Northern Cape Business 2019-20

2019/20 EDITION

NORTHERN CAPE BUSINESS

ORTHERN CAPE USINESS

2017/18 EDITION

THE GUIDE TO BUSINESS AND INVESTMENT IN THE NORTHERN CAPE PROVINCE

DE TO BUSINESS AND INVESTMENT NORTHERN CAPE PROVINCE

S ONLINE

JOIN US ONLINE WWW.NORTHERNCAPEBUSINESS.CO.ZA

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CONTENTS

CONTENTS Northern Cape Business 2019/20 Edition

Introduction Foreword 4 The Northern Cape’s unique guide to business and investment.

Special features Regional overview

Major infrastructure is under construction in the Northern Cape – or it will be soon – as the province prepares to move its economy into top gear.

6

A competitive destination

A trade and foreign direct investment (FDI) profile for the Northern Cape.

10

Investment projects

A wide range of investment opportunities are available for potential investors in the province.

12

Upington Special Economic Zone

26

More than 500 hectares of prime land is availible for investors.

Tourism sector boom

28

Adventure tourism continues to grow, and investors are sought for a steam train revival.

Education creating opportunity

30

Sol Plaatje University is reaching for the stars as the world’s biggest telescope project ramps up in the Northern Cape.

NORTHERN CAPE BUSINESS 2019/20

2

CONTENTS

Economic sectors Agriculture 40 Agri-processing is set to drive economic growth.

Grapes and wine Record harvests are being recorded.

44

Mining 48 A huge zinc project near Pofadder could lead to the Northern Cape acquiring a smelter and a refinery.

Water 56 Water projects are stimulating economic growth.

Renewable energy Technical innovation comes to the Northern Cape.

58

Banking and finance New banks are targeting niche markets.

60

Development finance and SMME support An industrial park at Kathu will boost SMMEs.

61

References Key sector contents

38

Index 64 ABOUT THE COVER: Credit: NRF|SARAO. The MeerKAT radio telescope in the Karoo region of South Africa comprises 64 antennas and is currently the largest radio telescope in the world. MeerKAT is the precursor to the giant international project, the Square Kilometre Array (SKA) radio telescope. When the prototype Karoo Array Telescope (KAT) was expanded, the name for the expanded telescope was adopted to reflect the fact that more receptors were to be built (“meer” in Afrikaans) and to call to mind the much-loved animal that roams the Karoo.

NORTHERN CAPE BUSINESS 2019/20

FOREWORD

Northern Cape Business

CREDITS Publisher: Chris Whales

A unique guide to business and investment in the Northern Cape.

T

Publishing director: Robert Arendse Editor: John Young Online editor: Christoff Scholtz Art director: Brent Meder Design: Tyra Martin Production: Lizel Olivier Ad sales: Shiko Diala, Sandile Koni, Gavin van der Merwe, Sam Oliver, Gabriel Venter, Vanessa Wallace, Jeremy Petersen and Reginald Motsoahae Managing director: Clive During Administration & accounts: Charlene Steynberg and Natalie Koopman Distribution & circulation manager: Edward MacDonald Printing: FA Print

he 2019/20 edition of Northern Cape Business is the ninth issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province.

Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged investment opportunities The massive potential represented by the Square Kilometre Array radio telescope project and the rapid progress being made by Sol Plaatje University are also highlighted in this edition.

To complement the extensive local, national and international distribution of the print edition, the full content can also be viewed online at www.globalafricanetwork.com under e-books. Updated information on the Northern Cape is also available through our monthly e-newsletter, which you can subscribe to online at www.gan.co.za, in addition to our complementary business-to-business titles that cover all nine provinces as well as our flagship South African Business title.

Chris Whales Publisher, Global Africa Network Media Email: chris@gan.co.za

PUBLISHED BY

DISTRIBUTION Northern Cape 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, trade and investment agencies, provincial government departments, municipalities and companies.

Member of the Audit Bureau of Circulations

ISSN 2074-0654

COPYRIGHT | Northern Cape 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 | Pictures supplied by: Abengoa Solar; Aurecon; Flicker/SA Tourism; Industrial Development Corporation; iStock; Kumba Iron Ore; Murray and Dickson Construction; Noblesfontien Wind Farm; NRF|SARAO; Kevin Wright and Vedanta Zinc International; Robertson Ventilation Industries (RVI); Savage + Dodd architects; Sedibeng Water.

NORTHERN CAPE BUSINESS 2019/20

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

4

DISCLAIMER | While the publisher, Global Africa Network Media (Pty) Ltd, has used all reasonable efforts to ensure that the information contained in Northern Cape 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.

The Black Management Forum The BMF is a thought leadership organisation founded in 1976, with the main purpose of influencing socio-economic transformation of our country, in pursuit of socio-economic justice, fairness and equity.

The organisation stands for the development and empowerment of managerial leadership amongst black people within organisations and the creation of managerial structures and processes, which reflect the demographics, and value of the wider society.

For detailed information on how to become a member, please contact Thulisile Simelane. Email: thulisile@bmfonline.co.za

www.bmfonline.co.za

BMFNational@

BMFNational

@BMFNational

SPECIAL FEATURE

A REGIONAL OVERVIEW OF THE

NORTHERN CAPE PROVINCE

By John Young Major infrastructure is under construction in the Northern Cape —or it will be soon — as the province prepares to move its economy into top gear. Water schemes, an economic development zone, a railways logistics hub, a Special Economic Zone at Upington Airport, a new harbour and a new university are among the infrastructure projects underway or under consideration in South Africa’s largest province.

T

Provincial assets

he planned Special Economic Zone (linked to the Upington International Airport) is intended as a site for solarrelated manufacturing. The Industrial Development Corporation has spent R11.4billion of its commitment to renewable energy so far in the Northern Cape. Part of the IDC’s role has been to take up a 20% stake in projects on behalf of local communities.

NORTHERN CAPE BUSINESS 2019/20

The Northern Cape is South Africa’s largest province at 372 889km², covering 30% of the country’s landmass on the dry western side of the country bordering the Atlantic Ocean, Namibia and Botswana.

The Sishen-Saldanha ore export railway line is one of the mechanical wonders of the world. The line extends 860km and the

6

SPECIAL FEATURE black-owned manganese projects are underway.

The world receives 7% of its diamonds from the Northern Cape, and exports of zinc and lead from the province account for 13% of global demand.

Vedanta Zinc International started work in 2015 on its huge new Gamsberg Zinc project.

The new mine is near to Vedanta’s existing Black Mountain mine and is the biggest current new project underway The flotation area of the mine is shown here in a photograph by Kevin Wright.

The province also has copper, lead, zinc, mineral sands, gypsum, granite, asbestos, fluorspar, semi-precious stones and marble.

The Northern Cape is a big contributor to the national basket of exports in minerals and in agricultural products such as table grapes and raisins. About 45 000 people are employed in agriculture, which represents approximately 16% of employment. The province supports livestock farming (mainly goats and sheep with cattle in the north), table grapes, dates, cotton and cereal crops and vineyards along the banks of the Orange River, large varieties of crops including cotton, groundnuts, wheat and maize on irrigated lands. Pecan nuts are a major new crop. Thoroughbred horses are bred in the south-eastern parts of the province, especially around Colesberg.

The Northern Cape is home to six national parks and five provincial parks and nature reserves. The Richtersveld Cultural and Botanical Landscape is a World Heritage Site and the Namaqualand spring flower display draws many visitors.

Most of the province falls into the category of semi-arid (apart from the coastal strip) and it receives relatively little rainfall. Summers are hot and winters are cold.

trains sometimes extend beyond 3 500 metres and carry a load exceeding 41 000 tons.

The Northern Cape produces more than 84% of South Africa’s iron ore. Kumba Iron Ore is the country’s biggest iron-ore miner with two large two mines (Sishen and Kolomela) in the province.

The Kalahari Basin contains 80% of the world’s manganese reserve, but only 15% of global production comes from this area so there is enormous scope for development. Several new

District municipalities Frances Baard District Municipality Towns: Kimberley, Barkly West, Warrenton, Hartswater, Jan Kempdorp.

This district accounts for 40.3% of the province’s economic activity. It is the smallest but with a population of approximately 325 500, it is the most densely populated. Although Kimberley is historically

7

NORTHERN CAPE BUSINESS 2019/20

SPECIAL FEATURE Namakwa District Municipality

renowned for diamond mining, its economy is now driven by its role as the administrative headquarters of the province. Strategically located and with good infrastructure, Kimberley is the leading centre in the province for retail, financial services, education, commerce and light industry.

The Mittah Seperepere Convention Centre and the Sol Plaatje University are in Kimberley. Mining and agriculture are found in rural municipalities.

Agriculture in the region comprises crop cultivation and stock and game farming. The Vaalharts Water Scheme is the largest irrigation project of its kind in the southern hemisphere.

Investment opportunities: • Sol Plaatje University • Kimberley International Diamond and Jewellery Academy (KIDJA) • Mining: diamonds and precious stones • Manufacturing: textiles, agri-processing.

Towns: Springbok, Calvinia, Niewoudtville, Garies, Williston, Fraserburg, Sutherland, Pofadder, Okiep, Port Nolloth, Alexander Bay. The Namakwa District stretches from the northwestern corner of the province, and the country, bordering Namibia and the Atlantic Ocean to the southern border of the province with the Western Cape Province. It includes the famous star-gazing town of Sutherland on its southern edge. The district is sparsely populated, and predominantly rural. It contributes 11.1% to economic activity in the province.

A major new investment has been undertaken in zinc at the Gamsberg project.

The mining and agricultural sectors provide most employment, while tourism and small-scale manufacturing are also present. There are plans to upgrade the harbour at Port Nolloth.

The region’s economy gets a great boost every spring when tourists flock to see the veld in bloom. The climate and soil support certain niche crops, and the sites and sights are unique to the region, offering opportunities in agriculture and tourism. Niewoudtville is the site of a rooibos tea factory.

The /Ai/Ais/Richtersveld Transfrontier Park, the Namakwa National Park and the Tankwa Karoo National Park have the potential to grow as travel destinations, as does the western coastline.

Investment opportunities: • Development of Port Nolloth and smaller harbours • Hondeklip Fish Factories • Abalone and hake • Kelp processing and export • Game and nature reserve infrastructure • Rooibos tea • Calvinia: sheep and goat processing.

John Taolo Gaetsewe District Municipality Towns: Kuruman, Kathu, Hotazel.

Kuruman is the headquarters of local government in this region and contributes 19.7% to the province’s economy. The local spring produces 20-million litres of water every day.

Most of the district is situated on the Ghaap Plateau, over 1 000 metres above sea-level and can experience extreme temperatures. Most agricultural activity is limited to grazing and boer goats are a popular breed among farmers, although game hunting is growing.

Kathu has a well-developed CBD with shopping malls that arose when iron demand was high.

The Sishen iron ore mine outside Kathu is a vast undertaking, providing employment for thousands of people. Samancor’s Mamatwan and Wessels manganese mines and plants are situated at Hotazel.

Investment opportunities: • Kathu Industrial Park (IDC involvement) • Eco-tourism and hunting • Boesmansput diving resort • Gamagara Mining Corridor (housing, infrastructure) • Goat commercialisation • Agri-processing: olives, grains, pecan nuts, medicinal plants.

NORTHERN CAPE BUSINESS 2019/20

Pixley Ka Seme District Municipality Towns: De Aar, Hanover, Carnarvon, Douglas, Marydale, Prieska, Hopetown, Richmond, Noupoort, Norvalspont, Colesberg.

The district covers 102 000 square kilometres in the central Karoo and contributes 11.3% of

8

SPECIAL FEATURE

the economic activity of the province. It has four national roads passing through it. De Aar, the site of the municipal headquarters, has national significance as a railway junction. The provincial government has published plans to create a logistics hub at De Aar. Star-gazing is Carnarvon’s great claim to fame, and it will now host the Square Kilometre Array (SKA) radio telescope.

The district is home to three of South Africa’s major dams. Agricultural production includes wheat, maize, peanuts, grapes, beans, potatoes, nuts and sheep farming. Pixley Ka Seme is the largest wool-producing district in South Africa, but most of what is produced is processed in the Eastern Cape, so opportunities exist for the establishment of a cotton mill, a tannery and a facility to add value to semi-precious stones.

Horse breeding is a valuable contributor to the regional economy.

Investment opportunities: • De Aar rail cargo hub and workshops • SKA engineering, science, logistics support and education • Douglas holiday resort • Booktown Richmond festivals • Wool, pistachio nuts and venison processing • Water tourism activities on dams.

unique physical attractions such as the Augrabies Falls.

Upington is already a busy town with processing facilities for agricultural products.

The planned development of a Special Economic Zone (SEZ) in the town and next to Upington International Airport will boost manufacturing. The main targeted sectors at this stage are in the renewable energy sector, for example, solar panels.

Most of the population of the //Khara Hais Local Municipality lives in Upington. Agriculture is a prominent feature of the local economy, as well as wholesale and retail services in and around the town. Various kinds of highspeed car racing and testing takes place on the roads, tracks and airport runway in or near the town.

The processing of wine and dried fruit is one of the biggest manufacturing activities in the province. Mining activities take place in Kgatelopele, where diamonds and lime are found. Together with sheep and cattle farming, mining provides most of the employment to be found in Siyanda. The diamond mine at Finsch is Petra Diamonds’ newest and largest acquisition.

Investment opportunities: • Upington Special Economic Zone • Upington Cargo and Electronics hub: SKA, renewable energy and aircraft storage • Upington International Airport • Orange River Smallholder Farmer Settlement and Development Programme • Tourism: wine tours, adventure and hunting • Upington vehicle testing site • Business Process Outsourcing (BPO).

ZF Mgcawu District Municipality Towns: Upington, Kakamas, Kenhardt, Groblershoop, Postmasberg.

The Orange River suppor ts a thriving agricultural sector and a growing tourism sector. The investment climate is ripe for tourism along the Orange River and around

9

NORTHERN CAPE BUSINESS 2019/20

SPECIAL FEATURE

A competitive destination A trade and foreign direct investment (FDI) profile for the Northern Cape.

SPECIAL FEATURE A competitive destination A trade and foreign direct investment (FDI) profile for the Northern Cape Between January 2011 and March 2016, a total of 486 FDI projects were recorded. These projects represent a total capital investment of ZAR365.63 which is an average investment of ZAR752.23 m per project. During the period, a total of 68,533 jobs were created.

Aggregate Annual Figures

Between January 2011 and March 2016, a total of 486 FDI projects were recorded. These projects represent a total capital investment of ZAR365.63-billion which is an average investment of ZAR752.23m per project. During the period, a total of 68 533 jobs were created.

Year

Projects

Capex

Avg Capex

Jobs Created

Avg Jobs

Companies

2016

15

31 689.9

2112.6

4 062

270

15

2015

80

53 080.6

663.2

11 209

140

73

2014

73

37 979.7

520.2

6 747

92

70

2013

100

74 883.7

748.7

12 981

129

2012

101

46 718.2

462.8

13 328

131

93

2011

117

121 273.9

1037.0

20 206

172

103

Total

486

365 626.0

752.2

68 533

141

397

87

Notes: 1) © fDi Intelligenc e, from the Financial Times Ltd 2016. Data subjec t to terms and conditions of use 2) All Capex figures shown in the table are in ZAR - South Africa Rand millions 3) Capex data inc ludes estimated values Financial Times Ltd takes no responsibility for the ac curac y or otherwise of this data.

4) Jobs data includes estimated values Financ ial Times Ltd takes no responsibility for the acc urac y or otherwise of this data.

Top 10 Export Countries: 2017 Country

Export value (R)

Aggregate Annual FiguresBotswana

6,890,685,954

China

Destination State Gauteng KwaZulu-Natal Eastern Cape

Capex

Avg Capex

Jobs Created

Avg Jobs

Companies

197

113 130.5

574.1

28 129

142

190

86

26 092.7

303.5

7 154

83

84

Japan 49

27 887.8

569.4

116

40

28 097.5

1003.0

5 694 715,242,337

7 043

251

25

82 577.1

3058.2

159

17

5 586.7

621.0

4 314 696,539,853

163

9

7 938.3

1322.9

83

4

18 979.3

3796.3

1 160.0

290.6

54 177.3

722.9

365 626.0

752.2

28

Northern Cape

27 South Korea

Mpumalanga

9

6 Hong Kong

Limpopo Free State

5

Spain 4

North West Not Spec ified

2,221,952,600

Projects

India

Western Cape

75

Total

Netherlands 486

Notes:

Russia

1,069,547,234

1 471

499 599,381,645 2 676

528,724,330 569

10 984

468,907,925 68 533

535

5

142

4

146

71

141

397

444,756,156

1) © fDi Intelligenc e, from the Financial Times Ltd 2016. Data subjec t to terms and conditions of use

Namibia

2) All Capex figures shown in the table are in ZAR - South Africa Rand millions

380,498,692

3) Capex data inc ludes estimated values Financial Times Ltdversion takes no responsibility for the ac curac y or otherwise of this data.

Source: IHS Markit Regional eXplorer 1570 4) Jobs data includes estimated values Financ ial Times Ltd takes no responsibility for the acc urac y or otherwise of this data.

Between January 2011 and March 2016 a total of 27 FDI projects were recorded in the Northern Top 10 Export Products: 2017 Cape. These projects represent a total capital investment of ZAR82.57 which is an average Product Export value (R) investment of ZAR3058.2 m per project. During the period, a total of 4 314 jobs were created.

Top 10 Export Countries: 2017 Country

Export value (R)

Botswana

6,890,685,954

Other mining and quarrying

China

2,221,952,600

Mining of metal ores

6,774,758,037

India

1,069,547,234

Agriculture and hunting

2,662,038,128

Japan

715,242,337

Furniture and other items NEC and recycling

435,389,857

South Korea

696,539,853

Metal products, machinery and household appliances

312,717,558

Hong Kong

599,381,645

Food, beverages and tobacco products

235,931,643

Spain

528,724,330

Transport equipment

170,557,206

Netherlands

468,907,925

Fuel, petroleum, chemical and rubber products

54,817,748

Russia

444,756,156

Electrical machinery and apparatus

53,095,740

Namibia

380,498,692

Wood and wood products

34,282,962

Source: IHS Markit Regional eXplorer version 1570

Source: IHS Markit Regional eXplorer version 1570

Top 10 Export Products: 2017 NORTHERN CAPE BUSINESS 2019/20 Product

Export value (R)

Other mining and quarrying

6,868,457,598

Mining of metal ores

6,774,758,037

10

6,868,457,598

All FDI into Northern Cape, South Africa Data for companies from source countries investing in Northern Cape in activities between January 2011 and March 2016

NO

Project Date

1

Mar-15

2

Jan-15

3

Jan-15

Engie (GDF SUEZ) (Gaz de France

4

Jan-15

Sonnedix Solar

5

Nov-14

Sesa Sterlite

6

Nov-13

7

Oct-13

8

Oct-13

9

Oct-13

10

Sep-13

11

Sep-13

ACWA Power International

12

May-13

Scatec Solar

ACWA Power International Scatec AS

13

Feb-13

14

Nov-14

15

Nov-12

16

Jan-12

17

Jan-12

Globeleq South East UK London Generation Jan-12 Powerway Powerway Mainstream Ireland Dublin Renewable Renewable Energy Renewable Power Energy Mainstream Ireland Dublin Jan-12 Powerway Powerway Renewable Renewable Renewable Energy Power Energy Powerway China Foshan Renewable Jan-12 Powerway Powerway Energy Renewable Renewable Energy PowerwayEnergy China Foshan Renewable Projec Investing Parent Company Energy t Date CompanyChina Powerway Foshan Renewable Dec-11 Abengoa Abengoa Energy Powerway China Foshan Renewable Dec-11 Abengoa Abengoa Energy Abengoa Spain Seville

Investing Company Enel Green Power ACWA Power International

Parent Company Enel

Source Country Italy

Source City Rome

Capital Investment 2557.833087

Saudi Arabia

Riyadh

14060.46589

France

Paris

2557.833087

Solar electric power

Sunpower

ACWA Power International Engie (GDF SUEZ) (Gaz de France Sonnedix Solar Vendanta Resources Total

Mainstream Renewable Power Mainstream Renewable Power Mainstream Renewable Power Acciona

Mainstream Renewable Power Mainstream Renewable Power Mainstream Renewable Power Acciona

Solar electric power Copper, lead,nickel,zinc Solar electric power Wind electric power

Amsterdam

2568.378436 7381.744593

France

Paris

2343.410982

Ireland

Dublin

2568.378436

Ireland

Dublin

2568.378436

Wind electric power

Electricity

Ireland

Dublin

2568.378436

Wind electric power

Electricity

Spain

Alcobendas

2441.834243

Saudi Arabia

Riyadh

6151.453828

Solar electric power Solar electric power

Norway

Oslo

2348.449316

19

Jan-12

20

Dec-11

21

Dec-11

Abengoa

22

Dec-11

23

Dec-11

Dec-11 Scatec Solar Scatec AS London Anglo American 23 Anglo UK American Scatec Solar Scatec AS Norway Oslo

24

Dec-11

Solar Reserve

Monica 2568.378436

25

Jul-11

David Group

58.58527455 Kilbridge

26

May-11

26

May-11

27

Feb-11

Diana Group26 Diana NotGroup specified May- Group Diana France Group Diana France 326.905832 Not (Groupe Diana) (Groupe 11 (Groupe Diana) (Groupe Diana) specified Diana) Diana Group Diana Group 326.905832 France Not specified Feb-11 Jupiter Mines Jupiter Mines Australia Perth (Groupe Diana) 27 (Groupe Diana) Jupiter Mines Jupiter Australia Perth 2343.410982 Mines

No

20

21

22

24

Dec-11

Abengoa

Dec-11

Electricity

London

Jan-12

19

Electricity

UK

18

18

Solar electric power Solar electric power

Industry Activity Electricity

Netherlands

Globeleq Generation Mainstream Renewable Power Mainstream Renewable Power Powerway Renewable Energy Powerway Renewable Energy Powerway Renewable Energy Powerway Renewable Energy Abengoa

17

Sub-Sector

Anglo American

Spain

Solar Reserve

Anglo American

Seville

Solar Reserve

2568.378436 China

China

Foshan 2568.378436

82.01938437 Foshan

0.234341098 China

Foshan

0.234341098 Source Country Spain

Source City

0.234341098 Seville

0.234341098 Spain

Seville

2283.654002 UK

Norway

United

States Solar United States Santa Monica Reserve 25 Jul-11 David Brown Clyde Blowers UK Brown Clyde UK East Kilbridge Group Blowers

London

2283.654002 Oslo 11717.05491

3091.310597 Santa

East

Electricity Electricity Electricity Electricity

Electricity Electricity

Solar electric Electricity power Solar electric Electricity power 0.23434109 Steel products Solar electric ElectricityManufacturin 8power g Solar

electric

0.23434109 power 8

Other

Electricity

Other fabricated metal pro

Manufacturin g

Education

&

fabricated 0.23434109 8metal prds

Coating,Training heat Manufacturin treating ,etc g

Capital Investment Other

Sub-Sector

Industry

2283.65400 metal pro 2

Solar

Electricity

2283.65400 2

Solar electric power

Steel products

fabricated

Manufacturing

Activity Manufacturing electric

power Coating, heat Manufacturing treating ,etc

Electricity

Solar electric Electricity power 11717.0549 Iron ore mining Extraction Solar electric Electricity 1 power 3091.31059 Solar Extraction electric Electricity Iron ore 7mining power Solar electric Electricity 2568.37843 Solar electric Electricity power 6 power Solar electric Electricity power 58.5852745 General Maintenance General Maintenance 5 purpose & Service purpose & Service machinery machinery Paints, 326.905832 Paints, Manufacturing Manufacturin coatings& coatings& g adhesive adhesive Paints, Manufacturing 2343.41098 Extraction coatings& Nonmetallic 2adhesive mineral mining Nonmetallic Extraction mineral mining Source: Investment South Africa (ISA) the dti

FOCUS

Investment Opportunities Northern Cape economic potential and investment.

S

everal locations within the Northern Cape are being developed to be catalysts for investment into the province.

These include the Upington Special Economic Zone, the Kathu Industrial Park, the De Aar Logistics Hub and the Boegoebaai Port Project.

Other sites attracting different kinds of investment include the Square Kilometre Array radio telescope project near Carnarvon and the Sol Plaatje University in Kimberley.

The competitive and comparative advantages of the Northern Cape can be summarised as follows: • mineral resources • climate • open spaces and distances

• • •

astronomy air quality coastline.

To realise the socio-economic priorities of the Northern Cape Province, there is a focus on the following key economic sectors: • agriculture and agro-processing • fishing and aquaculture • mining and mineral processing • manufacturing • tourism • knowledge economy • energy sector.

The following investment opportunities are described in detail in the pages that follow:

Investment opportunity

Sectors

Location

Value

Kathu Industrial Park

Mining, renewable energy,

Kathu

R530-million (1st phase)

Upington

R570-million

Aeronautical

Upington SEZ

R340-million

Aeronautical

Upington SEZ

R800-million

Northern Cape Renewable

Renewable energy,

Upington

R23-million, R240-million or

Energy Incubator

manufacturing

service, logistics manufacturing Upington SEZ Agri-hub

Agricultural processing and logistics

Aviation Aircraft Development Maintenance repair and operations (MRO)

R500-million (options)

Solar Farm, power for SEZ

Renewable energy

Upington SEZ

R270-million

Fibre Optics Manufacturing

ICT broadband

Upington SEZ

R228-million

Nyaniso Healthcare

Latex condom

Colesberg

R150-million

Manufacturing

Kimberley

R100-million

Tourism and heritage

Barkly West

R800-million

manufacturing Versa Chemicals, Paint and Detergent Manufacturing

Promethean Waterfront

NORTHERN CAPE BUSINESS 2019/20

12

FOCUS

Fibre Optics Manufacturing Broadband services.

Project description

Project location

The investor is a fibre optic manufacturing and broadband solutions company. It is a black and female-owned company managed and supported by a team of experts in engineering, marketing and financial disciplines. The company intends to contribute to the infrastructural broadband development in South Africa and other African countries.

The project’s physical address is 24 Schroeder Street, Upington, in the ZF Mgcawu District.

Targeted sectors ICT broadband.

Project background The investor is a fibre optic ICT broadband organisation that specialises in infrastructure services, facilitating all light infrastructure needs for cloud computing and data centres.

It distributes passive fibre optic materials.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist, Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za

Key facts Investment value: R228-million Job creation: 169 jobs

Mr E Ntoba, Dawid Kruiper Local Municipality Tel: +27 54 338 5000 Email: entoba@dkm.gov.za Mr T Klassen, Department of Trade and Industry Tel: +27 12 394 1482

Finance

Project status

The project will be financed by the investor with the government providing enabling infrastructure.

The business case and feasibility studies have been completed.

13

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FOCUS

Kathu Industrial Park (KIP) A catalyst for economic growth.

Targeted sectors

Project description

The KIP targets all economic sectors requiring serviced industrial space in the region, but with the major portion of the initial tenant makeup (study phase) primarily serving the established mining sector, by virtue of the KIP’s central proximity to the PostmasburgHotazel iron-ore/manganese belt. The KIP is also well positioned to serve the emerging REIPPPP sector in the region. In addition to the ongoing development of business opportunities within the tenant supply chains, it will be the role of the KIP business incubator to expand coverage of the KIP into other sectors.

Study phase tenant engagement and commitment to the project has been concluded on a “first come, first served” basis and has covered all possible prospective tenants, regardless of size or level of development. The KIP development caters for all nature of tenant facilities, from large customised facilities through to smaller, economically efficient mini-factories.

The KIP development comprises the following: • Central hub: This will comprise various facilities and the associated infrastructure network supporting KIP management structures. The scope of facilities is envisaged to include: central administration offices; conferencing facilities; an auditorium; a security office; a restaurant; and other social facilities. These are to be located in a hub within the park in a centrally located single-level building, with visitor parking and appropriate landscaping.

• A central logistics facility.

• A Business Incubation Centre and Training Centre.

• Customised warehouses and industrial buildings and (standard specification) mini-factories.

• Security fencing and lighting.

• Additional infrastructure envisaged for the functionality of the KIP includes: internal roads (tarred and paved), a storm-water system and an internal water reticulation system.

Project location

Project status

Farm Sekgame, 461 Kuruman Road, Gamagara Local Municipality, Kathu. GPS coordinates: S27° 42’ 52.5” E23° 02’ 33.8”

Feasibility Study, Project Development Plan, Business Plan and Environmental Impact Assessment Study completed. Currently in the process of finalising KIP Shareholders Agreement, with involvement in the project currently secured from: IDC, Kumba, SIOCCDT, Assmang and with engagement still underway with South32. Partnerships are in place with the private sector, the Industrial Development Corporation, provincial government and local government.

Job creation During development: 1 300 (direct), 805 (indirect) and 2 273 (induced).

During operations: 2 240 (direct), 3 137 (indirect) and 3 446 (induced).

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FOCUS

Finance KIP is a strategic Social Economic Development (SED) project with extensive short- and long-term benefits which also provides a key point of integration supporting the Northern Cape Share Value Initiative (a strategic initiative recently launched by the Northern Cape Mining Leadership Forum).

G ove r n m e nt c o m m i tm e nt: b u l k infrastructure contribution. ​ Private sector investment required: Phase 1 estimated R152-million (to crowd out Project Summary Industrial Development Corporation equity 1. Kathu Industrial Park contribution).

Project Location

District:Gamagara Local Municipality

Project background Sishen Iron Ore Company (Pty) Ltd (SIOC) and the Industrial Development Corporation (IDC) have funded various studies to assess the feasibility of developing an industrial park to stimulate sustainable long-term economic development for the Northern Cape region.

The envisaged development will attract varied tenants delivering industrial goods and services to an environment leveraging economies of scale from centralised facilities and complemented by a business incubation and training complex.

With the mining industry being the largest real economic sector in the Northern Cape economy, the town of Kathu is the preferred location due to its central proximity to the Postmasburg-Hotazel iron-ore/ manganese belt and various established and pending Renewable Energy Power Producer Procurement Programme (REIPPPP) projects. It is envisaged that the KIP serve as a catalyst for accelerated growth of other economic sectors. The feasibility study has not only confirmed extensive interest from businesses with a vested interest in the Northern Cape region (ie potential tenants) but has also confirmed the support of various key stakeholders as well as the commitment of a number of investors. There has been interest from financial institutions.

This development, located on the R380, is easily accessible from the N14 highway, a major service route between Johannesburg, the West Coast of South Africa and Botswana, and the Kathu airport. The study process has included an assessment of infrastructural requirements and has confirmed integration with Gamagara Local Municipality planning.

City/Town: Kathu

Physical address: Farm Sekgame, 461 Kuruman Road

Key facts

GPS Coordinates: S27° 42’ 52.5” E23° 02’ 33.8”

Project Name and background

Investment value: R530-million (Phase 1 estimate) Kathu Industrial Park. Sishen Iron Ore Company (Pty) Ltd (“SIOC”) and the Industrial Development Corporation (“IDC”) have funded various studies to assess the feasibility of developing an industrial park to stimulate sustainable long-term economic development for the Northern Cape region. The envisaged development will attract all nature of tenants delivering industrial goods and services, to an environment leveraging economy of scale from centralized facilities and complemented by a business incubation and training complex. With the mining industry being the largest real economic sector in the Northern Cape economy (based on contribution to GDP), the town of Kathu - located in the Gamagara Local Municipality (“GLM”) - is the preferred location due to its central proximity to the Postmasburg – Hotazel iron-ore/manganese belt and various established and pending REIPP

To discuss this opportunity, contact Mr Stuart Dangerfield, Project Lead, Anglo American Tel: +27 11 679 2181 ​​​​​ Mobile: 083 455 2862 Email: stuart.dangerfield@angloamerican.com ​ Mr Mehmood Ahmed, KIP Director Tel: +27 53 807 1050 ​​​​​ Mobile: 078 801 4081 Email: Mehmooda@idc.co.za

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Aircraft Development Aviation potential.

Project location

Project description

The project’s physical address is 24 Schroeder Street, Upington, in the ZF Mgcawu District. The GPS coordinates are: S28°25’51.96”; 21E°14’04.71”.

The investor intends to develop a new aircraft and to initiate a bone-yard recycling operation in Upington for other aircraft types.

Project background

Targeted sectors

The investor is poised to initiate the development of a local aircraft development group with a specific focus on helicopter manufacturing, bone-yard recycling operations and a new training academy for commercial pilots, technicians and engineers.

The aim is to manufacture a new-age aircraft with lighter frames, a green end-to-end eco system, with energy and fuel efficiency and the ability to migrate to electric engines or hybrid technologies.

Aeronautical.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist.

Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za Mr E Ntoba, Dawid Kruiper Local Municipality Tel: +27 54 338 5000 Email: entoba@dkm.gov.za

Key facts Investment value: R340-million Job creation: 3 538 jobs

Mr T Klassen, Department of Trade and Industry Tel: +27 12 3941482

Project status The business case and feasibility studies have been completed.

Finance The project will be financed by the private sector with the government providing enabling infrastructure.

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FOCUS

Maintenance Repair and Operations Aviation park for MRO.

Project location

Project description

The project’s physical address is 24 Schroeder Street, Upington, in the ZF Mgcawu District.

The investor intends to develop an aviation park to accommodate Maintenance, Repairs and Overhaul (MRO) of aircraft and research and development. Activities will also include airline storage, dismantling, scrapping, painting, and internal refurbishment.

Targeted sectors Aeronautics.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist.

Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za Mr E Ntoba, Dawid Kruiper Local Municipality Tel: +27 54 338 5000 Email: entoba@dkm.gov.za Mr T Klassen, Department of Trade and Industry Tel: +27 12 3941482

Key facts Finance

Investment value: R800-million Job creation: 400 jobs

The project will be financed by the investor with the government providing enabling infrastructure. Partnerships will be pursued with the private sector, provincial government, local government and the Northern Cape Development Agency.

The business case and feasibility studies have been completed.

Project status

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Northern Cape Renewable Energy Incubator Renewable energy hub.

Project location

Project description

The incubator will be located within the town of Upington in the ZF Mgcawu District.

South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has been successful in attracting billions of rands in investment. The Northern Cape has been the leading solar power province and intends to further leverage its many advantages in this field. The renewable energy sector has the potential to unlock other sectors such as manufacturing and construction. The Renewable Energy Incubator will provide local SMMEs opportunities to participate in the localisation programme.

Targeted sectors Primary: renewable energy (utilities).

Secondary: manufacturing, construction, transport, services, trade and ICT.

Investment value Three options: R23-million, R240-million and R500-million.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist, Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za

Key facts

Northern Cape Department of Economic Development and Tourism Mr Riaan Warie, Senior Manager Tel: +27 53 830 4058 Mobile: 079 877 2828 Email: rwarie@ncpg.gov.za

Incubator staff jobs: 15-25 SMME jobs: 150-250 Construction jobs: about 500

Project status Business plan and implementation plan completed. Partnerships are envisaged with national government departments (dti and Small Business Development), provincial government and IPPs.

Finance Funding for top structure and three years of operations through government incentives and contributions from IPPs. NORTHERN CAPE BUSINESS 2019/20

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FOCUS

Solar Farm Solar energy for SEZ.

Project description

Project location

The main focus for the investor will be the construction of a solar farm. There are possibilities for other opportunities such as the manufacture of solar panels and a silicon smelter.

The project’s physical address is 24 Schroeder Street, Upington in the ZF Mgcawu District in Upington.

Project background

Targeted sectors

The investor intends to establish a solar farm on 75ha of land to supply power to tenants of the Upington Special Economic Zone (SEZ).

The anticipated power to be harnessed will be 23MW-50MW depending on the technology.

Renewable energy.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist, Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za Mr E Ntoba, Dawid Kruiper Local Municipality Tel: +27 54 338 5000 Email: entoba@dkm.gov.za Mr T Klassen, Department of Trade and Industry Tel: +27 12 3941482 Northern Cape Department of Economic Development and Tourism Mr Riaan Warie, Senior Manager Tel: +27 53 830 4058 Mobile: 079 877 2828 Email: rwarie@ncpg.gov.za

Key facts Investment value: R270-million Job creation: 1 000 part-time and 30 fulltime jobs

Project status The business case and feasibility studies have been completed. The Environmental Impact Assessment and the Geotechnical Study Investigation are complete.

Finance The project will be financed by the investor with the government providing enabling infrastructure.

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Nyaniso Healthcare

Project description Nyaniso Healthcare will produce male latex condoms using German technology from the technical partner, CPR GmBH. The plant in Colesberg will produce 60-million condoms annually. The plan is also to later produce latex gloves, and thus create meaningful employment for the local community. The condoms produced will be sold to government, private markets and for export markets in Africa and globally.

Latex condom manufacturing.

Project location The project is situated at the old Colesberg Hospital in the Pixley Ka Seme District in Colesberg.

Targeted sectors

Project background

Medical and health sector.

The project name is Nyaniso Healthcare Male Latex Condoms & Latex Gloves Manufacturing. The founder and CEO of Nyaniso Healthcare first thought of starting a condom manufacturing plant in 2007 when the country was producing only 5% of the condoms used in South Africa. The HIV/Aids pandemic and the high infection rate influenced the decision to assist the government in reducing the infection rate and promoting safe sex among youth.

To discuss this opportunity, contact Mr Choaro Timothy, Project Promoter, Nyaniso Healthcare (Pty) Ltd Tel: 064 070 9534 Email: choaro.timothy@gmail.com

Investment value: R150-million Job creation: 100 direct jobs

Northern Cape Department of Economic Development and Tourism Mr Riaan Warie, Senior Manager Tel: +27 53 830 4058 Mobile: 079 877 2828 Email: rwarie@ncpg.gov.za

The business case and feasibility studies have been completed.

Key facts

Project status

Finance The project will be financed by private investor/s with the government providing enabling infrastructure and various incentives as part of the NORTHERN CAPE BUSINESS 2019/20

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project support. Partnerships will be pursued with the private sector, provincial government and local government.

FOCUS

Promethean Waterfront A tourism node for Barkly West.

Project location

Project description

The project is located on the banks of the Vaal River in the town of Barkly West in the Dikgatlong Local Municipality.

An entertainment resort that compromises: waterpark; arcade games and fun rides; food court; wave pool; chalets; upmarket selfcatering riverside accommodation; people’s park (outdoor events with permanent stage); picnic/braai area; lifestyle centre; retail and commercial outlets; regional mall; middleincome housing; government subsidised housing; residential estate; apartments; hotel and conference centre; casino (depending on legislation) and office park.

Project background Barkly West has been earmarked for a multifaceted development project with the potential to bolster the local economy.

Promethean Property, a local investment company, in conjunction with SIZA Architects & Project Managers, has teamed up as the developers of the project. Dikgatlong Municipality will be engaged through the multi-year lease for the land.

To discuss this opportunity, contact Thabo Makweya, Director, Promethean Property Tel: +27 53 831 2336 Mobile: +27 81 337 8492 Email: makweyat@me.com

Targeted sectors Tourism and heritage.

Richard Poulton, Project Director Tel: +27 53 831 2336 Mobile: +27 81 446 5297 Email: richard@prometheangroup.co.za

Key facts Investment value: Overall R2.5-billion, including bulk infrastructure. Phase 1 (Waterpark and chalets): R800-million Job creation: 6 743 jobs

Finance The project is being developed in terms of the Public-Private-Partnership Project Cycle in terms of the Treasury Regulation 16 of the Public Finance Management Act, Act 1 of 1999.

Project status The project is at the start of the feasibility and business case phase. A detailed feasibility study will cost about R12-million.

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Versa Chemicals Paint and detergent manufacturing.

Project location

Project description

The project is situated in the Pixley Ka Seme District Municipality in Kimberley.

The paint plant will produce water-based and solvent-based paints or coatings serving various markets across South Africa and SubSaharan Africa. The focus of the products will be on architectural or decorative coatings and on protective and industrial paints. The factory will run three shifts, five days a week. Versa has a partnership agreement with a leading French road-marking paint manufacturer; SAR France, to distribute their products and later manufacture these products.

Targeted sectors Pa i nt; p rote c ti ve coatings; household detergents; industrial cleaning chemicals.

Project background

To discuss this opportunity, contact Mr Choaro Timothy, Project Promoter, Versa Chemicals (Pty) Ltd Tel: 064 070 9534 Email: choaro.timothy@gmail.com

The name of the project is Versa Chemicals, Paint and Detergent Manufacturing. The idea is to create a sustainable paint and chemicals company that can compete with multinational companies in the chemical sector.

Northern Cape Department of Economic Development and Tourism: Mr Riaan Warie, Senior Manager​ Tel: +27 53 830 4058 Mobile: 079 877 2828​ Email: rwarie@ncpg.gov.za

Key facts Investment value: R100-million Job creation: 100 direct jobs

Finance

Project status

The project will be financed by a private investor/s with the government providing enabling infrastructure and various incentives.

NORTHERN CAPE BUSINESS 2019/20

The business case and feasibility studies have been completed.

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FOCUS

Upington SEZ Agri-Hub Agricultural processing and logistics.

Project location

Project description

The project’s physical address is 24 Schroeder Street, Upington, in the ZF Mgcawu District. The GPS coordinates are: S28°25’51.96”; E21°14’04.71”.

The Agri-Hub will consist of various facilities: Retail, Mechanisation, Packaging, Quality Control, Agri-Processing, Training Centre, Research and Development, Logistics and Transport, Agricultural Inputs and Distribution, Silos, Abattoir, Feedstock, Aquaculture and Agri-Tourism and Greenhouse.

Targeted sectors Agriculture.

To discuss this opportunity, contact Ms Babalwa Mbobo, Sector Specialist, Upington SEZ Tel: +27 54 333 1136 Mobile: 071 016 5813 Email: bmbobo@upington-sez.co.za Mr E Ntoba, Dawid Kruiper Local Municipality Tel: +27 54 338 5000 Email: entoba@dkm.gov.za Mr T Klassen, Department of Trade and Industry Tel: +27 12 3941482

Finance

Investment value Three options: R23-million, R240-million and R500-million.

The main financing for the project will be provided by the private sector. The SEZ and municipality will provide incentives.

Key facts Investment value: R570-million Job creation: 1 200 jobs

Project status The business case and feasibility studies have been completed.

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NORTHERN CAPE BUSINESS 2019/20

Key stakeholders

Transnet, National Department of Transport, Department of Public Enterprises, Treasury

Transaction advisor

TM and Nelutha Consulting JV (TM)

Technical consultants

PRDW, PSP Logistics, NAKO ILISO

Project status

The project is in FEL2 phase. Finalisation of FEL2 is planned for December 2018.

Boegoebaai

CAPEX

Port = ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50%

Estimated jobs to be created

3 000 permanent and 18 000 indirect jobs

Project status

PPP Feasibility study at FEL 2 level to be completed end of April 2019

PROJECT DESCRIPTION A greenfield, deep water port. Two berths; one dry bulk export Port, Railbreak and berth and one bulkInfrastructure berth supported by aDevelopment rail line (550 kilometers). The port has the potential to accommodate Capesize vessels.

Primary drivers for the development include:  Capitalizes on new economy, including: o Iron ore from junior miners, creates a catalyst for Boegoebaai is approximately junior / development miners currently60km constrained transportation costs 20km and exclusion from north by of high Port Nolloth and south larger logistic solutions i.e. Sishen-Saldanha line of otheProvides border between Namibia and a more efficient logistic manganese route o Strategically to capitalize on gas fields South Africa in positioned the Richtersveld Local o Services base for oil, gas and offshore mining Municipality area. industry o Potential of an Oil Refinery to be constructed close to the port  Economic catalyst for the Northern Cape Province and specifically the Richtersveld Community TheReducing the costCape of moving cargo Northern Province has the  Optimizing the cargo distribution within the SA port volumes of commodities to warrant a system commercial port, specifically deep-sea Stimulating regional socio-economic development as a Securing advantage regionally for SA resulta competitive of mining and agricultural ports

Project.

Project location

Project background

Project description Deep-water port development comprising two berths: one dry bulk export berth and one breakbulk berth, supported by a 550km railway line, bulk services and associated social infrastructure.

activities. The Boegoebaai site has all the advantages for Volume the potential Commodity Comment development of a deep-sea port, (mtpa) Dry bulk – ironthe ore 20-metre contour 5-10 is 250m New volume from junior miners namely: Dry bulk – manganese 2-5site owned Lower cost logistic solution offshore and it is a greenfield Dry bulk – lead and zinc 1-2 Closest port to mines The project is being developed in terms of the PPP Project by the people of the Richtersveld, the Break bulk 0.5 Multi-purpose commodities, agricultural, mining and low container volumes Cycle in terms of the Treasury Regulation 16 of the Public Community Property Association (CPA).

FUNDING MODEL Finance Management Act, 1999. The development of a Northern Cape Provincial SEZ Establishment Framework will be used for a Special Economic Zone as economic growth Finance Exporting bulk commodities, breakbulk and development instrument to attract new local and foreign The project is being developed in terms of the PPP Project Cycle in terms of the Treasury and container staging. Oil refinery. Ship investment.

Regulation 16 of the Public Finance Management Act, 1999. The development of a Northern Cape Provincial SEZ Establishment Framework will be used for a Special Economic Zone as recycling.

PROJECT COMMODITY MIX

Finance

Targeted sectors

economic growth and development instrument to attract new local and foreign investment.

Key facts

Project status

Finalisation of phase FEL2 is planned for 31 May 2019.

Project status

Business Investment value: Seaside: R4.2-billion. case and feasibility studies will be completed and submitted Finalisation of phase FEL2 is planned for 31 May 2019. Business case and feasibility Railway Boegoebaai: line from Upington to Boegoebaai: at completed end of the 2019.at Several are available Port, Rail & Infrastructure Development Project studies will be andMay submitted end of therelevant May 2019.studies Several relevant studies are R12.6-billion.

A total of 10 000 jobs are potential investors study, aincluding a transport available forfor potential investors to study,to including transport investors report investors and a port Project Location competitor analysis. expected to Rail be& created. report a port competitor analysis.

The Boegoebaai Port, Infrastructure Development Project is situated approximately 60km north ofand Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area.

The figure below shows the position of Boegoebaai.

Project contacts

Person

Tel

Mobile

email

Dept of Transport,

Mr MP Dichaba

+ 27 53 839 1743

082 675 1933

Lntobela@ncpg.gov.za

Safety and Liaison Dept of Transport,

Mr P Mguza, Project

Safety and Liaison

Promoter

National Dept of

Mr Clement

+27 53 807 4812

079 694 3254

PMguza@ncpg.gov.za

+27 12 309 3408

083 679 9662

manyungc@dot.gov.za

Transport

Manyungwana

Transnet Ports

Mr H Nxumalo

+27 31 361 8821

083 299 7966

Hamilton.nxumalo@transnet.net

Mr P Maneza

+27 53 833 1010

082 889 3685

Info@manzholdings.co.za

Authority TM Nelutha Consultants

De Aar Logistics Hub Project Sheet 21 June 2018

Centrally located hub will reduce costs.

Project Sheet

PROJECT INFORMATION

21 June 2018

Project

De Aar Logistics Hub

Owner

Northern Cape Department of Transport, Safety and Liaison (NCDTSL) Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Treasury TM and Nelutha Consulting JV (TM)

Key stakeholders

PROJECT INFORMATION Transaction advisor Technical Project consultants

Ownerstatus Project CAPEX Key stakeholders Estimated project Transactionstart advisor development date Estimated to be created Technicaljobs consultants

Funding PROJECT model DESCRIPTION

PSP Logistics, Aurecon De AarFasken, Logistics Huband NAKO ILISO The project status Cape is at Feasibility Study of Stage.

The next Safety steps will be Liaison to conduct a Study Tour and Investors Project Sheet Northern Department Transport, and (NCDTSL) Roadshow. Issue an RFQ in November 2018 21 June 2018 Transnet, National Logistics Hub = ~R2.5 billion Department of Transport, Department of Public Enterprises, National and Provincial

Treasury

Financial close and award estimated to be in March 2020 TM and Nelutha Consulting JV (TM) PROJECT INFORMATION 2 500 permanent and 15 000 indirect jobs and NAKO ILISO PSP Project Logistics, Fasken, Aurecon De Aar Logistics Hub

Public Private Partnership to be adopted. Multi-tiered sub concessions

The Owner project status is at Feasibility Study Stage.

The next of steps will be to conduct a Study Tour and Investors Northern Cape Department Transport, Safety and Liaison (NCDTSL) Project status The development of a Logistics Hub in the town of DeIssue Aar that offer Roadshow. anwill RFQ in November 2018 Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Key stakeholders the following infrastructure to identified tenants: Treasury CAPEX Logistics Hub = ~R2.5 billion  Container Terminal which will act as a Trans- Shipment Inland Transaction advisor TM and Nelutha Consulting JV (TM) Estimated project (Dry) Port as well as consolidation point for Freight

Project description

Financial close and award The estimated to beDry inFasken, March 2020 Inland PortAurecon will: and NAKO ILISO Technical PSP Logistics, development startWarehouse date  Agricultural and Storage Facilitiesconsultants TheFacilitate project statusroad-to-rail is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors development Vehicle Yard.

The of a Logistics Hub • indirect migration Estimated jobsStorage to be created 2 500 permanent jobs Project status inand 15 000 Roadshow. Issue an RFQ in November 2018 Provide a more the town offorDe that will offer the fol- to: • Logistics The objectives the Aar development include but are not limited CAPEX Hub = ~R2.5 billion efficient logistics route for manganese to PROJECT DESCRIPTION  infrastructure Provide a sustainableto transport networktenants: for the transportation project lowing identified the close Port(s) of Export The development of a Logistics Hub inEstimated the town of De Aar that will offer Financial and award estimated to be in March 2020 freight/products by small miners and farmers start date development the following infrastructure to identified tenants: • Terminal willjobs actto beincreated Potential of a15Fuel, Oil jobs and Gas storage facility  Container Provide relief from road-basedwhich freight transportation the • Estimated 2 500 permanent and 000 indirect  Northern Container CapeTerminal which will act as a Trans- Shipment Inland • Serving the transport and logistics needs of the Renewable asRevitalize a Trans-Shipment Inland (Dry) PROJECT DESCRIPTION (Dry) Port as line welltoasand consolidation for Freight  the rail from De Aar point development of a Logistics the town market of De Aar that will offer   Port Influence economic Agricultural Warehouse andThe Storage Facilities • Hub in Energy segment as well asdevelopment consolidation point   Ensure creation of jobs in the area.the following infrastructure to identified tenants: Storage Yard.

• which will Economic for the Northern Cape Province and forVehicle freight  Container Terminal act as a Trans-catalyst Shipment Inland (Dry) Port as well as consolidation point for Freight Further to the above, the Inland Dry Port will: • The objectives Agricultural Warehouse and specifically the Pixley ka Seme District community for the development include but are not limited to:  Agricultural Warehouse and Storage Facilities  Facilitate road to rail migration Provide a sustainable transport the transportation network Vehiclefor Storage Yard.   Storage Provide a more efficient logistics route for manganese to the • Reducing the cost of moving cargo Facilities Port(s) of Export freight/products by small miners and farmers • Storage Yard.

• Optimising cargo distribution to the SA port system The objectives for the development include but are notthe limited to:   Vehicle Potential of a Fuel, from Oil and Gas storage facility transportation Provide relief road-based freight in the Provide a sustainable transport network for the transportation  Serving the transport and logistics needs of the Renewable Northern Cape • Stimulating regional socio-economic development freight/products by small miners and farmers Energy market segment  Revitalize the railthe line to and from De Aar relief from Provide freight transportation in the advantage regionally for SA ports.

• road-based Securing a competitive The objectives forfor development Economic catalyst the Northern Cape Province and  specifically Influence development Northern Cape theeconomic Pixley ka Seme District Community include but are not limited to:  Revitalize the rail line to and from De Aar  Ensure creation of jobs in the area.  Reducing the cost of moving cargo SA port Influence  Provide Optimizing the distribution to the systemeconomic • a cargo sustainable transport Thedevelopment envisaged impact on the economy in year one of operation   Stimulating regional development Further to the above, thesocio-economic Inland Dry Port will:Ensure creation of jobs in the area. for the transportation of is estimated to be a minimum of R1.7-billion.   network Securing a competitive advantage regionally for SA ports.

Facilitate road to rail migration Further to the above, the Inland Dry Port will: by small  freight/products Provide a more efficient logisticsminers route forismanganese to the Facilitate road to rail migration The envisaged impact on the economy in Year 1 of Operation estimated  Provide a more efficient logistics route for manganese to the of Export to be a minimum of R1.7 billion. andPort(s) farmers Port(s) of Export  Potential of a Fuel, Oil and Gas storage facility  Potential of a Fuel, Oil and Gas storage facility • Provide relief from road-based  Serving the transport and logistics needs of the Renewable PROJECT COMMODITY MIX  Serving the transport and logistics needs of the Renewable Energy market segment freight transportation in Energy the market segment Volume Commodity Comment  Economic catalyst for(mtpa) the Northern Cape Province  Economic catalystand for the Northern Cape Province and Northern Cape Container Terminal specifically the Pixley ka Seme District Community specifically the Pixley400 ka000 Seme District Community Commodities 100 000 • Agricultural railofline to cargo and  from Reducing the cost of moving cargo  Revitalise Reducing the the cost moving Break-Bulk 7 000  toOptimizing the system cargo distribution to the SA port system  Optimizing the cargo distribution the per SA annum port De Aar Vehicles (Base data: 2015) development 8 500 Vehicles Stimulating regional socio-economic  Stimulating regional socio-economic development  Securing a competitive advantage regionally for SA ports.

• Influence economic development  Securing a competitive advantage regionally for SA ports.

• Ensure creation of jobs in area.

Thethe envisaged impact on the economy in Year 1 of Operation is estimated to in beYear a minimum of R1.7 billion.

The envisaged impact on the economy 1 of Operation is estimated to be a minimum of R1.7 billion.

PROJECT COMMODITY MIX

PROJECT COMMODITY MIX Commodity Container Terminal Agricultural Commodities Break-Bulk Vehicles

Commodity

Volume (mtpa)

Comment

Container Terminal 400 000 Volume Comment Agricultural Commodities 100 000 (mtpa) 7 000 Break-Bulk 400 000 Vehicles Vehicles per annum (Base data: 2015) 8 500 100 000 7 000 8 500 Vehicles per annum (Base data: 2015)

Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835 Email: mdichaba@ncpg.gov.za

SPECIAL FEATURE

Upington Special Economic Zone More than 500 hectares of prime land is available for investors.

The Upington International Airport has a 5km-long runway, the longest civilian runway in the southern hemisphere. The airport’s location and the dry, arid climate add to making the location particularly favourable for the establishment of an Aviation Park to serve the global markets.

The Dawid Kruiper Local Municipality (DKLM) has made the land available for the development of the Upington SEZ. The development will be divided into seven phases. The ZF Mgcawu District has a wellpington, the second-biggest town in the Northdeveloped economy and active business community ern Cape, is located along the banks of the Orsupported by government and government parastatals. ange River and is a popular tourist destination with warm weather and long sunny days. The Industrial hub Northern Cape is ideally situated to serve the following The main objective for the proposed Upington SEZ in the industries: solar energy, mining, agricultural, aviation and Northern Cape Province is to establish a world-class inother industries. The Upington SEZ has a geographically dustrial hub to service the Southern African Development designated area set aside for specifically targeted economic Community (SADC) region in the following sectors: activities to accelerate industrial development.

• Renewable energy with the focus on solar In the heart of the Green Kalahari, right next to component manufacturing Upington International Airport, there is more than • Aeronautics through the development of an 500ha of prime land available to be utilised by invesAviation Park tors (440ha for the Industrial Park and 85ha for the • Mineral beneficiation Aviation Park).

• Agro-processing Upington is situated 130km from the Namibian • Astronomy exploration border post and about 350km from the border post • High-value micro technology. to Botswana. Upington also has good access roads such as the N10 and the N14, effectively linking up Together with our partners, the Northern Cape Namibia and Botswana.

Economic Development Trade and Investment Agency (NCEDA), the Northern Cape Department of Economic KEY CONTACTS Development and Tourism, the National Department Mr Thobela Dikeni, Chief Executive Officer, NCEDA of Trade and Industry (dti) and the Airports Company Tel: +27 53 833 1503 and 060 997 7202 South Africa (ACSA), we invite all interested investors Babalwa Mbobo, Sector Specialist, Upington SEZ to contact us.

Tel: +27 54 333 1136 and 071 016 5813 Email: bmbobo@upington-sez.co.za Dr Mphulane Ramorena, Project Executive NCEDA: 6 Monridge Office Park, Cnr Kekewich and Tel: 076 442 4437 Memorial Street, Kimberley 8301 Email: mramorena@upington-sez.co.za Tel: +27 53 833 1503 Physical address: 24 Schroder Street, Fax: +27 53 833 1390 Upington 8801 Website: www.nceda.co.za

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NORTHERN CAPE BUSINESS 2019/20 2013

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INTERVIEW

The Upington SEZ boasts several advantages Thobela Dikeni, CEO of the Upington SEZ, explains how climate and location enhance the value proposition.

What sectors are you hoping to attract to the SEZ?

Thobela Dikeni

In the first phase, renewable energy and aviation. These sectors are the focus of the Economic Development sector of the Northern Cape and in line with the Provincial Growth and Development Strategy (PGDS).

How does the location of the SEZ support the business case for investing?

Renewable energy: Upington is an area with warm weather and long sunny days for solar energy generation. The increasing and sustained demand for photovoltaic (PV) and concentrated solar power (CSP) systems will produce a number of assembly opportunities for PV panels and inverters as well as CSP in-field mirrors, structures and backward integration of manufacturing facilities. European and Chinese companies continue to express interest in establishing solar energy component manufacturing and assembly plants. About 440ha of land is set aside for the development of a solar farm with a complete EIA for industrial development.

Aviation: An arid climate which is not susceptible to accelerated corrosion and deterioration and the availability of relatively low-cost BIOGRAPHY open land are positive factors. Upington is close to the northern border Thobela Dikeni has held various of South Africa which makes it convenient and strategic from the managerial positions in the African continental perspective and its relative remoteness enhances private sector, including senior security considerations. positions at Standard Bank and FNB (where he was Director Public How important is the airport?

Sector Banking). He was Director Successful SEZs are attached to ports, whether airport or sea port.

Business Development and Africa for Naspers’ subsidiary Paarl Therefore, the proximity to an airport will assist the value proposition Media. He has studied Economics and logistics connectivity of the SEZ. Upington Airport has an unusually and Management and attended long runway (5km) that serves as a designated African landing site for several executive development the shuttles of National Aeronautics and Space Administration (NASA). programmes at international institutions. He is currently studying What progress has been made in getting the SEZ off for a Master’s degree in Information the ground? and Knowledge Management. He Positive feasibility studies have been conducted. Environmental Impact has served on private and public Assessments have been completed. A Record of Decision has been received. The application for designation was submitted in May 2018. sector boards.

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NORTHERN CAPE BUSINESS 2019/20

OVERVIEW

Tourism sector boom Adventure tourism continues to grow and investors are sought for a steam train revival.

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ssets unique to the Northern Cape include wonderful spring flower displays, spectacular arid areas and brilliantly clear night skies for star-gazers.

Heritage tourism is another important niche.

SteamNet 2000 and the Railway Museum at Kimberley Station maintain and protect fascinating rail assets. A Northern Cape Steam Rail tourism route might be an attractive opportunity for the right investor.

There are no fewer than six national parks and five provincial reserves in the province, each showing off distinct geographical and biological features. Most of the province lies in the NamaKaroo Biome and the annual display of spring flowers is spectacular.

The north-western portion of the province is known as the Green Kalahari, much of which is taken up by national parks. The Kgalagadi Transfrontier Park (with Botswana) encompasses 3.7-million hectares, making it one of the biggest conservation areas in the world.

The Kalahari Red Dune Route is a network of guesthouses, reserves and farms to guide the visitor to the great park. The rushing waters of NORTHERN CAPE BUSINESS 2019/20

the Augrabies Falls National Park provide another popular attraction.

The Kalahari in the north-east is home to many of the province’s biggest mines, but also to great numbers of raptors, vultures and owls.

A specialist raptor route has been developed.

Birders can look out for 50 species, including the Booted Eagle, the Pygmy Falcon and the Bateleur. Tours of the area’s vast open-cast mining operations can be arranged.

A new route under development in the region is the Heritage Route tracing the footprints of the early missionaries to Southern Africa and will include Kimberley and surrounds, Kuruman and surrounds and the Robert Moffat Mission.

Hunting is a lucrative subsection of the tourism sector that is proving extremely popular in this region and brings valuable economic development to these rural communities.

The Diamond Fields region contains the spectacular Big Hole, the Mokala National Park and portions of the famed South African War or Battlefields Route. The Magersfontein War Memorial is an iconic attraction on this route where you can visit the graves, Burgher

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SPECIAL FEATURE

the two major towns in this huge district, which is also the only Northern Cape region with a coastline and soon to be the home of a new small harbour.

The decision by UNESCO to inscribe the Richtersveld Cultural and Botanical Landscape as a World Heritage Site has great significance for the tourism industry in the Northern Cape, and for the prospects for ecotourism in general. This 160 000-hectare landscape lies on the border between South Africa and Namibia. The park achieved another a major international accolade when it was included in the Rough Guide’s Top 10 for 2016.

Investment opportunities General opportunities for investors in the tourism sector include: • nature and game reserves • adventure tourism • ​upgrading of accommodation facilities • ​new attractions and entertainment features (theme parks) • ​improve air transport networks.

monument and Boer trenches. The town of Kimberley is itself an extremely popular attraction and offers fine examples of Victorian architecture and the world-class McGregor Museum, Sol Plaatje Museum and the famed William Humphrey Art Gallery.

The Karoo region encompasses the southeastern portion of the province. While most of the region is dry, the Vanderkloof Dam is a major tourism asset. Many of the region’s small towns are geared to cater to tourists drawn to the magic of the Karoo’s open spaces and features famous Karoo towns such as De Aar, Britstown, Hanover, Victoria West and Carnarvon. The latter is especially of importance as home to the SKA. Other tourist attractions are the unique Karoo architecture, South African War sites, rock art, ancient Paleo surfaces, farm stays and the famous Karoo lamb.

The Namakwa region is famous for its flowers, but it also hosts the South African Astronomical Observatory, several historic mission settlements, the Namaqua National Park (on the West Coast) and the awe-inspiring Richtersveld Transfrontier Park. Springbok and Calvinia are

Adventure sports at Kimberley: the possible establishment of an adventure sports resort in the Big Hole Precinct, Kimberley.

Steam train: reviving steam train tourism (“Gems on Track” is the working title) could be done along a variety of routes including routes out of Kimberley to Belmont and from De Aar to Victoria West.

Eco-resort at Boesmansput: development of a diver training facility would form part of the plan at this popular fresh-water cave diving site. An eco-lodge is envisaged and a conference facility.

Wildebeest Rock Art Centre: more than 400 pieces of rock art would form the cornerstone (together with the nearby Nooitgedacht Glacial Paving) of a world-class heritage and archaeological site. Developments would include the creation of a performance arena (for the depiction of San Bushman culture) and facilities for game viewing and photographic safaris.

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NORTHERN CAPE BUSINESS 2019/20

international consortiums are using the latest photovoltaic and con- the country’s landmass on the centrated solar power (CSP) methods. CSP has the benefit of being dry western side of the country able to store energy. bordering the Atlantic Ocean, The rise of the renewable energy sector has given the Northern Cape Namibia and Botswana. a chance to break its dependence on the mining sector, subject as it is The Sishen-Saldanha ore to global price fluctuations. The Provincial Government of the Northern export railway line is one of the Cape has plans to further diversify the economy. It has identified three key mechanical wonders of the world. clusters: mineral beneficiation; agri-processing; energy and technology. The line extends 860km and the The planned Special Economic Zone (linked to the Upington trains sometimes extend beyond International Airport) is intended as a site for solar-related manufac- 3 500 metres and carry a load turing. The Industrial Development Corporation has spent R11.4-billion exceeding 41 000 tons.

Sol Plaatje University is reaching the stars biggest of its commitment to renewable energy so far in thefor Northern Cape.as world’s The Northern Cape produces project in the Part of thetelescope IDC’s role has been toramps take up up a 20% stakeNorthern in projectsCape. on more than 84% of South Africa’s behalf of local communities. iron ore. Kumba Iron Ore is the

SPECIAL FEATURE

Education creating opportunity

That inquisitive future student will be a graduate of the Data Sciences Programme of Sol Plaatje University (SPU), South Africa’s newest tertiary institution. Having a technological marvel such as the SKA within the province will boost scientific curiosity and provide many opportunities for researchers and academics.

At community level, an SPU Knowledge Hub for Rural Development is in the pipeline for locals near the town of Carnarvon.

The SPU’s first viceThe Sol Plaatje Library and Resource Centre, an award-winning example of innovation and excellence. Architects: ne day in the future, a graduate of Kimberley’s Sol chancellor, Dr Yunus Ballim, designworkshop; construction: Murray and Dickson Construction; structural and civils design: Aurecon.

Plaatje University will write her or his doctoral thesis on holds a doctorate in civil some aspect of a far-away star yet to be discovered. engineering and is rated by the The information will come from the Square National Research Foundation.

Array2018/19 (SKA) Telescope, currently under construction in The first intake of students at NORTHERNKilometre CAPE BUSINESS 8 the Karoo. Unimaginable amounts of data are set to be collected the Kimberley campus in 2014 in this transformative radio telescope project that is centred on was 124. There are now more Carnarvon but has global reach. than 1 000 students enrolled in The data that the SKA will collect in a day would take two- a range of degree and diploma million years to play back on an iPod. The radio telescope’s courses. Approximately 60% image-resolution quality will exceed that of the Hubble Space of the students are enrolled in Telescope by a factor of 50. teacher training courses.

The SKA will be the world’s largest radio telescope, made up The university has set itself of thousands of antennae throughout Australia and Africa. SKA a goal of catering to specific will be tackling the big questions: What is dark matter? When did niches, such as heritage life begin? How are galaxies created? studies. T he McGregor In March 2019, 15 countries involved in the SKA Project Museum in Kimberley is one of gathered in Rome for the signing of the international treaty the most respected museums establishing the intergovernmental organisation that will oversee in the South Africa and heritage the delivery of the world’s largest radio telescope. This is the tourism is seen as a growth Square Kilometre Array Observatory (SKAO), which is tasked with market, so university students delivering and operating the SKA. concentrating on this area will

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SPECIAL FEATURE

have good support and good prospects. SPU’s first postgraduate students will include students specialising in agricultural sciences and a new course in Creative Writing in African Languages.

The academic programme is housed in four schools: Education; Humanities; Natural and Applied Sciences; Economic and Management Sciences. Bachelor’s degrees are offered in education, science, science in data, commerce and arts. A diploma in retail business management (three years) and a one-year higher certificate in heritage studies completes the prospectus.

Another striking building, designed by Savage + Dodd, was “highly commended” at the World Architecture Festival in 2017 in the Higher Education and Research category and won “Best Use of Colour”. The multipurpose building encompasses a residence, offices, meeting spaces and retail space on the ground floor.

External and internal images on this page show the details of the design. The colourful, winddriven louvres which act as sun shading were designed by Savage + Dodd Architects and executed by RVI Architectural Solutions. The project was a finalist in the Southern African Institute of Steel Construction (SAISC) awards.

The key to education More than one philosopher has noted the link between beautiful surroundings and a good educational experience, so when the decision to create a new university in Kimberley was made, it was also decided that every effort would be made to build fine buildings that would enhance the experience of lecturers and students.

A competition was held to choose the architects to work on the new university. From a total of 59 entries, nine firms were selected in 2013 to enter the second round of the competition.

Ultimately, five firms were chosen as winners, and they would be tasked with completing work on the campus over the three years to 2016: Activate Architecture; Savage + Dodd Architects; designworkshop:sa; Comrie Wilkinson Cape and Urban Studio JV; Wilkinson Architects in Joint Venture with Mashilo Lampbrechts Architects and GXY Architects.

Sol Plaatje University Library and Student Resources Building, designed by designworkshop: sa, won the 2017 Fulton Concrete Awards for “Buildings Greater Than 3-Stories” (main picture). The construction work was done by Murray and Dickson and Aurecon provided structural, civil, electrical, fire and wet services design for the project.

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NORTHERN CAPE BUSINESS 2019/20

INTERVIEW

Developing local intellectual capacity Prof Yunus Ballim, Vice-Chancellor and Principal, Sol Plaatje University, outlines the way forward.

What are your goals as VC and Principal?

Yunus Ballim

Our intentions in these early years has been to develop and consolidate a good foundation in the essential areas to sustain a university in the long term: • Academic activities: qualifications to be offered, research, learning and teaching, academic staff • Institutional capacity: governance structures and administrative support arrangements • Infrastructure: properly constructed buildings with sufficient space to accommodate growth plans. We have also focused on developing partnerships with social and government institutions in the city and the province.

What is it like to work in award-winning buildings?

BIOGRAPHY Yunus Ballim holds BSc, MSc and PhD degrees in civil engineering, a National Research Foundation rating and a personal professorship in Civil Engineering at the University of Witwatersrand.

At Wits he served as Head of the School of Civil and Environmental Engineering, Deputy Vice-Chancellor (Academic) and Vice-Principal.

He was awarded the Bram Fisher-Oxford Fellowship in 2000 and has been Chair of the Higher Education Quality Council. Yunus chairs the Transformation Strategy Group of Universities South Africa.

NORTHERN CAPE BUSINESS 2019/20

We have worked hard to ensure we have structures and buildings that are conducive to working and learning and this seems to have been successful to date. Our idea of using our infrastructure development project to also reflect the future ambitions of the city of Kimberley has been well reflected in the architecture and artwork on our buildings, giving a strong sense of place in Kimberley and the Northern Cape. It is exciting to be in these buildings.

With the landmark passed of SPU’s first BEd graduates, what lies ahead?

We also produced the first BSc, BA, BCom and BSc (Data Science) graduates in 2018 as other important academic landmarks. The next landmarks will be our first postgraduate students, particularly those from our planned programme in Creative Writing in African Languages and academic qualifications in agricultural sciences.

What links does SPU have with the SKA project?

Our Data Science programmes were specifically started to develop the local intellectual capacity to contribute to the collection and analysis of large data sets such as that to be generated at the SKA. Our hope is that, when the SKA is fully functional in 2025, some of our graduates will hold doctoral degrees and be contributing to the SKA activities. Furthermore, we are in discussion with provincial government to establish the SPU Knowledge Hub for Rural Development near Carnarvon. This will bring a stronger community link to the general scientific and knowledge development activities in the area.

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ADVERTORIAL

Nedbank’s new brand promise focuses on new clientbrand engagement Nedbank’s promise that will create a better understanding focuses on client engagement that ADVERTORIAL

Kevin de Beer, Nedbank Provincial General Manager in the willState create a better understanding Free and Northern Cape, explains how Nedbank Kevin de Beer, Nedbank Provincial General works with communities to deliver bankingManager solutions.in the Free State and Northern Cape, explains how Nedbank works with communities to deliver banking solutions.

locally and nationally. ‘Working with communities is entrenched in our 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 fast-growing presence in communities goes a long way in enabling greater financial inclusion while contributing towards economic growth,’ concludes De Beer.

Nedbank continues to build on its clientcentred strategy aimed at delivering distinctive experiences and channels of choice for businesses and clients in the Northern Cape. This has seen the bank simplify and enhance its product offering in line with its value-banking philosophy based on simplicity, transparency and affordability. Innovation and technological advancements, as well as training and development of staff, have been key pillars in achieving the bank’s objectives.

Since 2012 Nedbank has launched several first-tomarket innovations, such as the award-winning Nedbank App Suite™, the home loans online digital channel and Market Edge™, as well as the ‘Branch of the Future’ concept in communities

This is a unique service for clients, with financial fitness training a key aspect of the offering. Our wide range of products and services include the Nedbank Ke Yona Plus transactional account, which comprises funeral cover, a personal loan facility, the JustSave Account and the Send-iMali money transfer solution, enabling clients to transact, borrow, save and take out cover.

To encourage the youth to save and build their financial fitness from an early age the Nedbank 4me offering enables the youth to transact and save with the benefit of earning preferential interest. Nedbank 4me comprises a full transactional banking account with no monthly fees, free initial transactions and thereafter reduced pay-as-you-use pricing, free eNotes and self-service banking.

Should you be interested in learning more about how Nedbank can assist you to grow your wealth and see money differently, for more information call +27 (0)51 400 5813 or visit www.nedbank.co.za.

ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Making it easier to do business with will create a better understanding Nedbank Whole-view Business Kevin de Beer, Nedbank Provincial General Manager in the ™ Banking Free State and Northern Cape, explains how Nedbank ADVERTORIAL

works with Nedbank communities to deliver banking solutions.

Gary Long, Provincial BB Manager in the Free State and Northern Cape, explains how Nedbank can help business owners in the Northern Cape.

At the core of Nedbank’s offering in the Northern Cape is a relationship-based model with a business manager dedicated to your business as the key entry point into the bank.

‘We encourage you to see money differently with Whole-view Business Banking™, explains Long.

What does this mean to the client?

It is an additional benefit of banking with Nedbank Business Banking and means that your business and your personal financial needs are managed in one place.

There is good news for Northern Cape business owners and entrepreneurs seeking a unique banking experience: Nedbank Business Banking has 27 business managers located across the province specialising in commercial industries as well as the agricultural sector. They are ready to assist you with professional advice, industryspecific solutions and a comprehensive range of financial products and services.

‘At Nedbank Business Banking we believe that you need a financial partner who not only understands your circumstances and aspirations, but also provides you with relevant solutions and a banking experience that is hassle-free. This allows you to concentrate on what’s most important to you – running your business,’ says Long.

‘Because business owners and their businesses are very often financially dependent on each other, our client service teams now also offer individual banking solutions to you and your staff because we already know and understand your needs,’ says Long.

With this in mind, Nedbank has seamless offerings for you, your employees and your household.

Nedbank provides several communities, including individual and business clients, with access to products and services through Nedbank’s workplace banking offering through a dedicated banker.

Should you be interested in taking your business to its next level and improving staff engagement, and for more information about Nedbank’s specialised service offering please call the Business Banking team on +27 (0)51 400 5700 or visit www.nedbank.co.za.

ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Expertise aimed will createin a small betterbusiness understanding at stimulating growth Kevin de Beer, Nedbank Provincial General Manager in the ADVERTORIAL

Free State and Northern Cape,ofexplains how Nedbank Nedbank’s Regional Manager Small Business Services, Kim works with communities to deliver banking solutions.

Lawrence, explains how Nedbank is committed to partnering with businesses for growth.

The initiative calls on everyone to make a conscious decision to vote for small businesses through their hearts, feet and wallets; not only on Small Business Friday, but every day.

‘Small businesses are the mainstay of the economy. Nedbank has, over the years, instituted various interventions aimed at giving support to the small-business sector.

Over and above our small-business services solutions, we provide small-business owners with support that goes beyond banking, freeing up their time to truly focus on running their businesses,’ says Lawrence.

Nedbank has built a solid reputation as a bank for small businesses through initiatives such as Small Business Friday, free small-business seminars and the SimplyBiz.co.za platform – all geared to support the small- and medium-sized enterprises sector. For example, the Small Business Friday initiative, in association with the National Small Business Chamber, seeks to encourage everyone in South Africa to rally behind and support small businesses.

Nedbank has recently launched its Business Bundle, a game changer for small enterprises, comparatively offering the best value for money when set against rivals, with exclusive benefits and personalised services for entrepreneurs. With the country’s challenging economic environment, the Nedbank Business Bundle not only offers you personalised banking services, but also critical tools to save – with up to 40% savings on monthly banking fees, contributing directly to the bottom line at a time when every cent counts.

In line with Nedbank’s new brand proposition ‘see money differently’, the Business Bundle resonates with the bank’s commitment to using expertise for good in promoting small business enterprises.

SimplyBiz.co.za is a free-to-join value networking portal designed especially for small businesses. The online portal helps small businesses improve their business administration skills, keep up with the latest trends, network with other small businesses and share ideas.

Should you wish to tap into our small business expertise to help your business goals, why not get in touch with Nedbank’s Small Business Services, call Kim Lawrence +27 (0)51 400 5700 or send an email to kiml@nedbank.co.za.

ADVERTORIAL

Nedbank’s new brand promise focuses on client engagement that Newcreate brandaproposition encourages will better understanding clients toNedbank ‘see Provincial moneyGeneral differently’ Kevin de Beer, Manager in the ADVERTORIAL

Free State and Northern explains Nedbank Lorraine McAnda, NedbankCape, Free State andhow Northern Cape works with communities deliver banking solutions.

Regional Manager, BusinesstoBanking, explains how the new brand values build on the expertise of the bank to benefit clients.

almost two years of research and client engagement that revealed that people want to work with purpose-driven institutions they can trust. They want a professional financial partner that balances expertise with a genuine commitment to do good.

The public will see a number of changes in the next few months as the bank evolves its corporate identity, advertising and communication campaigns, as well as its products, services and channels. All these changes are designed to inspire clients and society to see money differently and partner with the bank to achieve their goals.

Nedbank officially launched its new brand repositioning during the first day of the world’s largest design festival – the 2017 Design Indaba on March 1. The bank’s new tagline challenges clients and society to ‘see money differently’.

One of the solutions from Nedbank is Whole-view Business Banking™, which provides a bird’s-eye view of clients’ businesses. It is aimed at business owners who believe that they need the best-of-breed of financial institutions.

The new brand positioning is built on Nedbank’s purpose: to use financial expertise to enable individuals, families, businesses and society to do good. Our new brand proposition was born after

Our new brand proposition is not just a marketing initiative but a reflection of the continuing business evolution at Nedbank.

As a bank we want to ensure that our clients experience our brand in a way that is aligned with our brand promise.

It is common knowledge that we live in a volatile socioeconomic environment, so it is even more important for us to intensify our commitment to improve on our skill in enabling clients to navigate challenges and meet their goals.

If you would like to explore further how Business Banking can help take your firm to the next level, and for more information about Nedbank Business Banking Services call Lorraine McAnda on +27 (0)51 400 5745 or send an email to LorraineMc@nedbank.co.za.

Nedbank Ltd Reg No 1951/000009/06. Authorised financial services and registered credit provider (NCRCP16).

SPONGE 5556

see money differently

CREDIT: VEDANTA ZINC INTERNATIONAL (VZI)

KEY SECTORS Overviews of the main economic sectors of the Northern Cape

Agriculture

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Grapes and wine

38 44

Mining 42 Mining 48 Water

50 56

Tourism Renewable

energy

52 58

Banking and financial services

58 60

Development finance and SMME support

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The tower at Khi Solar One is one the tallest structures in South Africa.

Agriculture Agri-processing is set to drive economic growth.

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ompared to other types of manufacturing, agriprocessing can be scaled up relatively quickly with good financial rewards. It can also be labour-intensive.

As such, agri-processing is a key plank in the growth plans of the Northern Cape.

Work has already been done in providing manufacturing facilities for the speciality tea, rooibos, at Niewoudtville and investments have been made in fisheries and new vineyard development for groups of people who previously had not had exposure to the grape and wine sector.

The Northern Cape Department of Agriculture, Land Reform and Rural Development (DALRRD) was behind the rooibos tea factory, which now trades as Bokkeveld Rooibos. The factory takes tea from 85 local farmers with the goal of helping to integrate these farmers into the agricultural and agri-processing business chain.

Two particular areas of interest to assist small-scale farmers are being explored with regard to hemp and crops that can produce liquor. The dry interior of the Northern Cape is suitable NORTHERN CAPE BUSINESS 2019/20

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SECTOR INSIGHT Hemp and liquor hold enormous potential.

• A commercial goat kid project has expanded into Namibia.

for the growing of Agave that provides the source material for tequila and there are several other opportunities.

The rapidly changing legislative environment for hemp and marijuana holds potential in textiles and medicine.

OVERVIEW Long-term thinking underpins the adoption by the provincial government of the Northern Cape Climate Change Adaptation Response Strategy. This allows for a framework to tackle drought and other climate change issues.

Occupying 36-million hectares, the Northern Cape is the largest province in the country, almost a third of South Africa’s total land area. Although the province is a predominantly semi-arid region, agriculture is a major component of the economy of the regional economy and the province’s farmers contribute 6.8% to South African agriculture.

The agricultural sector also plays a vital role in the broader economy of the Northern Cape, employing as it does about 45 000 people. This represents about 16% of employment, a much higher figure than the national figure of 5.5%.

Agricultural development takes place along defined corridors within the province: In the Orange River Valley, especially at Upington, Kakamas and Keimoes, grapes and fruit are cultivated intensively. Highvalue horticultural products such as table grapes, sultanas and wine grapes, dates, nuts, cotton, fodder and cereal crops are grown along the Orange River.

Wheat, fruit, groundnuts, maize and cotton are grown in the Vaalharts Irrigation Scheme in the vicinity of Hartswater and Jan Kempdorp. The Vaalharts Irrigation Scheme is one of the biggest systems of its kind in the world. Ranging over more than 30 000ha, it has transformed a semi-desert zone into a productive area that sustains cotton, wheat, maize, lucerne, citrus, peanuts, fruit, grapes, olives and pecan nuts.

Vegetables and cereal crops are farmed at the confluence of the Vaal River and the Orange River in the vicinity of Douglas. Of the nearly 40-million 10kg bags of onions produced in South Africa (outside of linked production chains set up by supermarkets), about 10-million 10kg bags come from the Northern Cape.

Wool, mohair, karakul, Karoo lamb, venison, ostrich meat and leather are farmed throughout most of the province. The province is second only to the Eastern Cape in terms of the number of sheep farmed and it is the fourth-largest woolproducing province based on annual sale of producer lots.

The Beefmaster abattoir in Kimberley is one of three abattoirs in South Africa to export frozen beef to China. The company processes and packages about 30 000 tons at the abattoir.

The karakul-pelt industry is one of the most important in the Gordonia district of Upington. Agri-company KLK is the only organisation that handles these pelts in South Africa, which are sorted in Windhoek before being sent to Copenhagen for auction.

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Companies KLK is based in Upington and does much more than karakul pelts. The company’s interests include 19 retail outlets, 12 petrol stations, four Build it franchises and a strong auction division.

KLK runs three abattoirs in Calvinia, Carnarvon and Upington that slaughter lamb and beef carcasses. SA Dorper manages the production and export of dorper skins and the production of cattle hides.

GWK is another company with its headquarters in the Northern Cape, in this case the town of Douglas. In 2016 GWK invested R400-million in a wheat mill, pasta plant and biscuit factory in Modder River.

GWK Farm Foods’ new plant has a capacity of 25t/h for wheat flour, 1.3t/h for biscuits and 1t/h for pasta. R60-million was spent on increasing silo capacity to feed the plant. The company reported turnover in 2016 of R8.3-billion.

Senwes is one of the countr y’s biggest agricompanies and its Northern Cape area of operation is mostly around the Vaalharts irrigation area, which is fairly close to the headquarters just over the provincial border in North West, at Klerksdorp.

Storage and handling of grains and oilseeds are the speciality of Senwes.

OVK controls the large Gariep abattoir at Strydenburg, which has a daily capacity of NORTHERN CAPE BUSINESS 2019/20

OVERVIEW

1 300 sheep, 100 cattle and either 250 ostriches or 750 small game animals. OVK also has trade branches, vehicle dealerships, a finance division and manufacturing facilities for maize meal and wheat meal.

Kaap Agri is a Western Cape company with a presence in the Northern Cape and Namibia.

Rooibos tea Health trends around the world are helping the sales of rooibos tea, most of which is farmed and processed in the Western Cape and Northern Cape provinces.

Recent studies proving that rooibos tea increases antioxidant capacity in human blood are further proof of the beverage’s healthy qualities. The unique climate and soil of the western part of the province support this niche crop. About 6 000 tons of tea is exported to more than 30 countries and domestic consumption is about 8 000 tons.

In several coffee shops in London, Red Espresso has replaced the traditional double-shot of pure coffee, and a more recent use of the tea is to spruce up cocktails. The Rooibos Council states that more than 5 000 people are employed in the rooibos industry.

Only the leaves of the Aspalathus linearis (a legume that is part of the fynbos family) are used in making rooibos (Afrikaans for “red bush”). Harvested while still green, the leaves are left to dry and ferment in the sun after being cut up. Naturally high in a range of vitamins and potassium, zinc and iron, its low tannin content makes it an excellent alternative as a hot drink. Fair Cape Dairies has a product called Rooiboost.

Plans Consulting firm Aurecon was involved in doing a feasibility study and compiling a business plan for the rehabilitation and upgrading of the irrigation scheme and agribusiness development in the NORTHERN CAPE BUSINESS 2019/20

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Vaalharts and Taung areas, a major concern of the DALRRD. The aim is to anchor the project in Ganspan. Another goal is to establish black pecan nut farmers in the area.

Another new area where the DALRRD is involved is in issuing permits and licences for trout production at the Vanderkloof Dam. This aims to create new stream of food production, reduce anxiety related to food security and create jobs.

Other priority projects to support the rollout of agriprocessing include: • N a m aq u a ir r i g ati o n development • Rooibos development • Vanderkloof fisheries • Vaalharts revitalisation • Vineyard development scheme.

The Agri-parks initiative is designed to promote inclusivity in agriculture and to grow agri-processing, particularly closer to where farmers farm.

The concept brings together farmers, traders and agriprocessors (such as abattoirs) in convenient sites within each district municipality. Within these parks, 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.

The Agri-park intends to provide a network for farmers and manufacturers. There will also be training available.

The provincial department has a programme to place

OVERVIEW unemployed agricultural graduates at land-reform farms in the province to make sure that the farms are run well, at the same time giving the graduates hands-on experience.

The commercialisation of the goat project which has been running in the Northern Cape for some time has been expanded into Namibia. Emerging farmers in Namibia are being exposed to the benefits of the programme.

Aquaculture and mariculture The Northern Cape’s 313km-long coastline means that the province is well placed to take advantage of growing global demand for abalone.

The aquaculture consultancy Sustainable Environmental Aquaculture Services (SEAS) helped create an abalone farm at Kleinzee which will produce 200 tons of product per year when it is at full capacity. The Western Cape company Tuna Marine is contracted to buy abalone from the Kleinzee facility, which is owned by Ponahalo Holdings (the empowerment partners of De Beers Consolidated Mining South Africa).

With food security an important consideration, the provincial government has committed to supporting small-scale fishers.

Forty farmers have signed up for a Catfish Project in the Vaalharts area. The scheme lies in the Phokwane Local Muncipality, north of Kimberley, which falls under the Frances Baard District Municipality.

A joint venture by the National Department of Science and Technology (DST) and HIK Abalone is running an abalone project in Hondeklip Bay with the intention of producing 120 tons of abalone for sale. This seaside town is very well known for its kelp. The coastline of the Northern Cape has 2 000 hectares of kelp beds.

There is a growing domestic and international demand for kelp.

The old John Ovenstone factory in Port Nolloth is now the site of small-scale hatcheries for abalone and oysters. Premier Fishing has a lobster-processing plant in Port Nolloth.

ONLINE RESOURCES Agri SA: www.agrisa.co.za Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Northern Cape Economic Development Trade and Investment Promotion Agency: www.nceda.co.za Niewoudtville: www.niewoudtville.com Rooibos Council: www.sarooibos.co.za South African Pecan Nut Producers Association: www.sappa.za.org

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Nuts Nuts-in-shell pecan nuts are popular in China. South African producers are able to supply fresh nuts for the Chinese New Year when demand for the snack is high.

Some analysts believe that the Northern Cape could become a global centre for pecan nut production.

Figures released by the South African Pecan Nut Producers Association (SAPPA) suggest that huge increases in production and the extent of land planted to nuts is already underway.

Production of pecan nuts grew from 5 000 tons in 2010 to 10 500 tons in 2015, and the figure continues to rise as world markets react positively to the South African product.

At one time it was thought that pecan nuts were better suited to tropical and subtropical climates, but the consensus is now that the Northern Cape is ideal for the cultivation of the versatile and healthy nut.

Hot summers and short, cold winters are per fect, together with the dry air which has made areas like Prieska, Upington, the Orania district and the Vaalharts area the site of many new groves.

SAPPA says that 90% of the new plantings in South Africa are happening in the drier, western parts of the country.

Farmers have to be patient because the nut takes a long time to grow.

NORTHERN CAPE BUSINESS 2019/20

OVERVIEW

Grapes and wine Record harvests are being recorded.

T

he Orange River region produced a record grape harvest in 2016/17, going above 20-million 4.5kg equivalent cartons for the first time. Despite what were described as ideal conditions, berry sizes were smaller in the 2017/18 season and production was down by 7%. However, with new, more hardy varietals being developed and planted, the outlook for the grape industry in the Northern Cape is good.

A variety of seedless grapes dominate plantings, with Thompson Seedless, Prime, Sugraone, Grapaes and Crispy Flame Seedless among the most popular. The South African Table Grape Industry (SATI) reports that the Orange River region has 1 975 permanent employees and 16 926 seasonal employees.

If ambitious plans to create a Special Economic Zone at Upington come to fruition, the grape, raisin and wine traders of the Northern Cape could be among the beneficiaries, providing logistical support for getting their products to international markets more rapidly than is currently the case.

On a provincial level, there are plans to add 40 000 tons of grapes for wine, juice and raisins to the Northern Cape’s capacity.

A draft six-year plan has been developed for the Northern Cape Vineyard Development Scheme which will be implemented by the Northern Cape Department of Agriculture, Land Reform and Rural Development (DALRRD), the National Agricultural Marketing Council, the Land Bank, Distell, Winetech and Orange River Wine Cellars.

Almost a third of South Africa’s table grape crop is produced in the fertile Orange River region of the Northern Cape. The South African table grape industry has been investing in some new varietals which produce a better yield.

Seventy percent of the Sultana grapes grown in the Lower Orange River Region are used for vine-fruit products. There are 1 250 Sultana grape growers in the province, producing three

NORTHERN CAPE BUSINESS 2019/20

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SECTOR INSIGHT A Special Economic Zone could boost exports.

Sultana-type grapes which rank among the best in the world: the Sultana Clone H5, a new hybrid called Merbein Seedless, which has proved resistant to splitting after rain, and the most popular type, the 143B. The following vine-fruit products are produced in the Northern Cape: Sundried Thompson Seedless Raisins; Dipped Orange River Sultanas; Golden Sultanas; Muscat Raisins; and Monuca Raisins.

An example of successful Sultana-grape production in the province is SAD Vine Fruit (Pty) Ltd, which owns the largest dried-vine fruit processing and packaging plant in South Africa. The Upington-based firm employs more than 350 people when in full production. As much as 80% of vine fruit grown in South Africa is exported, primarily to Europe.

OVERVIEW

Diversified agri-company KLK recently purchased a half share in Carpe Diem Raisins, an exporter of high-quality raisins. The raisin factory has a production capacity of 12 000 tons and the company packages and sells about 22% of South African raisin production. All of the products in the Carpe Diem Group, including table grapes and pecan nuts, are certified organic. With about 135ha under production, the farm lies 10km east of Upington.

Wine According to SA Wine Industry Statistics, the Orange River region has about 5% of the total hectares under wine grapes in South Africa, and just over 3% of the total number of vines. New vineyards are being planted.

Warm to hot conditions, coupled with the nutrient-rich land on the banks of the Orange River and sharply contrasting temperatures at times, combine to produce consistently excellent wines. Average annual rainfall in the area is 150mm, but the eastern part of the region from Kanoneiland to Groblershoop have been receiving more than their due in recent seasons.

The Northern Cape’s Orange River wine region accounts for 25.6% of South Africa’s Colombard vines and 10% of Chenin Blanc. The focus is on Colombard and Hanepoot grapes.

Orange River Wine Cellars (ORC) is a large co-operative with six wineries. Grapes are collected from 749 farmers. OWC has a winery at its head office in Upington and at Keimoes, Groblershoop, Kakamas and Grootdrink.

ONLINE RESOURCES Northern Cape Department of Agriculture, Land Reform and Rural Development: www.agrinc.gov.za Orange River Wine Cellars: www.orangeriverwines.com SA Wine Industry Information & Systems: www.sawis.co.za South African Table Grape Industry: www.satgi.co.za South African Wine and Brandy Company: www.sawb.co.za

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Orange River Concentrate Producers (part of the ORC group) produces about 7.5-million litres of white grape juice concentrate, a percentage of which is exported to Japan where the Itochu Corporation uses it in soft drinks and food.

ORC supplies wine to Tops at Spar which has more than 700 stores across the country and makes Tops’ private label “Carnival”. ORC has also been selling wine in China, the USA and Europe for a number of years through its Norweco division. Unique labelling aims to capture local markets, so ORC wines are called “Star Tree” in the US and “Goddess” in Denmark.

The Douglas Wine Cellar produces about 6 000 cases per year. Together with the Landzicht cellar (just over the border in the Free State), the Douglas Wine Cellars is a GWK company. The Douglas cellar crushes 7 000 tons of grapes ever y year and produces 5.6-million litres of wine.

Hartswater Wine Cellar is a part of the region’s other big agricultural company, Senwes.

Two wine brands (Overvaal and Elements) are produced in the Hartswater irrigation area north of Kimberley.

NORTHERN CAPE BUSINESS 2019/20

PROFILE

South African Table Grape Industry South Africa: Preferred Country of Origin for the world’s best-tasting grapes.

jobs. Several downstream industries are also supported. The harvesting of table grapes in this region takes place from about early November until early February.

Mission SATI represents growers in key government and industry initiatives aimed at creating more opportunities in the sector, from ownership to accessing new markets in a sustainable way.

SATI assists growers with crucial industry information, transformation, statistics, research, technology and technical transfer as well as training and education with the aim of establishing South Africa as the Preferred Country of Origin for the world’s best-tasting grapes.

There are five major table grape-growing regions in South Africa.

The difference in soil and climate enables growers to supply the markets from November to May. The early season is dominated by varieties from the Northern Provinces and the valleys of the Orange and Olifants River.

The Northern Cape has one of the biggest table grape-growing regions, known as the Orange River region, represented by the Orange River Producer Alliance (ORPA), chaired by Willie du Plessis. This table grape region, with more than 5 688 hectares of vines planted, stretches from Upington to Kakamas, Augrabies and Blouputs. The table grape industry is a key industry in the Northern Province, contributing to direct employment in the order of 1 415 permanent and 12 415 seasonal

Vision South Africa is the Preferred Country of Origin for table grapes and will provide every table grape producer as wide a choice as possible with profitable markets.

SATI’s key areas of intervention • Technical market access • Research and technology transfer • Information and knowledge management

CONTACT INFO

• Transformation • Communication and stakeholder

Manager: Communications: Clayton Swart Email: clayton@satgi.co.za Chairperson ORPA: Willie du Plessis Email: willie@omdraai.co.za Physical address: 63 Main Street, Paarl 7624 Tel: +27 21 863 0366 | Fax: +27 21 863 3039 Email: info@satgi.co.za Website: www.satgi.co.za

NORTHERN CAPE BUSINESS 2019/20

SATI delivers service excellence to create a progressive, equitable and sustainable industry.

engagement

• Human capacity and skills development

• Technical support.

These interventions are aimed at assisting producers to Gain, Retain and Optimise (GRO) market access.

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OVERVIEW

Mining A huge zinc project near Pofadder could lead to the Northern Cape acquiring a smelter and a refinery.

W

hen phase three is reached, the biggest new mining project in South Africa will deliver 600 000 tons of zinc for Vedanta Zinc International.

Located about 60km from the small Northern Cape town of Pofadder, the Gamsberg zinc project (pictured) has so far attracted $400-million in investment from the company and started trucking product to the Port of Saldanha in 2018. Phase one of the open-pit operation will deliver an annual load of 250 000 tons of zinc. If it proceeds to phase three, it would likely go underground.

Anil Agarwal, chairman of Vedanta Resources Limited, was quoted by the Sunday Times in 2019 saying that another $400-million might well be committed by the company as it strives to ramp up production volumes.

South African President Cyril Ramaphosa, a former mine union official, was the guest of honour when the Gamsberg project was officially opened. He made a plea for South Africa to create more value from its mineral products. He said, “We must therefore move away from the ‘pit to port approach’ where resources mined here are transported out of the country as raw as they are from along the Sishen-Saldanha route.”

Ramaphosa was referring to the 861km railway line that carries iron ore from the northern parts of the Northern Cape Province to the Port of Saldanha on the west coast. The line has a capacity of 60-million tonsper-year but a truck colliding with a bridge in November 2018 led to the closure of the line and reduced capacity.

The line was quickly repaired in record time and services returned to normal.

The president’s wishes might well be answered by Vedanta who have expressed an interest in building a refinery and a smelter. The fact that South Africa’s power grid has been experiencing shutdowns is less of a problem when one considers that Vedanta is the world’s largest single independent power producer. In India it uses coal NORTHERN CAPE BUSINESS 2019/20

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SECTOR INSIGHT Ekapa Mining paid R300-million to buy out Petra Diamonds from a JV. • Assmang will spend R2.7-billion at its Gloria manganese mine. and renewable resources to generate 10 000MW. At the same time, the Northern Cape Province is continuing with planning towards developing a deep harbour at Boegoebaai. Part of the strategy involves the creation of a commodities corridor linking the Upington Special Economic Zone (SEZ) with the port. The Gamsberg Mine and related industrial investment along the corridor would increase the sustainability of the project.

Ramaphosa made specific pledges from government’s side to fast-track development around the zinc project.

He announced the establishment of an intergovernmental task team led by the Department of Trade and Industry to explore the possibility of establishing a Special Economic Zone to unlock further investment in sulphuric acid and fertiliser. The aim is to develop infrastructure, accelerate sk ills development and empowerment, and consolidate economic development in the Northern Cape.

The president praised Vedanta for spending R44-million on skills development, health, enterprise development and municipal

OVERVIEW infrastructure support in 2018 with a further R77.5-million spent on local businesses. Ramaphosa also noted the significance of the Gamsberg Mine being considered one of the most digitally advanced mines in South Africa.

Other news in the zinc sector is that Australian miner Orion is putting considerable resources into investigating the possible revival of the Prieska Zinc-Copper Project. A maiden mineral resource estimate was published in February 2018 and 14 drill rigs are at work looking into the site’s prospects.

Small-scale mining has been problematic in recent years. It is hoped that the recent issuing of small-scale mining permits will allow individuals access mineral resources in a way that reduces risk. The Office of the Premier, in partnership with the National Department of Mineral Resources, has held a workshop for artisanal mine workers on how to conduct legal mining operations. The Swedish International Housing Company is another partner in identifying possible land on which artisanal miners can legally start sustainable mining operations. Land owned by municipalities at Prieska, Niekerkshoop, Marydale and Griekwastad is the focus of these initiatives.

The National Youth Development Agency (NYDA), the provincial government and Mintek are collaborating on the Prieska Loxion Hub (PLH), which beneficiates tiger’s eye for jewellery and stonecutting products.

Mining sector employment rose somewhat in 2017/18, reaching a total of 27 000.

Mining assets in the Northern Cape • • • • • • •

95% of South Africa’s diamond output 97.6% of alluvial diamond mining 13.4% of world lead exports 80% of the world’s manganese resource 25% of the manganese used in the world 100% of South Africa’s tiger’s eye largest national production of sugilite (a semi-precious stone).

Rare earth elements Rare earth elements (REE) are a very modern mineral, in that large parts of the modern economy rely on them. Super-conductors, X-ray machines, nuclear batteries and PET-scan detectors are just some of the technologies that rely on rare earth elements such as promethium, thulium and holmium. China controls 95% of the world’s supply of REEs and the search is on for

49

alternative sources. Two sites in western South Africa have attracted investors attention: Zandkopsdrift (Northern Cape) and, close by but in the adjoining province of the Western Cape, Steenkampskraal.

Diamonds Another change took place in the diamond ownership environment in 2018 when Ekapa Mining paid R300-million to buy out Petra Diamonds from its Kimberley Ekapa Mining Joint Venture (KEM JV). Petra held 75.9% of the old De Beers assets that include Kimberley Underground Mines, various dumps around the town and underground resources at Bultfontein, Dutoitspan and Wesselton. Ekapa’s plans to keep the mines and tailings in profit entail the use of modern technology.

This includes an automated pan plant in support of an upgraded Combined Treatment Plant.

Rockwell Diamonds, which is listed on the TSX and JSE, has several assets in the Northern Cape. They lie between Prieska and Douglas, south-west of Kimberley: Wouterspan, Nieuwejaarskraal, Remhoogte and Saxendrift.

Away from the underground kimberlite pipes and fissures, river and coastal deposits are also present. Diamonds have been recovered along the Orange, Buffels, Spoeg, Horees, Doom and Swart rivers in the province, while coastal deposits have been found from the mouth of the Orange River to Lamberts Bay. NORTHERN CAPE BUSINESS 2019/20

OVERVIEW In 2018, Trans Hex sold two mines to LOR Diamonds, a blackowned company led by women, but will continue to mine the property as an independent contractor.

The Kimberley International Diamond and Jewellery Academy continues to provide training with a total of 406 graduates having so far passed through the academy. In a recent development, De Beers Sightholder Sales South Africa awarded KIDJA an amount of R500 000 for bursary students. Ten diamond processing bursaries will also be supported by Alexkor for local Richtersveld communities.

Quartz Quartz is used in the manufacture of semiconductors, fibre-optic cables and ceramics. Fused quartz improves the efficiency of solar powered devices and quartz glass is used in the manufacture of photovoltaic cell manufacturing. Positive tests have been done at Riemvasmaak where the silica content is 99.98% in some places. Difeme, a black start-up, will mine the quartz with technical help from Mintek. Investors are sought for the development of processing and beneficiation plant for high-purity quartz.

Iron ore and manganese In 2019, Sitatunga Resources purchased the East Manganese project on the Hotazel-Kalahari ore belt from Southern Ambition.

Menar Holdings, which controls a majority share in Sitatunga, is mostly invested in coal.

Afrimat, a listed construction materials supplier and industrial minerals group, has added open-pit mining to its portfolio with the R322-million acquisition of the Diro mine, which had been in business rescue. The Diro mine has proven run-of-mine reserves of 10-million tons.

The overwhelming majority of the world’s manganese comes from the Postmasburg and Kalahari regions of the Northern Cape. Assmang has two manganese mines in the province: Nchwaning and Gloria.

ONLINE RESOURCES Minerals Council of South Africa: www.mineralscouncil.org.za Mining Qualifications Authority: www.mqa.org.za National Department of Mineral Resources: www.dmr.gov.za Northern Cape Department of Economic Development and Tourism: www.economic.ncape.gov.za South African Mining Development Association: www.samda.co.za NORTHERN CAPE BUSINESS 2019/20

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The Nor thern Cape produces more than 84% of South Africa’s iron ore. The province has two major iron belts, from Postmasburg to Hotazel, and running through Sishen and Kathu. Sishen is the most important iron-ore mine in South Africa, where operations include extraction and four beneficiation plants.

The availability of natural r e s o u r c e s, l a b o u r a n d infrastructure (including the Sishen-Saldanha railway line), make Sishen the ideal location.

Kumba Iron Ore has the huge Sishen facility at Kathu and Kolomela. Assmang, a joint venture comprising African Rainbow Minerals and Assore, mines at Khumani.

The company will spend R2.7-billion on upgrading its Gloria mine.

South32 is very active in the Northern Cape. The Hotazel Manganese Mines is made up of two mines, Wessels (underground) and Mamatwan (open cut), and the Metalloys manganese smelter. The company has 30% of the product from its mines processed at the smelter where a managese alloy is made.

Hotazel is also the site of a relatively new manganese mine, Tshipi é Borwa. Tshipi e Ntle Manganese Mining (Tshipi) is a joint venture between Pallinghurst Co-Investors (led

by Brian Gilbertson) and a black empowerment company representing several groups called Ntsimbintle Mining.

INTERVIEW

Working smart to unlock more value

Deshnee Naidoo, CEO Vedanta Zinc International (VZI), expands on plans for the company’s new Gamsberg Mine.

How is Gamsberg Mine digitally advanced?

Deshnee Naidoo

For VZI, the digital transformation is not something that is planned in years to come, but one that is taking shape today. The next wave will be in the integration of systems to enable our teams to make data-driven decisions to find efficiencies, improve planning, lower risk, create safer working environments and unlock more value from our resources.

When do you expect to be operating at full capacity?

Gamsberg Phase 1 has a Life of Mine of 13 years. Four-million tons a year of ore will be produced from Gamsberg’s open pit and 250 000t/y of concentrate from its concentrator plant. By March 2019, we achieved a mining rate of over five-million tons of ore and waste combined. Concentrate volumes are in the process of ramp-up as the Gamsberg plant reaches full steady state by mid-2019.

Do you have plans to build a smelter and a refinery?

BIOGRAPHY After a 20-year career at Anglo American in various roles, including CFO of Anglo Thermal Coal, Deshnee Naidoo was appointed CEO of Vedanta Zinc International in 2014. Her responsibility covers operations in South Africa and Namibia, the now closed Lisheen Mine in Ireland and Copper Mines of Tasmania in Australia. In May 2018, Deshnee was appointed to the board of the Minerals Council of South Africa, a first for a woman in South African mining.

In parallel with the Phase 2 mine and plant, we are looking at developing a modular smelter/refinery beneficiation complex, which would represent an estimated direct capital investment of USD-800 million. The complex would be the first integrated zinc manufacturing facility in South Africa and the largest in Africa. External factors that will make a critical difference include power security, competitive power tariff, an offtake for the 1 000 tons of sulfuric acid the complex will produce every day and an efficient freight transport solution. This will have to be supported by an aggressive spatial development plan for the region.

When will a decision be taken on investing further?

Vedanta has already committed that Phase 2 of Gamsberg will get underway as soon as is economically and logistically feasible. Phase 1 was executed with a much larger project in mind. We estimate that up to 12 000 direct and indirect jobs will be created in Phase 2.

How does Vedanta view its responsibility to the people of the surrounding area?

Vedanta has always viewed the communities surrounding our mines as partners and stakeholders. Making sure you contribute to improving the lives of the communities around your operations is simply the right thing to do.

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NORTHERN CAPE BUSINESS 2019/20

THE STORY OF GAMSBERG –

HOW VEDANTA IS WORKING TOWARDS

“FULFILLING DREAMS” IN THE NORTHERN CAPE

Vedanta Zinc International (VZI), headquartered in Johannesburg, is a grouping of zinc assets located in South Africa, Namibia and Ireland, owned by India-based Vedanta Limited, a listed subsidiary of Vedanta Resources Limited.

As a globally diversified natural resources major, Vedanta has interests in zinc, lead, silver, copper, iron ore, aluminium, power, and oil and gas.

GAMSBERG TIMELINE

1972

1998

2009-2010 2011

Gamsberg zinc deposit discovered by Okiep Copper Company (OCC)

Anglo American acquired 100% interest in Gamsberg

Anglo American pre-feasibility study, additional drilling in open pit area

Vedanta acquired Black Mountain and Gamsberg mines from Anglo American

2014

2015

Gamsberg feasibility study completed and Phase 1 of project is approved

Gamsberg project site breaks ground

Head office

NAMIBIA Skorpion Zinc Black Mountain Mining Gamsberg project

SOUTH AFRICA

A major focus on VZI’s growth front is Gamsberg – a new zinc mine and its associated infrastructure, Phase 1 of which is now fully operational. VZI’s vision is to create an integrated world-class regional zinc complex comprising Black Mountain Mining (including Gamsberg) and the Skorpion Zinc mining and refining operations.

Gamsberg is one of the largest zinc deposits in the world. Although discovered more than 40 years ago, it was held undeveloped by its various owners before

Vedanta acquired it from Anglo American in 2011.

It has a reserve and resource of more than 214Mt and an estimated life of mine (LoM) of 30+ years.

Vedanta knew that Gamsberg’s impressive scale would contribute to its our overall global position in zinc.

Vedanta committed to our South African stakeholders that the mine would be developed within five years.

Despite being at the height of the global economic downturn in 2014, Vedanta still took the decision to go ahead with the project.

2016

2017

2018

2019

2025

Engineering, procurement and construction services contracted awarded to ELB Engineering Services Proprietary Limited

Gamsberg Phase 1 LOM extension

Gamsberg Phase 2 feasibility

Gamsberg officially opened by President Cyril Ramaphosa and Vedanta Chairman Anil Agarwal

Gamsberg Phase 3

Gamsberg was officially inaugurated by President Cyril Ramaphosa and Vedanta Chairman Mr Anil Agarwal on 28 February 2019.

Vedanta anticipates that Phase 1 of Gamsberg will be at full production by mid-2019.

Gamsberg’s development forms part of Vedanta’s long-term commitment to the development of the Northern Cape. Vedanta is one of the largest private sector employers in the province and the construction of Gamsberg has had a meaningful impact on the local economy.

WHAT WE ARE WORKING TOWARDS Now that Phase 1 of Gamsberg – representing an investment by Vedanta in South Africa of US$400 million – is officially opened, and is working towards full production, Vedanta is focusing on Phase 2, and the potential for a smelter-refi nery complex. Phase 2 would see a larger pit and a second plant stream, increasing ore production to 8 million tons and concentrate to 450 000 tons per annum.

It would represent a further investment of around US$350 million.

Vedanta is currently assessing the feasibility of developing a smelter-refi nery benefi ciation complex – which would be a direct capital investment of US$800 million. This benefi ciation complex will have a wider regional and even national impact, creating industrialisation and employment (estimates suggest construction will create around 4 000 jobs). The complex would be the fi rst integrated zinc manufacturing facility in South Africa, and the largest on the continent.

Vedanta is looking at a range of options to make the complex a reality. These include: • Building the complex at Gamsberg in the Northern Cape – this would have a signifi cant spillover and multiplier effect – a fertiliser industry, the potential to accelerate the region’s agricultural activities, a possible agro-processing industry, and the need (and potential) for both solar and wind power. Vedanta is working with government to create a Special Economic Zone which would support and stimulate this vision.

• Building the complex at a port – Port Nolloth, Saldanha Bay or Richards Bay – this would signifi cantly decrease logistics costs, unlock wider economic opportunities, and position the complex as one of the top port-based smelters in the world.

The development of Gamsberg Phase 2 will create benefits for communities and for South Africa as a whole. Vedanta’s estimates suggest that the project phase will generate a

• 3 000 people employed during construction; 750 people employed for operations to date • 34% women employees • 500 – 1 000 youth in development programs • Improved education facilities for 3 000 learners, 23 students awarded tertiary bursaries (2017/18) • 45 black-owned businesses supported • 12 local businesses created –tripled in value since creation in 2015

once-off contribution to GDP of around R4.3 billion.

Once operational, it should generate around R6.4 billion per annum – excluding the tax revenue it will generate. Estimates also indicate that around 12 000 direct and indirect jobs will be created.

Critical success factors For all of this to happen, Vedanta is dependent on a number of key external factors, including power security at competitive tariffs, an offtake for the approximately 1 000 tons of sulphuric acid the complex will produce every day and an efficient freight transport solution. All of this will have to be supported by and aggressive spatial development plan for the region which will allow for the development of housing and towns closest to the complex to enable a thriving community.

Our communities are critical stakeholders and partners in our work. We get our social licence to mine from them, and Vedanta’s commitment has always been that we will deliver value to all our stakeholders.

Corporate Social Responsibility plays a critical role in VZI’s relationships with its communities and employees. The concept of ‘Business with Purpose’ is one which we take very seriously. We are obliged to deliver returns for all stakeholders, not just to shareholders. VZI can extract value from this vision for our shareholders but more importantly facilitate value for the communities in which we operate.

CSR spend for BMM overall sits at over R17.5 million so far, with over R8 million committed.

OVERVIEW

Water Department of Scientific Services

Water projects are stimulating economic growth.

F

rom providing water for an attempt on a world land speed record to laying on bulk water facilities for small rural municipalities — national, provincial and local authorities have a wide range of challenges to overcome in ensuring that life is sustained, and economic activity can thrive.

The dry area around Hakskeenpan is ideally suited to driving vehicles fast but the world record land speed attempt is going to attract big crowds (and large technical support teams) and so a special effort has been made to provide infrastructure that will make sure that a reliable water supply is on tap. This investment will also secure the venue as a future site of similar open-air events or competitions.

Six municipalities have been identified for the eradication of informal settlements. A major obstacle in the municipalities of Sol Plaatje, Phokwane, Tsantsabane, Dawid Kruiper, Gamagara and Ga-Segonyana is the lack of bulk water and sanitation facilities.

Ring-fenced funding in terms of the Division of Revenue Act has been approved.

Two projects being run by the Provincial Government of the Northern Cape in conjunction with national government departments relate to water. Solar water heaters are being provided to residents of the Sol Plaatje Municipality and training for maintenance and repair is also being offered by the National Department of Energy.

The National Department of Public Works is running a Shared

SECTOR INSIGHT

Water has opened “Sustaining the source and flow of lifeSedibeng forever” a laboratory in the Northern

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Cape.

• Twenty-two villages will benefit from the Vaal Gamagara project.

Water Efficiency Programme on 30 Northern Cape provincial government properties. The provincial government has adopted a Climate Change Adaptation Response Strategy.

Assets Two of South Africa’s great rivers meet in the Northern Cape at a point south-west of Kimberley. After absorbing the Vaal River, the Orange River

OVERVIEW continues westwards to the Atlantic Ocean and provides the basis for agriculture all along its path.

North of Kimberley, the confluence of the Vaal and the Harts rivers encompasses one of South Africa’s most intensely irrigated areas. The Vaal-Harts irrigation system is one of the most productive in the country, covering about 38 000 hectares with a variety of crops. Various water users’ associations (WUAs) representing particular areas (such as the Vaal-Harts) are recognised by the national water authority.

Two of South Africa’s biggest dams, the Gariep and Vanderkloof, also provide water for irrigation and hydro-electric power.

But many parts of the province are dry with sections of the north and north-west classified as semi-arid and arid. The southern Kalahari Desert receives rain (sometimes a lot of rain in a very short space of time) but the fact that mining is a primary economic activity in the dry regions of the province presents many challenges. The town of Kuruman is an exception in that it has a natural and prolific spring, the Eye of Kuruman.

The National Department of Water and Sanitation is consolidating the country’s water boards into nine regional water utilities. Some boards have merged to create new entities while others have extended their area of supply. Sedibeng Water now offers water supply services across three provinces, including most of the Northern Cape.

Sedibeng Water’s Central Laboratory, based at Balkfontein near Bothaville, is a SANAS-accredited facility. A new laboratory has been built to monitor the quality of water at the revamped Vaal Gamagara scheme. The laboratory’s four sections cover Instrumentation, Wet Chemistry, Sewage and Microbiology. When the laboratory gains SANAS accreditation, it will be the first in the province to have such a rating. The water laboratory image is supplied by Sedibeng Water.

Projects The Vaal Gamagara and Namakwa bulk water supply projects hold the key to boosting the mining sector and laying the foundation for expansion in outlying districts. The projects will give additional security to mines, businesses and households in the target areas.

ONLINE RESOURCES National Department of Water and Sanitation: www.dwa.gov.za South African Association of Water Utilities: www.saawu.org.za Water Institute of South Africa: www.wisa.org.za Water Research Commission: www.wrc.org.za

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Engineering group ELB Group has been appointed by Vedanta Zinc International to do a wide range of jobs at its new Gamsberg project. This includes laying a water pipe from the Orange River to the mining company’s processing plant.

The town of Springbok has been plagued by water supply problems for several years, with pipes failing on a regular basis.

The copper mining company that used to see to water delivery operations in the area has closed down. The Namakwa water project will deliver water to about 11 000 households. Twenty-two villages in six municipalities will benefit from the Vaal Gamagara Refurbishment and Upgrading Project.

The existing scheme, run

by Sedibeng Water, supplies about 22-million m³ of water to industry, mines, agricultural enterprises and domestic users, but demand is growing.

E xisting manganese and iron ore mines near Hotazel and Kathu are heavy water users and if any new mines are to be considered in the area, a reliable water supply is needed. The cost of the project, which falls under the National Department of Water and Sanitation, is R18-billion.

Sedibeng Water has been selected as the implementing agent for the project and it will work with the Kgalagadi Joint Venture. Once the project is complete, the scheme will be able to deliver water to neighbouring countr y, Botswana.

NORTHERN CAPE BUSINESS 2019/20

OVERVIEW

Renewable energy Technical innovation comes to the Northern Cape.

SECTOR INSIGHT The tower at Khi Solar One is one of South Africa’s tallest structures.

T

he renewable energy revolution is speeding up. In recent months, landmarks such as the start of commercial operations by the 100MW Kathu Solar Park and the reaching of financial closure of the 147MW Roggeveld Wind Farm mark what can be described as the first phase of the coming of renewable energy to South Africa.

In less than a decade, an entirely new sector has been created through legislation that invited local and foreign investors to bid for and then build renewable energy generation plants. South Africa’s National Development Plan (NDP) requires 20 000MW of renewable energy by 2030. That will be achieved mainly through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The wind and solar parks now spreading over the vast spaces of the Northern Cape indicate that renewable energy has well and truly arrived.

Projects such as Kathu Solar Park, a concentrating solar power (CSP) project, and the Roggeveld Wind Farm are indicative of the large scale of most of the energy generation that is being rolled out, but at Black Rock Mine solar power is being put to use on a smaller, but no less important scale. To light the intersections leading to the mine, BEKA Schréder has installed solar-powered street lights.

The 2018 signing ceremony by new Energy Minister Jeff Rabebe restarted the REIPPPP when he signed off on projects totalling R56-billion that will add 2 300MW to the national grid. There had been a long delay in the process as national utility Eskom argued NORTHERN CAPE BUSINESS 2019/20

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against accepting more power purchase agreements while they had a surplus. Most of South Africa’s electricity comes from coal and Eskom is building two huge coal-fired power stations.

When a group of dignitaries gathered a month after that important signing ceremony to inaugurate a solar plant that covers 300ha in the Northern Cape, there was therefore a lot of optimism in the air. National government’s confirmation of its commitment to the REIPPPP is vital for growth. Approximately 60% of the projects so far allocated have been in the nation’s sunniest province.

Xina Solar One is located at Pofadder on the N14 between Upington and Springbok. The R9.4-billion project is a joint venture between Spanish energy firm Abengoa Solar, the Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and a community trust representing the local population. The plant is Abengoa’s third in the Northern Cape. Kaxu Solar One is also near Pofadder but Khi Solar One is closer to Upington. All three use concentrated solar power which reflects the sun’s rays

OVERVIEW

during the day in to a molten salt storage system. The energy is then slowly released during the night. The 205m tower that collects the rays at the Khi Solar One site is one of the tallest structures in South Africa. The image across two pages that introduces the sector overviews (pages 38 and 39) shows the tower at Khi Solar One. The Northern Cape is the natural home for the generation of solar power. Long-term annual direct normal irradiance (DNI) at Upington is 2 816kWh/m², according to a survey done for Stellenbosch University by Slovakian company GeoModal Solar.

South Africa’s national average is among the best in the world.

Stellenbosch University’s Solar Thermal Energy Research Group has six sites monitoring irradiation levels.

The small towns of Postmasburg and Groblershoop lie between Upington and Kimberley. They are modest settlements which have ticked along in support of surrounding farmers with some diamond mining and wine cultivation. They are now the centre of some of the world’s most advanced technological innovation in concentrated solar power.

Saudi Arabian electricity group ACWA Power has won approval for the 100MW Redstone project near Postmasburg and the 50MW Bokpoort CSP plant near Groblershoop is in operation.

Large wind projects are also winning approval in the Northern Cape. The commissioning of the 100MW De Aar Wind Power Project brings together Mulilo Renewable Energy and the China Longyuan Power Group Corporation.

Commercial operations have begun on Khobab Wind Farm and Loeriesfontein Wind Farm, collectively providing 280MW via 61 wind turbines. The projects were developed by Lekela Power, a joint venture between Actis and Mainstream Renewable Power.

Noblesfontein (main picture) was one of the earliest wind farms to be constructed in the Northern Cape, about 40km from Victoria West. Spanish company Gestamp Wind was an early investor.

The 147MW Roggeveld Wind Farm, which has 47 Nordex wind

ONLINE RESOURCES IPP projects: www.ipp-projects.co.za National Energy Regulator of South Africa: www.nersa.org.za South African Photovoltaic Industry Association: www.sapvia.co.za South African Renewable Energy Council: www.sarec.org.za South African Wind Energy Association: www.sawea.org.za

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ACWA Power’s Bokpoort CSP project uses innovative technology. (Image: Abengoa).

turbines and was developed by G7 and then taken over by Building Energy, will operate commercially in the first quarter of 2021.

The support of two of South Africa’s biggest institutional i nve s to r s, th e I n d u s tr i a l Development Corporation (IDC) and the Public Investment Corporation (PIC), has been crucial in getting the renewable energy sector off the ground. They have also played a role in helping communities fund their participation in community trusts.

According to Business Day, the PIC has so far invested in 16 unlisted projects and its total investment stands at R11-billion. The IDC’s 24 projects are valued at R14-billion and will contribute 1 100MW to the national power grid.

NORTHERN CAPE BUSINESS 2019/20

OVERVIEW

Banking and finance New banks are targeting niche markets.

N

ews in 2018 that a mutual bank in Limpopo had been hollowed out by corrupt activities put the spotlight on banking practice in South Africa. Mutual banks do not offer full-service banking but focus rather on encouraging savings and providing benefits to their depositors.

Despite the experience in Limpopo, the appetite for mutual banks is strong, given the nature of the South African market. The Young Women in Business Network (YWBN) intends applying for a mutual bank licence in 2019. Bank Zero will use the mutual model while other new entrants such as Timebank (free transactional accounts) and Discovery Bank (which will apply the behavioural model it uses in its health business to reward good financial behaviour) are introducing innovations.

South Africa’s four big retail banks (Nedbank, Absa, Standard Bank and First National Bank) have a solid presence in the major towns in the province. Capitec is rapidly moving towards being part of a Big Five and it announced in 2018 that it would partner with Centriq Life to enter the insurance market.

The established banks have specialists in the province and dedicated units such as Nedbank Agribusiness. Focus areas for this unit are agronomy (grain, oil seeds, sugar and cotton), livestock (including game farming), horticulture (fruit and vegetables, for example), and secondary agriculture which covers agricultural processing and storage.

With the renewable energy sector booming in South Africa, a whole new sector in need of project funding has opened up for banks. The Northern Cape has attracted a high percentage of independent power producers which have won the right to build power plants, especially in the solar power sector.

The other new sector is astronomy as represented by the Square Kilometre Array project. This will attract investments, one of the first of which is in education by Absa Bank. The bank has

ONLINE RESOURCES Association for Savings and Investment South Africa: www.asisa.org.za Chartered Institute for Government Finance, Audit and Risk Officers: www.cigfaro.co.za Financial Services Board: www.fsb.co.za

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SECTOR INSIGHT Sol Plaatje University has received R4.5-million from Absa Bank for Data Science. given R4.5-million to Sol Plaatje University to develop the field of Data Science.

The Land and Agricultural Development Bank of South Africa (Land Bank) is a major participant in the Northern Cape financial sector and the Industrial Development Corporation (IDC), as an equity investor in several businesses in strategic sectors, is another important player.

Most agricultural companies in the Northern Cape have f inancing and ser vices divisions, as one would expect in a province with a strong and varied agricultural sector which exports much of its produce.

GWK has six units within its Corporate Services division and these mostly relate to finance: Finance, Financing, Risk Management, and Financial Agricultural Advice.

In 2017 Senwes and its holding company Senwesbel became the first new stocks to be listed on the country’s new stock exchange, the ZAR X. Upington-based KLK Landbou offers insurance and medical cover while OVK has insurance and financing options.

OVERVIEW

Development finance and SMME support An industrial park at Kathu will boost SMMEs.

A

n opportunity to move materials and do production drilling for Kumba Iron Ore has not only spurred Kele Mining Solutions, a Northern Cape SMME, to hire 150 people, it has led to the establishment of a subsidiary logistics company. Kefilwe and Jomo Khomo (pictured with some of their staff) experienced a huge increase in turnover when they teamed up with minerals giant Kumba, which has set aside R1-billion specifically for local procurement and supplier development. The company’s supplier development programme also gives advice on business practices and marketing. With a head office in Kathu, Kele is expanding to the platinum sector in Rustenburg and looking for business in Botswana. The Khomos are also doing their bit for SMME development by contracting other local businesses when they can.

SMMEs will be catered for in the planned Kathu Industrial Park which is being supported by the Industrial Development Corporation (IDC) and companies in the mining sector. The focus of the park will be metals. The park’s infrastructure will enable smaller companies to be in a position to tender for supply contracts to mines.

The Industrial Development Corporation is one of the biggest funders of projects in the Northern Cape. Through the IDC’s Transformation and Entrepreneurial Scheme, a black economic empowerment project is underway at Kakamas, where emerging farmers are planting citrus.

A 2018 conference on renewable energy laid out opportunities in this growing sector for interested SMMEs. The theme of the conference was “Driving economic growth and transformation through renewable energy”.

A provincial local economic development (LED) forum was held with a focus on finance and commercial banking. The opportunities for small, medium and micro-enterprises (SMMEs) were explained

ONLINE RESOURCES Industrial Development Corporation: www.idc.co.za Small Enterprise Development Agency: www.seda.org.za Small Enterprise Finance Agency: www.sefa.org.za

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SECTOR INSIGHT Kumba will spend R1-billion on local suppliers and procurement.

and various supplier development and training programmes were detailed.

The provincial government supports small enterprises, rural enterprises and co-operatives through business and financial management training and procurement of goods from SMMEs. In partnership with the Small Enterprise Development Agency (Seda), cadets receive training before receiving work places at various municipalities.

There is a plan to create a Provincial Incubation Strategy and planners are also looking into creating a specialist Renewable Energy Incubator to support smaller entrants into that growing sector. Many programmes focus on agricultural production and food security.

NORTHERN CAPE BUSINESS 2019/20

PROFILE

Northern Cape Chamber of Commerce and Industry Your ultimate business connection.

• Disseminates information that is useful to the

Our heritage in brief

business fraternity

• Creates opportunities for improving business skills • Extends business contacts locally, regionally and

NOCCI was established on 22 February 2000 when the Chamber of Business and the Kimberley Afrikaanse Sakekamer amalgamated. At the time, these two organisations had served the business community of Kimberley for 120 years.

nationally, and allows individual businesspeople to share in the provincial and national business decision-making processes • Upholds the market economy and private enterprise system • Has committees which are ideal places for members of diverse interests to consolidate and unify their thinking as they work together – committees accurately sense the environment, process information and provide valuable guidance to the member • Holds functions and special events, allowing members to network and learn about interesting topics Through affiliation with national organised business structures, the “Voice of Business” is representative as memberships grows. The “Voice of Business” is a binding force combining the skills and influences of men and women engaged in all forms and sectors of business.

Membership advantages A Chamber assesses and evaluates the needs of the local business community, especially regarding the need for services to small business at a reasonable cost: • Monitors developments at the local level • Mobilises business opinion on local issues • Exerts a positive influence on the environment in which business operates and helps prospective members grow their business • Promotes and encourages the pursuit of a high standard of business ethics

Can you afford not to belong?

The increasingly complex business and social environment requires a comprehensive support structure to ensure the most favourable climate for the continued viable existence of individual businesses in a system of free enterprise. At the same time, the Chamber movement facilitates adjustment by business to those realities that cannot be altered.

From left: Hannes van Niekerk, Riaan Vorster, Marie Parsons (NOCCI President), Innes Joubert, Jan van Vuuren, Tasneem Motlekar, Charlene Zondagh, Pieter Serfontein and Jaime Goncalves. Absent: Mr Gerrie Cloete, Mr Harry Hurndall and Ms Nicola Smith

NORTHERN CAPE BUSINESS 2019/20

Involvement in the Chamber movement bears abundant fruit for the well-being of each business.

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PROFILE

EXPO AND TRADE FAIR Hosted by NOCCI in association with OFM KIMBERLEY: 1 - 3 AUGUST 2019 MITTAH SEPEREPERE CONVENTION CENTRE

NOCCI staff: Cornel Snyman - PA, Sharon Steyn - CEO and Beverley Deke - Members Manager

Thousands of successful businesspeople can testify to the enrichment of their own skills and the development of a network base through active participation in the Chamber affairs. If you are a businessperson with vision, you cannot afford not to join the Chamber movement.

Face -to-face interaction is the best way to build business relationships with suppliers and peers.

Who will attend?

Corporate managers, engineers, sales managers, plant managers, the public, research/ development and purchasers.

Executive Committee of NOCCI President: Marie Parsons (Parsons Home Appliances) 1st Vice-Chairperson: Riaan Vorster (GW Rugby Union) 2nd Vice-Chairperson: Charlene Zondagh (Halsted) Treasurer: Jan van Vuuren (Bishops Lodge) Executive members: Hannes van Niekerk (Super Armature Winding), Innes Joubert (GWK), Tasneem Motlekar (Engelsman Magabane), Pieter Serfontein (Hancor Dairy), Jaime Goncalves (KEW), Harry Hurndall (Roburn Construction) Staff: Sharon Steyn (CEO), Cornel Snyman (PA to CEO), Beverley Deke (Members Manager).

What NOCCI Expo and Trade Fair offers NOCCI offers you the keys to gaining a competitive edge. In a single trip, you can visit all your vendors. You have a chance to source new suppliers, get ideas from other industries and pursue professional development.

No other show in the Northern Cape offers so much.

Stands The Expo has grown from 62 stands. In 2018, a total of 176 stands were sold.

Stands are located in the auditorium of the convention centre. Seize this amazing opportunity and BOOK YOUR STAND NOW.

CONTACT INFO CEO NOCCI: Kimberley: Sharon Steyn Tel: +27 53 831 1081 | Fax: +27 53 831 1082 Cell: 083 457 8148 | Email: Sharon@nocci.co.za Website: www.nocci.co.za

NOCCI Members: R7 000 Non-members: R8 600 Contact Beeda on 083 279 2929 Stalls now open for 2019

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NORTHERN CAPE BUSINESS 2019/20

INDEX

INDEX Black Management Forum (BMF) ��������������������������������������������������������������������������������������������������������������������� 5

Nedbank ����������������������������������������������������������������������������������������������������������������������������������������������������������� 34-37

Northern Cape Chamber of Commerce and Industry (NOCCI) ������������������������������������������������������������62

Northern Cape Department of Economic Development and Tourism ������������������� IFC, 10-25, OBC

SA Airlink ��������������������������������������������������������������������������������������������������������������������������������������������������������������� IBC

Sol Plaatje University �������������������������������������������������������������������������������������������������������������������������������������������32

South African Table Grape Industry (SATI) ��������������������������������������������������������������������������������������������������46

Upington Special Economic Zone (SEZ) ������������������������������������������������������������������������������������������������������26

Vedanta Zinc International ����������������������������������������������������������������������������������������������������������������� 51, 52-55

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Promotion of Economic Growth and Economic Development in the Northern Cape Province Physical: Metlife Towers, 13th Fl, Cnr Stead & Knight Sts, Kimberley, 8309 Postal: Private Bag X6108, Kimberley, 8300 Tel: 053 839 4000 | Fax: 053 832 6805 Web: http://economic.ncape.gov.za Email: dedat@ncpg.gov.za