A REGIONAL OVERVIEW OF NORTH WEST PROVINCE

The North West is no longer restricting its involvement in the renewable energy economy to exporting important minerals. Solar farms are springing up and solar manufacturing may soon become a new subsector. Tourist numbers are recovering, agricultural products are attracting good prices and several big infrastructure projects are being planned.

By John Young

Mining and agriculture have always been the economic mainstays of the economy of the North West, and this is still true.

But whereas the platinum group metals (PGMs) mined on the parts of the Bushveld Igneous

Complex that lie beneath the province’s soils have been attracting good prices and the future of mining these particular minerals looks good because of the relevance that they have for the growing renewable energy economy, the North West is now expanding its interest in other parts of that green economy. Large solar farms are now being built at an increasing rate in the North West. This development is covered in detail elsewhere in this journal, but it is significant for the regional economy that it is not only large organisations putting solar panels on roofs (although Sun City’s project is huge), but rather the involvement of the likes of AMEA Power and the Sola Group in rolling out big projects that is shifting the landscape.

Solar panel manufacturing is one of the areas which national government, through Infrastructure South Africa (ISA), is looking at as a way of growing the economy and creating jobs. The North West Provincial Government, through its agency, the North West Development Corporation (NWDC), will communicate with ISA with a view to bringing solar panel manufacturing to Stilfontein, a town in the Dr Kenneth Kaunda District Municipality which is strategically placed on the N12 and near to more than one solar farm. A feasibility study is to be done.

A Panel of Experts on Mega Infrastructure Projects has been appointed by the provincial government. This is part of a concerted drive to change the way infrastructure is delivered in the province. The panel has identified 185 projects, with eight being prioritised based on a number of factors, including bankability and potential impact. These projects include the Smart City development, the Bojanala Special Economic Zone (SEZ), agro-processing and agro-hubs, water and bulkwater supply, health and large urban precinct developments, renewable energy and solar component production and broadband connectivity. It is hoped that these projects will contribute to being able to process more of the raw products that are produced by the agriculture and mining sectors.

Tenders for construction of Phase 2 of the heavy-industrial area within the Bojanala SEZ have gone out. The development will cover 486ha. The trade markets at Mamusa and Mahikeng have been allocated R10-million and R8-million respectively.

As part of the infrastructure drive, a Routine Roads Maintenance Plan has been drafted, covering roads in all four districts of the province. ISA has set aside R13-billion rand for the maintenance and upgrading of 39 roads in the province for implementation in the 2023/24 financial year. The bulk of the money will be spent on rural roads projects, most of which will be labour-intensive paved roads in order to create jobs.

A public-private partnership has started to tackle the problem of potholes. In the first year of its existence, The Pothole Patrol fixed more than 100 000 potholes in Johannesburg. The concept has been extended to the North West Province.

Discovery Insure, Dialdirect Insurance and Sun City Resort are the private companies involved in the programme to repair potholes on the R556, the road that links Sun City to the N4 highway. Leisure travellers and conference delegates play a big role in the provincial economy and so making their journeys easier and safer is a good investment.

As the North West MEC for Public Works and Transport, MEC Gaoage Oageng Molapisi, said at the launch of the project: “Good roads attract business to an area. Gauteng is a very important market source for our province, but travellers want to know that they can reach their destination safely. Similarly, conference and event organisers are disinclined to plan workshops and conferences at venues with poor road infrastructure. The province is therefore extremely thankful for the work carried out.

“We appreciate the collaboration between the private sector and government. The government cannot do it alone,” he concluded.

Sun City is expanding its Vacation Club by building accommodation for an extra 400 guests in a development called Lefika Villas. There will be 48 three-bedroom villas and 10 four-bedroom villas in the development, together with amenities for children, a restaurant and a swimming pool.

The ability of local authorities to manage the infrastructure of towns and districts has been under scrutiny for some time and national government has signalled its intention to intervene.

The North West Provincial Government announced a series of steps taken within its administration which showed that accountability for bad behaviour was being implemented.

The establishment of the Mafikeng Digital Information Hub, a co-working 4IR hub in the centre of Mahikeng, is an indicator that the province is intent on joining the digital movement. The hub is led by Joseph Ndaba, who is serving on the Presidential Commission on 4IR.

Geography and economy

The North West is bordered on the west by the Republic of Botswana and on the east by Gauteng, the engine of the South African economy.

The North West Province makes up 6.8% of the population of South Africa (3.6-million), 8.7% of the land mass (105 076km²) and accounts for 5.8% of economic output in terms of gross value added.

The Vaal River runs along the province’s southeastern border with the Free State, and the province also shares borders with the Northern Cape to the south and Limpopo in the north. The mineral reserves in the province are enormous. Platinum group metals (PGMs) predominate but there are significant deposits of gold, uranium, diamonds, copper, vanadium, fluorspar and nickel. Stone and limestone are also found in large quantities.

Mining beneficiation takes place at many places, with Rustenburg being particularly strong in this sector. The economy of the town is closely linked to the fortunes of platinum mining, with the sector contributing about 70% of the city’s gross geographic product.

Automotive components firms are clustered in Brits, which in turn is close to the automotive manufacturing hub of Rosslyn (Pretoria) in Gauteng. Towns like Klerksdorp (agro-processing and engineering) and Potchefstroom (food and beverages) also have manufacturing capacity.

The North West is a major producer of maize and sunflower seeds and many other agricultural products. About 20% of South Africa’s maize comes from the province, as does 15% of its wheat.

The dry western part of the province is home to beef cattle, game ranching and hunting. The normally well-watered eastern and north-eastern regions carry varied crops, many of which are sold in Johannesburg and Pretoria.

The agricultural sector also generates largescale storage and logistics operations, particularly in Klerksdorp, Vryburg and Brits, together with a number of agro-processing plants. Senwes is one of the biggest with extensive silo infrastructure while Suidwes has 17 retail outlets and MGK makes full-fat soy at its manufacturing plant. Lichtenburgbased NWK makes liquid fertiliser and animal feed, processes sunflower seeds and runs 37 silos and three grain mills.

The province’s three Technical and Vocational Education and Training (TVET) colleges and the well-respected North-West University all have several campuses catering to a wide range of educational disciplines. The university has a strong reputation as a research institution.

Major towns Mahikeng

The capital city of the North West Province lies on the banks of the Molopo River. Situated in the north- west sector of the province near the Botswana border, the city has a strong services sector and a population of approximately 300 000.

The city’s main sectors are financial services, services, transport and trade. The Garona District houses the North West parliament and government buildings. The arts are promoted by the Mmabana Cultural Centre, while the North West Institute of Hotel and Tourism Management is one of three tertiary institutions in the city. North-West University’s Graduate School of Business and Government Leadership is located in the city, and Unisa has a presence. Other institutions are the Taletso TVET College and the International School of South Africa.

The town is well served by hotels such as the Mmabatho Palms, Hotel and Casino Convention Resort. White rhino and giraffe can be found at the Mahikeng Game Reserve.

Tlokwe

The city of Potchefstroom is administered by the Tlokwe Local Municipality. A large campus of North-West University and its business school is located in the city, as is the Vuselela TVET College and the Potchefstroom College of Agriculture. More than 120 000 people regularly attended the annual Aardklop Festival before Covid. The city has a population of about 173 000.

The sports facilities of NorthWest University are world class and have been the base for Spain’s soccer team and Australia’s cricket team in world cups. Tlokwe is a hub for the strong commercial agriculture of the region and has several food and beverage manufacturers including Nestlé. Some of the bigger enterprises include fertiliser companies such as Kynoch, munitions manufacturers and food processors like King Food. An army base contributes to the economy, and the airfield formerly used by the military is now run by the municipality.

The N12 Treasure Route passes through the city and holds potential for further development of tourist highlights such as Boskop Dam and the Mooi River on which the town is located.

Rustenburg

Rustenburg is a local municipality within the Bojanala Platinum District Municipality and the headquarters of both bodies are in the city of about 625 000 residents. Rustenburg straddles the N4 “Platinum Highway” about 120km west of the cities of Pretoria and Johannesburg in the Gauteng Province, the economic hub of South Africa. The N4 stretches across South Africa from Mozambique in the east, to the Botswana border in the west and, as the Trans Kalahari Route, ultimately to Namibia.

At the foot of the Magaliesberg Mountain Range, Rustenburg is only 50km from one of the country’s premier tourist resorts, Sun City, which in turn is adjacent to the 550km² Pilanesberg National Park and Game Reserve which has a small airport.

Orbit TVET College has a campus in Rustenburg, Unisa has a regional office and the Agricultural Research Institute’s Industrial Crops Division is also located in the city. The Royal Bafokeng Sports Palace hosted five group matches in the 2010 World Cup.

Platinum mining began in 1929 and has driven the city’s growth ever since. ■

North West Development Corporation

NWDC is your economic growth, development and investment partner in the North West Province of South Africa.

It is the mission of the NWDC to create wealth and facilitate job creation where the people of the North West Province live.

From its head office situated in Mahikeng and supported by 10 regional branches, the NWDC fulfils its economic development mandate through:

• economic development and infrastructure projects

• attracting investment and facilitating trade opportunities

• developing and supporting SMMEs and co-operatives

• managing its property portfolio

• leveraging strategic partnerships

• programmes of the NWDC

The NWDC’s operational programmes create a synergy towards fulfilling its vision of promoting trade, attracting i nvestment and ensuring sustainable inclusive economic growth and transformation in the North West Province.

NWDC programmes

• Administration

• Property Development and Management

• SMME Development and Management

• Trade and Investment Facilitation

VISIT US AT:

NWDC Head Office

22 James Watt Crescent, Industrial Site, Mahikeng

Tel: 018 381 3663

Website: www.nwdc.co.za

Facebook: North West Development Corporation

Twitter: @Invest_NWDC

LinkedIn: North West Development Corporation

• Subsidiaries: Bojanala Special Economic Zone SOC Ltd

Values

The NWDC upholds the values of:

• Professionalism

• Integrity

• Respect

• Cooperation

• Innovation

Governance

The NWDC is a PFMA Schedule 3D-listed public business enterprise with a dual commercial and development mandate. NWDC’s Shareholder is the North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT). The NWDC is governed by a board of directors and board sub-committees, appointed by the Shareholder.

Its full mandate as outlined in the NWDC Act is: To plan, finance, coordinate, promote and carry out the economic development mandate of the province and its people in the fields of industry, commerce, finance, mining and other business, resulting in wealth and job creation where people live. ■

Newsletter: to receive the NWDC newsletter, see QR code, right.