. 6 MEC for Economic, Small MEC for Economic, Small Business Development, Tourism Business Development, Tourism and Environmental Affairs the and Environmental Affairs the Honourable MP Mohale. Honourable MP Mohale

Investing in the Free Investing in the State Province Free State Province

Dr Mbulelo Nokwequ, Head of Department at Dr Mbulelo Nokwequ, Head of Department at DESTEA, outlines some of the Free State’s unique selling propositions. DESTEA, outlines some of the Free State’s unique selling propositions.

The Free State Province is situated in the heart of South Africa and shares borders with Lesotho and six other provinces. It provides easy access to the main ports of Durban, East London and Port Elizabeth. The Free State is an attractive business and investment destination. The province is at the centre of South Africa and the dominant economic sectors are agriculture, mining, manufacturing and the tertiary sectors, making it ideal for transport logistics and F ree State Province is situated in the heart of South Africa and shares borders with Lesotho and six other provinces. It provides easy access to the main ports of Durban, East London and Port Elizabeth. The Free State is an attractive business and investment destination. The province is at the centre of South Africa and the dominant sectors are agriculture, mining, manufacturing and the tertiary sectors, making it ideal for transport logistics and agro-processing. agro-processing. Companies locating to Free State not only enjoy the opportunity to The Department has developed a Value Chains Economic source inputs at competitive prices, but also to benefit from domestic, Transformation Approach, which aims to place the economy on a regional and international markets for their products and services. path of reconstruction, recovery and development post the Covid-19 Because South Africa has been engaging with our economically large pandemic. Maintaining sound relationships with the private sector trading partners, access to international markets is facilitated through ensures that government’s economic transformation agenda various trade preferences and free-trade agreements. remains on track. The department is engaging with sectors such as As far as long-term investment is concerned, there are industrial property developers on issues such as bulk services and the approval parks and a Special Economic Zone (SEZ) that are supported by the of plans. A development committee made up of government, Department of Trade, Industry and Competition. Industrial parks developers, financing institution and municipalities will soon are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu. • an idyllic climate be established. Maluti-A-Phofung SEZ is situated in Tshiame. • recreational and lifestyle

Companies relocating to Free State not only enjoy the The Free State’s strengths for inward investment are boosted by: facilities. opportunity to source inputs at competitive prices, but also to • openness to business, trade and foreign investment • benefit from domestic, regional and international markets for their abundance of natural resources Select investment opportunities • products and services. low factory rentals include: There are industrial parks and a Special Economic Zone (SEZ) • Africa’s leading telecommunications network • Agriculture and agrothat are supported by the Department of Trade, Industry and • incentive packages uniquely developed for Special Economic Zones processing Competition. Industrial parks are situated in Maluti-A-Phofung, • incentives associated with the revitalised industrial parks • Tourism and property • Botshabelo and Thaba Nchu. The Maluti-A-Phofung SEZ is situated in Free State Development Corporation (FDC) support services for development

Tshiame, Harrismith. priority sectors such as agro-processing and manufacturing • Medical and pharmaceutical The Free State’s strengths for inward investment are boosted by:• a large labour pool production and distribution • openness to business, trade and foreign investment • abundance of natural resources • low factory rentals • Africa’s leading telecommunications network • diverse cultures • competitive land and building cost • world-class transport and telecommunications infrastructure • • • Manufacturing Renewable and clean energy Medical tourism. • incentive packages uniquely developed for Special Economic Zones and industrial parks

7

• Free State Development

Corporation (FDC) support services for priority sectors such as agro-processing and manufacturing • a large labour pool • diverse cultures • competitive land and building costs.

S elect investment opportunities include: • Agriculture and agriprocessing • t ourism and property development • medical and pharmaceutical production and distribution • manufacturing • renewable and clean energy and medical tourism. ■

FREE STATE BUSINESS 2020

MESSAGE Working together, Working together, growing the Free State growing the Free State

Thabo Lebelo, the Chief Executive Officer of the Free State Development The Free State Development Corporation unlocks business opportunities. 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.

In 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.

The World Bank Group flagship report, June 2020, projected a global GDP contraction of 5.2%.The South African real GDP is also expected to go down by 7.2% in 2020 due to the economic restrictions that were implemented by government through its risk-adjusted alert levels in response to the Covid-19 pandemic. The rand has depreciated significantly against the US dollar since the beginning of the year. All of these challenges present a very difficult road ahead. The economic recovery will need all the social partners to hold hands and work together.

Thabo Lebelo, CEO of the FDC

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 exports, 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. This Free State Business 2021 publication presents the Free State’s value proposition as a I business and tourism destination. Key opportunities in the Free State include the following: • A leading agricultural commodities producer presents significant opportunities across the n line with the 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 Russia and South Africa have lower GDP growth rates compared to China and India. The South African economy was projected for both local direct and foreign direct investors. agro-processing value chain.to grow by only 1.7% in 2019. • Aquaculture activities associated with the The World Bank projected that the GDP growth for BRICS (Brazil, The FDC is working hard within Gariep Dam.Russia, India, China and South Africa) will be 5.4% in 2019 and 2020. this framework to promote and • Sheep farming and related value-chain As the bloc’s powerhouses, India and China are leading the pack in advance economic development processing. terms of higher GDP growth rates. The annual economic growth rate in South Africa’s most centrally • Tourism development potential leveraging off in India was projected to be 7.5% in 2019 while China’s annual growth located province. heritage sites and assets.rate was projected to decline to 6.3% in 2019 from 6.8% in 2017. Brazil, The FDC continues to foster

• Engineering opportunities within the We will utilise all our resources in creating a

Lejweleputswa District as a result of excellent conducive environment for entrepreneurs to engineering training and capacity-building thrive and unleash the potential of the provincial within the mining sector. economy to grow through our commitment to: • Jewellery beneficiation. • The Maluti-A-Phofung Special Economic Zone • Relationship building. (MAP SEZ), situated at Tshiame in Harrismith • Commitment to our customers and investors. in the Thabo Mafutsanyane District in the • Economic transformation for the common INDUSTRIAL PROPERTY TO RENT IN HARRISMITH Eastern Free State is targeting investments into the province. This SEZ is situated midway between the biggest port in Africa, Durban, and good of all our people. • Assisting investors with accessing incentives and grants where available. INDUSTRIAL PROPERTY TO RENT IN HARRISMITH FDC is renting out 18 850 sqm standalone factory including Furniture FDC is renting out 18 850 sqm standalone factory including Furniture Manufacturing Machinery, Equipment, and Furniture for Business Operation.. the biggest market in Africa, Gauteng. • The Industrial Parks in Sasolburg, the anchor With the continued support from the provincial Manufacturing Machinery, Equipment, and Furniture for Business Operation..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. town of the Metsimaholo Municipality in the government, we will indeed grow the Free State. ■ Fezile Dabi District in the Northern Free State are The factory is Situated at Site 2277 in Harrismith and close proximity to all amenities, on This factory offers the following: available for rental to industrial tenants. www.fdc.co.za 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 4 Roller DoorsAmple parking Security Guard House3 phase power with 100 amps Well fenced and secured8 toilets, 6 offices and boardroom, reception, kitchen and separate warehouse ablutions with 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 CORRUPTION INCIDENTS TO THE FRAUD HOTLINE 0800 212 154information 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